Resistance to Resilience: LEGO’s Change Strategy
Leading transformational change requires skillfully navigating shifts in strategy, culture, and operations, which often face considerable resistance. Employee willingness to support change initiatives has fallen sharply, from 74% in 2016 to just 43% in 2022, underscoring the need for strategic change leadership. Jørgen Vig Knudstorp’s leadership at LEGO serves as a powerful example. By guiding LEGO from the brink of financial collapse to renewed profitability, Knudstorp demonstrated how effective change leadership could unite employees and build a more resilient workforce. His six key strategies for reducing employee fear and overcoming resistance offer valuable lessons for leaders facing similar challenges.
1. Engage and Empower: Involving Your Team
Involving employees in the change process not only fosters a positive outlook but also reduces fear and boosts buy-in. Knudstorp revitalized LEGO’s creative focus by actively engaging employees in discussions about product innovation and quality improvements: “Our best ideas come from the people who are closest to the work.” He also formed cross-functional teams to incorporate diverse perspectives into decision-making, especially during critical restructuring and product revamp phases. By giving employees a voice in shaping decisions, he made them feel personally invested in the company’s transformation, driving greater ownership and commitment to the change.
2. Face Fears Head-On: Addressing Concerns Proactively
Proactively addressing concerns and providing honest reassurance are vital for reducing fear and resistance during change. During LEGO's financial struggles, Knudstorp confronted employees' anxieties head-on by holding regular meetings and town halls to update them on the company’s financial state and restructuring strategy. He didn’t avoid difficult truths, instead emphasizing that while the changes were challenging, they were essential for the company’s survival. “This is a difficult road, but we’re building something meaningful that will make us proud,” he said, framing the journey as a shared mission that required collective commitment. His honesty helped employees understand the necessity of the changes and gave them a sense of purpose amidst uncertainty.
3. The Trust Factor: Easing Resistance to Change
Building trust is crucial during change. At LEGO, Knudstorp won his employees’ trust through consistency, integrity, and genuine care. He aligned his actions with words, maintained transparency, and showed empathy for employees. His mantra, “stay true to the LEGO brand,” reinforced the focus on quality and creativity, even when tough decisions were required. By restructuring and returning to LEGO’s core values, he ensured his decisions supported the company’s mission and assured employees of the company’s continued purpose.
Knudstorp communicated openly about progress and setbacks, explaining tough decisions like workforce reductions. This transparency helped employees understand the larger vision and reduced distrust. He also showed care by supporting those impacted by layoffs, offering fair severance and transition resources. “Helping people transition smoothly was as important as the business results,” he said, demonstrating his respect for employees’ well-being. His empathy built loyalty, trust, and resilience within the team, strengthening their engagement in the company’s transformation.
4. Foster Dialogue: Enhancing Psychological Safety
Psychological safety, the belief that individuals can take risks without fear of negative consequences, is essential for effective change management. Knudstorp prioritized this at LEGO, creating an environment where employees felt safe to share ideas, speak up, and even make mistakes. He held regular meetings to encourage open dialogue, ensuring that employees’ concerns were heard and respected. This approach broke down barriers to engagement and promoted a culture of collaboration.
Additionally, Knudstorp fostered a “fail fast” mentality, framing mistakes as learning opportunities rather than failures. This encouraged experimentation and innovation, allowing employees to quickly test and refine ideas. Knudstorp also kept communication transparent, frequently sharing the company’s vision and the reasons behind strategic shifts.
5. Enable for Success: Providing Support
Providing support and resources is essential in easing employees' challenges during transformational change. Knudstorp addressed both psychological and practical needs by prioritizing skill-building programs focused on creativity and customer engagement, equipping employees to support LEGO’s evolving vision. His investment demonstrated confidence in their potential, fostering commitment to the change.
Knudstorp also emphasized the importance of coaching and mentoring, often leading by example and encouraging his leadership team to mentor their colleagues. This hands-on approach fostered a supportive environment where leaders actively guided their teams through challenges, helping staff build confidence in their evolving roles.
Additionally, Knudstorp ensured that the necessary resources were available to support the transition, including new software and R&D investments. These tools enabled employees to implement new strategies efficiently, reinforcing a sense of readiness and stability as they adapted to new processes.
6. The Power of Now: Driving Urgency with Patience
A sense of urgency is crucial for motivating change, creating momentum and limiting resistance. However, it must be balanced with patience to ensure the process is thoughtful and sustainable. During LEGO's financial crisis, Knudstorp emphasized the need for immediate action, stressing that product innovation and operational efficiency were vital for survival. “We need to act now to save LEGO,” he declared, motivating his team to focus on restructuring while revitalizing the brand. At the same time, he reminded employees that LEGO’s recovery would be a gradual process, grounded in long-term growth, not quick fixes. This combination of urgency and patience allowed for a measured transformation, where immediate results were balanced with creative development and a commitment to quality.
Conclusion: Transforming Resistance into Resilience
Leading a team through transformational change requires a strategic blend of urgency, patience, trust, and empathy – qualities that Jørgen Vig Knudstorp embodied at LEGO. By actively involving employees, addressing concerns, building trust, fostering psychological safety, providing necessary resources, and balancing urgency with patience, he was able to transform resistance into resilience, creating a company culture that thrives on collaboration and innovation. This approach not only saved LEGO but also set a powerful example of how visionary leadership can turn adversity into opportunity and inspire lasting growth.
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