The Management Conundrum

Why companies get stuck in business as usual management

My fondest times from childhood were playing with Legos. While I had some of the early City and Space sets, I preferred going off the script and building my own things. My pièce de résistance was a model of the Battlestar Galactica from the sci-fi 70’s TV show.

The Legos are stored in an attic, forgotten when I left for school. But the imagination that came from an afternoon with tiny bricks was never forgotten. Which is why in 2003 it was surprising to hear that Lego as a company was teetering on the edges of corporate death.

The turnaround story at LEGO is one of the greatest in corporate history. Before 2003, most of the innovation efforts were flops. Post 2003, LEGO streamlined, rediscovered its roots, and focused on the experience of their customers.

There are many reasons why LEGO went astray, covered in an excellent book on the subject. When you peel back each reason, it becomes a story common across every enterprise. The company got comfortable with success & running things became more important than innovating or listening to customers.

When you have a success, the natural inclination is to keep that success going. Whether it is a winning toy, the best selling car, or…