Rotman Management

CREATING GREAT CHOICES: Integrative Thinking for Leaders

IN THE LEGO MOVIE, there is a joke that always makes Jørgen Vig Knudstorp laugh. The hero of the movie, a mini-figure named Emmett, is admiring Batman’s awesome plane. “Could you make one of these in orange?” Emmett asks. “I only work in black,” Batman growls back. “And sometimes, very, very dark grey.”

Given Batman’s well-known penchant for all things dark, it’s a funny line to comic book fans. But for Knudstorp, the lanky, bearded, bespectacled CEO of the LEGO Group, it’s funny for a whole other reason. “When I became CEO, I was this young, former McKinsey consultant — you know, Mr. Business,” Knudstorp says. He was the first outsider, and the first person outside the family, to run the Danish toy company in its 80-year history. His daunting job was to turn around a beloved organization that was losing money.

He began by cutting jobs and rationalizing the company’s product line. “We had 13,000 different colours and shape varia tions,” he recalls. “With that level of variation, we never had inventory.” One of the colours slated to be cut was Old Gray. It was a very, very dark gray that seemed redundant, given that the company would continue to sell black bricks and the lighter Standard Gray.

The brand’s fans — found online on the LUGNET, an early LEGO product users group network — were furious. It turns out these adult master builders used Old Gray as a shadow element when building castles, statues and skyscrapers. Knudstorp spent a good deal of time online defending his decision, coming to understand LEGO’s most passionate fans in the process. “I was connecting with our fans for the first time. I was having a

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