Driving Innovation and Team Success: Insights from IKEA Leadership

In a retail landscape that is changing fast, effective collaboration and adaptability are essential. In this context, Amrop spoke with Katarzyna Warchał, Managing Director at IKEA Purchasing and Logistics for Central Europe, who throughout has witnessed significant changes in the role of Purchasing, and has excelled in developing successful teams across diverse functions and cultures.

Katarzyna shares her insights on recruitment, the importance of clarity in team roles, the impact of digitalization on buyers' responsibilities and new generations of leaders entering the workforce. She also discusses how IKEA embraces long-term partnerships and the principles of democratic design to drive innovation and navigate modern challenges.

Please share a bit of your experience with developing teams across different functions and cultures in international retail. What methods have you used and how has that changed over time?

I consider myself fortunate because I experienced Poland's shift from communism to democracy, entering the workforce in the 90s when many foreign companies established operations in the region. My career began with Tesco in Poland, UK and CE, Sainsbury’s for whom I ran sourcing operations, and Kingfisher.

To effectively develop teams across different functions and cultures, I focus on three main aspects:

Recruitment: It’s vital to identify the right skills, values, and personalities, ensuring candidates not only fit individually but also enhance team dynamics and perspectives.
Clarity of Purpose: Team members must understand the team's goals, their roles, and contributions. This clarity fosters engagement and accountability.
Leadership: A leader’s self-awareness and understanding of their impact on the team are crucial. Effective leaders should seek feedback and reflect regularly on their influence and decisions. Asking what team members say about their leaders outside of work can provide valuable insights.

I also developed a concept called "Oasis," aimed at creating a supportive environment where team members can share ideas and challenges openly. This place nurtures collaboration and energy, essential for thriving in the complex and dynamic landscape of international retail, especially with the changes brought by the COVID-19 pandemic and the shift to remote and hybrid work structures. Balancing rational and emotional needs within the team is key to inspiring and motivating members.

Let’s talk for a moment about generational aspects of leadership. How do you perceive the new wave of leaders entering the workforce, particularly from Gen-Z? Have you noticed any significant differences in their leadership styles or approaches, and do you think there are certain adjustments that need to be made to accommodate them?

I believe each generation contributes uniquely to society and the workplace. I enjoy working with younger people because they often exceed expectations when given trust and the right conditions, such as feeling accepted and valued. When team members know their voices are heard and respect the environment they enter, generational differences become less significant.

Different generations approach risks and flexible working differently, with various expectations. It’s essential to understand the reasons behind these needs and what individuals genuinely mean. Recently, I encountered research on the IT sector that highlighted a disconnect regarding flexibility. Employees viewed it as the ability to adjust their working hours to fit their lifestyles, while employers typically linked it to the number of days spent in the office.

How did IKEA navigate the discussions around remote work during and after the COVID-19 pandemic?

We kept our Warsaw office open throughout. As social beings, many people prefer not to be isolated at home. Our office provided a hygienic place for colleagues to gather and communicate, making it easier for those who needed a productive workspace, especially since some employees faced challenges with home arrangements.

Our approach now emphasizes spending the majority of time in the office, as we believe creativity and collaboration flourish through direct interaction. We also consider time spent with suppliers, as strategic cooperation is vital. In summary, our workplace design is activity-based; not everyone has an assigned desk, and we create spaces for teamwork and quiet work. We've ensured there are dedicated areas for focused tasks to facilitate concentration.

Lastly, companies are bringing employees back to the office due to the disconnect between the workforce and company culture. Each organization must make its own decisions, but for us at IKEA, in-person collaboration and togetherness are integral to our culture. A recent study involving heads of various Polish companies revealed a diverse range of approaches, showing how personal perspectives among leaders significantly influence strategies.

What key qualifications should a buyer in the consumer industry have to successfully navigate the complexities of strategic vendor management and direct sourcing strategies? How has that changed over time?

I have worked in several purchasing companies, and would say that the purchasing process was much more transactional in the past based on my personal experience. Today, to remain competitive, it’s essential to have strategic relationships with partners. At IKEA, this focus on long-term innovation has been part of our DNA for many years. Before COVID, our average relationship with manufacturers was about 11 years, with some Polish companies working with us for over 30 years.

The purchasing process has evolved to become more strategic, based on partnership and collaboration. However, the role of the buyer has also become significantly more complex. Buyers must now consider factors such as energy prices and the impacts of geopolitics on supply chain resilience. Issues like the Suez Canal blockage, fluctuating container prices from China and the recent customs and trade tariffs are particularly relevant.

Moreover, the complexity of legislation, especially in the European Union, requires us to ensure compliance within our organization and with our partners. Digitalization adds another layer of challenge, with new tools and AI influencing buyers’ realities. Continuous upskilling has become essential over the past two decades, making this a journey for all of us as coworkers.

Does digitization play a significant role in the buyer’s work nowadays?

Certainly. New tools, platforms, and AI technologies are influencing buyers' job realities and creating a need for continuous upskilling. Over the past two decades, buyers have really had to commit to ongoing learning, which is a constant journey for all of us as coworkers. I see it as an ongoing evolution. As a global organization, IKEA continuously develops and introduces new tools, often in partnership with external experts. We strive to merge high external standards with the IKEA context, which is complex due to our ownership of the entire value chain, from raw materials to store delivery.

We are not starting from scratch, but rather enhancing our scattered developments to create more comprehensive, process-driven solutions. This transformation is a journey for our organization, managers, and coworkers alike. For example, in the past, applying for a job meant signing numerous papers at the personnel department. Today, recruitment can occur entirely online—candidates may not meet their future employer in person until a social event after their hiring paperwork has been processed.

What strategies does IKEA implement to ensure effective collaboration and decision-making among teams?

I also want to highlight the concept of interdependencies, which is key in various roles today. Purchasers need to understand the entirety of the business. At IKEA, we embrace what we call "democratic design," meaning that when designing a product, we consider several factors: price, form, function, sustainability, and quality. All five areas require buyer engagement, and each is an ocean of information with regulations that we must comply with, as the responsibility for bringing products to market rests with us.

The current environment is complex, and buyers need to understand who their stakeholders are and where to seek advice and knowledge. We can be valuable sources of information for them, as they also need to convey insights to our key performance indicators and engage as partners in conversations with suppliers. This brings its own challenges; the ability to prioritize is essential not just for buyers but for everyone in the organization.

Knowing when to say "enough is enough" is crucial, especially when navigating the vast amount of information available. There comes a point when you must decide that you have sufficient facts and data to make informed choices. Many people in large companies often feel that decision-making processes can be too lengthy, leaving them wanting quicker resolutions. Therefore, it’s imperative for individuals to prioritize effectively and determine when they have enough information to make impactful business decisions.

To find out more, reach out to the Global Consumer & Retail Practice members in your country.