Jones IT’s Post

Continuing this series on over-innovation, this paper explores how over-innovation impacted General Motors (GM) and LEGO differently. GM's multi-brand strategy allowed it to spin off new brands into independent companies, diversifying risks and creating new revenue streams, which helped it survive a financial crisis. Conversely, LEGO's over-innovation led to a near bankruptcy, but the company managed to recover by refocusing on its core product, the Lego brick, and reducing its product range. The paper underscores the complex relationship between innovation, brand strategy, and corporate survival.

Building Beyond Business: How LEGO's Meaning-Driven Model Redefines Success In the fast-paced world of business, companies often emphasize competitive edge and customer service. Yet, many fail to address a crucial question: why does their company truly matter? #Lego

💡 LEGO's Brick-by-Brick Turnaround Facing a $300 million loss in 2003, LEGO's future was bleak. However, they embarked on a restructuring journey: divesting non-core assets, revamping product development, and refocusing on their iconic bricks. Today, they're not just a toy company but a global creative force. 🧱 Key Lesson: Simplify the offering. Lean into what made you iconic in the first place.

🔵 Turning Crisis into Opportunity: The LEGO Story 🔵 As professionals, we often face challenges that seem insurmountable. But, as the remarkable turnaround of LEGO teaches us, even the most daunting obstacles can be transformed into stepping stones for success. In the early 2000s, LEGO found itself on the brink of financial ruin. The iconic toy company was struggling due to over-diversification and a lost focus on its core products. What followed is a masterclass in strategic problem-solving and innovation. 🧱 Back to Basics: Under the leadership of Jørgen Vig Knudstorp, appointed CEO in 2004, LEGO made a bold move to return to its roots – the classic LEGO brick. They simplified their product line, reducing complexity while maintaining the essence of creativity that LEGO is known for. 🤝 Community Engagement: Recognizing the untapped potential in their adult fan base, LEGO began to actively engage with them. This not only provided invaluable feedback but also opened new market opportunities. 🌟 Strategic Partnerships: By partnering with blockbuster franchises like Star Wars and Harry Potter, LEGO was able to attract new segments of customers, rejuvenating interest in their products.✂️ Operational Efficiency: Streamlining operations was key. LEGO managed to cut costs without compromising the quality of their products, a delicate balance that paid off significantly. 🚀 Innovative Investments: Even in the face of financial strain, LEGO continued to invest in innovation. This led to the creation of new, successful product lines like LEGO Technic and LEGO Mindstorms. The LEGO turnaround story is more than just a corporate success; it's a testament to the power of strategic thinking, customer engagement, and the courage to return to one's roots. It reminds us that no matter the challenge, with the right approach, we can rebuild and come back stronger. #businessstrategy #innovation #leadership #lego #humanai

So true. Focus, realign, restructure and execute the original idea. Believe in your vision.

Yes, you heard right. LEGO, the cornerstone of creativity and problem-solving in playrooms worldwide, holds untapped potential for revolutionizing management and consulting practices. How, you ask? LEGO Serious Play, a methodology embraced by forward-thinking companies, leverages the power of hands-on, minds-on learning to foster deep, insightful conversations and unlock new business insights. This innovative approach is not child's play; it's a strategic tool that empowers teams to visualize complex ideas, explore scenarios, and build shared understanding and solutions. The essence of LEGO in the business context lies in its simplicity and the universal language of building. By constructing models, participants articulate ideas, reflect on their work, and collaboratively navigate through business challenges. It's a process that encourages thinking outside the box, literally building your way to innovative solutions. Why should this matter to you, the visionary entrepreneur, the ambitious business leader? Incorporating LEGO into your management strategy is not just about novelty; it's about harnessing a powerful, experiential learning tool that promotes creativity, communication, and collaboration. It's an opportunity to break down barriers, foster a culture of innovation, and drive your business forward in ways you never imagined. As we navigate an ever-changing business landscape, the ability to adapt and innovate is paramount. LEGO Serious Play offers a unique, engaging, and effective way to inspire your team, solve complex problems, and unlock the full potential of your organization. So, the next time you're pondering over a business challenge, remember: sometimes, the solution could be as simple as building it out with LEGO bricks. Embrace the unconventional. Explore the transformative power of LEGO in business management and consulting. It's time to build your way to success. Let's connect and explore how my consulting and mentorship can help elevate your business to new heights. #innovation #businessgrowth #leadership

There is so much inspiration out there and so much to learn from how companies reinvent themselves and make a turnaround. LEGO is one such example. From the brink of bankruptcy in 2003, LEGO bounced back to being the most valuable toy brand in the world today. LEGO’s brand value in 2023 is over 7.4 billion US dollars. The turnaround started with the ‘Back to the Basics’ approach—doing what they did best—making plastic bricks. Another important thing that they did was to involve their customers in the product development process. Today, LEGO is a corporate giant with video games, movies and theme parks. My inspiration from the LEGO story re-affirms the fact that it’s crucial to identify the basics and  core strengths, involve stakeholders to encourage innovation and knowledge sharing, and build partnerships. Could we use these insights for promoting investments? What do you think? #turnaroundmanagement #strategicplanning #innovationforchange

🔥 #IntrigueMonday: The Astonishing Turnaround of LEGO! 🧱 Ever wondered how LEGO, once on the brink of bankruptcy, transformed into a multi-billion-dollar business? The secret lies in a radical yet calculated shift in their go-to-market strategy. In 2004, LEGO was $800 million in debt and seemed to be playing its last cards. Fast forward to today, they're not just a toy company; they're a media giant with movies, video games, and even theme parks. 🎯 The Turning Point? LEGO decided to focus on their core product and even involved their customers in product development. They made hard decisions to discontinue lines that didn't align with their core offering. It was a masterstroke in strategic thinking and execution. 🤔 Imagine you were in LEGO's boardroom back in 2004, what would you have advised? 💡 Strategic thinking is a skill that comes from practice. If you want to solve business cases like this every week and enhance your ability to think strategically, you shouldn't miss my weekly newsletter. 👇 Subscribe Now to Level Up Your Strategic Thinking! #StrategicThinking #BusinessTurnaround #GTM #LEGO #CaseStudy