At the beginning of 2024, benchmark real estate companies such as Vanke, Greentown, and China Resources Land have reported organizational adjustments.
For example, Vanke has set up a commercial division to integrate its business resources. Greentown, China Resources Land, etc., have carried out a new round of regional integration and adjustment.
In fact, as I mentioned before, the organizational adjustment of real estate enterprises will become the norm in the industry in the future, and asking for benefits from the organization and fighting effectiveness from the organization will become a breakthrough for real estate companies to cope with the uncertain market. What signals does this round of organizational adjustment send?
Let me break it down in detail.
GroupFrom decentralization to strong control
Accelerate the integration of diversified businesses
In recent years, the organizational structure of real estate enterprises has undergone several rounds of changes. In the past, the focus of the adjustment of the group headquarters was on the horizontal merger and integration of functional departments and the streamlining of the structure, but now more attention is paid to the adjustment of the management model, the re-establishment of the management system, and the integration and adjustment of diversified businesses.
First, the group from decentralization to centralization
At different stages of development, the headquarters of real estate enterprise groups have different control over the front line.
In the previous round of rapid development, in order to maintain organizational agility and flexibility, the obvious feature of the organizational adjustment of many real estate enterprises is decentralization, the headquarters is positioned as an enabler and supporter, and more decision-making power is decentralized. For example, in the stage of rapid expansion, a leading real estate company once delegated its investment authority to the region.
However, as the real estate enters a new cycle, the market is unpredictable, and the fault tolerance rate is greatly reduced.
On the one hand, in order to ensure the risk management and control of major decisions, more authority will be transferred to the group.
For example, a real estate company will bring regional investment, capital, procurement and other permissions to the group, and increase the authorization for the operation services of general projects. They believe that if power in these areas is not centralized, it is easy for companies to lose control.
For example, some real estate companies once delegated the right to fund management to the region and let the region borrow money by itself, but they did not know how much money the region borrowed. The region uses the group's credit, and once the region can't pay the money, it will find the group to take it, and the group will not pay it back, and it will be a thunderstorm.
Another example is investment in land acquisition, many urban companies or regions may blindly grab ** land in order to grow their performance or survive, and eventually the project will lose money.
On the other hand, in the face of white-hot competition after the market shrinks, the group's strong control is conducive to concentrating resources to do big things, building a game of chess, and putting resources into the productive market.
For example, a real estate company has been delegating authority to the agency construction company in the past, but since last year, the group has begun to withdraw some decision-making rights, and many detailed procedures have to be reported to the group for review. This also reveals a signal that the real estate company should coordinate the asset-light business from the group level and further expand the scale.
2. Accelerate the integration of diversified businesses
In addition to the organizational adjustment of the real estate development sector, the integration of the diversified business of real estate enterprises is also accelerating. Judging from this round of adjustment, there are two obvious trends: one is to set up new departments and explore new businesses; The second is to integrate resources from the original business to form a joint force to further expand.
For example, Vanke announced the establishment of a commercial division last month, merging the commercial business of Vanke Real Estate's seven regions and SCPG Group into the jurisdiction of the commercial division, focusing on major things and avoiding fragmentation of resources.
According to reports, Sun Jia, the former head of the Southern Region, served as the chief partner of the commercial division, and together with Ding Li, chairman and chief consultant of the commercial division, and Wang Haiwu, the core partner of the commercial division, formed a very strong business executive team.
With the decline in the scale of the residential market, many real estate companies are exploring new businesses, and commercial real estate is a track that many real estate companies are optimistic about.
In addition to Vanke, Greentown has also made big moves in business integration. For example, the asset management function of the business management department will be assigned to the management of the comprehensive industry office, and at the same time, the comprehensive industry office will be co-located with the industry and finance business department.
The Technology Group and the Life Group were merged to form the Life Technology Group. The industrial city business under the former Life Group was transferred to the Zhejiang regional management; The commercial operation business of the former Life Group was transferred to the management of the Business Management Division.
After this adjustment, the business boundary becomes clearer, and it is more conducive to forming a synergy to promote the further development of the business.
Investment is further focused
Regional consolidation became the norm
Although the real estate rescue policy has been continuously introduced, the real estate market is still very sluggish due to factors such as macroeconomy and residents' income. Based on this, many real estate companies are shrinking their strategies and further focusing on investment, focusing on opportunities with certainty, and tending to invest resources in markets with certain returns.
First, the management into compression, the implementation of flat management
In the past two years, many real estate companies have begun to compress the management level and pursue flatter management, the core of which is to improve the efficiency of decision-making. With.
Many real estate enterprises have adjusted from the original four-level control of "group headquarters-secondary group-regional headquarters-city company" or the first-level control mode of "group headquarters-regional company-city company" to the second-level control of "group headquarters-city company".
For example, this year, a central enterprise proposed to adjust the positioning of the region from the original "stronger region" to "better region", and the future business management is closer to the headquarters-regional two-level control, and the regional company reports directly to the headquarters.
Second, the region continues to stage big fish eating small fish
The organizational adjustment at the regional level is still performance-oriented, and the regions with good performance merge the regions with poor performance, and the big fish eat the small fish, and the geographical radius will also be considered.
In the future, regional division and merger, dynamic adjustment will be the norm. On the one hand, it is to optimize resources and clarify the management boundaries of regional companies. On the other hand, through the introduction of the horse racing mechanism, the cards are shuffled regularly, mainly to encourage internal competition and survival of the fittest.
Actively bring in external talents
Activates tissue vitality
Many real estate people complain that real estate companies adjust their organizational structure every year, the purpose is actually to streamline the number of people, there are fewer people, but there is no less work, and finally it becomes one person doing the work of several people, and the salary has also decreased.
Indeed, under the guidance of business contraction, the employment strategy of real estate enterprises has also undergone great changes. Several trends can also be seen from the recent talent introduction actions of real estate companies.
First of all, actively introduce external talents to enhance the vitality of the organization.
Some time ago, the popular TV series "Flowers" mentioned that if you want salmon to be better raised, you have to put a few catfish in it, salmon will swim desperately in order to survive, and it will become fatter after enhancing exercise.
In fact, it is also known as the catfish effect, which aims to strengthen competition and enhance organizational vitality. For example, last month, Vanke appointed Zhou Yiqun, who had only been with Vanke for three months, as the chief partner of the southern region, which attracted great attention from the industry. You must know that in the past, the first appointment of Vanke District was generally an old employee within the enterprise.
Previously, Ming Yuanjun also mentioned in "State-owned Enterprises Poaching This Type of Talent, What's the Situation" that many state-owned enterprises are frequently introducing external talents and awarding important positions.
It can be said that under the existing industry, it is a good opportunity for capable talents to emerge.
Secondly, talents with expertise in marketing and products are reused.
I don't know if you have noticed it, but most of the talents introduced by real estate companies recently are marketing and product talents.
For example, some time ago, Greentown China introduced Chen Wei, the former general manager of Yanlord Land's product management department; Meng Guangchao, the former chief product officer of CIFI Construction Management, joined HUAFA as the general assistant of the design management center; Last month, Yuexiu also officially announced a new general manager of group marketing, Li Liang, the former vice president of Hongyang Group.
On the one hand, the current demand for improvement has become absolutely dominant, and customers' requirements for products are becoming more and more demanding, and product strength will become one of the core competitiveness of real estate enterprises in the future.
Judging from the current situation of recruiting talents, real estate companies such as Longfor, CIFI, and Sunac have a complete product system and are good at improving products, and the product R&D and design talents they cultivate are also more competitive and more popular in the real estate talent market.
On the other hand, the current decentralization of project sales is a pain point for the entire industry, and marketing talents who can make performance must be more popular with real estate companies.
Third, the team is elitist, and one person does the work of several people.
Now everyone is pursuing higher efficiency, the previous style of playing with heads is outdated, and the future must be an elite team.
A top 50 real estate company requires people to enter the platform company, must reach a certain level of professional ability and management ability, and they advocate 234, that is, 2 people take the salary of 3 people to do the work of 4 people.
This situation will be even more serious in the future.
Yu Liang once said that in today's black iron era, many of the charging models of real estate with cost-plus methods will be subverted.
Fourth, the pursuit of all-round talents, strong performance talents.
Due to organizational adjustment, talent optimization and other reasons, the number of positions within real estate enterprises is decreasing sharply, which means that talents should be more comprehensive and elite.
For example, some real estate companies have proposed that in the new era, they need elite experts, compound talents, transformational talents, operational talents, and new business leaders.