In 1999, Lego faced its first-ever loss, prompting the nomination of Poul Ploughmann as interim COO for a necessary company overhaul. Over four years, unprofitable projects were eliminated, including the sale of four Legoland parks, as they were deemed not central to Lego’s core business of toy manufacturing. Despite the sale, Lego retained a 30% share in the parks to preserve brand representation and mitigate management risks.

1. READ OUT LOUD
THE STORY BEHIND
- LEGO-
LEGO IS REALLY ENJOYING THE CRISIS

2. BEFORE YOU START….
please look into your camera and tell
us slowly your name, city and
country… Then you can start reading
this paragraph out loud… Have fun!

3. In 1999, Lego operated at a loss for
the first time ever. It was clear that
something had to change. Kjeld Kirk
realized that he would not be able to
lead the company through this period
successfully and nominated

4. Poul Ploughmann as interim COO to
help the company make a fresh start.
Poul cleaned up the company in four
years. Anything that was not
profitable or was not part of the
company’s core business was either

5. gotten rid of or sold. It soon became
clear that many products and projects
had been funded for years without
yielding a single Danish krone. In
2005, the four Legoland
parks were also sold. After all, they

6. were not part of the company’s core
business. “It quickly became clear that
we were going to be selling the
Legoland parks, because we are good
at making toys, but not at running
theme parks. We did retain a 30%

7. share in the parks, however, as they
are an important representative of the
brand and bad management could
directly influence the brand’s image.”

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