Building for a hybrid future brick by brick
The LEGO Group is preparing for a future where physical and digital play are seamlessly integrated, while keeping the LEGO brick at the heart of its business. The transformation involves building a strong internal digital organisation, modernising core systems such as ERP and PLM and strengthening capabilities in areas like AI, analytics and customer interaction. CFO Jesper Andersen anchors the digital transformation in business strategy, ensuring that value creation, risk management and delivery discipline are at the core of every initiative.
Stepping into the LEGO headquarters in Billund, Denmark, is like stepping into a world of play. The LEGO Campus reflects the spirit of the iconic toy, with a facade of oversized LEGO bricks and a layout that resembles a model built from step-by-step instructions. Inside, the grand atrium features a LEGO yellow steel staircase that spirals through the open space, connecting multiple levels. The whole complex serves as a testament to the company’s commitment to innovation and playfulness. You feel at home and in a completely new world at the same time.
One of the key management figures in the LEGO Group is Executive Vice President and Chief Financial Officer Jesper Andersen. He leads the finance function as well as the company’s legal, compliance and risk management, strategy and transformation, business services and government & public affairs teams. He also oversees major cross-functional programs such as the implementation of the new Enterprise Resource Planning and Product Lifecycle Management platforms in close collaboration with Atul Bhardwaj, Chief Digital & Technology Officer. With his broad responsibilities and deep understanding of how to transition the LEGO Group from a traditional toy manufacturer to a company that creates both physical and digital play experiences, Jesper Andersen plays a crucial role in driving the business side of the digital transformation and building a future-ready organisation.
Deliveries ahead of time
About five years ago, the LEGO Group decided to significantly raise its ambition for digital transformation. The board prioritised building a next-generation digital foundation to support the company’s long-term strategy. This included tripling the size of the digital organisation, establishing new offices in Copenhagen, London and Shanghai and insourcing critical capabilities that were previously outsourced. The goal was to prepare for future business needs by strengthening internal digital competencies and modernising platforms, networks and technologies.
“I’m proud to say that we have delivered on the ambitious digital transformation we set out to achieve – even ahead of time. We have built a strong internal organisation, fixed foundational issues and learned along the way. That’s important for me to underscore. It hasn’t been easy, and we still keep learning. Translating business requirements into technical developments and deliveries is challenging. But today, we stand much better prepared for supporting business growth.”
The LEGO Group’s learning culture
He describes the corporate culture within the LEGO organisation as a learning culture. You are encouraged to take chances and explore opportunities because it is through these learnings that the organisation takes its next steps.
One of the most important learnings from the LEGO Group's digital transformation in recent years is the importance of defining the what in each project – meaning the specific business outcome they are aiming for in each initiative.
“What do you want to achieve for the business? Is it improving consumer experience, driving revenue, or creating internal efficiencies? In comparison, the how is much more flexible and agile. It’s not my job as CFO to manage the how. We have very smart people in our digital organisation who can do that better than me. But the what must always be sharply defined from the start, and I’m here to make sure that happens every time we commit to doing something.”
Define the value
Another important learning from driving digital transformation across business units has been to define value in a much broader sense than just financial returns. Value can also come from shoppers, consumers, or retail partners interacting more effectively with the LEGO Group, contributing to a higher NPS. Value can mean cost savings, better “colleague experiences” as they call it at the LEGO Group, stronger integration between physical and digital offerings, or even compliance-related improvements.
“Clearly articulating the expected value of each digital initiative is vital for making the right investment decisions and for prioritising between competing projects. Today, it is mandatory that when people propose a new idea, they must be able to define and measure the value of what they propose. We call it ‘harvest’ – what is the expected benefit, and when can we realistically expect to harvest it? They need to be very specific and transparent about that. If a target is unclear or unrealistic, it simply has no value,” Jesper Andersen says.
One of the aspects the LEGO Group openly admits to having underestimated during its digital transformation is change management. Like many organisations undertaking large-scale programs, the LEGO Group focused heavily on strategy, technical delivery and high-level communication, but did not fully account for how the changes would affect employees on an individual level.
“Some employees were unsure how their daily work would be affected by our upgrades. Looking back, we should have been clearer and more proactive in explaining the changes and equipping people with the right tools to succeed. You can’t expect employees to deliver if you haven’t told them clearly what to deliver and support them properly through the change,” Jesper Andersen reflects.
Mixing physical and digital products
The LEGO Group has started the implementation of SAP S/4HANA ERP. A program that, just a few years ago, would likely have been viewed as a purely technical upgrade. Today, Jesper Andersen sees it differently.
“We now regard the transition to SAP S/4HANA as a business opportunity. When a product is no longer just a physical LEGO brick but can be complemented by gaming, interactive play and online experiences, our product development process needs to work closely with our ERP system,” Andersen says.
“That is why we brought the business ownership for both ERP and PLM into the CFO Organisation. We need to treat them as business programs, not just IT projects. This helps us integrate them tightly with the overall transformation and business strategy, ensuring they get the right attention and prioritisation.”
Risk and independence
Jesper Andersen emphasises that digital transformation at the LEGO Group is a collective effort, with every part of the business contributing. But ultimately, someone must make the final call on both strategic and financial matters.
“As CFO, I can bring some independence to the decision-making process – and, not least, add a risk perspective. You want the right balance between the potential upside of the initiatives we undertake and the possible downside of those investments. That’s where I come in,” Andersen explains and adds that he only oversees cross-functional digital investments. When projects are not cross-functional, dedicated Business Program Leads handle the day-to-day operations, ensuring that the CFO's role maintains its independence.
One of the key contributions the CFO function brings to large transformation projects is what Jesper Andersen describes as ‘delivery discipline’: the ability to keep projects focused, prioritised and on track.
“Delivery discipline comes naturally to us in finance. We like to apply a structured approach, and I can bring some of that to the process – without becoming too rigid, though. That’s not how we like to run things. In my experience, balancing discipline with flexibility delivers the best results,” he says.
Spot the outliers
Much to his own amazement, Jesper Andersen has now been with the LEGO Group for almost five years. “It feels like only yesterday that I came here,” he reminisces.
“Just looking at the technology side of my job as CFO, so much has happened over these years. We have made great progress within the CFO organisation, in creating transparency around financial and business performance. Today, integrated dashboards and self-service reporting are completely natural. That wasn’t the case four and a half years ago. And that is not because of me personally; it’s simply how the finance organisation has evolved.”
When it comes to AI, and especially GenAI, the LEGO Group has already implemented solutions to improve efficiency, particularly within its shared service center (Business Service Operations) which delivers Employee and Finance services to the LEGO Group. Looking ahead, Jesper sees great potential in GenAI for further improving efficiency, especially in areas such as forecasting, analytics and workflow automation, processes where finance departments still handle many manual tasks.
“I’m excited about the potential in AI. But as CFO it is also my job to bring the right perspective and balance enthusiasm with attention to risks. We need to fully understand the implications before scaling AI solutions widely. That is where we are today. Exploring in a controlled way,” Jesper Andersen ends.
Jesper Andersen’s three pieces of advice to fellow CFOs
About the LEGO Group
The LEGO Group’s mission is to inspire and develop the builders of tomorrow through the power of play. The LEGO Group was founded in Billund, Denmark in 1932 by Ole Kirk Kristiansen. Today, the LEGO Group remains a family-owned company headquartered in Billund. Its products are sold in more than 120 countries, and the company employs over 31,000 people across more than 40 countries.
