The Value of an Idea Compounds Over Time
Friday 19 February 2010 - Filed under Creativity + Nonlinear Growth + Sales and Marketing
By 1954, a Denmark-based toy manufacturer called “The LEGO Company” had established a reputation for making high quality wooden
toys. Some five years earlier they had introduced a plastic toy called
“the automatic binding brick.” It met a poor reception that spawned
prophesies of failure in the industry press. LEGO made good wooden
toys; this brick just was not happening.
Then, something funny happened. A junior managing director of the
company, Godtfred Kirk Christiansen, had an idea. He had just spoken
with a toy store buyer who lamented the fact that certain things were
missing from toys of the day. Toys didn’t work together - there was no way for toys to interact with other toys. Toys did not provide a system of play.
In retrospect we might think “of course that’s just what’s needed.” But this was just an idea. One idea in a toy company that had been around for quite a while doing it’s (toy) thing.
Kirk Christiansen’s idea grew into a new vision for LEGO
products. Initially it was outlined in broad terms, without a specific
product in mind. As the idea developed, then, the entire LEGO
product line – some 200 different toys – were scoured to see which had
the best chance of measuring up to the That vision was summarized,
according to LEGO, like this:
- Unlimited play potential
- For girls and boys
- Fun for every age
- Year-round play
- Healthful, quiet play
- Long hours of play
- Development/ imagination/ creativity
- The more toys, the greater their value
- Extra sets available
- Quality in every detail
LEGO found one product with a real chance to live up to the vision.
The time of the automatic binding brick – a failure according to some
- had finally come.
The brick was refined. The company developed a precision mass production system around it. The idea spread and grew.
As of this writing, 5 billion hours per year are spent playing with LEGO bricks.
The brick has twice won the award of “Toy of the Century.” LEGO based
video games are big sellers on systems like the Wii. The bricks are
featured in YouTube stop motion video remakes of Star Wars. There are
new character lines, and entire movies in an world of LEGO There is
LEGOland.
The LEGO brick may be the most widely known – and loved – toy in
the world. It is certainly the backbone of one the largest toy
companies in the world. The “binding brick” has become synonymous with
the company itself.
I say “LEGO”, you see a picture of the brick in
your minds eye.
It’s another example of the idea put forth in so many other
disciplines and arts: that any given idea grow in value over time; that
a good idea is worthy of refinement and development. This doesn’t
mean EVERY idea is a good idea. It does mean that even simple ideas can
have their value compound the way interest compounds on an investment.
When the time is right, those ideas can offer tremendous returns. Just think about that little brick.
2010-02-19 » scottilevy