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From Insight to Strategy to Innovation – while standing at the Toyworld Checkout

By February 23, 2012 2 Comments

Listen up lean and agile thinkers. This is a simple illustration of the kind of things that make innovation and strategy easy – a gift from someone on a toy shop counter that probably earns less than $20 an hour. Are you this smart? This brave?

With a 10 year old in my household, it’s little wonder I am a fan of Lego. From my own childhood memories, to their inspiring recovery from a near death business experience (after their long-standing patent for bricks expired) just by listening to customers and innovating the product accordingly, it is all good.

One of their recent products puzzled and infuriated me though. It is a single Lego minifigure in an opaque cellophane packet – ideal for for party bags for kid’s birthdays; the child at the checkout who MUST spend their pocket money on something (and they are cheap, $4 to $5 each); or perhaps the serious collector to get some custom mini figure accessories and body parts.

Yet, you can’t see which one of the 16 in the series you are going to end up with.

I will thus confess to having spent far too much time at many a big store’s Lego counter with Mr 10, eyes shut, feeling the packets to detect the slightest variation in the components to figure out if the character is Jane Torvill (uncool!) or Toxic Space Engineer (cool!).

Children’s (and collecter of greater years, ahem) ingenuity and social network savvy soon solved it – for Series 1 and 2 they quickly figured out the bar codes were different and published the key. So Lego moved the goalposts, using a single bar code and a system of dots on the packaging to differentiate figures in Series 3. The kids cracked it again.

Series 4 onwards you have no chance of detecting the difference from the packaging. The secondary market on eBay for these figures erupted, and the popularity of the series continued to grow. Business is booming. Yet I’m still grumpy about it. Why?

Why did Lego want the figure to be a surprise? Was that part of their strategy for the product? Perhaps I will never know, and Mr 10 and I quickly became disenfranchised by the whole thing.

So imagine my surprise, when dropping into Toyworld Palmerston North in NZ last week to find the Lego minifigure packets on the checkout counter, with each figure individually labeled with a hand-written number against the official Lego key. “You can’t do that”; “that’s naughty”; “that’s against the rules” were all thoughts that leapt into my rule-obeying lizard brain. Flabbergasted, I managed to regain enough English language ask why they’d done it.

And for the readers who are struggling with why the hell I am writing about toyshops, this is called INSIGHT and is the most valuable commodity you can possess when developing something new. It is Dan Pink’s ‘purpose’ and Simon Sinek’s ‘why’ in the words of a 20 year old shop clerk:

“I just saw the looks on the faces of the kids – so disappointed that they got a cheerleader when they wanted a deep sea diver, and the conflict they had, knowing they had to be grateful, but had chosen a useless gift”.

Now, agilists, here comes the STRATEGY bit – how will you do something about that problem your customer savvy product owner has found a really sharp insight about:

“Did you get an official cheat sheet from Lego on how to do it?” I asked.

“No, no – there isn’t one. We just had time while on the checkout and watching the door, so we checked each one individually, just like the kids would do.”

INNOVATION simply comes from making this a habit now, knowing things like there are only 2 robots in the latest boxes of 100 or so mini-figures, and thinking about which of their customers might really value that robot.

“The hair on number 3 in that set there is cool for making Call of Duty characters” trots out Mr 10 to the girl behind the counter. “Really? My brother is so into Call of Duty – he’ll love that one”. Minifigure #3, the uncool, pyjama-clad kid with the teddy bear just went from ‘can’t shift’ to ‘can’t keep in stock’.

That is called GROWTH.

If you’re smart, you’ll be down to Toyworld in Palmy and hire that lady on the counter for your agile innovation team. She gets it 100%.

Join the discussion 2 Comments

  • Catherine Robertson says:

    That is a delightful post. What I loved most is that they cared enough to want to do something about it. For so many people in so many businesses, kids being disappointed in a $5 purchase wouldn’t even register on their consciousness.

  • werner says:

    great…
    I’ll think about an application at our outpatient dptm. or in doctors offices….!

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