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The history of the lego group in one slide

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The history of the lego group in one slide

  1. 1. @davidcrob www.robertsoninnovation.com/brick-by-brickLEGO SALES (DKK Billions)BirthGrowthInnovationStagnationAccelerationRecoveryCrisis199319791932 1998 2003 2007 20122468101214The LEGO Group’s history in one slide 23.4
  2. 2. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)LEGO was founded in 1932 by aDanish carpenter, Ole KirkChristensen. The companyinitially made only woodenproducts. It purchased its firstinjection molding machine in 19471979
  3. 3. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)Ole Kirk’s son Godfredt took overthe company in 1956 and patentedthe iconic LEGO brick two yearslater. The company grew slowlyand steadily until Godfredt’s sonKjeld Kirk took over in 19791979
  4. 4. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)Kjeld Kirk introduced the LEGOminifigure and the first fantasy setsaround the themes of Castle andSpace. The company began a fifteenyear period of double-digit growth,doubling in size every five yearsbetween 1978 and 1993.1979
  5. 5. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)In 1993 sales stagnated. Inresponse, LEGO tripled the numberof toys it introduced into the market.Profits plummeted and the companysuffered its first loss in 1998. KjeldKirk stepped away from the companyand appointed an outsider, PoulPlougmann as President.1979
  6. 6. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)Between 1998 and 2002, LEGObegan innovating in every way itcould think of. The number andrange of products they createdexpanded rapidly. Driven by thesuccess of LEGO Star Wars, LEGOHarry Potter, and Bionicle toys, thecompany set new sales records in1999 and 2001.1979
  7. 7. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)In 2003, crisis hit. Sales of LEGO Star Warsand LEGO Harry Potter toys only did well inyears in which there was a movie. Star Warsmovies came out in 1999, 2002, and 2005.Harry Potter movies appeared in 2001 and2002. With no movies in 2003 nor the first halfof 2004, sales of those two toys plummeted.With the exception of Bionicle, all the otherLEGO products were losing money.1979
  8. 8. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)LEGO fired its President and appointed a newmanagement team. Over the next few years, itput in place a new way of managing innovation.It changed its innovation process, formed newdepartments, appointed people to new roles,and created tools to guide and focus teams.1979
  9. 9. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)Since 2007, LEGO has been growing sales at24% per year, every year, and profits at over 40%per year. It is now the fastest growing and mostprofitable company in the toy industry, and one ofthe best performing companies in the world.1979
  10. 10. @davidcrob www.robertsoninnovation.com/brick-by-brickBirthGrowthInnovationStagnationAccelerationRecoveryCrisis19931932 1998 2003 2007 2012246810121423.4LEGO SALES (DKK Billions)What LEGO learned was that it’s not enough toboost innovation. To get profitable innovation, youhave to focus and direct your teams’ effort. Youhave to give your teams the space to create andthe direction to deliver. For more on how LEGOreinvented its innovation management system, seeDavid Robertson’s book “Brick by Brick: HowLEGO Rewrote the Rules of Innovation andConquered the Global Toy Industry”1979

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