Citations › Citation ID: 99

C99. BOOK: David C. Robertson, Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry (Crown, 2013), p. 118.

At every step, Knudstorp changed many of the artifacts—facilities, offices, tangible awards, and recognition—that together constituted the most visible aspects of the company’s cultural fabric. That meant creating physical changes that held people accountable for their results and the organization’s performance. After a first round of layoffs in 2004, he shuttered offices and moved the remaining associates into far tighter quarters. His reasoning: half-empty office space gave people a sense of abundance. At a time when LEGO was bleeding losses and starving for resources, he wanted people to have a sense of scarcity.

To help turn the company around, Knudstorp created an environment of scarcity.