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.

Avoid a fixed allocation of resources between core products and new initiatives. Instead, treat the investment mix as "seasonal." Periodically and purposefully reassess the balance based on the most pressing business needs—whether it's stabilizing the core for large customers or pushing aggressively into new markets for growth.

Enduring 'stay-up' brands don't need to fundamentally reinvent their core product. Instead, they should focus on creating opportunities for consumers to 'reappraise' the brand in a current context. The goal is to make the familiar feel fresh and relevant again, connecting it to modern culture.

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's CEO has settled on a four-year strategic planning cycle as the ideal cadence. He finds three-year plans create a constant sense of urgency, while five-year plans feel too abstract. A four-year horizon is long enough to execute major initiatives but short enough to remain tangible and relevant.

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.

Eliminating a popular and profitable product line can be a wise long-term strategy. If a product, even a bestseller, creates brand confusion or pulls focus from your core vision, cutting it can strengthen your primary brand's identity and lead to more dedicated growth.

Despite high demand, LEGO's CEO views ~15% annual growth as the sustainable maximum. Because LEGO manufactures its own products, faster growth would strain its ability to build new factories and distribution centers, introducing unacceptable complexity and delivery risks into the operating model.

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.