To foster innovation, LEGO co-locates all its designers in Billund, Denmark. This creates a highly concentrated creative hub, supplemented by giving them total creative freedom on dedicated "free-play" days every two weeks to explore new ideas outside of their assigned projects.

Related Insights

LEGO's CEO notes that absorbing new hires into the culture at its established HQ is easy due to the high density of tenured "culture carriers." The real challenge is scaling culture in new, specialized hubs, which requires a much more deliberate effort because that organic cultural osmosis is absent.

Rather than relying on formal knowledge sharing, Alphabet's X embeds central teams (like legal, finance, prototyping) that float between projects. These individuals become natural vectors, carrying insights, best practices, and innovative ideas from one project to another, fostering organic knowledge transfer.

Breakthroughs often occur in routine environments like the shower or during a walk. These activities promote what psychologists call "divergent thinking," where the relaxed mind makes novel connections. This scientific process can be intentionally triggered to solve complex problems and foster creativity.

Lego maintains relevance by replacing over 400 products each year. Their structured creative process blends internal ideas with external cultural trends, leveraging partnerships with major IPs like Star Wars for early insights. This ensures their product roadmap aligns with what will capture kids' future attention.

LEGO maintains its market leadership by replacing half of its product portfolio—around 450 products—every single year. This aggressive renewal cycle forces the company to stay deeply connected to current trends and continuously innovate, ensuring they are "no better than the creativity we are coming out with right now."

Contrary to the remote-first trend, Crisp.ai's founder advises against a fully distributed model for initial product development. He argues for gathering the core team in one physical location to harness the energy and efficiency of in-person collaboration. Distributed teams are better suited for iterating on an already established product.

CZI's Biohub model hinges on a simple principle: physically seating biologists and engineers from different institutions (Stanford, UCSF, Berkeley) together. This direct proximity fosters collaboration and creates hybrid experts, overcoming the institutional silos often reinforced by traditional grant-based funding.

LEGO ensures all its global factories are exact operational and physical copies. This extreme standardization means an employee from any factory can transfer to another continent and be fully productive the next day. This "rigidity," as the CEO calls it, provides enormous executional power and flexibility.

Lego fuels its extensive innovation pipeline by linking it directly to operational efficiency. A global "Partner for Productivity" program systematically generates significant annual savings. This creates a powerful cultural understanding that cost discipline is not an obstacle to creativity but the very engine that pays for it.

LEGO doesn't just co-brand products. Its partnerships with franchises like Star Wars are deeply integrated into its business model, spanning museum exhibits, video games, and special collections, offering a lesson in holistic collaboration that becomes central to the company's strategy.