Updates

  1. Person pages list letters, writing, profiles and links as sortable tables with filters, and show each person's companies as links; Fund letters show each letter's description in its own column.
  2. Experts show a checked job title and a short description of each person; 30 more people have photographs.
  3. Every company, fund, university and publication the experts work for has a page listing the people there.
  4. Fund letters show each letter's thesis and filter by it; 225 person pages list the essays, columns and newsletter issues the person wrote.
  5. Person pages list every essay and newsletter issue a person wrote, and their own books as a table in List view.
  6. Recommends shows the five largest kinds of book and the rest under More; browse pictures load sooner.
  7. Podcasts and talks link the original episode, filter by Audio and video or Press, and list each publisher once.
  8. Pages are wider, Recommends has List and Grid, and a filter clicked again turns off.
  9. Book cards sit in a ruled grid with Open Library and Goodreads links and each book's one-line note.
  10. Funds is now Investors; each investor's styles are buttons that filter the table.
  11. Podcasts and talks on a person's page filter by year and publisher and show as a list or a grid of pictures.
  12. Quotes show only people's own words: 472 summaries written by list sites are gone.
  13. Country pages open from Browse again, and every link on the shelf lands on a page.
  14. Subject and person pages show their sections as tabs, and each book appears once on a person's page.
  15. Book cards show the quote, who said it and the source; grids show five cards to a row.
  16. On a phone, a menu holds the sections, search, Updates, Feedback and dark mode.
  17. Feedback takes a screenshot of the page with no browser prompt, opens a screenshot full size when you click it, and clears itself once sent.
  18. Book cards are centred, search names the topic each book sits in, and any text cut short shows whole on hover.
  19. Search groups its results by kind: people, companies, geographies, subjects, topics, books, funds, fund letters and papers.
  20. The Books table lists who recommended each book by name, and the browser tab names the section you are in.
  21. Feedback can take a screenshot of the page, or one you paste or choose, and opens in the corner beside Updates.
  22. Each rail button reopens its section where you left it, and Browse, Table and People show on every book and subject page.
  23. Filters grey out choices that hold nothing instead of hiding them, and Books › People filters by authors or recommenders.
  24. Feedback takes a subject line and up to three screenshots.
  25. Biographies are grouped by the person they are about: 41 new pages, from Abraham Lincoln to Lee Kuan Yew.
  26. Sport splits into 23 sports, and Religion into one topic per faith.
  27. Book lists show as cards: the cover, one recommendation quote and every recommender by name.
  28. Seventeen subjects that had two or three pages under different names now have one page each.
  29. Every page lists its Experts as authors and recommenders, with a link to them on the Experts tab.
  30. Economics, Financial history, Financial panics and Accounting are subjects of their own, with one page per financial crisis.
  31. Book, person and subject pages open inside the app, so the tabs stay in view.
  32. 996 more book covers, and photographs or logos for 227 more people and companies.
  33. Books › Browse shows every subject as cards, and the rail holds Fund letters, Papers, Experts, Books and Funds.
  34. Every topic over 150 books splits into narrower topics, each with a page of its own.

Send feedback

What is it?
Screenshots, up to 3 (optional)
or paste one with Ctrl+V

We use your email only to reply to you.

Brick by Brick

Brick by Brick

David Robertson, Bill Breen
2013
T2 305 pages · about 5h 5m to read Open Librarygoodreads

LEGO's near-bankruptcy and turnaround; the one real Danish business book.

Summary

Robertson, an academic who held a professorship funded by LEGO, wrote with Bill Breen about the company's near-failure and recovery, with access to executives and internal material.

The crisis narrative is the useful part. LEGO faced falling sales in the late 1990s as management concluded that children were abandoning physical construction toys, and responded by diversifying: theme parks, clothing, video games, television, an action figure line, jewellery for girls, and a redesigned product architecture. The company also brought in designers with instructions to innovate freely, expanded the number of unique elements from around six thousand to over twelve thousand, and pursued growth in every direction simultaneously. By 2003 it was close to insolvency.

The recovery under Jorgen Vig Knudstorp reversed most of it. The company sold the theme parks, cut the element count sharply, imposed a rule that new sets should use existing elements wherever possible, restored profitability discipline at the individual set level, reduced the product range, and returned to the core building system. Robertson argues that the decisive change was not less innovation but bounded innovation: designers were given constraints on cost, on element reuse and on the target customer, and were required to work within the existing system rather than around it.

The LEGO Mindstorms case is covered in detail, including the decision to embrace rather than fight the adult enthusiasts who reverse-engineered the software.

The book was written with company cooperation during a period of extraordinary success, and it does not seriously examine the licensed-property dependence that a large share of the recovery rested on, or what happens when those licences change hands. The general argument, that innovation without constraints destroys value in a system-based product business, is the transferable content.

Key takeaways 7

  1. LEGO nearly failed by diversifying in every direction simultaneously on the belief that its core product was obsolete.
  2. Expanding the number of unique elements from around six thousand to over twelve thousand destroyed the manufacturing and inventory economics.
  3. The recovery imposed constraints on designers rather than reducing innovation, requiring reuse of existing elements and explicit cost targets.
  4. Profitability discipline applied at the individual product level rather than at the range level revealed which sets destroyed value.
  5. A system-based product loses its advantage when each new product introduces components that do not work with the others.
  6. Adult enthusiasts who reverse-engineered the Mindstorms software were embraced as contributors rather than pursued as infringers.
  7. Selling the theme parks removed a capital-intensive business that the company had entered to escape its core rather than to extend it.

Who should read it

Operators managing product ranges and innovation processes who want a documented case of how unconstrained innovation destroyed value and how constraints restored it.

Similar books 6

Chosen by shared topics, the entries that hold them, and the people who recommended both.

Bryce G. Hoffman · 2012

The 2006-2010 turnaround told with close management access.

Recommended by: Mohnish Pabrai

Dieter Brandes · 2004

Aldi's hard-discount method: radical simplicity as the way to keep costs low.

Where it sits in the reference 3

Geographies
Business themes
Business themes

Topics

Company HistoriesBusiness and Management