What exactly are paradoxes, and why should they matter to today’s decision-makers and organisations?
Unlike straightforward ‘either-or’ choices, paradoxes present a more complex challenge. They require leaders to constantly balance competing and evolving priorities. Faced with seemingly contradictory options, many decision-makers instinctively choose a singular path, seeking the optimal solution. However, adopting a ‘both/and’ mindset—embracing dualities rather than rejecting one alternative—can often yield more effective outcomes. The ability to recognise and skillfully manage paradoxes is a hallmark of highly effective leaders.
Take LEGO, for example. Its extraordinary growth was propelled when its leadership leaned into the art of managing persistent tensions and paradoxes. What lessons can you draw from their success?
The Challenge
Founded in 1932, LEGO became a global leader in the toy market by maintaining a relentless focus on quality. By the early ’90s, LEGO commanded 80% of the construction toy market, emphasizing rigorous quality control and a deliberate approach to innovation—for instance, it took nearly 10 years to add green bricks to the lineup. However, by the late ’90s, the toy industry was transforming. Competitors introduced innovative digital toys, and LEGO’s sales stagnated and then declined. To counter this, LEGO shifted its focus in the early 2000s from quality to innovation, prioritizing creativity with their new mantra, “Creativity above all else.” The company invested heavily in R&D, launched new products, and implemented cost-cutting strategies. Despite these efforts, sales fell further. Many innovations were unprofitable, R&D expenses skyrocketed, loyal customers were alienated, and the once-tight supply chain eroded. LEGO’s overcorrection revealed a critical mistake — they treated quality and innovation as an ‘either-or’ strategy, failing to balance efficiency with change.
The Solution
LEGO’s turnaround came under CEO Jørgen Vig Knudstorp, who moved the company from an ‘either/or’ to a ‘both/and’ mindset. Rather than choosing between innovation and efficiency, tradition and modernization, or stability and change, Knudstorp embraced these contradictions. By aligning bold innovation with disciplined quality and financial control, LEGO rebuilt its reputation and positioned itself for sustainable growth. This approach required an intentional shift in organizational strategy and leadership mindset, enabling LEGO to balance competing priorities and thrive in a dynamic market.
The Result
Under Knudstorp’s leadership, LEGO reversed its decline, rediscovering its roots in quality while driving bold innovation. By adopting a “both/and” perspective, the company transformed tensions into opportunities, setting the stage for enduring success. This case demonstrates the power of balancing opposing forces, showing that businesses can achieve stability and change, efficiency and creativity—all without compromising on their core values.
Want to find out more about paradox?
To learn more about navigating paradoxes and why they are essential for modern leadership, download our factsheet on paradox today.
Navigating competing and persisting tensions for present and future success provides more information about real-world paradox. Download it to kick-start a conversation about paradox with your team today.
