Corporate Solutions At Jones Lang Lasalle 2001 403zx

Corporate Solutions at Jones Lang LaSalle (2001) Corporate Solutions at Jones Lang LaSalle (2001) Agung Mahendra Habiburachman Muhamad Ibnu Fauzi Nurliyasari Rangga Tri Raeros Ria Agustriana Busra

Industry Background Industry Background .Mid-1990s commercial real estate sector had undergone a significant transformation Rise in competition, forcing service providers to compete increasingly on price .Real estate development experienced tremendous growth In 2001 12,5% of total U.S GDP (JLL one of the largest player)

Globalization Trends in Commercial Real Estate Globalization Trends in Commercial Real Estate .The global expansion of many companies in need of real estate service contributed to the demand for integrated, global service providers. .They began to outsource their entire real estate departments to third-party providers Ensure consistent service, decrease internal management costs and inefficiencies, and leverage the expertise of professional real estate service firms

Jones Lang LaSalle (JLL) Jones Lang LaSalle (JLL) .JLL was the result of a merger of its two formerly independent partnerships-- U.S based LaSalle Partners and London-based Jones Lang Wooton GOAL: To become world s leading commercial real estate management company and the second largest real estate investment management firm. .To reach the goal meet with BofA

Preparing for the B ank of A merica ( BofA ) Meeting Preparing for the B ank of A merica ( BofA ) Meeting .The bank was growing increasingly frustrated with the lack of coordination among its different real estate providers Planned to consolidate their business with other those that willing to Partner with it to provide forward-looking, integrated services.

The Challenge The Challenge .Would the matrix structure work? .How should decision-making authority be shared? .What compensation structure would best motivate the managers and the business unit managers to work collaboratively? .How would the new function affect career trajectories of promising managers at the firm? .How would the changes affect company morale?

Positioning JLL for the Global Marketplace Positioning JLL for the Global Marketplace .The merger failed to reverse the firm s struggling financials .JLL would become more than a seller of services to its global clients -it would become its clients partner and advocate Provide not only diagnose and selling, but also offer solutions to their real estate needs Give Win-Win solution, save clients money and increase its own profitablitiy

.But the strategy was hard to implemented, because they are outsourcing, its hard to collaborate them .Also the communication within business units is poor, the service offerings just remained as a concept

Re Organizing around the Customer Re Organizing around the Customer .Restructurization for stimulate collaboration among business units .Getting the three business units to work together as a single group. Differentiate by the service, solution and service To reaffirm our client focus and solution orientation

Creating Corporate Manager Position Creating Corporate Manager Position .Work as coordinator of the business units activities .As advisors, assist with long-term planning and be focused on achieving clients objectives and providing strategic insight in addition to fulfilling transaction .The manager would create teams composed of of multiple business units to work on offerings for particular s

Structuring the Management Function Structuring the Management Function . manager able to prioritized the tradeoffs, including promoting services less profitable to one business unit in the name of increasing highly profitable services of other units

Looking to the Future Looking to the Future .If Manager formalized, must train down into the organization so the lower-level manager could cross-train in each business units .Building working knowledge Review each unit s product offerings Presented case studies to improve understanding of the unit s work Highlighted statistical details to aid the other units in understanding of the fundamental drivers of that unit Make standard service & price for all region .Hoped could raise the awareness of each group s diverse product and service offerings, business units more comfortable cross-selling the service to other units

Building a Culture of Collaboration Building a Culture of Collaboration .Encourage other units to work with Manager Create unified communication and information platform Clear job description (Without them this won t working) Employee Gathering