Chapter Seven

Align interdependent decisions

Aligning decisions at Boklok1

The Swedish prefabricated house manufacturer Boklok is a joint venture between furniture retailer IKEA and global construction company Skanska. When Boklok launched operations, making the business model work required the management team to make various integrated choices, deciding what type of houses to offer, at what cost point, where to produce them, and how to go to market, to name but a few.

Despite the team’s efforts, the initiative failed to take off as expected. As it turned out, the team had failed to determine an appropriate organisational set-up between IKEA ...

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