Leadership and responsibility shared across the entire community
06 | 2023 Sanna Valkeejärvi, Olli Laine and Kari Kellokoski
Kari and Olli founded Kipinä two years ago. In that time, revenue has grown from zero to 4.1 million euros in the first full financial year. Throughout this two-year journey, Kipinä has always put people first, even ahead of business. How do Kari and Olli view the present and future of work?
Kipinä operates on an exceptional model where everyone who joins the company also becomes a shareholder. Another unique aspect is that the founders do not decide alone who joins the company; instead, existing shareholders interview new candidates, and decisions are made collectively. Just like everything else at Kipinä.
"We want to achieve and witness even more than just company growth. A thriving work community and our unique structure play a key role in that. Amidst this rapid pace of change, we want to ensure that Kipinä only grows stronger over time," Kari says.
"In expert work, a person's well-being and mental capacity to perform have a massive impact," Olli adds.
Traditional working life is obsolete
The pace of change in expert work is rapid and will only accelerate in the future. Roles and job descriptions are evolving, and artificial intelligence is impacting everything. Experts must be able to learn new things and develop themselves continuously alongside their work.
People find new things frightening, especially when they are discussed and decided upon behind closed doors rather than sharing information transparently. Operating through a hierarchical model fails to harness the full potential of the organization for optimal results. At Kipinä, everything is open, and information is accessible to every partner.
"Kari and I act as facilitators for the company and work for our owners, the partners. Leadership from the founders' perspective at Kipinä means that we guide, support, and bring all information out into the open," Olli explains regarding their management philosophy.
"The structure of Kipinä, joint decision-making, is behind everything, but we must remember that it is not the only saviour. Transparency has to be maintained all the time. With this model, you don't need People Lead people or separate values on the walls of the company. The community builds them together," Kari continues, adding that "Will HR have a role in the future? What will that function look like? At the very least, culture cannot be built from a single function as a given."
The symposium focused on developing Kipinä's community and operational practices – together.
"Kari and I act as facilitators for the company and work for our owners, the partners. Leadership from the founders' perspective at Kipinä means that we guide, support, and bring all information out into the open," Olli explains regarding their management philosophy.
"The structure of Kipinä, joint decision-making, is behind everything, but we must remember that it is not the only saviour. Transparency has to be maintained all the time. With this model, you don't need People Lead people or separate values on the walls of the company. The community builds them together," Kari continues, adding that "Will HR have a role in the future? What will that function look like? At the very least, culture cannot be built from a single function as a given."
"Software development as manual labor will disappear in 10–20 years."
Artificial intelligence has a profound impact, particularly on companies operating in software development. Keeping pace with the rate of change is mandatory for success. Traditional top-down management structures where people are treated as mere pawns no longer work in this changing world.
Modern working life and leadership models require a change in mindset from both leaders and experts. In the future, leadership and responsibility must be distributed across the entire company. For this to happen, power must be transferred from management to the wider community, and the community must be equipped to take responsibility for the business and its operations.
Kipinä's model works, but it requires constant work and there is no room for compromising on transparency and values. Putting people first, even before business, is also a good way to achieve good results.
Kipinä is a community of experienced industry experts. Currently, there are 33 people in Kipinä and turnover is growing all the time.
"A revenue of 4.1 million for our first full financial year is not enough. Together with Olli, we want to build a community that can weather any challenge in the current pace of change. Whatever the future holds – we will boldly move toward it together as a community. By putting people and community first, we also drive profitability," Kari says, sharing the duo's perspective.
Growth is still going strong. In January-May 2023, Kipinä's turnover has increased by 53.3% compared to the same period last year.
Trust in colleagues is one of the cornerstones of Kipinä.
An exceptional company requires exceptional founders.
Beyond Kipinä, Kari and Olli share much in common. With technical backgrounds and inspired by their own experiences to try something new, both are driven by a passion to do things differently, help others succeed, and correct systemic flaws.
"We are similar and different in just the right proportions to make this work. For both of us, a people-first mindset is paramount, and we never have to argue about our values. Not once have we had to debate what should be done or where Kipinä should be headed," Olli and Kari discuss entrepreneurship together.
In the same way that Kari and Olli, as in Kipinä in general, value different views and listen to each other.
"This is not a sprint, or even a marathon, we are on an ultra. We need to be fit and well. And trust in each other must be and is at a high level thanks to transparency. This openness, trust and the importance of being able to cope extends to everyone in Kipinä," Kari reflects.
Kari and Olli believe this is the only viable model for the future if one wishes to succeed. Hierarchical power structures inherently conflict with individual well-being and productivity. Mutual respect across the entire organization and among partners eliminates this conflict, which is key to success.
The question is, why are kindness and fairness considered exceptions in this industry? At their best, professional relationships allow even difficult topics to be discussed openly and decided upon collectively. The same principle applies directly to employment relationships.
Who?
Kari Kellokoski
Before Kipinä: Roles in software development and IT project consulting from consultant to manager as entrepreneur and at HiQ, among others
Age: 49
Hobbies: Cycling, swimming, running, padel, freeride skiing, hunting
Advice for executive management: The company you lead is defined by what people say about it when you leave the room. Consider what you want said about your company and act accordingly. Everyone sees right through the fluff.
Olli Laine
Before Kipinä: Sales and business leadership roles Vincit, HiQ. Previously a software developer in several companies.
Age: 40
Hobbies: Cross-country skiing, cycling, padel, running
Advice for executive management: Ensure you carve out time for yourself and for thinking. For me, physical exercise works best.