Harvard Case - THE LEGO GROUP LEADERSHIP PLAYGROUND: ENERGIZING EVERYBODY EVERY DAY (A)
"THE LEGO GROUP LEADERSHIP PLAYGROUND: ENERGIZING EVERYBODY EVERY DAY (A)" Harvard business case study is written by John Weeks, Lisa Duke. It deals with the challenges in the field of Human Resource Management. The case study is 19 page(s) long and it was first published on : Feb 7, 2021
At Fern Fort University, we recommend that The LEGO Group implement a comprehensive leadership development program focused on empowering employees at all levels to drive innovation and foster a culture of continuous improvement. This program should address key areas such as leadership styles, change management, diversity and inclusion, and employee engagement, while aligning with LEGO's core values and strategic goals.
2. Background
The LEGO Group, a global leader in the toy industry, faced a critical juncture in its journey. While experiencing remarkable success, the company recognized the need to adapt to a rapidly changing market and empower its workforce to navigate the future. The case study highlights the company's ambitious goal of "energizing everybody every day" by fostering a culture of leadership at all levels. This shift aimed to unlock the potential of every employee, driving innovation and ensuring the company's long-term success.The main protagonists in the case are Jorgen Vig Knudstorp, the CEO of The LEGO Group, and the leadership team tasked with implementing the 'Leadership Playground' initiative. The initiative aimed to create a culture where leadership was not confined to senior management but permeated all levels of the organization.
3. Analysis of the Case Study
The LEGO Group's 'Leadership Playground' initiative can be analyzed through the lens of organizational behavior and change management frameworks. The company recognized the need to move beyond traditional hierarchical structures and embrace a more agile and collaborative approach. This required a fundamental shift in organizational culture, leadership styles, and employee engagement.
Key Observations:
- The Need for a Culture Shift: The LEGO Group recognized that its traditional hierarchical structure was hindering innovation and agility. The 'Leadership Playground' aimed to create a more decentralized and collaborative environment where employees felt empowered to take ownership and drive change.
- Leadership Development as a Strategic Priority: The company understood that leadership development was not just about training but about fostering a culture where leadership was embedded in every role. The 'Leadership Playground' initiative aimed to empower employees at all levels to lead and contribute to the company's success.
- Focus on Employee Engagement: The LEGO Group recognized the importance of employee engagement in driving innovation and performance. The 'Leadership Playground' aimed to create a work environment where employees felt valued, motivated, and empowered to contribute their best.
Framework Application:
- Organizational Behavior: The 'Leadership Playground' initiative aimed to create a more positive and supportive organizational culture, fostering trust, collaboration, and employee engagement. This aligns with the principles of organizational behavior, which emphasizes the importance of human interaction and motivation in driving organizational performance.
- Change Management: The LEGO Group's initiative required a systematic approach to change management. The company needed to effectively communicate the vision, address employee concerns, and provide support and training to ensure a smooth transition.
4. Recommendations
To effectively implement the 'Leadership Playground' initiative, The LEGO Group should consider the following recommendations:
1. Develop a Comprehensive Leadership Development Program:
- Identify Core Leadership Competencies: Define the key leadership skills and behaviors that align with LEGO's values and strategic goals.
- Tailored Training Programs: Develop customized training programs that cater to different levels of leadership within the organization.
- Mentorship and Coaching: Implement a robust mentorship and coaching program to provide guidance and support to emerging leaders.
- Leadership Rotations: Encourage leadership rotations across different departments and functions to broaden perspectives and develop well-rounded leaders.
2. Foster a Culture of Collaboration and Innovation:
- Empowerment and Delegation: Encourage employees to take ownership of their work and make decisions.
- Cross-Functional Teams: Promote collaboration across departments and functions to foster innovation and knowledge sharing.
- Open Communication Channels: Create open and transparent communication channels to encourage feedback and idea sharing.
- Recognition and Rewards: Implement a system that recognizes and rewards innovative ideas and contributions.
3. Embrace Diversity and Inclusion:
- Recruiting and Hiring: Implement diverse hiring practices to attract and retain talent from a wide range of backgrounds.
- Inclusion Initiatives: Foster an inclusive work environment where all employees feel valued and respected.
- Diversity Training: Provide training on diversity and inclusion to promote understanding and awareness.
4. Leverage Technology and Analytics:
- Performance Management Systems: Implement performance management systems that provide real-time feedback and track progress.
- Data-Driven Decision Making: Utilize data and analytics to inform leadership decisions and track the effectiveness of initiatives.
- Digital Collaboration Tools: Leverage digital tools to facilitate communication and collaboration across teams.
5. Basis of Recommendations
These recommendations are based on the following principles:
- Core Competencies and Consistency with Mission: The recommendations align with LEGO's core values of creativity, learning, and playfulness, while supporting the company's mission of inspiring and developing children through play.
- External Customers and Internal Clients: The recommendations aim to enhance employee engagement, which directly impacts customer satisfaction and ultimately drives business success.
- Competitors: The recommendations help The LEGO Group stay ahead of the competition by fostering a culture of innovation and agility.
- Attractiveness: The recommendations are expected to yield positive returns on investment by improving employee performance, reducing turnover, and driving innovation.
6. Conclusion
The LEGO Group's 'Leadership Playground' initiative represents a bold and strategic move towards building a more agile and innovative organization. By implementing the recommendations outlined above, the company can effectively empower its employees to lead, drive change, and contribute to its long-term success.
7. Discussion
Alternatives:
- Traditional Leadership Development: While traditional leadership development programs can be effective, they may not be as impactful in fostering a culture of leadership at all levels.
- External Consulting: Engaging external consultants for leadership development can provide valuable expertise, but it may be costly and may not fully address the company's specific needs.
Risks and Key Assumptions:
- Resistance to Change: Employees may resist the shift towards a more decentralized and collaborative culture.
- Lack of Leadership Commitment: The success of the initiative depends on strong leadership commitment and support.
- Time and Resources: Implementing the recommendations will require significant time and resources.
Options Grid:
| Option | Pros | Cons |
|---|---|---|
| Comprehensive Leadership Development Program | Fosters a culture of leadership at all levels | Requires significant time and resources |
| Traditional Leadership Development | Cost-effective | May not be as impactful in fostering a culture of leadership |
| External Consulting | Provides valuable expertise | May be costly and may not fully address the company's specific needs |
8. Next Steps
- Phase 1 (Year 1): Develop and implement the comprehensive leadership development program, focusing on core competencies and tailored training programs.
- Phase 2 (Year 2): Roll out mentorship and coaching programs, encourage leadership rotations, and promote cross-functional collaboration.
- Phase 3 (Year 3): Evaluate the effectiveness of the initiative, make adjustments as needed, and expand the program to include all levels of the organization.
By taking these steps, The LEGO Group can successfully implement its 'Leadership Playground' initiative and create a culture where every employee feels empowered to lead, innovate, and contribute to the company's continued success.
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Case Description
In 2018, the LEGO Group defined a new way of leading to enable the company to move more quickly, to make the right decisions, to deliver its mission and the commercial momentum that sustained it, and to shape the LEGO® culture in a positive way. This new way of leading would need to be modeled at the top of the organization. That was certain. But CEO, Niels Christiansen, and Chief People Officer, Loren Shuster, believed that the task of defining the new way of leading should not be done by the Executive Leadership Team or by HR. It should be developed bottom up. The LEGO Group was no longer the patriarchy it had once been under its founder, but Shuster saw that patriarchal assumptions about leadership lingered in its culture. If the LEGO Group was going to move towards a balanced system where leadership responsibility was more distributed and less hierarchical, it would be ironic to impose this top down. A better way to start would be to invite people from different levels and different functions of the organization to answer the question: What kind of leadership do we need in the LEGO Group and how can we embed the new way of leading into the fabric of the organization so that it can be self-generative? Case A describes the process that the LEGO Group used to create what they called The Leadership Playground and bring it to life in the company.
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