The problem LEGO thought it had – and the one it really did

Published 18 May 2026

I don’t think it’s too presumptuous of me to say that many childhoods (and adulthoods) would not be the same without LEGO. My daughters and I have spent many hours on bedroom and living room floors building LEGO empires.

If you’ve read any of EmpowerPath’s other pieces (which you should, by the way!), you’ll know the emphasis we place on listening. LEGO’s turnaround is the perfect example of listening gone wrong, and then very right! 

In the early 2000s, the brand nearly collapsed. The easy explanation was the one many reached for at the time: children had changed. Screens were taking over. Video games were winning. The world had moved on.

But that wasn’t the real problem. The real problem was that LEGO had drifted away from the people who understood its value best.

In its origin, LEGO emphasised unleashing creative potential. It has always prioritised creativity, imagination and play. But, under pressure to grow, LEGO did what many organisations do. It expanded.

Theme parks. Clothing lines. Films. Video games. A wide array of products that didn’t align with the brand’s core identity and values. 

But unfocussed expansion wasn’t the only problem. An increasing unnecessary complexity to pieces was making Lego an operational nightmare. Designers were creating sets with bespoke pieces that couldn’t be reused, driving up warehousing and supply chain costs.

In chasing these new markets, LEGO alienated the audience that had defined its success. Parents began to say sets were too expensive and too complicated. Children struggled to mix pieces across ranges. Retailers found the product lines confusing. 

LEGO didn’t lack data. It lacked listening. So the organisation kept solving the wrong problem. Instead of asking “What helps children play well?”, it asked “What else can we build?”

LEGO’s turnaround didn’t begin with a breakthrough product. It began with a pause.

When Jørgen Vig Knudstorp became CEO in 2004, one of the most important things he did was create space to understand what was really going on. Why did people feel confused? What frustrated customers? Which decisions felt misaligned to those closest to the work?

LEGO began to reconnect with its customers, not through assumptions but through dialogue. This wasn’t about asking for opinions and then retreating behind closed doors. It was about involving the people who cared most in shaping what came next. Insight and trust grew together.

Once the real problem was named, decisions became clearer.

LEGO simplified product lines and cut unique bricks by 30%. They sold theme parks. They brought design back into shared systems that supported creativity instead of undermining it.  

Importantly, management didn’t impose these decisions from afar. They shaped them with the people who would have to live with them. For example, the LEGO Ideas platform allowed fans to pitch and vote on new designs. Customers became co-creators. The brand continuously encouraged engagement through online communities, and conventions. This allowed for more long term relationships with even more customers.

New ideas were tested early. Feedback was taken seriously. When something didn’t work, the lesson wasn’t hidden or rushed past, it was examined and used. Over time, this built confidence. Teams could surface problems without being blamed, and their insight led to meaningful action.

The result wasn’t perfection. It was resilience.

Importantly, LEGO rediscovered its identity as a brand: imagination and creativity. They eliminated anything that didn’t align with that. LEGO’s turnaround happened not because it avoided mistakes, but because it got better at recognising and responding to them.

LEGO didn’t just change what it did. It changed how it learned.

That’s the heart of the EmpowerPathway.

Because lasting change doesn’t come from doing more, faster. It comes from slowing down enough to see clearly, bringing the right voices into the room, and building systems that grow stronger with use.

LEGO learned that lesson just in time. You don’t have to wait that long.