Less Creates More

LEGO 2003: Revenue stalled, margins negative.

Four words reset the company:

Back to the Brick.

When the new CEO came in he saw:

→ Majority of sales came from core sets

→ Everything else burned cash

→ EBITDA had dropped from ~20% to –2%

He made drastic changes based on the new mantra:

→ Catalogue halved in one planning cycle

→ LEGOLAND parks sold; proceeds poured into core sets

→ Licensed slate trimmed to a few proven franchises

→ New moulds were much harder to get approved

Short-term cost: revenue –26%, 1000 roles eliminated, fan forums revolted.

Within 24 months cash flow turned positive; by 2023 revenue was ~9x its 2004 level and margins at 30%.

The core principle: Cut complexity to focus on the asset that compounds.

Monday mission:

→ Name your brick in one sentence

→ Draft a kill list of lower value offerings

→ Outline how to reinvest funds into the core

The hardest part? Actually cutting.

LEGO executives physically destroyed prototypes in ceremonies – making subtraction visible and celebrated.

Remember: What feels like "growth" (more products, more features) is often what's holding you back.

What will you eliminate this week?