"I think a lot of folks are just getting over reeling from the downturn and are ready to sit back and say, 'Who am I going to trust in the future?' And we have the gravitas and the track record to show we can be there for them," she says.
The Making Of A Merger
The Laird Norton Trust Company was originally created by a family that made its money on timberland and then began serving other wealthy dynasties. By the time it merged with Tyee Asset Strategies LLC in 2004, only 50% of Laird Norton's client base still comprised members of the original families. These family clients were often third-, fourth- and fifth-generation descendants, although the firm also served some first-generation members of other families. Most clients were attracted by the trust and fiduciary services the company offered or by the perception that the in-house portfolio management was conservative.
Tyee by contrast, served mainly first-generation entrepreneurs and younger, newly wealthy Seattleites in the tech field. Tyee's open architecture platform was a huge draw for these clients, according to company officials. Clients were also attracted by services such as stock option planning-because many of these tech billionaires were paid in options-and also by the firms teaching clients how to raise responsible heirs. By the time the firms merged, many Tyee clients were getting to the stage where the trust and estate planning services offered by Laird Norton Trust Company were of interest to them. Additionally, the trust company was intentionally seeking to move in the direction of open architecture as it allowed for the broadest range of offerings and services for clients.
The leadership of the new entity made a concerted effort to integrate not only the systems and infrastructures of the two organizations, but also their cultures and knowledge. They also required that all employees take a new office, which meant some employees only moved from one side of the floor to the other. The idea behind moving offices was to encourage employees to mix with their new colleagues and to feel that they were part of one group.
Tyee and Laird Norton employees also formed blended teams. This structure was put in place so that co-workers commingled and so that institutional knowledge from the two entities could be shared. Teams were given budgets for social events and were encouraged to spend time getting to know each other on a personal level.
The firm also invested in training that centered on understanding different types of communication skills so that employees at each firm could better understand each other. It was considered effective and is still required for new employees today.
As a result, the best practices were plucked from each organization, as if from a Chinese menu, to create a new company with a new culture. Employees were encouraged to take ownership in building this culture; their input was solicited in the form of contests and suggestion boxes, and they received public recognition for their contributions. The new firm also borrowed the incentive program established at Tyee where 25% of pre-incentive EBITDA is divided into employee bonuses annually. This motivated people to help make the merger a success, company officials said.
-Caren Chesler