Lego Makes a Hundred Billion Bricks a Year. CEO Niels Christiansen on Why They’re Now More Important Than Ever – Yahoo News

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Its due to the fact that we can do many of the impressions that we desire with the mouth and eyes, whether they smile, whether they wear glasses or not. Its also to keep things as easy as possible while still offering diversity and creativity. I guess theres been no factors for noses.
Have you designed a set of Legos? (Emmett, 7).
In my life, Ive constructed lots of, numerous, many Lego creations, however I did not yet have the chance of turning one of them into a set, unfortunately.
Do you have a pet job now that youre promoting for, any breaking news?
Yes, I have the benefit of when a year I get into a big space and see all the various proposals for what might be sets to release in one- or two-year horizon. And I do have my favorites. The problem is that when I come out of that room I have my mind eliminated so I can not inform anybody about anything.

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( This interview with LEGO CEO Niels Christiansen has actually been condensed and edited for clarity.).

A portrait of LEGO CEO Niels ChristiansenLEGO CEO Niels Christiansen Credit – LEGO
( Miss this weeks The Leadership Brief? This interview below was provided to the inbox of Leadership Brief customers on Sunday early morning, Sept. 20; to receive weekly e-mails of conversations with the worlds leading CEOs and company decisionmakers, click on this link.).
In March, after Lego employees realized that almost 90% of the worlds school-age kids were outside of their normal knowing environments, they posted a number of play concepts and developing ideas online. “It was not about attempting to sell more,” says Lego CEO Niels Christiansen. Overall incomes at Lego increased by 7% in the very first half of the year, to approximately $2.5 billion.
Christiansen, 54 and an engineer by training, just recently joined TIME for a video conversation from his office in Copenhagen. He talked about the unexpected intricacy of making plastic bricks, Legos ambitious plan to wean itself off of petroleum-based plastic by 2030– the business has actually currently checked over 300 sustainable products for making plastics– and the one product Lego will never ever make.

Lego crowdsources new product ideas from fans, including its brand-new gamer piano. Why dont Lego characters have noses?

In March, after Lego employees recognized that nearly 90% of the worlds school-age kids were outdoors of their typical knowing environments, they posted a number of play ideas and building ideas online. “It was not about attempting to sell more,” states Lego CEO Niels Christiansen. And the Lego Foundation makes grants on learning through play with a particular focus on kids who are in less lucky situations.
I think that would be sensible if Henry were to refer to the Lego Foundations reports on the value of learning through play.
You develop those, however lets likewise keep in mind that most of the Lego buildings, and actually the Lego structure that I have really liked most as a child, was really this complimentary structure.

Heres a socially minded question from Henry, 9. Some kids cant pay for Legos. What are you doing to assist disadvantaged kids acquire Legos?
Despite the fact that its a question from a kid, thats something that is really, very essential to us. We are donating a lot of sets to kids around the world who are not so lucky they can have sets. We have done a lot of that likewise during COVID. Its the reality that 25% of all our dividends, our revenues, go to the Lego Foundation. And the Lego Foundation makes grants on discovering through play with a specific focus on kids who are in less lucky circumstances.
Back to Emmett. He asks, Whats your favorite Lego set?
It alters gradually, and now it is a Bugatti. It can actually drive and go into gear. I discover it so amazing. It was really, very challenging. Thats my favorite right now.
And Henry asks, If I want my parents to buy me more Legos, can you suggest a research study that reveals Legos advantage learning? P.S., Ill inform my pals about it.
In 2018, we talked to 13,000 families about play and the advantages of play. The Lego Foundation does a lot of studies for this to be research study based. I think that would be sensible if Henry were to refer to the Lego Foundations reports on the importance of learning through play.
There are a great deal of skills around resilience and issue resolving and creativity that you discover through play.
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Will there be Lego people with masks, wearing masks for the virus? (Nadia, 10).
We do not have it at the minute. I would not state that it might not take place.
Now for the boring, adult concerns. What was your most intense supply-chain disruption that Lego experienced as an outcome of COVID?
We have a supply chain based upon five big factories around the world with a lot of versatility in our operating design shifting between those. We did have 2 months of forced closure of our Mexican factory, and the Mexican factory is the prime factory supporting the Americas. So that was an extremely substantial disturbance for us.
For all the fun related to Lego, you likewise pride yourself on your production expertise.
Were not messing around. We are world leaders in molding in plastic. Its amazingly high tech. The item is very creative, but making it is a very, very well-controlled and very structured process. That intricacy is actually, really high.
In engineering speak, what level of accuracy is required to make Legos?
Our tolerances are very tight.
All to make plastic bricks?
A lot of individuals think, “O.K., how challenging can it be to put some bricks into a package?” We manufacture around a hundred billion bricks a year. A hundred billion bricks in lots of, lots of different shapes and sizes and colors. And these bricks need to be available in the specific best moment that you put these 200 or 5,000 bricks into one box. We can not produce the set if there is one brick in one color thats not there. We have a big complexity in the logistics behind ensuring that we have all the ideal components and all those all set at the right moment.
We make around a hundred billion bricks a year.
Aside from those logistics, what makes Legos so challenging to make?
Simply envision, you take these bricks and they fit together wonderfully. You can take them apart and they mesh again and you can do that thousands of times. These bricks, some of them they would be sitting around in your attic or your basement for 40 years and they still work. And whatever brick you purchased 40 years ago still connects beautifully with a brick you purchased yesterday. That takes a remarkable precision. However likewise durability and effectiveness in the plastic product. We are really, actually world-leading in doing that. And though the brick itself might look insignificant, to bring the safety and the functionality so they can be sitting– sometimes it lies around in the window in the sun for 2 weeks and after that they put it in the fridge and then they do all kinds of stuff, they leave it outdoors and they bring it in. And it can not be brittle, it can not break, it can not be sharp or have sharp edges if it breaks. The security level and quality level is incredibly high, much higher than you would usually discover in a toy or anything else.
You have an objective of making Lego bricks from sustainably sourced material by 2030, instead of petroleum-based material. Are you on target?
Making bricks out of sustainably sourced materials is not insignificant. Its not like I simply could go out and state O.K. and state, Listen, if I paid 20% more, then I get this product and then I can simply do it tomorrow.
Are you out to change plastic?
We are not wanting to leave plastic. We are wanting to sustainably source plastic. We currently have some sugarcane-based plastic materials that still have all the exact same good attributes that I spoke about previously.
How important are your licensed items?
Its not half of our business, however its a significant part of business where we are linked to external IP.
I comprehend that 60% of your line of product every year is new.
Yes. I dont know any business that would do that!
The Lego Millennium Falcon Collectors Edition is today the most complex Lego set ever offered, with over 7,500 bricks and an $800 price. Exists anything planned that is at that level of intricacy and cost?
We have 250 designers, 40 different citizenships, so Im sure theyll come up with something thats even stronger in the future than the Millennium Falcon.
How do you get to be a Lego designer? What are their backgrounds?
You can not take the Lego designer [degree program] at any university. I can not provide you a formula. Its anything from an engineer to an artist and anything in that spectrum.
What necessary human impulse does Lego take advantage of?
You can express yourself, you can try things out and play, and you can construct. You develop those, but lets likewise remember that many of the Lego buildings, and actually the Lego structure that I have actually liked most as a child, was truly this complimentary structure. I believe thats the huge, huge strength compared to any other toy where you buy something that is more or less completed and then you play with that.
Theres a lot of issue about sidetracked attention periods and too much screen time.
A couple of years back, I frequently got the question, Is the brick still relevant? And whatever reveals the brick is probably more relevant than ever. Kids really like this physical play.
Who is your greatest competitor?
Everyone else combating for kidss time.
What toy company do you admire the most thats not Lego?
Disney.
What is one thing Lego will never ever do?
We will never produce military toys.
CHRISTIANSENS FAVORITES.
BUSINESS BOOK: You may discover me dull, however thats in fact Michael Porters old book Competitive Strategy. Its an extremely essential book on how to do technique.
AUTHOR: On my trips I like to check out Ken Follett.
APP: Spotify.
DAY-TO-DAY EXERCISE ROUTINE: Swim in the morning, in the ocean, and then I do Pilates.
BREAKFAST: I consume a special kind of yogurt that originates from Iceland. Its called Skyr.
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