Creating Innovation at Scale with The LEGO Group CPO & Head of Corporate Affairs Loren I. Shuster
In this episode, I sit down with The LEGO Group’s chief people officer and head of corporate affairs, Loren I. Shuster. We talk about his shift to HR and people from a business background and how he has prioritized innovation at scale at The LEGO Group.
Loren spent most of his career in general management, commercial leadership and marketing leadership roles until four years ago, when he transitioned from chief commercial officer at The LEGO Group to his current role as chief people officer and head of corporate affairs for the company.
He revealed that his transition into an HR role was, in reality, a 20-year journey that started with a holistic retreat he attended in Australia in the late ’90s. “[T]hat was the first time I was exposed to so-called different modalities of wellness and the human potential movement — so yoga, mindfulness, counseling, and group work,” Loren shared. “That kind of wedged my mind open to ways of developing a self-awareness, as well as social and cultural awareness, that I simply didn’t have or understand before.”
That experience led Loren to want to become a better leader, learn to interact and engage with others better, and explore how he could have a more positive impact on the organizations and companies he has operated in. This led him to get a coaching certification, a certification in mindfulness in the corporate world and, eventually, a degree in organizational psychology. This series of events is what ultimately sparked his interest in transitioning into the HR role.
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Unifying Attributes at The LEGO Group
The LEGO Group has been around for decades. The same family owns it as fourth-generation owners, and they are based in Northern Europe, where the culture is more people-oriented and collaborative. The company’s primary purpose is to inspire the next generation of builders through creative play. Loren explained that this purpose has led The LEGO Group to create “an environment of creativity and innovation.”
While most companies are results-driven, The LEGO Group looks at the business holistically and understands that results do not solely mean financial results. Many companies have made these claims, but what sets The LEGO Group apart is the four promises they uphold in their company culture — the people promise, the play promise, the partner promise and the planet promise.
Each of those promises has a pinnacle key performance indicator associated with it, and those KPIs are consequential. Consumer sales and profit are essential in the short-term and long-term goals. Still, employee satisfaction and motivation and customer satisfaction are the net promoter score of their products. “That creates a unique cultural context, which is unique and different from other organizations I've been in, because it's much more balanced in terms of appreciating what it takes to succeed in a sustainable way,” said Loren.
Prioritizing Innovation
The pandemic has created an overwhelming amount of stress for employees, adding to several other sources of increased stress. Loren explained that while the demand for their product has been incredible, keeping up with that demand has also created pressure on the system.
Having a clear strategy at The LEGO Group has helped. “I think what's been super important for us are some of the traditional things,” Loren said. “Just being super clear about what our priorities are and communicating them very effectively, and staying the course, and delivering. We have a very clear strategy, and we're executing on that.”
Just as the business has a clear strategy, HR has been able to identify and execute its priorities. “We've been very focused on modernizing the function through technology,” said Loren. The HR team has deployed a new technology stack that includes more robust analytics tools, enabling HR to build innovation at scale and prepare the company for the future.
The Well-Being of Their 20,000 Employees
Through this innovation, the HR function at The LEGO Group has recognized the importance of the well-being of their employees and of having empathy. This is crucial, especially in times of great stress. “Everyone needs an opportunity to be heard and to be understood,” shared Loren, “And I love the expression that one of my teachers shared with me, which is that we're all in the same storm, but in different boats.”
This mindset of acknowledging employee situations empowers The LEGO Group to provide an environment that sets employees up for success. “HR can catalyze it within the organization to signal to each and every colleague that we respect your individual boats, your individual situation,” stated Loren. “Please let us know about it, let us understand your situation, so that we could then try and create the context for you to thrive to the best of your ability given the conditions that you're facing.”
Loren shares that the company has also invested in programs that center on mindfulness, peer coaching, support groups and mental wellness. Loren’s team has been an example of how progressive leaders, programs and practices continue to evolve and help businesses and employees thrive.