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The LEGO Group has captured the creativeness of kids and adults all over the world for greater than 90 years. The Denmark-based firm sees kids as its position fashions and places their forever-learner mindset on the middle of all the things the corporate does, from alignment on its long-term imaginative and prescient and mission to the equality amongst all workers. McKinsey spoke to Loren I. Shuster, the LEGO Group’s chief individuals officer and head of company affairs, about how the corporate constantly innovates to maintain its edge, evolves its model and tradition, and stays resilient and steadfast in its function and mission.
What do you suppose has made the LEGO Group so profitable?
Loren I. Shuster: There are some things that make the LEGO Group distinctive and assist clarify the corporate’s longevity and success. For the reason that group was based, there was a transparent alignment on our function among the many proprietor, board, CEO, administration, and workers. The alignment and readability have formed our imaginative and prescient, mission, values, and tradition. They’ve enabled us to concentrate on progress and studying and have been a driver of our success and resilience all through generations and challenges.
The LEGO Group sees kids as position fashions. They encourage us as a result of they’re perpetually learners. Our mission in return is to encourage and develop them as a result of they’re the builders of tomorrow. We’re 25 p.c owned by the LEGO Basis, which is a purpose-driven not-for-profit group targeted on bringing the advantages of studying by play to underprivileged kids all over the world.
One other success issue is our direct relationship with our customers—each kids and adults—along with our beneficial business-to-business relationships with retailers. It permits us to have conversations about our merchandise, one thing for which many manufacturers yearn. And we join with them by a number of boards and channels. The YouTube channel on which customers put up movies about LEGO play experiences is without doubt one of the high channels on this planet.
How has the corporate labored to outline its function? What position does it play in attracting and retaining expertise?
Loren I. Shuster: Since 1932, when Ole Kirk Kristiansen based the carpentry enterprise that turned the LEGO Group, the Kristiansen household has performed a number one position in our group by to the fourth-generation house owners at present. The household and all our colleagues stay dedicated to creating a optimistic distinction for youngsters all over the world. This ambition comes alive all through the LEGO Model Framework, which articulates our function, mission, and values and steers all the things we do at present. It’s constructed round 4 necessary guarantees to individuals, play, the planet, and our companions.
We’re investing in our individuals and model for the long run. We’re not attempting to hit a quarterly goal—we’re attempting to turn out to be an immersive model that folks need to interact with throughout generations. We nonetheless innovate and take a look at new issues in ways in which shield our model and our individuals for the long run. Our workers and companions see that, and it exhibits up in motivation and satisfaction.
We’re investing in our individuals and model for the long run.
How does the LEGO Group stay out that folks promise?
Loren I. Shuster: Our individuals promise is a crucial part of our worker worth proposition and the way we entice and retain expertise. It’s our dedication to making a protected, wholesome, respectful, numerous, and equitable office for all workers. For instance, we imagine each worker must be handled equally.
After we launched common parental go away, a minimal of 26 weeks was allotted for the birthing mother or father, whether or not an hourly manufacturing unit employee or a salaried government. That philosophy carried by the COVID-19 pandemic. Though our shops and factories have been shut down, we didn’t lay off anybody, and we continued to pay our colleagues and provides further compensation and advantages equally all over the world, from Denmark to Mexico.
One other approach we stay our individuals promise is thru our philosophy on management. Once more, kids’s hands-on, minds-on method to studying impressed our method to cultivating management behaviors and mindsets. We developed our “Management Playground” mannequin to make sure everyone seems to be heard, contributing, revered, and valued. Within the Management Playground, anybody can volunteer to guide teams targeted on worker well being and well-being, innovation, and creativity. We imagine that to constantly thrive within the continuously altering world, everybody in a corporation must act as a frontrunner, not the manager management workforce alone.
We developed our ‘Management Playground’ mannequin to make sure everyone seems to be heard, contributing, revered, and valued.
How do you stay steadfast and act with velocity on the identical time?
Loren I. Shuster: Our long-term view has created a secure spine for us and despatched a powerful sign to our workers, prospects, and companions. That, paired with creativity, studying, and relevance (reminiscent of taking the model digital), has helped us to behave with velocity whereas remaining steadfast. In some circumstances, having a inflexible platform helps with scaling and progress. Rigidity in our manufacturing allows a refined product and a better stage of profitability. In the meantime, we want extra velocity round our digital merchandise to create a greater expertise for customers.
One of many greatest strategic selections we made just lately is a partnership with Epic Video games to form the way forward for the metaverse to make it protected and enjoyable for youngsters and households. We imagine there may be large potential for teenagers to develop lifelong abilities reminiscent of creativity, collaboration, and communication by digital experiences. However we’ve a duty to make [these experiences] protected, inspiring, and useful for all. Simply as we’ve protected kids’s proper to protected bodily play for generations, we’re dedicated to doing the identical for digital play. We need to create an thrilling and playful future.
This interview is a part of the Lessons from leaders assortment inside The State of Organizations 2023 report. These conversations have been carried out by members of McKinsey’s People & Organizational Performance Practice with leaders of organizations that exemplify finest practices referring to the ten most vital shifts going through organizations at present.
Loren I. Shuster is the chief individuals officer and head of company affairs on the LEGO Group.
Feedback and opinions expressed by interviewees are their very own and don’t characterize or mirror the opinions, insurance policies, or positions of McKinsey & Firm or have its endorsement.
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