Lego’s Strategies for Managing Change

Lego’s Strategies for Managing Change

Lego Group used innovative strategies to deal with the forces for change they have been putting in place for years. The innovative strategies did include not only technology changes but also ideas, plans and processes that bring changes to the organization (Sawhney & Arroniz 2006). The company was facing trouble due to the stiff competition that was present at the time making it be in a position of not knowing what products to produce any more. The company had to come up with strategies to push the company forward. The main forces present for Lego Group were; one it was for the company to be stable so that it could survive the competition. During this period, the company was facing bankruptcy, and this force was in to improve the company’s cash flows and to reduce their debt. They planned to sell off the assets that were no longer of importance to the organization. Another strategy was to reduce their operational costs, and the final one was to transfer the management to a third party service provider.

The second force for change for the Lego Group was profit from the core. This change was in to increase profit margins by giving their product lines new energy through transforming and strengthening their technology platform. By this means, they hope to increase the profitability and growth of the company.

The final force was achieving their vision, which entails creating and inventing new ways of creating value for the business to increase profitability as well as growth. The most challenging force was revitalizing the product lines and for our case, it is the Lego City whose sales started to decline since the year 2000. This was going to be difficult for Lego to restore the sales back to normal.

Amongst the described forces, the greatest force of all was coming up with new ways of creating value in the business. This is because it is easier to create new growth by increasing the speed of innovation in the company ((Euchner 2013).


Euchner, J 2013, Innovation is change management, Available from: <> [27 January 2016].

Sawhney, MC & Arroniz, I 2006, The 12 different ways for companies to innovate, Management Review, Spring Publisher, New York.


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