| Jones Lang LaSalle: Climbing to the Top |
| Real Estate | |
| Written by Liz Jones | |
| Friday, 30 November 2007 | |
 Bill Krouch, CEO Jones Lang LaSalle Markets Strategic merger In early 2006, Jones Lang LaSalle merged with Washington, DC-based Spaulding & Slye, a privately held real estate services and investment company focused on the Boston and Washington, DC markets. The merger allowed Jones Lang LaSalle to plant deep roots in the Boston area, where it had not previously been a key player. It also strengthened the firm’s position in DC, where the two firms had businesses of equal size. To create a sense of cohesion, Jones Lang LaSalle integrated Spaulding & Slye’s management team into its own. Jones Lang LaSalle also appreciated Spaulding & Slye’s integrated approach to the marketplace. Instead of presenting each business line separately, Spaulding & Slye offered an integrated approach allowing clients to leverage a broad array of services. Jones Lang LaSalle had been working toward such an approach, and the merger accelerated its efforts. “We are taking lessons from Spaulding & Slye’s approach to the Boston and DC markets and applying them in our other geographies,” said Krouch. He added that Spaulding & Slye’s DC operation immediately took on the Jones Lang LaSalle name when the merger was complete, as the firm already had a strong presence in the region. But the Spaulding & Slye name was stronger in Boston, so it spent nine months transitioning to the Jones Lang LaSalle brand. “In Boston, there wasn’t a lot of overlap between the two firms. Spaulding & Slye was a good cultural fit, so we took our time on integration. In DC, where our operations were of equal size, we moved everyone into the same space, which invigorated the office,” said Krouch, adding that the firm has experienced little attrition over the past few years despite all the changes. Jones Lang LaSalle is also borrowing some best practices from Spaulding & Slye. For instance, Spaulding & Slye had functions available on its technology platform that Jones Lang LaSalle could benefit from, but because of differing technology platforms, Jones Lang LaSalle transferred key functionality to its new Microsoft CRM tool. In addition, Spaulding & Slye had services that Jones Lang LaSalle lacked. It had a service line dedicated to government investor services, as well as Spaulding & Slye Investments, which has given Jones Lang LaSalle the ability to co-invest and become an operating partner with select clients. “It was an expansion of a capability we were looking to do ourselves,” said Krouch, adding that Spaulding & Slye also had a construction business in Boston and DC, which inspired Jones Lang LaSalle to start its own in Chicago. “We plan to explore expansion in other market markets as we gain traction in Chicago.” A leg up Jones Lang LaSalle, already a key player in the top 25 markets in the US, recently acquired Klatskin Associates, New Jersey’s leading industrial real estate services provider, to strengthen its position in New Jersey and the industrial services sector. “Klatskin had a market leading position and was culturally compatible. The acquisition was very much in tune with our strategy,” said Krouch. In October 2007, Jones Lang LaSalle also acquired Corporate Realty Advisors, one of North Carolina’s leading corporate advisory services and tenant representation firms. The acquisition has expanded Jones Lang LaSalle’s Carolinas team, which at the time consisted of approximately 150 employees. It also gave the firm a leg up in facility management, project management, and hotel investment services in the Triangle area. Although Jones Lang LaSalle has completed a number of M&A transactions in the past several years, Krouch pointed out that the firm is growing organically as well. In the last year, it has hired more than 100 leasing brokers in the top 20 markets in the US. “We try to recruit the top performers in each geographical market and business segment. Because our strategy isn’t about being the biggest, we are very selective about who we bring on board,” he said. Common culture Key to Jones Lang LaSalle’s growth initiative is maintaining its strong culture. “It is all around teamwork and collaboration with a client-centric focus. Not all companies or people have that same orientation,” said Krouch. He added that brokerage in the real estate industry has historically been a dog-eat-dog world in which people lock their offices and desk drawers at night for fear an officemate would gain access to valuable information. “We have a collaborative culture built on teamwork. We work together across business segments and geographies to allow everyone to best serve our clients. This is the way Jones Lang LaSalle has always done business, and we can’t imagine doing it any other way.” In fact, Jones Lang LaSalle’s office space reflects its open culture. The firm’s CEO, Peter Roberts, does not even have an office. “As we renew our leases in markets across the country, we are creating an open office environment. We don’t want to erect walls in between our people. It is much easier to work with others in an open environment,” Krouch said. “This creates more energy which leads to better collaboration which ultimately benefits our clients.” Jones Lang LaSalle’s focus on human capital ranked it among Fortune’s 100 Best Places to Work in 2007 and Forbes’ 400 Best Big Companies. New hires undergo an extensive orientation and training program to learn how the company works on a cultural level, as well as technical training in their specific areas of expertise. “We are constantly making sure that we share best practices and give our employees the tools they need to be successful. In doing so, they are motivated, challenged, and can better serve our clients.” |
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American Executive is a RedCoat Publishing publication.
American Executive is a RedCoat Publishing publication.
