Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D)

Case Solution

Ranjay Gulati, Luciana Silvestri
Harvard Business School ()

This case describes the strategic and organizational challenges Jones Lang LaSalle (JLL) faced between 2008 and 2012. To strengthen the company’s team of real estate agents, JLL merged in 2008 with The Staubach Company, a real estate services provider with a team of top-notch real estate agents and a great cultural fit with JLL. Staubach paid his brokers with a commission model, which accelerated JLL’s decision to abandon its long-standing salary and bonus approach. The merger has also created two exciting business opportunities. First, the local brokers were now empowered and motivated to open up their customer relationships to the rest of the company and expand their business from purely local transactions to the full range of services provided by JLL. Second, local brokers noticed a large number of midsize clients whose real estate needs were not as high as those of large corporate clients, but who needed multi-service solutions in select regions. For this reason, JLL has founded a group called Markets Corporate Solutions, which is specifically aimed at medium-sized clients. In 2012, as its organizational structure expanded to take advantage of opportunities for different types of clients in a variety of regions, JLL faced challenges related to managing internal and external complexities. US CEO Peter Roberts describes the opportunities and challenges that await JLL. This is the last case in a series that also includes cases A, B and C and summarizes the development of JLL between 1999 and 2012.

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