Real estate multi-project development, the most effective management model_Song Yanqing_Real Estate Development_Architecture Chinese Network Under the new market policy, it is difficult for real estate development companies to "enjoy" land value appreciation through land reserves. Income, corporate investment income increasingly depends on real estate development. Project costs are getting higher and profit margins are getting lower and lower, which will be one of the main characteristics of the market. This means that in order to develop sustainably, rapidly and steadily, real estate development companies must pursue economies of scale. Therefore, it has become an inevitable choice for development companies to implement multi-project development and maximize project added value and profit margins.

Under the new market policy, it is difficult for real estate development companies to "enjoy" land value-added income through land reserves, and corporate investment income increasingly relies on real estate development. Project costs are getting higher and profit margins are getting lower and lower, which will be one of the main characteristics of the market. This means that in order to develop sustainably, rapidly and steadily, real estate development companies must pursue economies of scale. Therefore, it has become an inevitable choice for development companies to implement multi-project development and maximize project added value and profit margins.

According to the market survey results of Rand Business Management Research Office in October 2006, 84% of the 300 randomly selected typical real estate development companies of various types are developing multiple projects at the same time, and 15% The number of enterprises developing at the same time is more than 5 projects; among them, 73 listed real estate companies all carry out multi-project development, and 90% of the enterprises with first and second 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 early stages of multi-project development, many companies have some problems, which are manifested in the following aspects:

◎ The division of powers between the company and the project department (project company) is unclear, and the work interface relationship is unclear;

◎ The support and management functions of the company headquarters cannot be effectively exerted, and it is difficult to implement the project department Effective assessment;

◎ The project department (project company) is greatly affected by the project manager's "rule of man", or is too dependent on the company, or is unwilling to obey the company's management;

◎ The project department The execution ability of the project company is poor, and the execution results of plans, plans, instructions, etc. often have large deviations;

◎ The corporate relationship with shareholders, suppliers and other cooperative units is not harmonious;

◎ The supply of human resources and funds is tight, and the resources cannot be fully shared;

◎ It does not contribute much to corporate brand building, etc.

These problems are the main characteristics of "multi-project development syndrome", and the results are often: low work efficiency and high target deviation rate (especially planned costs and profit targets).

The chairman of a well-known development company in Shanghai said: "The company has eight projects in operation, six of which are in other places. Even if we go to each project once a month, it will be gone in twenty days." , the company has to deal with a lot of things, and has to run for land, money, and relationships. Forty days a month is not enough, and everyone has become an iron man and a flying man. "I think there are people like this chairman in the industry. Not a few.

Why does "multi-project development syndrome" occur? There are three main reasons:

First, the business development strategy is unclear

Strategic development planning is the compass and Big Dipper of enterprise development. The business development strategies of real estate development companies generally include market development planning, regional development planning, product development planning, etc.

At the beginning of multi-project development, real estate companies should research and formulate clear development plans. For example, the market development plan, what are the development plans for the three markets of primary land development, real estate development, and commercial property development, and what are their respective goals, should be clearly defined one by one. For example, the regional development plan is to focus on first-tier cities such as Beijing and Shanghai, or to move to second- and third-tier cities; whether to concentrate on the local area, or to expand to the Pearl River Delta, Yangtze River Delta, and Beijing-Tianjin-Tangzhou regions; whether to expand to Xiamen, Ningbo, Qingdao, and Dalian Wait for coastal cities, or expand to provincial capital cities such as Fuzhou, Nanjing, Jinan, Shenyang, etc.; whether to 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 the tertiary industry in the target city to determine the order of entry. These issues must also be clarified one by one. Another example is product development planning, what is the product model, what is the project scale, what is the proportion of various products (high-end, mid-range, ordinary commercial housing, etc.), what is the product concept, similar issues must be clarified in the early stages of multi-project development . In the new market and new situation, real estate development companies must change from opportunity-oriented to strategic-oriented as soon as possible, otherwise blind expansion will easily trigger or amplify the "multi-project development syndrome".

Second, unreasonable resource allocation

As we all know, real estate companies are resource-intensive companies. By scope, real estate enterprise resources can be divided into internal resources and external resources. Internal resources include human resources, financial resources, land resources, technical resources, brand resources, etc., and external resources include supplier resources, government resources, customer resources, etc. According to their nature, they can be divided into explicit resources and implicit resources.

Among them, explicit resources are material resources, including human resources, financial resources, land resources, customer resources, etc., while implicit resources are non-material resources, such as technology, brand, culture, public relations, strategy, system, etc. The process of social development is a process of resource allocation, and the process of enterprise development is also a process of resource allocation. To achieve sustainable and healthy development, an enterprise must optimize the allocation of various resources.

Only by achieving the optimal allocation of resources can the value of resources be maximized, which can not only prevent the waste of certain resources, but also reduce the impact of the shortage of certain resources (so-called "shortcomings") Enterprise development. Resource integration is one of the contents of resource allocation, and resource allocation is the core capability that an enterprise must have for development.

Many companies cannot effectively optimize and allocate resources when implementing multi-project development. Some use "short board" resources as the allocation benchmark, which appears to be too conservative, resulting in a waste of other resources; "Long board" resources serve as the benchmark for allocation, which appears to be too aggressive, causing other resources (such as human resources and financial resources) to be over-strained and even unable to withstand the influence or impact of major external factors. Sunco is a vivid example of this. In fact, not only Sunco, but also the vast majority of companies in the industry that are engaged in multi-project development suffer from a lack of resources, including a lack of human resources, a lack of financial resources, a lack of technical resources, etc. What is not scarce is often land resources and relationship resources. This is a big joke played by the real market on various companies.

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 companies have great particularities and management difficulties in terms of human resources, capital operations, cost control, bidding and procurement, etc. For different management sections or functional modules, real estate enterprises should establish the following management sub-systems: administrative affairs management system; information management system; legal affairs management system; human resources 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, etc.

Sound rules and regulations and a sound management system are the basic guarantees for enterprise development. In the early stages of development, because there were few management levels and few personnel, only a simple "Compilation of Management Systems" was enough. However, under multiple projects, there are more people, more departments, more levels, more complex capital flows and information flows, and longer work processes. If the enterprise does not have a comprehensive, appropriate, and effective management system, it will inevitably lead to rights issues. Intersection or vacuum of responsibilities leads to the emergence of "multi-project development syndrome".

Don’t blindly follow “benchmark” companies

Perhaps it is because China’s rapidly developing real estate industry lacks real role models, and many companies are accustomed to finding a benchmark company for themselves. Whether you praise or criticize Sunchi, in the early days of Sunchi's rapid development, Sunchi must have aroused the envy of many companies in the industry. In particular, many companies that are also in the stage of rapid development regard Sunchi as as a benchmark. Of course, more companies still regard Vanke as a benchmark. Especially after Mr. Feng Lun published "Learn from Vanke as a Good Example", even more companies regard Vanke as a benchmark company.

Establishing a benchmark enterprise can enable enterprises to form a common goal of joint efforts under a common vision. The purpose of establishing a benchmark enterprise is to learn, but it should never be copied or blindly followed.

Taking Vanke as an example, there are two reasons why we hope that companies in the industry will not follow blindly:

First, there is no comparability.

As of the end of 2005, Vanke’s total assets were 21.99 billion yuan and net assets were 8.31 billion yuan. In 2005, Vanke actually completed construction area of ??2.593 million square meters, a year-on-year increase of 7.9%. During the same period, the completed area was 2.174 million square meters, a year-on-year increase of 37.9%. Although Vanke is not the first in many individual indicators, in terms of comprehensive strength, Vanke ranks first in the country. The real estate industry is truly No. 1. Vanke has become No. 1 in the industry for many historical, current, objective and personal reasons, which are unmatched by most companies. In particular, Vanke's R&D capabilities, service concepts, brand value, and corporate culture are difficult to imitate. In addition, over the years, Vanke has followed the path of specialization through subtraction, while many companies in the industry have followed the path of related diversification: not only their own sales companies and property companies, but also construction companies and landscaping companies - also There is no comparison. Furthermore, Vanke’s professional development model has historical reasons and is successful for Vanke, but may not be suitable for other companies. Every enterprise has its own special circumstances, and the enterprise group itself is also diversified. How can there be a single development model? For every company, what suits them is the best.

Second, Vanke’s project management model is not an efficient one

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-Project Department. Therefore, its structural design, position setting, and process design are all designed in accordance with the four-level management mechanism.

For the vast majority of real estate companies in the industry, because the number of projects is smaller than that of Vanke, and the development pattern is different from Vanke, it is generally sufficient to adopt a three-level management mechanism, namely: company-city company-project department, or even a two-level management mechanism. , namely: company-project department.

The more management levels there are, the longer the information chain and the lower the work efficiency. This is a general rule. Many companies blindly follow Vanke's management model, and even have individual consulting structures to promote and copy Vanke's management model, or consult for other companies according to Vanke's business processes. The results are really unimaginable.

When developing multiple projects, if each project has great differences in property type, market positioning, etc. (such as developing commercial real estate, urban high-rise residential, and suburban low-density residential projects at the same time), Then each project must have great differences in terms of approval and construction, planning and design, bidding and procurement, marketing planning, etc. This means that a lot of previous experience and money accumulation have been "reset", and companies have to Constantly producing unfamiliar products in unfamiliar markets requires real estate companies to have diverse talents with rich development experience in all aspects. For the vast majority of development companies, this is almost impossible. This is also the main reason why many companies feel "very busy" and "very tired" when developing multiple projects. However, if the projects are basically similar in terms of property type, project scale, market positioning, etc., that is, the product model is basically solidified, then the development process and work flow of each project will be unified, as simple and easy as the development of a single project.

The so-called product model is a unique and relatively solid project type based on prediction and research and development, suitable for market demand and own capabilities, replicable and developed.

Through long-term and systematic research, the RAND Corporation found that "first-tier" companies have basically established their own product models. For example, Vanke Group’s City Garden Series, Four Seasons Flower City Series (urban-suburban junction); Gemdale Group’s “Green” Series (Green Town/Green Spring/Green Spring Dawn); Shimao Group’s Riverside Series (in Shanghai, Fuzhou, Nanjing, Wuhan and Harbin and other cities are developing luxury houses along the river); Sunshine 100 Investment Group’s “Sunshine 100 International New City” series (“urban emerging white-collar apartments” are being developed in Beijing, Tianjin, Jinan, Changsha, Chongqing, Wuhan and other cities), Wanda Group’s "Wanda Commercial Plaza" series (commercial real estate projects developed in central business districts in more than a dozen cities across the country); SOHO China's "SOHO" series (SOHO Modern City/Jianwai SOHO/SOHO Shangdu), etc.

It can be said that establishing a product model is the premise and foundation for an enterprise to carry out multi-project development.

The finalization of the product model includes at least the following eight elements:

1. City selection is to select the target city to enter based on the strategic development plan.

2. Location selection is to choose the meso-location of the project in the city: whether it is developing the central area of ??the city, the interface between urban and rural areas, or in the suburbs or outer suburbs. Once the location selection for the project is clarified, the goals for land bidding and land banking are also clear.

3. Determine the project scale, which means roughly determining the project’s floor area, building area, etc.

4. Target customer selection means researching and locking in core consumers.

5. Determining the project style is to give the project a unique and easily identifiable "symbol" so that the public, especially the target customers, can easily identify which company developed what type of project.

6. Design finalization means that the planning, design and landscape design of each project are consistent in physical form and spiritual feeling, and mature house types can be used in various projects.

7. Store design and advertising style finalization. After the product is finalized, each project can have a unified store and promotional materials (including brochures, media advertisements, etc.).

8. Unified VIS. This is an indispensable "visual symbol" for product shaping, and it is also the easiest to achieve.

Establishing a project management model is the key to multi-project development

As mentioned earlier, one of the causes of "multi-project development syndrome" is "imperfect rules and regulations." A large amount of practice shows that many "symptoms" are direct or external manifestations of "imperfect rules and regulations." Therefore, establishing an appropriate and effective project management model is the key for development companies to implement multi-project development.

Establishing a project management model can be divided into three steps:

The first step is to clarify the functional positioning and redesign the organizational structure

Management of multi-project development The model is completely different from the single project management model, which is first reflected in the functional positioning and organizational structure design. Under a single project, real estate companies generally can only adopt the development management model of a linear functional system: each department is responsible for its own responsibilities and completes the project development work together. However, under multiple projects, due to the implementation of the project system, the company and the project department (project company) must be functionally positioned and divided into responsibilities.

Take the "Company-Project Department (Project Company)" two-level management mechanism as an example. Generally speaking, a company is positioned as a decision-making center and a resource center, and mainly performs support and management functions. It must do three things well: Things:

(1) Land supply; (2) Fund supply; (3) Management, control and evaluation.

The project department (project company) is a cost center and profit center. It mainly performs execution and implementation functions and must do three things well:

(1) Achieve goals; (2) ) Establish a brand; (3) Cultivate and train talents.

On the basis of clear functional positioning, enterprises should redesign their organizational structure. When designing the organizational structure, the following elements should be fully considered:

◎ The requirements of the strategic development plan for organizational structure design;

◎Project type;

◎ Products Model;

◎ Business model (especially outsourcing model);

◎ Resource status (especially human resources status);

◎ Corporate culture.

For multiple projects, the matrix system is a commonly used organizational structure form. However, because the matrix system is prone to multiple leaders, overlapping rights and a vacuum of responsibilities, in the past one or two years, many leading companies in the industry have generally adopted a hybrid organizational structure form of the linear functional system and the matrix system.

The second step is to divide project types

There are different ways to divide project types. According to the geographical division, it can be divided into local projects and off-site projects; according to the equity division, it can be divided into sole proprietorship projects, holding projects and equity cooperation projects; according to the project scale, it can be divided into special-level projects, first-level projects, second-level projects, and third-level projects. level projects, etc.; divided by stages, they can be divided into phased projects and full-scale projects.

Dividing project types is the basis for project management system design. In order to "simplify the complexity", the following four project organization types are usually combined: (1) local directly affiliated project department; (2) off-site project company; (3) holding project company; (4) equity participation project company.

The third step is to design the process and establish a project management system

Under multiple projects, the real estate development process is very different from the development process under multiple projects. For example, under a single project, the company's sales department is responsible for sales, while under multiple projects, there are many situations: some are responsible for the company's marketing center or a subordinate marketing (brokerage) company, some are responsible for the project department (project company), the company Only management of plans, programs, prices, etc. is carried out, and some are handled by marketing agencies. Therefore, various development processes must be redesigned. After the process design work is completed, corresponding management systems can be established for different project types.

Usually, a complete project management system involves at least the following aspects:

Project organization management (including organizational structure design of various project departments, appointment of positions and personnel, and establishment of project departments , dissolution, etc.);

The second project’s various types of human resources (including the appointment, dismissal, salary, assessment, rewards, labor relations, etc. of project managers and other personnel);

The third project Capital and financial management;

Four project plans and target management;

Five project investment decision-making management;

Six project R&D and design management;

Seven procurement and bidding management;

Eight project engineering management (including quality, schedule, cost, safety and civilization, file management, etc.);

Nine project marketing management;

Ten projects customer relationship management, etc.

Virtualization of investment entities and materialization of management entities

Establishing the product model solves the business operation model of the enterprise, and establishing the project management system solves the problem of the enterprise's management mechanism. But what kind of project system an enterprise adopts is the core and most fundamental issue - the system determines the mechanism, and the mechanism determines the system (rules and regulations).

But unfortunately, although many companies are constantly exploring and improving management mechanisms, they all focus on issues such as "how to make the division of responsibilities more reasonable", whether it is a "pyramid" or an "inverted pyramid" ”, it is nothing more than seeking a relatively reasonable management mechanism in the “left-leaning” and “right-leaning”, without truly realizing that the problem lies in the system - the traditional project system is the integration of the company and the project department (project company), both It has a dual identity: it is both an investment subject (because it represents the company) and a management subject (exercising project development functions). This dual identity will inevitably make it difficult to control project development costs and management expenses, and implement effective assessments, which will in turn lead to a large deviation rate in project plans and goals, making it impossible to achieve project investment goals.

Facts have proved: Whether it is a "benchmark enterprise" that is admired by the majority of companies in the industry, or a "real estate giant" with unlimited fame, almost all real estate development companies today have encountered the same problem and are thinking about the same problem. A question: What is the most effective project management model?

Through in-depth research, analysis and practical testing, Rand believes that "virtualization of project investment entities and materialization of project management entities" is the most effective investment and development model.

"Virtualization of project investment entities" means that whether it is a project in this city or a project in another place, a project (investment) company with independent legal personality should be registered and established as much as possible. The project (investment) company All legal person licenses, finance, etc. are managed uniformly by the company. Except for the legal representative, financial person in charge, etc., who are concurrently held by the company leaders, there are no other personnel (but management expenses are listed).

Benefits of virtualization of project investment entities

◆ Conducive to project financing (including debt financing and equity financing);

◆ Conducive to avoiding legal risks;< /p>

◆ Conducive to financial accounting;

◆ Conducive to tax planning.

"Project management entity entity" refers to a company (or a professional project management company introduced from the society with joint investment) that is relatively controlled (but not one is registered for every project) and has independent It is a project management company with legal person status and hands over the development and implementation of some projects to the project management company. The project investment company signs a "Project Entrusted Management Agreement" with the project management company and pays a certain amount of management fees.

Benefits of "materializing project management entities"

◆ It is conducive to controlling project development costs and management expenses;

◆ It is conducive to the implementation of effective assessments;< /p>

◆ Conducive to the realization of project investment objectives.

Although "virtualization of project investment entities and materialization of project management entities" still needs further improvement, a large amount of practice has shown that this development management model solves the institutional problems of multi-project management and is also in line with the international "investment The mainstream business format of "separating merchants and developers" should be the most appropriate and effective multi-project development management model.

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