Viewpoint Real Estate Network After a lapse of more than a year, Vanke once again adjusted the candidate for the position of chief operating officer, but it was different from leaving the position “vacant” for more than 20 days in 2020. This time, a seamless connection was achieved.
On June 23, Vanke announced that the board of directors has agreed to appoint Liu Xiao as the company’s executive vice president and chief operating officer (COO). Director Wang Haiwu will no longer serve as the company’s executive vice president and chief operating officer, and has another appointment.
At the same time as this announcement, Vanke announced a series of decisions announced at today’s internal transformation and development briefing, such as the reorganization of the research and development professional association into a development and operation center, responsible for the development and operation of professional capacity building. And business development.
Zhang Hai, the first in Shanghai, will serve as the head of the development and operation center and will continue to serve as the chief partner of the Shanghai region. Wang Haiwu, who left the position of chief operating officer, rushed to SCPG as its president.
In addition, Vanke adjusted the division of regions, adjusting the original five regions to seven, namely Beijing, Northeast, Central China, South, Shanghai, Southwest and Northwest. That is, the original northern region was split into Beijing and northeast, and the central and western regions were split into central and southwest regions.
As for the above-mentioned series of adjustments in personnel and organizational structure, Vanke calls for accelerating the transformation and development of “equal emphasis on development, operation and services”.
New chief operating officer
Liu Xiao, the head of the Northern District, became the new chief operating officer, which surprised investors: Beiwan’s performance is getting worse and worse, but it is transferred to headquarters?
Unlike Wang Haiwu’s “performance first” when he became the chief operating officer in 2020, Beiwan has experienced a decline in performance in 2019 and 2020, whether it is the proportion of sales performance or equity net profit.
When Wang Haiwu took office, the central and western region he was responsible for achieved the first in the four major regions in terms of sales area and second in sales amount in 2019. But when it first went to the central and western regions, Vanke completed sales of 34.522 billion yuan in this area, accounting for only 13% of the entire group’s sales.
On the other hand, in the northern region, the sales amount in 2020 was 150.174 billion yuan, accounting for 21.33%, and the sales accounted for a decrease of 1.21 percentage points compared to 2019; the equity net profit was 3.397 billion yuan, accounting for 7.21%, and the equity net profit accounted for a decrease of 11.08 in 2019. Percentage points.
Therefore, unlike Wang Haiwu’s transfer as chief operating officer last year, which was interpreted by the outside world as a “reward on merit”, Liu Xiao’s transfer must have other reasons.
According to analysis by industry insiders, Li Wei, head of the central and western regions, and Guo Jixun, head of the northwest region, had just served as regional heads last year. His qualifications are still relatively low. The head of the southern region, Sun Jia, has just been transferred to the head of the southern region in 2019. It will take time for the southern region to make achievements. Although the first Zhang Hai in Shanghai has the best regional performance in Vanke, he was assigned another important task in this transfer. So Liu Xiao became the only choice.
However, according to people close to Vanke, in the current era of high uncertainty in the external environment, Vanke needs to balance the “development business” and “operating business” at the same time, and it also needs to plan for the future in response to changes in the internal and external environments. As the group headquarters of the entire “brain” of Vanke, there is an urgent need for talents who understand both business and strategic planning.
Liu Xiao just fits.
According to the new media of View Real Estate, since 2012, Liu Xiao was transferred from the headquarters to Hangzhou, and he began to contact the front line, then went to Beijing Vanke, and then to the head of the northern region. It has been as many as 9 years. Already have sufficient first-line experience.
Vanke insiders said that Liu Xiao’s return to headquarters is an important talent supplement for Vanke headquarters in the critical period of transformation and development, from the “real estate headquarters” to the “group headquarters”.
Vanke pointed out that Liu Xiao’s early work experience at McKinsey laid the foundation for his strategic ability. After joining Vanke, his work at the headquarters showed a big picture and the ability to plan the business and the company’s long-term development.
During his stay in Hangzhou, Liu Xiao promoted the exploration of Hangzhou Vanke’s transformation and incubated the “good house, good service, and good neighbor” brand in Liangzhu Cultural Village. Suiyuan Jiashu Pension has also become the country’s first CCRC to open and operate. Retirement community.
After being transferred to the northern region, there are also many excellent practices in promoting the transformation of the northern region. For example, the Po Yu Cheng Shou Temple project is the first centralized long-term rental apartment project built on collective land in China; such as the Wangjing Xiaojie project, which is a Beijing urban renewal and construction project. A representative project of space upgrade.
Internal transformation
Although the replacement of the chief operating officer is the only thing announced by a listed company, in fact, according to Yu Liang’s statement, all the actions of the internal transformation and development conference today are aimed at enabling Vanke to continue to win in the era of management dividends.
Yu Liang said at the meeting that although the industry is facing huge challenges, there is still much to be done in the era of management dividends for the unfinished business in the world. The core is two major starting points, one is to consolidate and improve the basic disk, that is, to improve the refined management of the development and operation of the business.
This time, the existing five regions are further subdivided into seven regions, and the first Zhang Haijiang in Shanghai as the head of the development and operation center reorganized by the research and development professional association is aimed at this sector.
It is understood that the research and development professional association was previously defined by Vanke as a platform, upgraded from the Vanke Construction Research Center, which specializes in undertaking the engineering, procurement, cost, design and other functional departments that have been separated from the group headquarters. In October last year, he moved from Shenzhen to Shanghai.
Vanke stated in the Vanke Weekly that this association is rushing towards the goal of “building the bottom line, establishing standards, transferring implementation, and promoting coordination”. Called “a bold reform”, the “boldness” is reflected in the direct connection between Vanke’s headquarters and the front-line artillery support force.
The split management area is intended to reduce the management radius. In addition to the original district head, the new district capital is selected based on experience and performance. Among them, Lu Bing is the senior vice president in the northern region. Cai Ping and Lin Tong have served as general managers in many cities in their area. On the one hand, they are familiar with the situation, and on the other hand, their performance is also among the best in the current division. Can convince the public.
The second is to accelerate the transformation and development of the new track, and to promote excellent people to join the operational business with the mentality of entrepreneurs.
According to the opinions of Vanke insiders, the core of Vanke’s operational business development is to stimulate “people”. Among them, Vanke first released the non-development business follow-up investment mechanism in May last year, which was revised again in June this year.
At that time, some industry veterans also expressed their affirmation of this approach in an interview with Viewpoint Real Estate New Media, saying that it is definitely beneficial to risk management and human resource management.
The transfer of Wang Haiwu, Vanke called it an illustration of its firm determination to focus on the development of the new track.
An insider of Vanke said: “When Vanke wants to make a business bigger and stronger, it usually adopts the strategy of’talent first.’ The intention of putting Wang Haiwu in SCPG after the performance test is very obvious, and it wants to achieve a breakthrough in the commercial business. Development, at the same time, plays a leading role, spurring other operating businesses to break.”
It is worth mentioning that Wang Haiwu took the initiative to request the transfer this time. He expressed his hope to Yu Liang many times this year to join the new track, and his attitude was very firm.
However, there is a saying that Vanke originally acquired SCPG in the hope of achieving synergy with Vanke’s business, but now it has many barriers and has not made particularly outstanding results. Vanke was dissatisfied with SCPG’s business synergy not as good as expected, and at the same time, SCPG’s return on investment income did not meet Vanke’s expectations.
What can actually be seen is that in the commercial sector, Vanke’s growth rate is indeed not too fast. In 2020, Vanke’s business (including non-consolidated items) business revenue will be 6.322 billion yuan, a year-on-year increase of 4.33%. Among them, the operating income of commercial projects managed by SCPG was 4.222 billion yuan, a year-on-year decrease of 1.62%.
Some insiders believe that putting Wang Haiwu, who has been tested for performance, to SCPG is to achieve breakthrough development in the commercial business. Although the specific goal is not clear, it is clear that Wang Haiwu has taken a heavy responsibility.
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