Lego was founded in 1932 by Ole Kirk Christiansen in Denmark.The Danish word “lego” translates into “play well” in English. Whenit began, the colorful plastic figures and interlocking bricks thatare associated with Lego did not exist. At that time, Lego startedby producing small wooden toys. It is now the world’s largest toycompany with sales at $5.8 billion in 2017. Beyond the toysthemselves, the Lego Group owns and runs 9 amusement parks withover 50 rides, shows, and attractions in Denmark, Germany, Dubai,Japan, Malaysia, the UK, and in the United States in California,Florida, and New York.

The Lego Group faced a potential bankruptcy in 2004. Theturnaround of the company was dramatic under the leadership of CEOJorgen Vig Knudstorp. He went “back to basics” by streamlining theproduct line, putting innovation into a “within reason” framework,reducing the number of suppliers, focusing on large retailers, andmaking sure its manufacturing facilities were near its coremarkets. They also maintained their focus on quality and hit somehome runs with licensing deals and movies such as The LegoMovie in 2014 and The Lego BatmanMovie in 2017.

In addition, the new leader focused on the team structure forthe organization. The Lego Group expanded its top management teamfrom 6 to 22 members “to become more adaptable and competitive.”Jorgen Vig Knudstorp explained that in order for his team to dealwith the complexities and challenges of the expanding business, itneeded to be both broader and deeper in terms of its experience andabilities. At the same time, he moved toward reducing the number oforganizational layers so that the organization became flatter. Hetook five business areas and distilled them into three (operations,marketing, and business enabling) stating, “The LEGO Group must behighly adaptive to change, and we have to be able to adjust,experiment and learn in a systematic, disciplined creativity thatcalls for collaboration across company functions. The neworganization will enable us to do that.” In 2016, the Lego Grouphad its best year in 85 years.

While 2017 included a great deal of revenue, the Lego Groupannounced sales had fallen 8%, which brought the previous 13 yearsof growth following the 2004 bankruptcy scare to a painful end.They chalked up the loss to excess inventory and the closing of toystores such as ToysRUs. That same year, Niels B. Christiansen wasappointed to become the Lego Group’s CEO.

On the bright side, in2018 FastCompany magazine designated the LegoGroup one of the World’s Most Innovative Companies, given theirdiversified offerings and foray into licensing and multimediaofferings. In an example of their innovation and commitment toenvironmental responsibility, Lego is switching to making some oftheir bricks from plant-based plastic from sustainably grownsugarcane. For now, they are focusing on creating their Lego toytrees, plants, shrubs, and flowers from this substance. They havemade a commitment to use only sustainable materials in theirproducts and packaging by 2030, so this is an important step towardthat goal.

Another link between Legos and teamwork is the use of Legos inteam building exercises in companies (and organizational behaviorcourses) around the world. One example of this comes from PerKristiansen and Robert Rasmussen who published Building abetter business using the Lego Serious Play Method in2014. Their approach is used by businesses around the world to helpwith team growth, better communication, faster innovationprocesses, and improved meetings. On a less formal level,team-building and communication exercises using Legos can be foundin classrooms around the globe. Not bad for a company that startedout as one man’s vision to help bring the idea of playing betterinto the world.

Multimedia—Life at LEGO Group: Fulfilling a LifelongDream https://www.youtube.com/watch?v=8abKqCAOv1M

Answer the following questions:

1. To what extent do you think the restructuring of the Lego Group contributed to its success in rebounding from near-bankruptcy?
2. Do you think there is a relationship between teamwork and innovation? Explain.
3. How might teamwork and collaboration support the Lego Group in its ambitions to become a more sustainable organization?
4. Can you imagine how a fun, playful organizational culture might contribute to effective teamwork? Why or why not?
5. Have you ever used Legos or other toys to facilitate team bonding and cooperation (in the workplace or otherwise)? Would you consider this an effective approach?

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