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Harvard Case - Jones Lang LaSalle: Reorganizing around the Customer (2005)

"Jones Lang LaSalle: Reorganizing around the Customer (2005)" Harvard business case study is written by Ranjay Gulati, Lucia Marshall. It deals with the challenges in the field of Organizational Behavior. The case study is 27 page(s) long and it was first published on : Aug 14, 2009

At Fern Fort University, we recommend that Jones Lang LaSalle (JLL) implement a comprehensive organizational change initiative focused on customer-centricity. This initiative should involve a combination of structural changes, cultural shifts, and strategic investments in technology and talent. The goal is to create a truly customer-centric organization that can effectively compete in the evolving real estate market.

2. Background

Jones Lang LaSalle (JLL) was a leading global real estate services firm facing increasing competition from specialized service providers and a growing demand for integrated solutions. The company's traditional organizational structure, based on service lines, hindered its ability to respond effectively to client needs and capitalize on emerging market trends. The case study highlights the challenges JLL faced in adapting to a changing market and the need for a more customer-centric approach.

The main protagonists in this case are Peter Belanger, the CEO of JLL, and David Pogue, the head of the Global Client Solutions Group. They are tasked with leading the company's transformation towards a customer-centric model.

3. Analysis of the Case Study

The case study reveals several key issues that JLL needed to address:

  • Organizational Structure: The traditional service-line structure created silos, hindering cross-functional collaboration and customer-focused solutions.
  • Organizational Culture: The company's culture, focused on individual performance and service-line expertise, did not prioritize customer needs and collaboration.
  • Technology and Analytics: JLL lacked a robust technology platform to effectively manage customer data, analyze market trends, and deliver customized solutions.
  • Talent Management: The company needed to attract and retain talent with the skills and mindset necessary to deliver customer-centric solutions.

To analyze the situation, we can apply the McKinsey 7S Framework, which examines the interrelationship of seven key elements of an organization:

  • Structure: JLL's service-line structure needed to be redesigned to facilitate collaboration and customer focus.
  • Strategy: The company's strategy needed to shift from service-line excellence to customer-centricity.
  • Systems: JLL required a new technology platform to support customer relationship management, data analysis, and integrated solutions.
  • Staff: The company needed to attract and retain talent with strong customer service skills and a collaborative mindset.
  • Style: JLL's leadership style needed to evolve from a hierarchical approach to a more collaborative and empowering style.
  • Skills: Employees needed to develop new skills in cross-functional collaboration, customer relationship management, and data analysis.
  • Shared Values: The company's culture needed to embrace customer-centricity, collaboration, and innovation.

4. Recommendations

To address the challenges and capitalize on the opportunities, JLL should implement the following recommendations:

1. Reorganize around Customer Segments:

  • Create dedicated customer-facing teams: Organize teams around specific customer segments (e.g., corporate real estate, retail, healthcare) with expertise in all relevant service lines.
  • Empower teams to deliver integrated solutions: Provide teams with the authority and resources to develop and implement customized solutions for their assigned customer segments.
  • Establish clear accountability for customer satisfaction: Define metrics and performance targets for each customer-facing team, ensuring accountability for customer satisfaction.

2. Cultivate a Customer-Centric Culture:

  • Promote a customer-centric mindset: Emphasize the importance of customer satisfaction and collaboration throughout the organization.
  • Implement customer-centric training programs: Train employees on customer service best practices, communication skills, and the value of building strong customer relationships.
  • Recognize and reward customer-focused behavior: Establish a system for recognizing and rewarding employees who consistently demonstrate exceptional customer service.

3. Invest in Technology and Analytics:

  • Develop a robust customer relationship management (CRM) system: Implement a CRM system to collect, analyze, and manage customer data, enabling personalized communication and tailored solutions.
  • Invest in data analytics capabilities: Utilize data analytics to identify customer needs, market trends, and opportunities for innovation.
  • Integrate technology across service lines: Ensure seamless data sharing and collaboration between different service lines to provide a unified customer experience.

4. Attract and Develop Customer-Centric Talent:

  • Develop a strong talent acquisition strategy: Focus on attracting individuals with strong customer service skills, a collaborative mindset, and a passion for the real estate industry.
  • Implement a robust training and development program: Provide employees with opportunities to develop their skills in customer relationship management, data analysis, and cross-functional collaboration.
  • Create a culture of continuous learning: Encourage employees to stay informed about industry trends, customer needs, and emerging technologies.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with JLL's core competencies in real estate services and its mission to provide exceptional customer experiences.
  • External Customers and Internal Clients: The recommendations prioritize the needs of both external customers and internal clients, fostering collaboration and communication across the organization.
  • Competitors: The recommendations address the competitive landscape by enabling JLL to offer more integrated and customized solutions, differentiating itself from competitors.
  • Attractiveness ' Quantitative Measures: The recommendations are expected to lead to increased customer satisfaction, improved operational efficiency, and enhanced profitability.

6. Conclusion

By implementing these recommendations, JLL can successfully transform into a customer-centric organization, capable of delivering exceptional experiences and achieving sustainable growth in the evolving real estate market. The company's commitment to customer-centricity will be crucial for its future success.

7. Discussion

Other alternatives not selected include:

  • Merging with a technology company: This option could provide access to advanced technology and data analytics capabilities but could also lead to cultural clashes and integration challenges.
  • Outsourcing some services: This option could reduce costs but could also lead to a loss of control over service quality and customer relationships.

The key assumptions of our recommendation are:

  • JLL's leadership is committed to the transformation.
  • Employees are willing to embrace change and adopt a customer-centric mindset.
  • The company has the necessary resources to invest in technology and talent development.

8. Next Steps

To implement the recommendations, JLL should:

  • Develop a detailed implementation plan: Outline the specific steps, timelines, and resources required for each recommendation.
  • Communicate the change initiative effectively: Communicate the rationale, benefits, and impact of the change initiative to all employees.
  • Establish a dedicated change management team: Create a team responsible for overseeing the implementation of the change initiative and addressing any challenges.
  • Monitor progress and adjust as needed: Regularly track progress against key performance indicators and make adjustments to the implementation plan as needed.

By taking these steps, JLL can successfully navigate the challenges of a changing market and emerge as a leading customer-centric real estate services firm.

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Case Description

Peter Roberts, CEO of Jones, Lang, LaSalle (JLL) Americas division, has been charged with expanding the company's presence in its core geographic markets while simultaneously growing its corporate account business. Roberts and his task force have narrowed their options to two proposals. The first is an enhancement of the account management model put in place in 2001 where independent service units co-existed with an account management group. The second is a realignment of the firm's operations around geography and key accounts. By examining the tradeoffs required by each option, the case illustrates the tensions involved in structuring an organization around product, geography, and key customers. It also explores the importance of aligning strategic choices with organizational architecture.    

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