Last week, Stephanie shared an article she’d read about how LEGO went from losing $1m per day (yes, per day 😳), to being solvent, to a net profit of over $266 million.
All by doing something simple.
Something every one of us could implement today.
Let’s get into the story and make some shift happen.
In 2004, LEGO was losing over a million dollars a day and just barely escaped bankruptcy. Over four years, their new CEO, Jørgen Vig Knudstorp, transitioned them from a $323 million net loss in 2004 to a $226 million net profit by 2008.
He didn’t go down all the traditional rabbit holes.
Instead, he did less and took LEGO back to its roots.
When Push Becomes Toxic
The same pattern shows up every January – the buzzing of ideas, audacious goals and resolutions to make everything different. We also find ourselves inundated with ads that promise to solve our problems.
It’s easy to start running in every direction and soon find ourselves exhausted and having purchased a lot of promises that never get used. Instead, let’s take a pause and get curious.
Can subtracting in your life, and business, actually create more for you? More income, more impact, more flow, more time, more energy?
The short answer: yes.
When Jørgen Vig Knudstorp took over as CEO of LEGO, they were hemorrhaging money.
They had their hands in too many pies and were doing too many things (sound familiar?). Aggressive growth and diversification were the prior CEO’s playbook: massive Legoland theme parks, retail stores, LEGO-branded watches, jewelry, clothing, etc., Galidor (a sci-fi toyline), and more.
The envelope of growth had been pushed, which looked good both on paper and to investors. Until it didn’t. In reality it left LEGO with unhappy customers, logistics nightmares, an unwieldy supplier list and debt that was growing by $1 million a day.
Knudstorp was hired to right the ship and came in with a different philosophy: do less.
He didn’t add new products, improve social media or add the next-latest-and-greatest ‘thing’.
He cut.
He cut the product line by 50%, outsourced the theme parks and removed the Galidor product line completely. He took LEGO back to its core mission: fostering creative, systematic problem-solving through play, and core product: the beloved multi-functional bricks.
The result – no bankruptcy, sustained growth and global success.
David Allen, author of Getting Things Done, tells us, “You can do anything, but not everything.”
“You can do anything, but not everything” ~ David Allen
Focus On Your Why
On December 30th, we published our 200th episode of the Soulful Leader Podcast, our core product that represents our core mission. We show up consistently to the podcast which has crafted a steady, predictable presence.
Our consistent presence created a dedicated following and within a few years we grew into the Soulful Leader Project.
We didn’t push there, we didn’t drift there. It was intentional, not contrived.
Our continued dedication led to natural expansion (not forced or engineered) – including collaborative programs, working with small and medium sized businesses, speaking engagements, book proposals, ongoing one-to-one work, etc.
That’s what I noticed about LEGO under Knudstorp tenure.
Once he stabilized LEGO, innovation and creativity were his focus – and it wasn’t random. He made a point to connect with devoted fans, crowdsourcing and inviting them to contribute product ideas. He listened and didn’t push.
He patiently rebuilt trust and reinvigorated the brand through his deep commitment to LEGO’s core mission, engaging their dedicated followers and staying true to the brand.
So This Year…
So this year, when you’re all fired up and tempted to jump into everything all at once…
Take a pause and start with something simple and underwhelming. And make sure that it’s grounded in a complete commitment to your own core mission.
If you can’t make it work in simple mode, hard mode could cost you a million dollars a day.
Sometimes it’s about less is more. It’s about the seed. Thinking about this gigantic tree that you think is so beautiful but it started with this just seed.
~ Fred Durst
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