Five lessons from LEGO's rebound that can help in life

Beyond the Brick: A LEGO Brickumentary is only 20 minutes long and looks at how LEGO CEO Jørgen Vig Knudstorp helped make what had become a struggling company profitable again. Embedded in the story are five life general lessons I picked up while watching the film on Netflix:

Image courtesy of Wikimedia Commons.

1. Your life can be a case study in how to turn things around. Less than a decade ago, LEGO was losing a million dollars a day but it is now the world's largest and most profitable toy brand.

2. Know yourself. What are you uniquely about? What is your core business? LEGO lost its way when it no longer understood its own self-identity as a Danish toymaker whose name means "play well." Founded in 1932 by a carpenter, LEGO drifted from its base as a brick and building system and ventured into business areas which LEGO knew little about (one example being theme parks). Spreading itself too thin, LEGO lost money. By not understanding your core business and what your unique advances are, you will underestimate your own strengths.

3. Listen. Like Nike, Starbucks, and Apple, brand recognition means money for LEGO. Kids for decades have been inspired by playing with LEGO's and customers and fans value the company's openness into how their products work. But there were gaps and to identify and fill them, LEGO had to ask customers what they want. Then deliver. A great example: Before delving into extensive market research, LEGO didn't know that girls - surprise! - want to build and construct stuff. It launched a product line for girls and the brand's popularity among that customer segment has grown.

4. No immediate growth is okay. In the first year Jørgen vig Knudstorp was CEO, the company didn't grow but it also didn't seek growth. Sales fell 20 percent in 2004 and grew five percent the next year. Instead, LEGO spent that time putting its energy back into production, product development, and marketing. "When you're not growing, you have to drive productivity," vig Knudstorp said. Re-base and re-focus on what makes you unique, why you exist, and what you can give to others. Prosperity will follow.

5. Think big from your foundation. While LEGO got back to the core of its existence and its value to others, it identified three global hubs - Europe, Middle East, Asia - from where to expand into new and emerging markets. Look at your journey up until now, and keep moving forward with a fresh sense of adventure.