Putting the Pieces Together As part of United 2003, the Lane Co. now has one executive team comprised of the leaders from all six subsidiaries. The team meets and evaluates how the company can eliminate costs, improve efficiencies, and focus on client satisfaction. Prior to that, the executives leading the subsidiaries had little structured interaction with each other.
By mapping out the business process of how a job is handled, Donges has shown that the company has created a greater amount of profit by all the companies working up front on a project. “It’s very powerful to be able to provide clients and investors the total package of multifamily services within one company,” says Loretta Easton, senior vice president of development at Lane Investment and Development Corp. “Reorganizing all Lane entities into one organization eliminates the confusion of what each subsidiary does and how we were related to each other.”
In addition, cooperation between the groups is at an all-time high, Easton notes. “We have created positive energy and excitement that we can all make a difference as a united team.” For example, she conducted a full-day seminar entitled the “Meeting of the Minds.” The construction and development teams looked at how a project is underwritten – from start to finish. Questions were asked like: How do you get to certain assumptions? How do you work together as a team? “They developed new procedures and processes and formed comradery across company lines,” Donges notes.
Since the reorganization, the most notable difference is clear, defined goals, says Marc Pollack, president of Lane Investment and Development. “On the investment and development side, we are already well on our way to executing our plan by hiring a new affordable investment director and a finance/disposition director.” In addition, the group is identifying market penetrations for investments and developments that are targeted and focused.
Overall, the company is developing systems that promote ease of communication – which is a cultural change, says Donges. “When you are able to get everyone talking to each other – the actual construction guy who is working with a development guy who is working with a management gal – the company runs smoother and efficiently.” The bottom line: better customer satisfaction and value creation for the owners.
Technological Advancements While working together as a team was just one of the first steps in the company’s new strategy, the overall goal is to be more client and customer service oriented, explains Chris Lee, president of CEL & Associates, the consultant that helped the Lane Co. set its new strategy.
The company is now organized around three primary elements of value – creating, adding, and protecting. In order to successfully create value, the company needs to enhance its brand identity; reach out to new potential clients; develop, retain, and recruit outstanding talent; and leverage technology, says Lee.
Using technology to the company’s best advantage is something that Donges is very passionate about. “The one key area that shocked me the most about this industry is the use of technology,” he says. “I was amazed when I went out to the properties and saw how much time our people were spending filling out forms and handling papers. So, one of the things that I’ve driven home – and it’s clearly the vision of the Lane Co. – is that we will be the technology leader in the multifamily industry.”
The company has taken on a series of investments, including a strategic partnership with RealPage Inc. The Lane Co. is licensing property software from RealPage, which has years of property management software experience and is focused on a completely integrated product.
The Lane Co. also is licensing its own wireless service software to RealPage. “I spent quite a bit of money and time developing that propriety software system to measure and increase productivity,” says Lane. “Bill took it over and licensed it [to RealPage] and now that will take us to the next level.”