Longhu Group | Longhu organization upgrade: paving the way for the future enterprises in traditional industries

2022-06-08 0 By

Longfor Group, issued an organizational and personnel change announcement.Specifically, Longhu has made two organizational adjustments: one is the establishment of real estate channel, and the previous commercial, guanyu, wisdom services, gannet and other businesses as channel business.Real estate channel under the investment development department, R & D department, operation department, engineering department, supply chain management department, Marketing Department, steering is the former Longhu Group Chengdu Company general manager Chen Xuping.The second is the lightweight setting of the group headquarters, renamed as the Group Enabling Platform, and set up the strategic Research Department, Supply chain Management Department, public affairs Department, brand department, digital Technology Department, Human Resources and administration Department, Finance department, legal affairs department and other functions.The announcement emphasizes: Longfor Group will further deepen the simple and direct, agile, efficient organizational culture, the level of the position is not directly related to the job, but the working relationship has the need to report and pull through the action.Oppose step by step, layer by layer, single function report, encourage one-time loop pull through.Longhu has always hoped to establish a “future enterprise of traditional industries”, and this may be the prototype of the future enterprise.In addition to longfor Group becoming an enabling platform, the most noteworthy point of this change is that the original real estate development business is listed as a real estate channel as well as other channels.It is no surprise that Longfor Group established real Estate Channel ten years after its commercial became the main channel and three years after its space as a service strategy was proposed.In 2018, Longfor launched the “space as a service” strategy.So far, it has developed six major channels, namely: real estate development, commercial operation, rental housing, smart services, housing rental and sales, and housing decoration.However, this reform does not mean that the strategic position of real estate development is weakened. After the organization upgrading, the boundary of power and responsibility of real estate channel business is clearer, which is conducive to its own focused development and efficient coordination with other channels.This from the longhu selected Chen Xuping real estate channel helmsman can be seen.It can be said that Chen Xuping is the best candidate for the general manager of real estate channel. With years of experience in Tsinghua Civil Engineering and Chengdu Company, he is not only experienced in real estate development, but also good at multi-channel coordinated layout.Relevant information shows that Chen Xuping joined Longhu Real Estate in 2008 as an official student, and successively served as the project manager, project manager, project manager, and head of the Investment and development Department of Chengdu Longhu.In 2017, Chen Xuping officially assumed the position of General Manager of Chengdu Longhu.During the five years, the annual real estate sales of Chengdu Longhu increased rapidly from less than 10 billion yuan, and exceeded 26 billion yuan for the first time.In recent years, under Chen’s leadership, the TOD model has been rapidly implemented in Chengdu. TOD comprehensive development projects represented by Xichen Tian Street and Shangcheng Tian Street have been completed and opened.When the three operational businesses of business, crown house and wisdom service were all among the top of the industry, Longhu set up a real estate channel at this time. It can be said that this is the natural result of water and is an organization upgrading adaptation after planning.After the reform, the functions of the headquarters will appear as an enabling platform, which is positioned to support coordination with expert capabilities rather than control and control. This is a signal of the flattening and agility of the organization. In particular, the Digital Science and Technology Department, with a staff of up to 1,000 people, will provide a digital base for the business of each channel and empower front-line business.Official students born in the 1980s (including official students 2.0) and other young cadres move from the regional front-line to the group management team. It can be said that this will make longhu’s echelon of senior executives build a thicker and stronger self-generating force.In addition, this reform of Longfor, with senior executives leading the innovation business and giving play to the second entrepreneurship spirit, is also in line with longfor’s consistent emphasis on entrepreneurship, which is conducive to stimulating innovation, resource coordination and high-quality decision-making.After trying to sort out the track over the years, one conclusion can be drawn: Longfor Group is an enterprise with very clear development path and goals.Over the years, from one by one of the six main waterway businesses to a variety of dim sum businesses, longhu’s growth process seems to be a documentary to meet customers’ space needs.The “space as service” strategy proposed by Longfor in 2018 is a summary of past development and a clear direction for the future.At that time, Longfor Group proposed that the core of realizing the connection between man and space is to build the three strongest capabilities.Among them, one is to build the manufacturing and management capacity of space;The second is to build further insight into customer ability;The third is to build service integration ability, so that the management and service ability of Longhu can be effectively improved, and the effective connection between people and space can be realized.This shows that the efficiency improvement brought by full cohesion and synergy between the waterways is also part of the Longhu strategy.This reform does not deviate from the strategy of “space as service”, nor does it jump out of the development track of longfor Group’s wide fence.In the words of its insiders, development is not just about growth, but about quality.Three red lines, so that longhu and peers have opened the gap.The establishment of real estate channel, let longhu real estate business development more focused, but also more conducive to efficient coordination with other channels.In the industry, it is not uncommon to reform the real estate development sector independently, but The timing of Longfor Group is significant:The establishment of the real estate Group is three years after the “space as service” strategy was put forward. When the three operational businesses of commercial, crown and intelligent services have all reached the top of the industry, the territory driven by the twin engines of “development + service” has been clearly seen.This is also in line with the backward style of Longfor Group over the years, and the impressive volumes between the waterways also bring more possibilities for collaboration.Shao Mingxiao, CEO of Longfor Group, once said, “If the development engine represents the present, the service engine represents the company’s future.”It’s hard to tell which is more important, the future or the present.But there is a very clear, that is, the service engine will bring more incremental and greater growth to longhu’s performance.Shao mingxiao revealed that Longfor’s development engine maintained steady double-digit growth every year, while the growth rate of its service engine remained above 30%.In 2020, longfor Group’s operating business income has exceeded 15 billion yuan, keeping pace with its development business.Under the strategy of “space as service”, now including the real estate channel and the new gannet rental and sale at the beginning of the year, gannet beauty decoration, the situation of six parallel channels has become more and more clear, and with the further deepening of the strategy, it can be predicted that the fence of The operation of The Lake will accelerate the expansion, and there may be more strategic channels emerge.This organization upgrade can be said to be the deepening practice of the simple, direct, agile and efficient organizational culture of Longfor. It is trying to build a more flat, open and innovative organization, and accelerate to “traditional industry, future enterprise”.There are three main reasons for this analysis: first, housing is not speculation long-term tone, the market has already restructured.Under the pressure of “three red lines” and “two concentration” land supply strategy, real estate development has long gone out of the way since the simplicity, and scale is no longer the only indicator.It can be said that under the stock market, the era of operational property is coming, and real estate enterprises are also constantly fission. Taking the initiative to embrace change has become the best solution for enterprise development. Longhu’s organizational structure adjustment complies with the trend of market evolution;Second, vanke, China resources organization structure adjustment, not long ago also to see the common, flatter, more business synergy organization and longfor operational property has long been one of the leading enterprises in the industry: the development of a few key data is known, in 2020, the lake is implemented property investment business (excluding tax) rental income is 7.58 billion yuan, up 30.9% from a year earlier.Shopping malls, rental housing and other income accounted for 75.2%, 23.9% and 0.9%, respectively.In the same year, the current revenue of Longhu Smart services was 5.84 billion yuan (about 7.7 billion yuan before merger and offset), with a year-on-year growth of 36%;Third, Longfor’s goal is not limited to this, its operating business income is expected to reach 100 billion in the future.The era is changing, the value is reconstructing, the boundary is breaking, and the ultimate value lies in service.As far as Longhu is concerned, the multi-channel coordination under space as service will produce greater value in the process of realizing the better life of the people.Longhu’s transformation also conveys an important word — agile organization.The so-called agile, namely flat, break functional boundaries, longhu each channel itself has been agile state.Agile organizations, task forces have been doing this for a long time.So this organizational structure change, but also a natural process.Excellent enterprise genes are mostly similar. Throughout the evolution of Longhu and the development process of Internet giants, enterprises with long-termism values are all in pursuit of the agility of organizational structure.On July 2, Daniel Zhang, chairman and CEO of Alibaba Group, sent a letter to all members, announcing a series of organizational upgrading decisions, aiming to build a new and more agile organization for the future and form a block ecological effect.This is the sector governance mode gradually formed on the basis of the operating responsibility system of each business unit for alibaba’s multi-engine driven and multi-business track development.Longfor is a magical enterprise, whose magic lies in its very clear “space as service” strategy. It can be said that the emergence of innovation of Longfor is bottom-up, and they have a simple and direct cultural soil.And this makes today’s Longhu, whether operational property transformation or business synergistic development, it is in the forefront of the industry.”Future enterprises” always have a sense of crisis.It can be foreseen that the bold organizational reform of Longhu will continue, evolve and upgrade.