What is the industry and economic situation in 2022? What kind of situation is the enterprise in? See how Yu Liang, chairman of the board of directors of Vanke Group, can “see the sun through the clouds” in the face of the crisis.
2022 is a year for Vanke to overcome its difficulties and fight back. It is also the beginning of a new era.
Vanke often says that the five in one reform is strategy – mechanism – Culture – organization – people. Let me talk about these aspects.
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In terms of strategy
The first feature of the external environment is that the industry has entered the stage of shrinking and clearing.
For the real estate industry, shrinking the table and clearing it is de financialization. De financialization is an inevitable trend and a painful process.
For example, it feels good to give you sugar at the beginning, but after eating too much, you accumulate fat, which will be very painful when you quit sugar.
This year is a year of fighting back. How to understand it? Is either dead or alive, there is no middle state.
Stop harboring illusions and clear up quickly and resolutely. For us, it is a battle of life and death.
Another output of the external environment is the new development model of the industry mentioned in this year’s economic work conference. It can be summarized as one center and three basic points.
One center is to solve the Lbx Pharmacy Chain Joint Stock Company(603883) housing problem. The three basic points are the non speculation of housing, the simultaneous development of rent and purchase and the matching of people, land and housing.
There are two major changes. Market differentiation will become more and more obvious, and the scale of the industry will begin to shrink.
In the face of major changes, we should also make corresponding changes. We need to think more about Bijia investment. In the face of shrinking market differentiation and limited profits.
We need higher quality investment. We should change from uniform and decentralized investment in the past to local intensive investment with better market performance and proven team trading ability.
If some places do not do well, it may be necessary to cancel the renovation system and withdraw the serial number.
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Cultural aspects
At present, the most important eight words are “frugality and wartime atmosphere”. I would like to emphasize a few points.
\u3000\u30001。 We’re fighting back
All work is carried out around the war, focusing on the three main tasks of stopping the decline, stabilizing and improving, shrinking the table and clearing, and “growing muscles”.
Irrelevant work can be put in a secondary position.
For example, the recent discussion on training is a continuous work, but this year’s large-scale, long-term and centralized training for long-term development may not be appropriate.
However, in order to fight, it is possible to organize short-term training similar to that of Huangpu Military Academy.
Since it is a battle against a backwater and a desperate situation, all our work must focus on three major tasks.
\u3000\u30002。 Strong performance
Heroes can only be judged by winning or losing, and cadres can only be selected from the ranks that win the war.
I see that some Sales Champions are doing well and capable, but why don’t they play a role in a higher position? Are these positions no longer in need of excellent people?
\u3000\u30003。 Managers should all sink and take the lead
The group has abolished the level of the original group partners, and all the original group partners have sunk to their units.
If you, as the general manager, do not go to the project site, do not personally understand the situation, and only sit in the office, it must be unqualified.
Including the division of labor and cooperation arrangement of president Zhu, Zhang Hai and Zhu Baobao, it is also a sinking, so that president Zhu can sink more to the important task of shrinking the group’s table and clearing it.
\u3000\u30004。 We should live frugally, reduce waste, and create a wartime atmosphere of frugality
The advocacy issued by the headquarters to the whole group has not been implemented in all places.
My assistant won’t buy first class when booking a ticket for me. If I have time to approach, I will buy whichever flight is cheaper.
If our management can’t take the lead and set an example, the signal will be greatly reduced. How to ask employees?
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Organizational aspects
In the face of more intense competition after the market shrinkage, everyone wants to live. What do we rely on to win?
First, how to build a game of chess?
From today’s perspective, do all regions really need to build so many product lines and so many product leaders?
Do we need each company to set up a separate investment and expansion team to study the city? Can you understand macro policy better than the report just now?
Similarly, investment and development and product teams need to build a game of chess. In the face of fierce competition, there are not so many resources and energy to disperse.
Secondly, how does the organization adapt to the changes of business?
The traditional development business is shrinking, but the organization only responds to the situation of shrinking business scale.
But what about the “elimination” part? No one has proposed how to solve the “elimination” corresponding to the “long” when our traditional business shrinks.
Let me give another example of chief customer officer. At the beginning, each unit set up a chief customer officer, and the group has 65 chief customer officers.
Now it is reduced to 14 people. Although the number is greatly reduced, the quality of thematic reports is much better than 65 people because they are more professional.
Therefore, business changes must be accompanied by organizational adaptation adjustment.
The third question is, how can we find a new anchor point when the industry comes to the era of black iron?
What new anchor point does our salary system establish? Are we still anchored in the golden age system?
This year, everyone’s income must be greatly reduced, including our welfare and subsidies, which should adapt to the era of black iron.
At this time point, we must set out after establishing a new anchor point in one step, otherwise we can’t get rid of the inertia of the golden age.
Fourth, in the face of about 10% of low profit industries, should we reengineer our processes?
When I visited Byd Company Limited(002594) , Wang Chuanfu said that he did not produce tires and glass, but all the others were produced by himself. I said that the auto parts were very mature and could be used.
In the past, every link of real estate could be outsourced. After outsourcing, we can still make money. Can we do it today?
All the work is done by others. Everyone has to earn 10%. We certainly have no money to earn, so we need process reengineering.
We are in the black iron age today. Who will do it if we don’t do it ourselves?
In the past, we were reckless, were setters and fake hands. The way of subcontracting at all levels must not be feasible.
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Human aspect
These two days, I’ve heard a lot of people complain about a problem, that is, we don’t have capable people. I hope we’d better have Superman.
I want to ask who we are? Who will do it if we don’t? If there are really capable people and Superman, what do you want us to do?
We fantasize that it is impossible to invite Superman. At the group target action communication meeting, I talked about the example of six people. Do you remember?
He Guopei said that he just did all the things that everyone thought of but didn’t fully do. For example, he listened to customers’ voices in the restaurant at breakfast time every day, and gave customers a special gift when they left the store.
Li Bin, the project manager of Wuhu, is also an ordinary person. He insists on working on the construction site for more than 300 days a year. If he has nothing to do, he has to go to the construction site and have a look. In exchange, there have been no construction site accidents and group complaints for ten years.
Is this a question of ability or attitude?
These examples make me think about what we lack today. Is it the so-called ability or the attitude of doing a good job?
I especially hate the project manager who uses photos to sign in to prove that he has been off the construction site. I suggest that BG in all districts and cities should be dismissed immediately once found.
Today, we do have some companies that haven’t done well, but Vanke has done real estate for such a long time. We don’t have no one in level 1-5 projects, but lack a good attitude and responsible spirit.
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Mentality
The theme of today’s annual meeting is “dare to fight and win”. I conclude with four sentences.
First, dare you fight?
There is still a chance to win if you dare to fight, but the result of not daring to fight must be failure.
So we have no choice. Only by daring to fight can we get a glimmer of vitality.
Second, will you fight?
If we don’t fight, we will never fight. Only when we fight can we do it. We also have no choice.
For example, after listening to the examples of Deng Qiqi and Fang Yihong, did we learn how to become a sales champion? And learn her method and spirit. Through action, this work can be improved.
Third, would you like to play together.
How to understand partnership? It means that some people attack and some want to cover, and even die while covering in order to block the incoming enemy.
For example, with such great changes in the investment market, the ability of each operation team also varies greatly. Today, there are not so many forces and resources to disperse, so we must fight together.
For example, if the development BG does not help establish government relations, the apartment Bu does not have this ability and team.
Vanke has a lot of resources. We have a lot of resources together.
Fourth, the most crucial issue is whether we can play particularly well.
To win this battle and win next spring, we must take “particularly good” as the standard.
Otherwise, if you can’t do it very well, what’s the meaning of just dying? What do you mean especially good?
Three requirements: be a professional expert, an all-round champion and a winner in long-distance running.
First, to be a professional expert, we should not compare with ourselves in the past, nor with our brothers, but with the benchmark of the industry.
If you have become an industry benchmark, you should compare it with the goal of greater excellence.
The second is to be an all-round champion. The era of relying on one recruit to eat the world is over.
Now we should pay equal attention to development, operation and service, which is also the new Triathlon of Vanke. Only being an all-round champion can make a profit. As in the past, it is impossible to make money by doing individual items separately.
Third, be a long-distance runner. Do the right thing for a long time.
If we dare to fight, can fight and are willing to fight together, we will win, and we will win especially well.
The above is my concluding speech at the annual meeting of the group. Thank you.
(excerpted from Yu Liang’s concluding speech at Vanke’s 2022 meeting. Because the full text is long, only the main points are recorded.)
