Purpose
After a decade-long slump, Lego has rebuilt itself into a global giant. This paper forms a review of the literature associated to the history of Lego, its purpose is to develop a grounded account of the approach and actions employed in the transferral of leadership which ultimately led to the success enjoyed by the organization today. An interrogation of the organisations leadership turnaround strategy will expose common leadership failures, in turn providing solutions to the problem statement.
Building Blocks
The research and information mining undertaken revealed innovation as a strategically critical aspect of organisational success, a subject that is often discounted by those in leadership positions. The failure of an organisation …show more content…
This was followed by a strategy for stabilization through the appointment of cross-functional executive teams; “the new management orchestrated a turnaround, and by 2007 Lego was seeing its best ever financial performance.” (John Bessant and Joe Tidd, “Lego,” Managing Innovation: Case Studies (2009), http://www.managinginnovation.com/case_studies/Lego.pdf.) The third phase was of organic growth. A better understanding of its market segments would allow them to define and adequately satisfy the needs of their young consumers. The only way to accurately outline what the target audience viewed as valuable was to probe them; Lego achieved this by opening its comment, recommendation, improvement and innovation processes to its customer base and effectively handing over the role of Creative Director to thousands of devotees around the globe. In an industry largely focused on low-cost, mass production, Knudstorp identified a gap in the market – customization through the co-creation of toy sets with Lego enthusiasts. Knudstorp applied foresight to envision a lucrative future for Lego. He applied inventive thinking to depict a modern Lego. Knudstorp accomplished this by investing heavily in the science of child play around the world – profound ethnographic research studies revealed much about the subject, and provided Lego with the competitive advantage it required, the perfect tool necessary for a complete overhaul of Lego’s product development strategy. Research revealed insights which allowed the brand to successfully penetrated markets in the USA, China and Germany. Lego’s revival as a lucrative toy company can be attributed to its leadership’s willingness to adopt open innovation and the concept of distributive co-creation, not only within its target market of boys aged between 5 – 11, but also within Adult Fans of Lego
After a decade-long slump, Lego has rebuilt itself into a global giant. This paper forms a review of the literature associated to the history of Lego, its purpose is to develop a grounded account of the approach and actions employed in the transferral of leadership which ultimately led to the success enjoyed by the organization today. An interrogation of the organisations leadership turnaround strategy will expose common leadership failures, in turn providing solutions to the problem statement.
Building Blocks
The research and information mining undertaken revealed innovation as a strategically critical aspect of organisational success, a subject that is often discounted by those in leadership positions. The failure of an organisation …show more content…
This was followed by a strategy for stabilization through the appointment of cross-functional executive teams; “the new management orchestrated a turnaround, and by 2007 Lego was seeing its best ever financial performance.” (John Bessant and Joe Tidd, “Lego,” Managing Innovation: Case Studies (2009), http://www.managinginnovation.com/case_studies/Lego.pdf.) The third phase was of organic growth. A better understanding of its market segments would allow them to define and adequately satisfy the needs of their young consumers. The only way to accurately outline what the target audience viewed as valuable was to probe them; Lego achieved this by opening its comment, recommendation, improvement and innovation processes to its customer base and effectively handing over the role of Creative Director to thousands of devotees around the globe. In an industry largely focused on low-cost, mass production, Knudstorp identified a gap in the market – customization through the co-creation of toy sets with Lego enthusiasts. Knudstorp applied foresight to envision a lucrative future for Lego. He applied inventive thinking to depict a modern Lego. Knudstorp accomplished this by investing heavily in the science of child play around the world – profound ethnographic research studies revealed much about the subject, and provided Lego with the competitive advantage it required, the perfect tool necessary for a complete overhaul of Lego’s product development strategy. Research revealed insights which allowed the brand to successfully penetrated markets in the USA, China and Germany. Lego’s revival as a lucrative toy company can be attributed to its leadership’s willingness to adopt open innovation and the concept of distributive co-creation, not only within its target market of boys aged between 5 – 11, but also within Adult Fans of Lego