Adjustment is not a decision to slap your head
On April 3, less than a week after the 2019 results conference, Country Garden held another monthly executive meeting, which mainly conveyed two important points: “adjustment” and “efficiency improvement” To continue to set the tone for work to overcome the difficulties in 2020.
“Adjustment” refers to several adjustments made by Country Garden to the organizational structure after the New Year: 13 regions were consolidated and adjusted in February; 11 regions of Guangdong were integrated into 3 at the end of March.
“Adjustment is not a decision to” shoot your head “, but a” targeted approach “to build a jungle ecology within the enterprise.” Mo Bin, president and executive director of Country Garden Holdings Co., Ltd. stated at the meeting that this is aimed at the existence of enterprise management operations. Inadequate self-correction.
The proportion of employees with real fluctuations is only 3.9%
A week ago, a careful person discovered a “secret” in Country Garden’s annual report: the number of employees decreased from 131,387 at the end of 2018 to 101,784 at the end of 2019, and the number of employees fell by 29,603. So some people speculated that “Country Garden laid off 30,000 people.”
With the decrease in the number of employees and the adjustment of the structure in the beginning of the year, the two lines are compared, and it is easy to draw the conclusion of Country Garden’s “layoffs” simply and rudely.
But in fact, behind the adjustment and consolidation of some areas is the optimization of the jungle ecology within the enterprise. The fundamental purpose of the adjustment is to improve management efficiency, but the grass-roots employees are not “simplified.”
The changes in personnel are mainly due to two reasons. First, some people were transferred to the Bozhilin robot business. In 2019, Country Garden’s subsidiary increased by about 7,600 people, of which Bozhilin alone increased by 5,657 people. So everyone understands.
Another part of the population has been transferred to a new external company, about 25,000 people, mainly in auxiliary, labor-intensive positions (such as desk service, security, cleaning), who will “market-oriented “Continue to serve Country Garden.
Excluding these two people, the true fluctuation ratio of Country Garden Group’s employees is 3.9%, which is rare in the context of the real estate industry’s shouting “live”.
Cannons will be fired at headquarters in the future
From 2015 to 2019, Country Garden’s sales performance has increased by five times. The number of employees has increased from 68,000 to 100,000, and the salary of employees has nearly quadrupled.
In 2019, Country Garden realized contracted sales attributable to the shareholders of the group of approximately RMB 552.2 billion, and the combined cash back from consolidated real estate sales was approximately RMB 589.86 billion. Since 2016, it has achieved positive net income for the fourth consecutive year. Operating cash flow; cash holdings of approximately 268.35 billion yuan and a net borrowing ratio of 46.3%; core net profit attributable to shareholders of the company was 40.12 billion yuan, a year-on-year increase of 17.6%; basic earnings per share were 1.85 yuan.
Every financial indicator is good, and the company has begun to actively control leverage and growth. It can be said that this is the best Country Garden in history.
But there is a 2-3 year time difference between the sales of the real estate industry and the settlement of revenue. The growing Country Garden must also consider the impact of the falling market, and it will be deployed in 2-5 years. This is the background of the industry and the survival of the company.
After 2017, Country Garden’s adjustment has three main lines: improving quality and speed, new business, and all-round competition, relying on accurate marketing strategies and partner system to rush to the country’s number one Country Garden, and begin to establish new personnel matching. The purpose of the system is to improve survivability and competitiveness.
Mr. Bin said directly, “The adjustment of organizational structure is a decision made in the face of market and internal management needs. I hope to use this to further optimize management efficiency and improve management capabilities, and hope that personnel at all levels will become more and more outstanding. “
Macro said by Yang Guoqiang, “From the very beginning, Country Garden has only 7 employees and more than 100,000 people. What we have done is nothing out of nothing. We are on a path that no one has passed. Do n’t think that the sun comes out every day. , I am accustomed to what I see, and do not feel numb to many problems. Always be curious and think about why one thing is this way, not that way.
Adjustment and efficiency improvement will continue to be the keynote of Country Garden’s work in 2020. Mo Bin said that in the future regional integration, we must further consider the issue of regional strength and excellence, and we will take annualized returns and total profit as the assessment instead of the hero of scale. All areas should promote the project to be one into one, while being stronger and better, they must also be refined.
In the future, Country Garden may also subdivide according to the needs of the market and internal management, and then focus on deep cultivation and improve efficiency. In addition, the lean and efficient headquarters will continue. The headquarters should fire at themselves, continuously improve the efficiency of the platform, and give the region a good example.
Whatever changes in Country Garden is always changing
As of the end of 2019, Country Garden’s real estate business covers 282 prefecture-level cities, 1299 counties and counties, as well as robotics and modern agricultural racing tracks. In the robotics business, 32 construction robots have been put to the construction site for testing. In 2019, they also took the lead in owning their own robotic restaurant chain brand.
Country Garden is no longer the developer who wanted to “sell a house”. Equity sales reached more than 500 billion, which is indeed the first time in the history of the real estate industry. Every Country Garden executive is thinking about market trends, management radius, and output efficiency.
Only Country Garden’s modern agricultural business. Within two years since the establishment of the agricultural holding company in 2018, there have been five core business sections of R & D services, smart seed industries, agricultural science and technology parks, overseas agriculture, and community stores-if each business All rely on the direct management of the headquarters. The result may be a decrease in marginal management efficiency and an increase in costs.
“Whatever changes in Country Garden is always changing,” said Yang Guoqiang. Bo Zhilin, modern agriculture, Bitwise, and robotic restaurants that are laid out around its main business are promising new businesses. “We will spare no effort. We have sufficient funds to support them. This is scientific, advanced, and very effective.”
In June 2009 and August 2010, Alibaba Group transferred Alipay’s equity to Zhejiang Alibaba twice. Jack Ma divested the payment finance team under the tremendous pressure of investors, which led to the later Ant Financial. Clothing, Ali’s second leg.
The problems faced by large enterprises are by no means as simple as “layoffs and pay reductions”. The management of Country Garden, led by Yang Guoqiang and Yang Huiyan, is far more complicated than the buyers choosing “buy or not buy” in 2020. How the economy, industry, and enterprises will go after the epidemic may be another difficult choice for many housing companies, including Country Garden, since its establishment.