I was recently in Billund Denmark and visited the so called LEGO house and could read and learn about the LEGO business – yes a family business!

LEGO knows its origins to Ole Kirk Kristiansen who hasda carpentry business that by the end of the 1920s, due to the Great depression, was suffering and ultimately closed down. He decided to convert his business in producing wooden toys, believing that while an economic downturn can stop carpentry, it will not stop children from playing. He does setsup LEGO which is derived from the Danish words “LEg GOdt” meaning “play well”.

By the 1940s LEGO start shifting into making plastic toys and the first plastic bricks, LEGO are now so famous for. LEGO is on a growth part but not the mega company we all know today. The first generational change starts happening in the 1950s as Godtfred Kirk Kristiansen (son of Ole Kirk) joins the family business in 1950 and is then appointed Managing Director in 1957. There is a great fit in the overall purpose of the company and that of Godtfred who is a true manufacturer at heart. As a second generation owner Godtfred truly believes in the huge potential of the LEGO plastic brick and is the first to start introducing this to foreign markets out of Denmark. The passion that Godtfred has at being a quality manufacturer is shown as in how LEGO reacted to the complaints it received from various markets with regards the stability in the building experience of the LEGO bricks. This was ultimately sorted in 1958 as LEGO ultimately comes up with the well known interlocking system using inner tubes that match the studs on the LEGO brick, that is still used till this day. Ultimately the founder Ole Kirk passes away in 1958.

Fast forward to the 1970s and by that time LEGO has grown into an international business. The challenge of the next generational change looms up and they decide to plan this change as outlined below. The succession between Godtfred Kirk (second generation) and Kjeld Kirk (3rd generation) is a long journey spanning a number of years. Moreover LEGO have the right corporate governance structures onto which such generational change can rely on. For this generational shift LEGO first appointed Vagn Holck Andersen (non family member) as CEO in 1973, who served as an important link between Godtfred Kink (2nd generation) and his son Kjeld Kirk. Vagn Holck becomes a trusted advisor and valued fried to Kjeld Kirk until he relinquished his post of CEO in 1979 in favour of Kjeld Kirk. Vahn Holck remains an advisor and assisting Kjeld Kirk well into the 1980s.

The end result? The 3rd generation, Keld Kirk Kristiansen continues to grow the company to one of its golden eras between the end of the 1970s and the early 1990s, opening new factories around the globe and expanding existing ones, with various automated production processes.

As I keep repeating, succession planning is a journey. It needs to be carefully planned, guided, documented, but most of all since we are dealing with humans, it is not a linear process, but needs the necessary time for the persons involved to adapt, learn, change and ultimately lead.

It is for this reason that at EMCS Academy we have setup the the accredited course at MQF Level 5 – Award in Leading a Family Business. This unique course deals with the foundational and planning aspects related to succession planning ideal to help both present and next generation family business members to be well prepared and ensure a successful generational change. Click HERE to read about this Award in Leading a Family Business Course and to REGISTER. We will also help you gain funding for this course.