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1. Sample Essay on Comparison of Leadership
Styles
Jorgen Vig Knudstorp and Kjeld Kirk Kristiansen as the CEO of the Lego
Company
Introduction
The Lego Company’s leadership was headed by these leaders at a time
when it was almost collapsing. Nevertheless, they applied varying
administrative techniques that helped in restraining this company from
collapsing. Additionally, conditions in the company were deplorable
when these leaders took over its leadership. There are convergence
points that are shared by these leaders on the basis of the methods
that they used though they have some differences. There were serious
problems that the management was facing at the time when these CES
were the leaders. However, they cushioned the company from
collapsing by applying different techniques. Strategic leadership’s
investigation of the management style of these leaders shows that they
share some similarity. However, they vary in some accounts. This
reasoning forms the basis of the explanation of this article.
Strategic Leadership Style
In 2004, Jorgen Vig Knudstorp got a promotion to become the leader of
Lego Company. This move was made at the time when the company
was under intense pressure and almost collapsing. To Jorgen, it was
necessary to restructure the organization. Consequently, he preferred
the top-down management style. Basically, this leadership style entails
the flow of directives from top organs of the organization to lower
organs (Vestberg, 2013, p. 63). Thus, the lower organs in the hierarchy
of the organization implement the directives that higher management

2. organs set. This method was applied by Jorgen while the company was
facing the need for halting sales, reducing debts as well as improving
cash flow. In addition to these three considerations, this leadership
style was fit for Lego Company because it had a relatively small size and
therefore it did not require complex units in its management.
The company tested the top-down management style. The authority
that Knudstorp headed investigated the validity of this method. On the
basis of the implementation of this method during the first phase, the
management opted to add a loosened top-down administration
method because of the desire to empower managers. The intention of
Jorgen in introducing this kind of reform was to have a system in which
decision making process would go down so that the top management
can research the decisions whose impact would be felt in the company
in the future. This is among the unique styles used by Jorgen in leading
the Lego Company when he was the CEO.
To ensure that the company did not suffer more financial impediments,
he designed another policy. This led to focusing on different business
aspects by the managers of different groups. This move was made at a
time when the company desired to be an opportunity-driven business
as well as to eliminate potential risks that it was facing. On the basis of
these methods, Lego Company as led by Jorgen had a loosed top-down
management style. This management approach was adopted because
of the fiscal restraint period when Jorgen led the company. Later,
Jorgen transcended the status of the company’s leadership to a level
where it became risk adverse. The belief of Jorgen with this platform
was that the firm would realize its desired results in regards to growth
and opportunities regardless of the experienced financial impediments
(Timms, 2010, p. 216).
This was not the end of Jorgen’s leadership dynamics because he
proceeded beyond this. Due to his leadership style, some
developments were made in the company. Eventually, the company
declared core products offering. The unique design of these products

3. would enhance systematic learning among children, creativity in
problem solving as well as the cultivation of important skills of the
21st
century. The firm also made a decision to compete by becoming
the best firm instead of the biggest firm. Several advantages were
achieved with changes in the phase of administration.
Kjeld Kirk Kristiansen is considered as Lego Company’s pioneer for
serving in this company as the CEO for a long time. He is also seen as
the major leader during the modern Lego Company’s phase because he
put concerted efforts in the promotion of the affairs of this company
when it was experiencing difficulties in operational performance. As the
leader or the CEO, he adopted diversification method in toys
production. Using this approach, Kjeld spearheaded electronic toys
production when the company was producing traditional toys. The aim
of this move was to influence public taste of toys that the company
made.
Diversification was not in absolute favor of this company because it
continued to grapple with the losses that were caused by this policy. To
Kjeld, this was a major challenge and he came up with other methods
so as to cushion Lego Company from more difficulties in operational
conditions. As a visionary leader, Kjeld was an advocate of new ideas as
long as they were viably applicable to the company. He welcomed ideas
that would enhance the prosperity of Lego Company amidst the
challenges that it was facing. Kjeld made structural analysis under
Porter’s five factors analysis. This made Lego Company to realize more
progress than it had before (Oliver, & Heckmann, 2007, p.47).
For example, this analysis was applied viably in the analysis of the
opportunities of this company, its competitive advantages as well as its
projects. Kjeld adopted an operational framework for the company’s
functions that has led to the consistency of its operations regardless of
the threats that it faces. The tactics of Kjeld of acting as a visionary
leader instead of an operational leader caused his major failures. Later,
he appointed Jorgen to succeed him. However, there were fruits of his

4. visions when he was leading Lego Company as its CEO because he
succeeded in creating impressive products as well as strategies.
Human Capital Investment
Human labor’s sanctity was upheld by Jorghen Vig Knudstop. The
company invested in human capital as a way of promoting most
activities. The company, using this framework under the CEO’s
leadership considered an all inclusive administration framework of the
staffs. Result-oriented performance of different tasks complemented
heavy investment in human labor. This was viably applied after the
assumption of office by Jorgen.
Additionally, top-down administration strategy that Jorgen used made
it possible for the workforce to involve itself in all activities in the
company. This made the firm more successful. Additionally, Jorgen
articulated innovation and this required an ethical workplace.
Collectively, this made the major pillars of the platforms of Jorgen
under the investment of human resource. However, the aim of the
loosened top-down method was to capitalize on workforce’s
productivity regardless of their social position or ranks in the company.
The belief of Jorgen was that through the use of this mechanism the
best outcomes could be achieved from the workforce and this is the
main goal of an organization (Irvine, 2013, p. 54).
On the basis of this pillar, an organization is required by considerable
employment to put more emphasis on productivity and competence
even while fighting constraints that result from idle labor. Additionally,
Lego Company seems to have been favored by this move because it
came from a low performing generation to a relatively higher position
financially. Human investment also became a significant consideration
during the leadership of Jorgen because it led to the establishment of
result-oriented platforms instead of sluggish performance. The results
of over concentrating on innovation and ethics can be adverse for some
areas where the staff does not respond to changes in the market

5. dynamics. The approach of the top-leadership in relation to the
investment in human resource is also a dimensional deterrent to the
development of the human resource more so, when the received
interactive directives are impossible to apply viably. Consequently, time
and company resources are wasted.
With the consideration of the visionary leadership method by Kjeld Kirk
Kristiansen, investing in human resource is seen as partial priority.
Under the administration of Kjeld, several transformational changes
occurred and these prompted this firm to diversify its activities. The
framework that was adopted by Kjeld was supported by change
platform. This was his main reason for employing workers. The aim of
investing heavily in human resource was to enhance new ideas’
inception and development. This concept was reflected by the
diversification program of Kjeld (O’Connel, 2009, p. 123).
Via this leadership framework, Kjeld advocated for an innovative
platform and competence. He believed that this was an inherent
concept in his new workforce. As such, intellectual development and
training was the most ideal platform that would lead to these changes
by the workers. Human labor investment was done alongside
employments and trainings while complying with the new technologies.
There are disadvantages that relate to this platform including losing
company resources in case the market does not accept the supported
plan. This is a factor that relates to Lego Company’s failure under its
new diversification model. These paragraphs provide a comparative
analysis in relation to human capital during the two regimes under the
leadership of the two CEOs who had divergent viewpoints.
The Concept of Deep Smart vs. Young Hires
The discussion of the work plan that was shared by the two CEO of Lego
Company shows that young hires and deep smart concepts may be
related to corresponding platforms of their operations as undertaken
by both CEOs. This framework shows that young hires conceptual

6. model was applied in the operation platforms of Jorgen in the Lego
Company. This is a viewpoint that can be attributed to conceptual
moves and dynamic procedure that Jorgen undertook in subverting the
collapse of this company.
For example, during his leadership he recruited many employees with
his target being the young generation that he believed had exclusive
power and skills (Lego group, 2010, p. 87). The energy and power that
the young people have enhances work efficiency which yields better
performances. Applying this model seems viable when it comes to
explaining swift changes in Lego Company’ financial prospects during
Jorgen’s tenure.
Deep Smart is another thinking model as Dr. Ireland postulated it. This
model depends on the skills that are developed via experience as well
as long time of delivering a service. The framework requires one to
work in a specific area over a relatively longer period in order to get
skills. This theory is relevant in relation to Kjeld’s operation platform
during his time as Lego Company’s CEO (Aziza, 2010, p.67). When he
was the CEO, diversification model was exonerated and this was
required for employees to acquire skillfulness. With deep smart model
in mind, this leader was able to reap the inherent benefits of the
company and to attain staffs’ competence on the basis of their
experiences.
Conclusion
Each leader applied a leadership style whose effectiveness relies on the
organization’s operational factors. For instance, loosed top-down
leadership framework uses a principle that is based on viability and
effectiveness in relation to the present conditions. This model was
applied by Jorgen because it was effective in dealing with the financial
restraints facing the company during his tenure. This CEO also made
fostering progress and development a prerequisite through the
subsequent models that he used. Kjeld on the other had applied the

7. diversification principle which proved satisfactory for nurturing new
opportunities and concepts that the company was yet to exploit.
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8. References
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business intelligence Retrieved on December 6, 2013 from:
http://www.retailtouchpoints.com/shopper-engagement/542-learning-
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Irvine, D. (2013). Learning from lego: core values must define your
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http://www.tlnt.com/2013/04/02/learning-from-lego-core-values-
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Timms, M., (2010) European CEO: Jørgen Vig Knudstorp Retrieved on
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Brickipedia (n.d) The leg group. Retrieved December 5, 2013, from:
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