Agile Transformation at LEGO Business Technology
The LEGO Group, a family-owned company renowned for its LEGO building system, has a global presence with manufacturing sites and offices worldwide. The company’s core values focus on imagination, creativity, fun, learning, caring, and quality, and it aspires to invent the future of play. To thrive in an ever-changing world, LEGO initiated an Agile transformation in its Business Technology departments, led by the senior vice president of corporate IT, Henrik Amsinck.
Preparing for Transformation
Building on the positive experiences, the senior vice president of corporate IT, Henrik Amsinck, decided to progress with the Agile transformation in two large departments comprising more than 500 employees worldwide. The company announced the transformation well in advance to provide ample time for employees and leaders to understand and adapt to the changes. To ensure the success of the transformation, the leadership team sought external help and enlisted the expertise of Bent Myllerup and his team of Agile coaches to assist with the journey.
The Agile Transformation Team
The Agile transformation required significant changes in the company’s organisational structure, operating model, and performance management systems. The organisation shifted from functional towers to cross-functional product-based teams and adopted continuous delivery models over traditional waterfall project processes. Product teams were given full responsibility for delivery, and the funding model was changed to align with Agile principles. The reward system was overhauled to incentivise team collaboration and value delivery over individual achievements.
No Heavy Processes or Manuals
Progress toward Transformation
Challenges and Speed Bumps
As the Agile transformation journey continues at LEGO, more parts of the company are becoming interested in Agile ways of working. The external Agile Transformation Team, led by Bent Myllerup, has played a pivotal role in guiding the transformation and fostering a cultural shift. Together, they continue to inspire pilots of Agile practices across various areas within the company. Despite ongoing challenges, the focus remains on upholding Agile principles and values to drive continuous improvement and deliver value in an ever-changing digital world.
(Note: The text of this case study is based on the article: “Agile Transformation at LEGO Group” by Anita Friis Sommer. Better Change co-founder, Bent Myllerup, provided his first Agile coaching services to LEGO in 2009 and since then, he has served LEGO by operating under various brands. He led this transformation from the vendor side).