Leadership and Change Management Case Study Sample

Transformational Leadership and Change Management: The Lego Group Case Study

Introduction

To be a transformed leader must approach changes in the company with enthusiasm, eagerness, and a growth-oriented mentality. Adopting this strategy makes it possible to adjust corporate plans to evolving market conditions, plan ahead for unanticipated events, and investigate cutting-edge technology. The case study of Lego Group says that the leadership and changes made in the company since Jørgen Vig Knudstorp took over as CEO in 2004. Lego appears as a toy manufacturer that creates toys underneath the Lego name that largely consist of interconnected bricks of plastic. The report's objective is to assess Knudstorp's management as well as Lego's change using pertinent ideas and insights from the epidemic in order to offer suggestions for the coming years.

Main Body

1. Discussing and evaluate the changes made in The Lego Group using Kotter's 8-Step Change Management Model.

Jørgen Vig Knudstorp's transformation of The Lego Group in 2004 is an individual case research in effectively managing change. This easy-to-follow, sequential approach provides a thorough overview and precise instructions for the complete change procedure. Its execution is remarkably straightforward and attainable. Kotter's 8-step Model of Change, providing a systematic structure for comprehending the advantages and disadvantages of the modifications achieved may be used to analyze this transition efficiently.

• Establishing a sense of urgency- Considering the business's financial difficulties, Knudstorp saw an urgent requirement for reform. Losses as well as decreased revenue caused a fire that needed to be put out right away (LEGO Change Management Analysis & Solution, 2023). Knudstorp created a feeling of immediacy by admitting the gravity of the problem, which inspired partners to endorse and take advantage of the reform effort. This action was essential for starting anew.
• Creating a guiding coalition- Knudstorp assembled a capable leadership group that was devoted to the reform initiative. This governing coalition was made up of those who agreed with his plan to resurrect the business. By coordinating activities, allocating assets, and encouraging cooperation, the varied experience and viewpoints inside the group assisted in advancing the transition (Cameron and Green, 2019). This process made it easier to make wise decisions and work together.
• Developing a vision and strategy- According to Knudstorp's supervision, a distinct vision regarding the business's destiny was formed. This vision placed an emphasis on the firm's essential principles, revenue, and returning to its history. The plan was to concentrate on the company's primary goods, use higher costs, and keep up strong earnings from sales goals (Glew, 2020). Workers were capable of to comprehend the intended objective and their responsibilities in attaining it because of the organization's simplicity of goal.
• Communicating the change vision- The transition was greatly aided by efficient interaction. The transformation vision was regularly disseminated during the company by Knudstorp as well as the leadership group. They handled issues, provided justification for actions, and included workers at every stage (Myers, Hulks and Wiggins, 2012). Through open debate, the change approach was promoted in a way that decreased objections and improved dedication.
• Empowering others: Knudstorp encouraged staff members to help with the reform initiative. Focus sessions were used by the corporation to involve both children as well as adult fans of Lego (AFOLs) throughout the item's creation procedure, which allowed it to gain insightful feedback. This strategy promoted feelings of involvement and responsibility among staff members and in the larger Lego group. Creative thinking and adaption were fostered by autonomy.
• Creating short-term wins- The change procedure was interspersed with observable positive outcomes. A major rise in revenue led to the firm being profitable. The adjustments' success was demonstrated by exceeding the 33 percent profit from the sales objective. These victories offered palpable proof of development, raising spirits, generating growth, and strengthening the dedication to the transformation project.
• Consolidating gains and producing more change- Knudstorp and colleagues proceeded to promote transformation by solidifying advantages and escalating the process of change in order to improve on successes (Cragg, 2020). In order to appeal to more consumers, the firm improved the items it offers by market division and introduced novel products including Lego FRIENDS. The company's continued relevance was made possible by its flexibility and eagerness to try new things.
• Anchoring new approaches in the organization's culture- Knudstorp's concentration on fundamental principles, high-quality products, and client service grew into permanent elements of the business culture. The heritage of the Lego brick has been restored and alongside it was a strong dedication to upholding the core values of the company (Král and Králová, 2016). This Cultural Revolution made certain that the modifications were more than simply cosmetic; they were ingrained in the very fabric of the company.

Adopting this strategy offers a number of noteworthy advantages. First and foremost, the business underwent a stunning financial turnaround, going from a condition of deficits to significant revenues. Additionally, Lego was able to gain a stronger market status, taking Hasbro's place as the world's second-biggest toy manufacturer (Butt, 2020). This achievement was made possible by the firm's ability to successfully target a variety of client categories. The development of a precise and comprehensive plan of action, which gave Lego an established plan for future development, was a crucial component of this change. An environment of creativity and a feeling of responsibility among parties were fostered, in part, through the participation of staff and enthusiasts in the reform efforts. These findings highlight the model's usefulness and the concrete effects it produced when taken as a whole.

The framework, however, also showed several shortcomings. One big obstacle was the opposition that certain workers had to the substantial changes that were being implemented. While the necessity for modification was acknowledged, innate reluctance to substantial changes in accepted procedures could have prevented an easy adjustment. Furthermore, there was a chance of making a profit the only important indicator of accomplishment (Roos, 2020). This may have unintentionally diverted focus from other, more pressing issues like encouraging innovative thinking as well as creativity, which are essential for a sustainable future. The difficulty of implementing changes throughout the whole corporation was an additional notable barrier. Due to the complex structure of Lego's activities and their wide-ranging effects, executing modifications may have run into practical difficulties, which might have disrupted the transformation procedure. These downsides demonstrated the necessity for a thorough and equitable strategy for handling change, taking into account both larger company variables along with financial benefits.

2. Discussing and evaluating Jorgen Vig Knudstorp's leadership of The Lego Group

Cited case situation reveals that transformational Leadership is followed within Lego Corporation (Bass & Avolio 1985). According to this notion, leaders who transform build an environment of creativity, advancement and constructive change by inspiring as well as motivating their people to go above & beyond their own capabilities and aspirations. Transformational leadership implies for the management philosophy which lays more focus on motivating personnel towards the adoption and implementation of innovative ideas which contribute in organizational growth or success. Hence, this can be used to assess or evaluate leadership style followed by Knudstorp's.

• Idealized Influence- Knudstorp's leadership was distinguished by his personification of idealized power. Having lived up close to the primary LEGO site as well as being an avid admirer of the corporation since Knudstorp was a little boy as he felt a strong connection to its history. He was able to accept LEGO's history and customs in an honest way because of this individual (Lego Group: Leadership and Change Management, 2023). Acted as an example for those who followed by revealing Knudstorp's personal narrative and dedication to regaining the business's revenue and competition. In Lego, head of strategic development also inspired people to connect their endeavors with this goal because of his sincere commitment to the prosperity of the organization.
• Inspirational Motivation- The capacity to encourage as well as motivate a group was a single of Knudstorp's distinguishing traits as a transformative leader. Being a strategic head, articulated an appealing long-term plan for the business, highlighting the significance of adjusting to shifting market conditions while upholding the business's essential principles. By recognizing the need to transform and outlining a clear goal, the organization gave workers a direction (Yukl, 2010). The group as a whole was made aware of the outlook and justification for the transition because of Knudstorp's constant, honest, and multifaceted messaging.
• Intellectual Stimulation- As a result of Knudstorp's leadership approach, staff members were pushed to think creatively and critically. He saw that the organization needed innovative ideas to deal with its problems and equip it for achievement in the years ahead. Knudstorp created an atmosphere where different viewpoints were appreciated by integrating staff in the transformation process and encouraging them to submit their thoughts (Salanova, 2022). Knudstorp gave staff the tools and encouragement they needed to try new things, take measured risks, along with suggesting novel proposals. This strategy not only increased staff involvement but also produced ground-breaking goods and tactics that sparked the business's comeback.
• Individual Consideration- Knudstorp showed customized concern in the framework of transformative leadership by recognizing the special requirements, skills, and capacities of subordinates. To oversee the reform effort, put together a group of leaders, combining experienced employees with outside experts to provide a variety of talents and ideas. Knudstorp's ability to identify and make use of the capabilities of different people in this team's structure showed his readiness to tackle problems from a variety of angles. Also, Knudstorp demonstrated dedication to comprehending and satisfying the distinctive tastes of various client categories by incorporating staff in focus groups, especially children and adults who enjoy LEGO.

The Transformational leadership theory is strongly reflected in Jørgen Vig Knudstorp's management of Lego. Its spectacular turnaround was largely attributed to Knudstorp's approach to leadership. Knudstorp encouraged staff members to push above their apparent boundaries by establishing an environment of creativity, teamwork, and dedication to the organization's core principles (Doeleman, 2022). The achievement of the firm was made possible by Knudstorp's real attachment to the brand's history, direct interactions with the changing vision, promotion of innovative thinking, and appreciation for people's efforts.

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Lego went through a spectacular revival according to Knudstorp's transformative leadership, which was accompanied by a number of important advantages. Particularly, the business turned around its finances dramatically, going from a position of deficits to sizable profits. In addition to ensuring the business's financial security, this change opened the door for long-term development and development. Knudstorp's strategy for staff engagement, which placed a strong emphasis on teamwork and the value of their efforts, had an equally significant influence. This approach promoted an intense feeling of participation and ownership across the staff, raising enthusiasm and deepening dedication to the company's objectives (Butt, 2020). Furthermore, Knudstorp's commitment to encouraging a creative culture paid off in the way of revolutionary developments. The organization observed the formation of creative ideas that resulted in the development of novel items and tactical strategies by promoting creativity and free ideation. Buyers responded favorably to these creative initiatives, securing Lego's status as a market leader and consumer-focused brand (Beerel, 2009). The cumulative effect of these advantages highlighted Knudstorp's revolutionary effect on Lego's path and positioned the business for resurgent triumph and market leadership.

Considering Knudstorp's transformative leadership's general success, it's conceivable that specific areas of opposition developed among workers who considered the enormous changes difficult to embrace. The opposition might have been caused by uncertainty about adjusting to the novel course. Furthermore, if the focus on revenue was unquestionably vital for Lego's comeback, there might be concerns about possible compromises with other important principles, including encouraging innovation and originality (Nazish, 2019). These elements may have unintentionally been overwhelmed by the constant search for financial security, raising questions about future viability and upholding the brand's standing for innovation. Thus, at the time of practicing transformational leadership style manager should keep in mind both benefits and drawbacks associated with it.

3. Recommending strategies to The Lego Group for continuing their success in the future

The subsequent suggestions are Lego's reaction to the outbreak of COVID-19 and rely on the leadership as well as change theories study during the epidemic. Such suggestions are meant to help the company succeed moving forward starting in 2022 by applying lessons that were discovered throughout the worldwide recession.

• Embrace digital transformation- The epidemic has sped up the use of internet sites and technological advancements. By improving its internet visibility, online shopping capacity, and online consumer involvement, Lego must keep trying to accept the evolution of technology. Novel methods for clients to engage with Lego items may be provided by pursuing augmented reality as well as virtual reality technologies. The corporation is going to be able to successfully modify its services by utilizing information analysis to comprehend evolving customer tastes and habits.
• Prioritize employee wellbeing- The epidemic brought home how important staff wellness is in sustaining efficiency as well as morale. The well-being and security of its staff members ought to be the primary concern of the Lego Corporation (Glaser, 2022). Working from home options and time mobility, when available, may enhance the balance between job and personal life while also increasing employee happiness. To ensure the welfare of the staff, ongoing interaction, psychological wellness services, and worker encouragement initiatives are crucial.
• Foster agility and resilience- A global epidemic demonstrated the value of company flexibility and adaptability in addressing unforeseen disturbances. Lego ought to keep supporting an agile culture so that the business can swiftly adjust to shifting market circumstances. In order to navigate unpredictable times, integrated teamwork and the capacity for strategy pivoting will be essential. Creating backup plans as well as stress-testing company strategies might help the organization be more ready for upcoming difficulties.
• Innovate and experiment- The epidemic encouraged ingenuity in a number of different areas. Lego must continue adopting an innovative and experimental approach. It might include entering novel markets or creating novel lines of products that reflect shifting consumer preferences (Saleh, 2022). Novel innovations may be created via crowd funding ideas from staff members, clients, and the larger Lego group. Using quick prototypes and experiments, the business will be able to find promising prospects.
• Collaborate and build partnerships- The epidemic illustrated the importance of teamwork and collaboration in overcoming difficult problems. The Lego Company ought to preserve working with other businesses, teams, and residents to promote improvement. Co-design with clients, alliances with academic institutions, as well as partnership agreements to provide novel approaches, are a few examples of joint endeavors. The business's market knowledge and presence may be improved via these agreements.
• Ecological Sustainability- This epidemic made the preservation of the environment a top focus on a worldwide scale. Lego has to maintain its dedication to environmentalism by looking for methods to lessen its environmental impact. This can entail utilizing environmentally friendly materials within its items, streamlining waste-reduction procedures in the supply network and spending money on clean energy resources (Bag, et.al, 2022). Clients that care about their surroundings will respond well to trends that promote sustainability.
• Client-oriented strategy- The epidemic emphasized how important it is to comprehend and cater to client demands. The organization must continue focusing on the needs of its customers by aggressively soliciting their input, studying their buying habits, and adapting to their shifting tastes. Connecting clients via social networks, online polls, as well as focus sessions may yield insightful information that can be used to improve the development and distribution of product plans.
• Innovative culture: Further, Lego should also lay more focus on undertaking icerberg model which helps in understanding individual's and team's behavior towards a particular event. Referring this firm would become able to understand the attitude and behavior of personnel towards change. Along with this, company needs to build an innovative culture where employees become more adaptive and motivated to execute changing practices (Hayes, 2010).

Throughout the epidemic, the need for based on information decision-making was highlighted. By incorporating analytical techniques into crucial areas like sales forecasting, managing stocks, and promotional strategies, the Lego Corporation may expand on this. This strategy gives the business the ability to allocate resources efficiently and spot potential growth areas. Additionally, continued preparedness for possible disasters is essential in the aftermath of the epidemic. The company has to create a comprehensive crisis-handling plan that accounts for a variety of scenarios, including supply chain problems, health issues, and economic recessions. Such preventative steps will increase the business's adaptability and effectiveness in dealing with unanticipated occurrences.

A group of Lego enthusiasts can maintain its achievement in the aftermath of a pandemic by accepting technological change, placing a high priority on staff wellness, encouraging flexibility and adaptability, stimulating these qualities, encouraging creativity and trial and error, forging partnerships, concentrating on ecological responsibility, taking an approach that prioritizes customers, employing data to inform decisions, and improving crisis readiness (Hayes, 2010). Although the suggestions are based on basic leadership and transformation theories discovered throughout the COVID-19 epidemic, it will be crucial to adapt these methods to the specifics of the organization in order to achieve long-term development and adaptability.

Conclusion

The report concludes that Knudstorp effectively led Lego Corporation through a financial catastrophe and into prosperity. The business may maintain its profitability by adopting cutting-edge technology, valuing staff wellness, developing adaptability, and promoting healthy development by connecting with transforming leadership concepts and drawing from the epidemic's experiences learned.

References

Books and Journals

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Online

• LEGO Change Management Analysis & Solution. 2023. [Online]. Available through: <http://fernfortuniversity.com/hbr/change-management/20027-lego-s-lego.php>
• Lego Group: Leadership and Change Management. 2023. [Online]. Available through: <https://studycorgi.com/lego-group-leadership-and-change-management/>