Jorgen Vig Knudstorp was hired in 2004 to save LEGO from bankruptcy as the first non-family CEO. He stripped down unnecessary parts of the business, changed senior designers to LEGO fans, and reinvigorated the company's vision. Through strategic decisions like outsourcing and partnerships on films, Knudstorp led LEGO to profitability within a few years and it has continued to grow successfully. The document discusses his background, strategies for turning LEGO around, and analysis of his leadership competencies and philosophies that made him an effective role model as an entrepreneur.
Investment in The Coconut Industry by Nancy Cheruiyot
ROLE MODEL: JORGEN VIG KNUDSTORP (LEGO CEO)
1. JORGEN VIG KNUDSTORP
“The Man Who Saves LEGO”
TUGAS ROLE MODEL
ENTREPRENEURSHIP
ARISNAUFAL MALIK / 1201110201 KM KELAS A
MBTI / FEB UNIVERSITAS TELKOM
3. FACTS BEHIND THE BRAND
Founded by Ole Kirk Christiansen in 1934
Leg Godt, it means “Play Well”
Lego you get in 1958 can be connected with
modern Lego Brick. It means, the quality
aspects NEVER CHANGE.
Laid end to end, the number of LEGO bricks
sold in 2012 would stretch round the world
more than 18 times.
6. RISE OF LEGO
In 1958 lego began manufacturing the bricks.
This action had led Lego to be the most
respected and biggest Toy Brand in Europe.
More Lego variance produced and it
initiatived by Ole son, Godtfred.
Created Lego Land.
7. DAWN OF LEGO
At the end of 90’s lego got the FIRST net
loss on their history. 220 Million USD or Rp.
2,600,000,000,000.
Rise of the video games made Lego
vulnerable.
The 3rd Lego CEO, Godtfred’s son, Kjeld
had been stepped aside, and made
controversial choces: to hire new boss
OUTSIDE THE FAMILY.
8. ROLE MODEL PROFILE:
JORGEN VIG KNUDSTORP
Born in Fredericia, Denmark 21 November
1968.
Get the BA and PhD tittles at Aarhus University
of Denmark
First Carrier as the Counsultant at Mckinsey &
Co.
In 2001, joined Lego Company and become a
strategiest.
In 2004 he was chosen to be The First Lego
CEO outside the Chirstiansen Family (at age of
36).
9. WHAT DID HE DO?
To save Lego over Bankruptcy, Jorgen Vig
stripped down all the “distraction” in Lego. They
are The Legoland, Lego Games, and Lego
Merchandises.
Changed senior Lego desainer to “amateur”
Lego desainer. The amateur desainers were a
member of Lego Adult Fans Community.
He “re-invented” the mind sets of the Lego
Workforce.
10. THE BIGGEST QUESTION
“Why does The LEGO exists?”
“...to offer our core products, whose unique
design helps children learn systematic,
creative problem solving – a crucial twenty-first
century skill...” ― Jorgen Vig Knudstorp.
11. WHAT DID HE DO?
Managing at-eye-level
Analyze the whole production costs.
Just 1 year to get the net profit back at USD
25 millions.
Restructuring the supply-chain
12. WHAT DID HE DO?
Moved Factory to be Outsourced in 2006, to
Mexico and Czech Republic.
Moved Back Factory to Billund Denmark in
2008. The result is achieving trusts from Global
Customers from “lead-paint”issues.
Created amazing collaborations between Lego
and another companies.
ex: Lego Star Wars, Lego Movie.
Just 2 year (2004-2006) to get the net profit
back at USD 25 millions.
13. THE LEGO MOVIE (2014)
The biggest breakthrough of Jorgen Vig
and Lego Group.
14. ANALYSIS: BACKGROUND OF THE ROLE MODEL
Characteristic Side:
1. Always have a sense of urgency upon
knowledge in Business and many other
aspects.
2. Strong Leadership in many different
situations
3. Patience in managing tensions and
pressures.
15. ANALYSIS: BACKGROUND OF THE ROLE MODEL
Business Side:
1. As the counsultant business in Mckinsey
2. As a Head of Strategy Department in Lego
3. As A CEO Lego in 2004 (at age 36)
16. THE 10-D BYGRAVE THEORY
1. Dreams
Jorgen Vig shares a dream about how will
be good someone in leadership, if they can
manage it at the very first phase of his/her
life.
2. Decicieveness
He continues to make a controversial – yet
effective decicieve strategy.
Ex: sell the Lego Land
17. THE 10-D BYGRAVE THEORY
3. Doers
Jorgen Vig changed all senior Lego
designers to amateur Lego designer. The
new designers are hardcore Lego fans.
Jorgen Vig DID put the right people to the
right job.
4. Determination
He re-invited the vision of the Company, “to
offer the best quality product to provide
problem-solving skills to children in the
world.”
18. THE 10-D BYGRAVE THEORY
5. Dedication
Jorgen Vig has remained in The Lego
Group since 2001 (13 years active). He
continues to produce creative
breakthroughs for Lego.
6. Devotion
He devotes all his work to save the
Company from bankruptcy (in2003) and to
support creativity of all children in the world.
19. THE 10-D BYGRAVE THEORY
7. Details
Jorgen Vig was very detailed about how to
manage Lego Group.
ex: production cost and supply chain
analysis and re-structuring
8. Destiny
Because of his hard work, Lego had a good
call in 2008, as the most trusted toy brand in
the world.
20. THE 10-D BYGRAVE THEORY
9. Dollars
From net loss in 2003 at USD 328 million, to
net profit in 2008 at USD 229 million. Lego
making 2013 net profit at USD 1,1 billion!
10. Distribution of Task
He distributes the creative projects and
ideas to the hardcore fans of Lego. Not
himself as the CEO.
21. DIFFICULTIES AND EASES
Pressures have been thrown to Jorgen Vig
from the very first time he is active as Lego
CEO.
Ex: Legoland dispute, outsourcing
controversy
Being a Danish has helped Jorgen Vig to get
trust from all Christiansen Family Member to
run Lego.
Being an Alumni at McKinsey, has made
Jorgen Vig expert in strategic business.
22. ROLE MODEL’S COMPETENCIES
1. Self Control: ability to maintain emotion in difficult
and un-manage-able situation.
ex: critisized by Lego fans in term of moving out the
Lego factory abroad Denmark
2. Hard Work: 13 years active in Lego Group and
always tightening the vision to provide the best core
product.
ex: managing thousands of collaboration project
contracts in Lego Group
3. Willingness to Learn: always searching for new
knowledge for the company.
ex: implement the “managing at-eye-level” term in
Lego Group.
23. ROLE MODEL’S PHILOSOPY
“My goal is to make LEGO the premium
niche network brand. We may not ever be
the biggest brand, but we want to be the
best. Our purpose is to give the joy of
building and creativity...”
24. THE FAILED AND SUCCESSED IN BUSINESS
1. He failed Lego on some projects like
Bellvile, Lego Dino, Lego Ben 10.
2. But, Jorgen Vig has succeded to get
ernomous profits for Lego in Star Wars line,
Pirates, Lego MOVIE, tv shows, video
games, and many more.
25. THE RED LINE
As the entrepreneur, we must have a strong
leadership. Jorgen Vig Knudstorp has showed
us about how leadership can make us focus on
what we do.
Patience provides the best. With patience and
determination, Jorgen Vig manages to clear
hard path in front of him.
Continue to learn and praised knowledge.
With knowledge we cannot do anything right.
Jorgen Vig always seeks new knowledge to
create something better for the Lego Group.