Building Blocks of Success: Lessons from “the Lego Story” Book
4 min readMar 9, 2023
Lego is everyone’s favorite toy. It gives you so many opportunities to be creative and learn something new. I recently read the book “The Lego Story” by Jens Andersen. It is an amazing book and would recommend it if you love Lego or you would love to learn the history of this amazing business.
Key Lessons learned from “The Lego Story”
- The LEGO Group company was founded by Ole Kirk Christiansen in 1932 but it was originally started as a Woodworking & Carpentry shop in Billund. The name LEGO is a contraction of the Danish words leg godt, meaning “Play Well”. In Latin, it means “I gather”. Always pick a company name that is simple to pronounce and relates to your business.
- Owing to the war and economic slowdown in the 1930s, Ole took a big decision to shift from a carpentry shop to a wood toy shop. Everyone advised him against this decision but Ole had firmed his belief in God and took a leap of faith. In 1945, the shortage of wood prompted Ole Kirk to experiment with plastic. He again put a big bet on purchasing a molding machine. Always look for new opportunities and be ready to accept change before time.
- Ole was always open to new ideas and loved to do experiments. In 1946, he first discovered plastic bricks. Lego is not the inventor of self-locking building bricks but it was KIDDICRAFT UK. He immediately decided to put his bet on the same. Again, he put his bet even when everyone was against it. Don’t shy to take big risks if you believe in yourself. Sometimes listening to the inner voice is more important.
- Ole faced many hurdles in his journey. His house and factory were burned thrice and we were near bankruptcy many times. Everytime he faced a challenge, he bent on his knee to pray to god for help. He had a fighting spirit and learned to come out of it. Have a faith in your superpower as each hurdle is an opportunity to build better.
- One thing which is important to Lego Group is the quality of the product and customer experience. Ole recalled the full assignment for missing one more layer of paint. He believed in giving the best quality to his customers (kids). He always used the quote “For children, only the best is good enough.”
- The next wave of growth was brought to business by Godtfred Kirk Christiansen (GKC), son of Ole Kirk. GKC was not a big fan of plastic brick toys in the beginning but soon realized the potential to use Lego as healthy toys and learning kits for kids. Ole Kirk was the product guy but GKC was the marketing wizard. He was a great listener and love to take feedback from people. GKC can be credited for the growth of the Lego Group, as well as, the modern Lego bricks in 1958. A successful company needs both — A good product and an amazing marketing plan.
- Kejld Kirk Kristiansen was the third-generation leader and took over the command of the company from his father after a family tragedy. Kejld was an avid fan of Lego toys since his childhood. He can be credited for bringing life into Lego toys with Lego Minifigures (which was invented by Jens Nygaard Knudsen) and also adding technology layers to Lego. He identified the opportunity to work with MIT Media Lab to launch Lego Mindstorms. He started Lego clubs and stores to build community. Technology change can be overwhelming but it is important to identify how technology can be a growth enabler.
- During 2004–2005, Lego struggled to survive and was very close to bankruptcy. Kejld understood that he is not the right person to drive the company further and appointed 35 years old Jorgen Vig Knudstorp as the CEO of the company. He decided to leave the new team to take independent decisions. Under his leadership, Lego becomes a powerhouse. The founder should know when it is time to hang up his/her shoes and give the command to the next leaders with trust.
LEGO is one of the most successful brands today. The company’s revenue grew by 17% to $9.2 billion and the net profit is $2.0 billion in 2022. The colorful building bricks are sold in more than 130 countries.
