Under the new market policy, it is difficult for real estate development enterprises to "enjoy" the land appreciation income through land reserve, and the investment income of enterprises is increasingly dependent on real estate development. Higher and higher project cost and lower profit rate will be one of the main characteristics of the market. This means that in order to develop continuously, rapidly and steadily, real estate development enterprises must pursue economies of scale. Therefore, it is an inevitable choice for development enterprises to implement multi-project development and maximize the added value and profit rate of projects.
According to the market survey results of RAND Enterprise Management Research Office in 2006 10, 84% of the 300 typical real estate development enterprises randomly selected are developing multiple projects at the same time, and 15% of the enterprises are developing more than five projects at the same time. Among them, 73 listed real estate companies all carry out multi-project development, and 90% of the first-and second-class enterprises with qualifications carry out multi-project development. It can be said that multi-project development is the most important feature of the current real estate market and the only way for enterprises to become bigger and stronger.
"Multi-project development syndrome"
Under multi-project development, especially in the initial stage of multi-project development, many enterprises have some problems, which are manifested in the following aspects:
◎ The division of functions and powers between the company and the project department (project company) is not clear, and the work interface relationship is not clear;
◎ The support and management functions of the company's headquarters cannot be effectively exerted, and it is difficult to effectively assess the project department;
◎ The project department (project company) is greatly influenced by the "rule of man" of the project manager, or is too dependent on the company or unwilling to obey the management of the company;
◎ The execution of the project department (project company) is poor, and the execution results of plans, schemes and instructions are often quite different;
◎ The relationship with shareholders, suppliers and other cooperative units is not harmonious;
◎ The supply of human resources and funds is tight, and both resources are available and cannot be enjoyed;
◎ Little contribution to corporate brand building, and so on.
These problems are the main characteristics of "multi-project development syndrome", which often leads to low work efficiency and large target deviation rate (especially planned cost and profit target).
The chairman of a well-known development enterprise in Shanghai said: "There are eight projects that the company is operating, six of which are in other places. Even if we go to each project once a month, it will be gone in 20 days. The company has to deal with a lot of things, and it has to run the land, run the money and run the relationship. Forty days a month is not enough, and it has become an iron man and a flying man." Presumably, there are not a few companies in the industry like this chairman.
Why is there "multi-project development syndrome"? There are three main reasons:
First, the business development strategy is unclear.
Strategic development planning is the compass and the big dipper of enterprise development. The business development strategy of real estate development enterprises generally includes market development planning, regional development planning and product development planning.
At the beginning of multi-project development, real estate enterprises should study and formulate clear development plans. Such as market development planning, land development, real estate development, commercial property development and other three market development planning, what are their respective goals, should be clear one by one. Such as regional development planning, whether it focuses on first-tier cities such as Beijing and Shanghai, or second-tier and third-tier cities; Whether it is concentrated in the local area or extended to the Pearl River Delta, Yangtze River Delta and Beijing-Tianjin-Tanggu areas; Whether to expand coastal cities such as Xiamen, Ningbo, Qingdao and Dalian, or to expand provincial capital cities such as Fuzhou, Nanjing, Jinan and Shenyang; Focus on developing eastern cities, or actively develop central cities such as Wuhan, Changsha, Hefei and Nanchang. After determining the target direction, it is necessary to further analyze the vacancy rate of commercial housing and the proportion of tertiary industry in the target city to determine the order of entry. These issues should also be clarified one by one. For example, product development planning, product model, project scale, the proportion of various products (high-end, mid-range, ordinary commercial housing, etc.) and product concept, and similar issues must be clarified in the early stage of multi-project development. In the new market and new situation, real estate development enterprises must change from opportunity orientation to strategic orientation as soon as possible, otherwise blind expansion will easily lead to or amplify "multi-project development syndrome".
Second, the allocation of resources is unreasonable.
As we all know, real estate enterprises are resource-intensive enterprises. According to the scope, real estate enterprise resources can be divided into internal resources and external resources. The internal resources include human resources, financial resources, land resources, technical resources and brand resources, while the external resources include supplier resources, government resources and customer resources. According to the nature, it can be divided into dominant resources and recessive resources. Among them, explicit resources are material resources, including human resources, financial resources, land resources, customer resources, etc., while recessive resources are intangible resources, such as technology, brand, culture, public relations, strategy, system, etc. The process of social development is the process of resource allocation, and so is the process of enterprise development. In order to achieve sustainable and healthy development, enterprises must optimize the allocation of various resources.
Only by optimizing the allocation of resources can the value of resources be maximized, which can not only prevent the waste of some resources, but also reduce the impact on the development of enterprises due to the shortage of some resources (so-called "short board"). Resource integration is one of the contents of resource allocation, and resource allocation is the core competence that enterprises must have for development.
Many enterprises can't optimize and allocate resources effectively when implementing multi-project development, and some take "short board" resources as the allocation benchmark, which is too conservative, resulting in the waste of other resources; Some take "longboard" resources as the allocation benchmark, which is too aggressive, resulting in excessive tension of other resources (such as human resources and financial resources) and even unable to withstand the influence or impact of major external factors. Shunchi is an example of this. In fact, not only Shunchi, but also most enterprises engaged in multi-project development in the industry are generally short of resources, including human resources, capital resources, technology resources, and so on. What is not lacking is often land resources and relationship resources, which is a big joke for all enterprises in the real market.
Third, the rules and regulations are not perfect.
To maintain sustained and steady development, enterprises must establish and improve a set of comprehensive, appropriate and effective rules and regulations. Compared with other industries, real estate development enterprises have great particularity and management difficulty in human resources, capital operation, cost control, bidding and procurement. According to different management sections or functional modules, real estate enterprises should establish the following management subsystems: administrative affairs management system; Information management system; Legal affairs management system; Human resource management system; Financial management and cost control system; Investor relations management system; Supplier management and procurement management system; Project (engineering) management system; Marketing management system; Customer relationship management system and so on.
Sound rules and regulations and perfect management system are the basic guarantee for the development of enterprises. In the early stage of development, because of the lack of management levels and personnel, only a simple "Management System Compilation" is enough. However, under multi-projects, there are more people, more departments, more levels, more complicated capital flow and information flow, and longer workflow. If an enterprise does not have a comprehensive, appropriate and effective management system, it will inevitably lead to the intersection of rights or a vacuum of responsibility, and then "multi-project development syndrome" will appear.
Don't blindly follow the "benchmark" enterprise
Perhaps the rapidly developing real estate industry in China lacks a real role model, and many enterprises are used to finding a benchmark enterprise for themselves. Whether to praise Sunco or not, at the early stage of its rapid development, Sunco must have aroused the envy of many enterprises in the industry, especially many enterprises that are also in the rapid development stage regard Sunco as a benchmark. Of course, more enterprises still regard Vanke as a benchmark, especially after Mr. Feng Lun published "Learn from Vanke's Good Example", more enterprises regard Vanke as a benchmark enterprise.
Setting a benchmark enterprise can make the enterprise form the goal of * * * working together under the same vision. The purpose of setting a benchmark enterprise is to learn, but it should never be copied or blindly followed.
Take Vanke as an example, there are two reasons why I hope that enterprises in the industry will not blindly follow suit:
First, there is no comparability.
By the end of 2005, Vanke had total assets of 21990 million yuan and net assets of 8.3.1100 million yuan. In 2005, Vanke actually completed the construction area of 2.593 million square meters, up by 7.9% year-on-year, and the completed area of 2174,000 square meters in the same period, up by 37.9% year-on-year. Although Vanke is not the first in many individual indicators, in terms of comprehensive strength, Vanke is trulyNo. 1. Vanke can become theNo./in the domestic real estate industry. In particular, Vanke's R&D strength, service concept, brand value and corporate culture are hard to imitate. In addition, over the years, Vanke has taken the road of specialization in subtraction, while many enterprises in the industry have taken the road of diversification: not only their own sales companies, property companies, but also construction companies and greening companies-there is no comparability. Besides, Vanke's professional development model has its historical reasons. It is successful for Vanke, but it is not necessarily suitable for other enterprises. Every enterprise has its own special situation, and the enterprise group itself is diversified. How can there be a single development model? For every enterprise, what suits you is the best.
Second, Vanke's project management model is not an efficient model.
In view of the scale of the enterprise, the number of projects and the market layout, Vanke adopts a four-level management mechanism: group company, regional company, city company and project department. Therefore, its structural design, post setting and process design are all designed according to the four-level management mechanism. For the vast majority of real estate enterprises in the industry, because the number of projects is small in Vivanco and the development pattern is different from Vanke's, generally three-level management mechanism can be adopted, namely, company-city company-project department, or even two-level management mechanism can be adopted, namely, company-project department.
It is a universal law that the more management levels, the longer the information chain and the lower the work efficiency. Many enterprises blindly follow Vanke's management model, and even some consulting structures promote and copy Vanke's management model, or consult other enterprises according to Vanke's business processes. The result is really unimaginable.
When developing multiple projects, if there are great differences in property types and market positioning (for example, developing commercial real estate, urban high-rise residential buildings and suburban low-density residential projects at the same time), then there must be great differences in the application for construction, planning and design, bidding and procurement, marketing planning and other aspects of each project, which means that the previous experience and a lot of lessons accumulated by money have been "zeroed", and enterprises have to be unfamiliar in unfamiliar markets all the time. For most development enterprises, this is almost impossible. This is also the main reason why many enterprises feel "very busy" and "very tired" when developing multiple projects. However, if each project is basically similar in terms of property type, project scale and market positioning, that is, the product model is basically solidified, then the development process and workflow of each project are unified, just like single project development.
The so-called product model is a unique and relatively solidified project type based on prediction and research and development, which is suitable for market demand and its own ability, and can be replicated and developed.
Through long-term and systematic research, RAND found that the "first echelon" enterprises have basically established their own product models. For example, Vanke Group's urban garden series and Four Seasons Flower City series (suburban junction); Gemdale's "Green" series (Green Town/Green Spring/Green Chunxiao); Riverside series of Shimao Group (luxury houses along the river are developed in Shanghai, Fuzhou, Nanjing, Wuhan, Harbin and other cities); Sunshine 100 Investment Group's "Sunshine 100 International New City" series (developing "emerging white-collar apartments in cities such as Beijing, Tianjin, Jinan, Changsha, Chongqing and Wuhan") and Wanda Group's "Wanda Commercial Plaza" series (developing commercial real estate projects in the central business districts of more than ten cities in China); SOHO China's SOHO series (SOHO Modern City/Jianwai SOHO/SOHO Shangdu), etc.
It can be said that establishing product model is the premise and foundation for enterprises to carry out multi-project development.
Shaping the product model includes at least the following eight elements:
1, city selection, is to choose the target city to enter based on strategic development planning.
2. Location selection is to choose the middle location of the project in the city: whether it is developing the central area of the city, or in the urban-rural junction, or in the near suburbs and far suburbs. The location selection of the project is made clear, and the objectives of land bidding and land reserve are also made clear.
3. Determining the project scale means roughly determining the project's floor area, building area, etc.
4. The choice of target customers is to study and lock in core consumers.
5. Determining the project style is to give the project a unique and easy-to-identify "symbol", so that the public, especially the target customers, can easily identify which enterprise developed what type of project.
6, design stereotypes, that is, the planning and design of various projects, landscape design in the material form has the same spiritual feelings, mature huxing can be used in all projects.
7, store design, advertising style stereotypes. After the product is finalized, each project can have a unified store and unified publicity materials (including loushu, media advertisements, etc.).
8, unified VIS. This is an indispensable "representation symbol" for product styling, and it is also the easiest to do.
Establishing project management mode is the key to multi-project development.
As mentioned earlier, one of the reasons for "multi-project development syndrome" is "imperfect rules and regulations". A lot of practice shows that many "symptoms" are just direct or external manifestations of "imperfect rules and regulations" Therefore, establishing an appropriate and effective project management model is the key for development enterprises to implement multi-project development.
The establishment of project management mode can be divided into three steps:
The first step is to define the functional orientation and redesign the organizational structure.
The management mode of multi-project development is completely different from the single project management mode, which is first manifested in the functional orientation and organizational structure design. Under a single project, real estate enterprises generally can only adopt the development and management mode of linear function system: each department has its own responsibilities and completes the project development work together. However, under multi-projects, because of the realization of project system, the company and the project department (project company) must locate their functions and divide their responsibilities.
Take the two-level management mechanism of "company-project department (project company)" as an example. Generally speaking, the company is positioned as a decision-making center and a resource center, which mainly exercises support and management functions, and should do three things well:
(1) land supply; (2) funding; (3) Control and evaluation.
The project department (project company) is the cost center and profit center, which mainly exercises the functions of execution and implementation, and also should do three things well:
(1) Achieve the goal; (2) establish a brand; (3) Training and training talents.
On the basis of clear functional orientation, enterprises should redesign their organizational structure. When designing the organizational structure, the following elements should be fully considered:
◎ Requirements of strategic development planning on organizational structure design;
Project type;
◎ product model;
◎ Business model (especially outsourcing model);
◎ Resource status (especially human resource status);
◎ Corporate culture.
Under multi-projects, matrix system is a common organizational structure. However, because the matrix system is prone to multi-head leadership, overlapping rights and responsibility vacuum, in recent one or two years, many leading enterprises in the industry generally adopt the mixed organizational structure of linear functional system and matrix system.
The second step is to divide the project types.
Project types are divided in different ways. According to the geographical division, it can be divided into local projects and remote projects; According to the equity division, it can be divided into wholly-owned projects, holding projects and shareholding cooperation projects; According to the scale of the project, it can be divided into special projects, first-class projects, second-class projects and third-class projects. According to the stage, it can be divided into stage projects and whole-process projects.
Classification of project types is the basis of project management system design. In order to "simplify the complex", it is usually combined into the following four types of project organizations: (1) local direct project department; (2) Project companies in different places; (3) Holding the project company; (4) Participating in the project company.
The third step is to design the process and establish the project management system.
Under multi-projects, the process of real estate development is quite different from that under multi-projects. For example, under a single project, the sales department of the company is responsible, while under multiple projects, there are many situations: some are the responsibility of the company's marketing center or its subordinate marketing (brokerage) company, some are the responsibility of the project department (project company), and the company only manages the plan, scheme and price, and some are the responsibility of the marketing agency company. Therefore, all development processes must be redesigned. After the process design is completed, corresponding management systems can be established for different project types.
Usually, a complete project management system involves at least the following aspects:
1. Project organization and management (including organizational structure design of various project departments, establishment and dissolution of project departments, etc.);
2. Various types of project human resources (including the appointment, dismissal, salary, assessment, reward and labor relations of the project manager and other personnel);
3. Project funds and financial management;
4. Project planning and target management;
5. Project investment decision management;
6. Project research and development and design management;
7. Procurement and bidding management;
Project management (including quality, schedule, cost, safety and civilization, file management, etc.);
9. Project marketing management;
Project customer relationship management, etc.
Virtualization of investment subject and materialization of management subject
The establishment of product model solves the business operation mode of enterprises, and the establishment of project management system solves the management mechanism of enterprises. But what kind of project system an enterprise adopts is the most core and fundamental problem ―― the system determines the mechanism, and the mechanism determines the system (rules and regulations).
But unfortunately, although many enterprises are constantly exploring and perfecting the management mechanism, they all focus on such issues as "how to make the division of responsibilities more reasonable". Whether it is "pyramid" or "inverted pyramid", it is nothing more than seeking a relatively reasonable management mechanism in "left leaning" and "right leaning", without really realizing that the problem lies in the system-the traditional project system is the company and the project department (project company) This dual identity will inevitably lead to the difficulty in controlling the project development cost and management expenses and implementing effective assessment, which will lead to a large deviation rate of the project plan and objectives, thus failing to achieve the project investment objectives.
Facts have proved that almost all real estate development enterprises have encountered the same problem and are thinking about the same question: what is the most effective project management model, whether it is a "benchmark enterprise" admired by the majority of industry enterprises or a "real estate tycoon" with unlimited scenery?
Through in-depth research and analysis and practical test, Rand believes that "virtualization of project investment subject and materialization of project management subject" is the most effective investment development model.
"Virtualization of project investors" means that no matter whether it is a project in this city or a project in a different place, a project (investment) company with independent legal personality is registered as far as possible. All the legal person licenses and financial affairs of the project (investment) company are managed by the company in a unified way, and there are no other personnel except the legal representative and financial officer (but management fees are charged).
Benefits of virtualization of project investors
◆ Conducive to project financing (including debt financing and equity financing);
◆ Conducive to avoiding legal risks;
◆ Conducive to financial accounting;
◆ Conducive to tax planning.
"Entity of project management" refers to a project management company with independent legal person status, which is relatively controlled by the company (or jointly funded by a professional social project management company), and entrusts the development and implementation of some projects to the project management company, with which the project investment company signs the Project Entrustment Management Agreement and pays a certain amount of management fees.
Benefits of "Entity of Project Management"
◆ It is beneficial to control the project development cost and management cost;
◆ Conducive to the implementation of effective assessment;
◆ Conducive to the realization of project investment objectives.
Although "virtualization of project investors and materialization of project management entities" needs to be further improved, a large number of practices show that this development management model has solved the institutional problems of multi-project management, and also conforms to the mainstream international format of "separation of investors and developers", and should be the most suitable and effective multi-project development management model.
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