No instructions required: LEGO's framework for growth

For CFOs watching their organisations scale rapidly, few stories offer as many insights as The LEGO Group’s Leadership Playground. When a company doubles its workforce while maintaining double-digit growth, traditional organizational structures inevitably show signs of strain. But when that same company needs to innovate on 60% of its product portfolio annually, the challenge becomes exponentially more complex.

This is precisely the situation facing The LEGO Group. With its workforce expanding to 29,000 employees globally, the iconic Danish toymaker found itself at a critical juncture. A quarter of its employees had less than two years’ tenure – a striking statistic for a 92-year-old, family-owned business built on deeply rooted values and cultural heritage.

The timing of this challenge was particularly significant. The company had already proven its ability to navigate existential threats, having executed a remarkable turnaround from near-bankruptcy in 2003-2004 to achieve a decade of double-digit growth. However, by 2016-2017, that growth began stalling, prompting both a leadership transition and a fundamental rethink of organizational effectiveness.

Rather than opt for traditional restructuring, The LEGO Group chose a characteristically innovative approach. Speaking at Connect CFO’s Leadership Summit earlier this month, Talent Product Director at LEGO Group Thomas Møller Lybæk said “leadership is not a position. Leadership is an act, a behaviour. And that means everyone can actually be a leader.”

This philosophy underpinned what would become known as the “Leadership Playground” initiative at the LEGO Group.

The approach was both bold and pragmatic. Where previously the organisation had operated with 28 different leadership models – a complexity that had grown with the company – the new framework distilled leadership into three core behaviours: curiosity to drive innovation, focus to maintain strategic direction, and bravery to take ownership of decisions.

What makes this framework particularly interesting from a financial perspective is its scalability and integration with business operations. The implementation operates through what LEGO calls “campfires” – structured cross-functional forums where teams can have candid discussions about challenges and opportunities. These are supplemented by “missions” – targeted change initiatives that practice desired behaviours – and a peer-based recognition system.

Growing at scale

The scale of implementation is significant. Today, 1,900 active “playground builders” facilitate these processes across the organization. Over five years, one in ten employees has served in this role, creating a deep bench of change-capable employees throughout the organization.

With 1,900 ‘playground builders’ facilitating change across 29,000 employees, LEGO’s innovative leadership framework supports the development of new products while managing rapid organizational growth.[/caption]

Perhaps most importantly, the framework has proven its value as infrastructure for major change initiatives.

Results are tracked through bi-annual pulse surveys, with recent data showing higher engagement metrics among teams with active playground builders. However, the company’s analysis reveals nuanced insights: while engaged teams generally show better results, leadership effectiveness remains a critical variable in overall performance.

The LEGO case offers valuable lessons for financial leaders managing rapid growth. It demonstrates how organizational effectiveness initiatives can move beyond traditional HR boundaries to become core business infrastructure. The framework’s ability to scale with organizational growth while requiring minimal additional investment makes it particularly attractive from a financial perspective.

Moreover, its application extends beyond day-to-day operations. Whether supporting M&A integration, enabling geographic expansion, or facilitating digital transformation, the framework provides a structured yet flexible approach to maintaining organizational effectiveness while scaling operations.

For CFOs watching their organizations navigate similar challenges of rapid growth and innovation requirements, The LEGO Group approach offers a compelling model. It demonstrates how investing in organizational effectiveness can support both operational excellence and innovation capacity – a balance that becomes increasingly critical as organizations scale. The key lies in creating frameworks that integrate seamlessly with existing business processes while maintaining direct connections to strategic objectives.

In an era where organizational agility and innovation capacity are as crucial as financial metrics, the LEGO Group experience offers valuable insights into building sustainable growth infrastructure. It’s a reminder that sometimes the most effective solutions come not from complex restructuring, but from creating simple, scalable frameworks that enable organizations to maintain their innovative edge while growing.

This discussion happened during Quartz Event’s Connect CFO Autumn event. To hear more insight on this topic register for their Spring series, click here. 

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