👉 Background: The Lego Group was founded back in 1932 as a line of construction toys. The word 'Lego' was actually short for Leg Godt which means Play Well in Danish (great for trivia!).

👉 What happened: Despite supply chain concerns globally, Lego still managed to increase its revenue by 17%. That’s more than $3.47 billion USD for the first half of the year.

👉 What else: In even better news, Lego has committed to no more price rises before Christmas (despite those pesky raw materials price spikes). How can they do it? The CEO says they're a private company so they can focus on optimising for the long term.

What's the key learning?

💡 For many companies, the challenge between short-term results and long-term strategy is ever-present.

• In Australia, public company CEO’s must present results to the public every half year or full year in Australia.
• In many regions outside of Australia, quarterly reporting is also required.

💡This means CEO’s tend to focus on improving short-term results, often to the detriment of long-term performance (it's called short-termism).

💡But in a private company, there isn’t any group of public shareholders to report to. That means quarterly profits aren’t nearly as important as investing in for the long-term.

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