In 2017, Country Garden’s sales reached a record 550.01 billion yuan, ranking first in the industry.
In recent years, Country Garden is undoubtedly the fastest black horse in the industry.
32.9 billion yuan in 2010
43.2 billion yuan in 2011
47.6 billion yuan in 2012
106 billion yuan in 2013
128.8 billion yuan in 2014
140.2 billion yuan in 2015
308.84 billion yuan in 2016
550.01 billion yuan in 2017
What are the secrets of its human resource strategy and human resource management system behind this rapid development?Let’s find out today.
01
"High-speed Motor" with Multiple Mechanisms
As the saying goes, "No rules, no Fiona Fang", for enterprises, a good operating mechanism can fully mobilize the enthusiasm of employees, enhance decision-making execution and employee responsibility. Country Garden’s development speed that peers can’t catch up with is mainly due to its unique mechanism, which makes it a high-speed motor under multi-gear joint operation;
Figure: Schematic diagram of the internal mechanism of Country Garden
Figure: industry consolidation and Standardization
Country Garden started from real estate construction and has a mature and independent real estate development chain, covering almost every link of development: from design, construction to decoration and property management, it can be undertaken and implemented by the company itself. This standardized and integrated operation mode based on industrial chain can effectively control the comprehensive development cost, and at the same time put some work ahead, realize the rapid turnover of the project and increase the competitive barriers of enterprises.
At the same time, Country Garden actively improves the informatization construction, "pocketing Country Garden", monitoring the project operation in real time and ensuring high execution: Country Garden has over 1,000 projects and over 100,000 employees. In order to better manage enterprises, Country Garden has carried out informatization construction. Country Garden managers can know all the data generated in the previous day in real time, such as investment, house sales, collection and so on, which is convenient for macro-decision. Local project general managers and even vertical line personnel can know the gap between themselves and assessment indicators according to real-time data. At the same time, the system designs the warning time of traffic lights for the progress of each business, strengthens node management and ensures the high execution of enterprises.
02
Partner-follow-up mechanism
Schematic diagram of Country Garden partner mechanism
Country Garden partner mechanism unifies the interests of employees and the interests of the company, fully mobilizes the initiative of internal employees, and promotes the project to reduce costs and increase efficiency.On the one hand, the introduction of concentric sharing mechanism in Country Garden will help the project to control operating costs more actively and improve the profit rate and return on investment of the group; on the other hand, it will allow employees to jointly invest, manage, share benefits and share risks with Country Garden according to their shareholding ratio, so that employees and the company can grow and develop together and effectively avoid "driver risk".
From the actual effect, the quality of project operation has been significantly improved, and excellent employees have made rich profits. Country Garden’s annual report for the first half of 2017 revealed that 733 concentric sharing projects have been declared, with accumulated contracted sales reaching about RMB 472.7 billion.Since the implementation of the follow-up investment mechanism, Country Garden has achieved remarkable results in the average opening time, net profit rate and annualized rate of return on its own funds.Since the implementation of the concentric sharing mechanism in 2014, the annual income of two regional general managers exceeded 100 million yuan in 2015, and by 2016, six people received year-end dividends of 100 million yuan, and the annualized rate of return of the company’s own funds was nearly 70%, which greatly inspired the morale of employees.
This partner mechanism was first inspired by Yang Guoqiang, the founder of Country Garden, from Wal-Mart’s shared partner system. It can not only make employees feel that they stand with the company at all times, but also effectively deal with the "driver risk" in the property market.
In the real estate industry,"Driver risk" refers to the risk relationship between the talents of the local responsible persons and the local sales performance. An incompetent person in charge, like a pilot with unbalanced flight, will bring a disaster to the company.What Yang Guoqiang needs to do is to fundamentally ensure that every "driver" everywhere is conscientious.
The talent incentive mechanism of "achievement sharing" and "concentric sharing" in Country Garden was born.
They were officially unveiled in 2012 and 2014 respectively. The latter is an upgraded version of the former, which is to let Country Garden employees participate in the project, benefit from the investment, and pay dividends through excess profits, so that everyone can pay more attention to creating value for the enterprise.
This partnership system was initiated by Yang Guoqiang,They all aim to make every "driver" devote more enthusiasm to work, and connect with the project more closely in the form of partners, so as to obtain greater returns.This is the benefit rope used by Yang Guoqiang to bind excellent external professional managers with Country Garden.
In 2012, Country Garden’s sales amounted to 47.6 billion yuan. This year began to implement the "achievement sharing" system, but in the first year of implementation, everyone will be skeptical. By the end of the year, someone found that he had earned 80 million yuan, so he asked Yang Guoqiang if he had given himself an extra zero. Yang told him that it was based on his performance and dividends. This incident stimulated many people in the company, and everyone found that the original incentive was not just empty promises.
"So by 2013, everyone was desperate."Liu Senfeng, president of Country Garden Jiangsu Region, said. At the end of 2013, Country Garden’s sales soared to 106 billion yuan, more than tripled, and since then it has crossed the threshold of 100 billion yuan.
The surge in sales of enterprises is related to the external factors of good market years, but people’s initiative has been mobilized, which has also made Country Garden show more wolf. This is finally reflected in the personnel income.
By the end of 2016, under the incentive system, the annual income of the general manager of Country Garden Project has exceeded 10 million, and the annual income of regional presidents has exceeded 100 million. It is Liu Senfeng who has earned more than 100 million yuan, and his Jiangsu regional project has invested 150 million yuan.
03
Vigorously introduce high-end talents
Country Garden always believes that outstanding talents are the source of sustainable development of enterprises, and regards talents as the first wealth. Since 2013, Country Garden has recruited doctors from famous universities all over the world through the "Future Leaders" program, and its strength and breadth are rare in China real estate industry. Through the extraordinary manpower construction, Country Garden has established a "Young Guards" far beyond its peers. Country Garden revealed in the first half of 2017 that a total of 588 doctors were included in the complete training plan.Country Garden has become a real estate developer with the largest number of doctors.
For example, Liu Senfeng, the general manager of Country Garden Jiangsu, was an old subordinate of Mo Bin when he was in China Construction Fifth Bureau, and later joined Country Garden. In 2016, the Jiangsu area under Liu Senfeng’s responsibility only relied on four cities to complete sales of 36.7 billion yuan, ranking first in more than 60 regions of Country Garden for four consecutive years.
1. The emphasis on high-end talents stems from a dialogue between big bosses.
One afternoon in the spring of 2013, there was a brief conversation between Yang Guoqiang, Chairman of Country Garden Board of Directors, and Ma Mingzhe, Chairman of China Ping An Insurance Group. At that time, no one could predict how this dialogue would change the fate of Country Garden.
The two exchanged ideas during a golf game, when Yang Guoqiang, 58, asked Ma Mingzhe, his age, a management question.
yang guoqiang
What’s your secret to managing Ping An’s trillion assets?
Ma Mingzhe
What secret can I have? It is to use excellent people. I have a lot of people with an annual salary of 10 million.
After returning, Yang Guoqiang said to Peng Zhibin, then general manager of Country Garden Human Resources:"I’ll give you 3 billion yuan, and you can find me 300 people."
Before this conversation happened—
example
In 2010, Mo Bin, general manager of China Construction Fifth Bureau, joined Country Garden as president. In 2015, his annual salary jumped to 6.054 million yuan, slightly higher than that of Yang Huiyan, vice chairman of Country Garden Board of Directors.
In 2013, Zhu Rongbin, director of China Shipping Group, joined Country Garden as executive director and co-president. Two years later, he got an annual salary of 5.536 million yuan.
In 2014, Wu Jianbin, also from China Shipping and China Construction, became the chief financial officer of Country Garden, with an annual salary of 6.195 million yuan in 2015.
By the end of 2016, Liu Senfeng from China Construction became the first regional president of Country Garden with an annual income of over 100 million yuan.
Looking back at the big talk, outsiders don’t know what kind of shock Yang Guoqiang has experienced. The market is changeable, and peers are constantly shuffling cards.The leap in the scale of Country Garden is closely related to a series of changes such as talent building, incentive system, architecture system and management thinking.
2. "What we want is’ wonderful flowers’"
The change of Country Garden started in 2010. That year, Yang Guoqiang increased its efforts to attract external professional managers.
At that time, Country Garden had just come from the financial crisis, and its headquarters was more than 200 people. It was located in a third-tier town like Shunde, and its corporate image, team building and external attraction were shaken several times.
Yang Guoqiang’s thirst for talents has reached the peak of impatience. He told Peng Zhibin, then general manager of human resources.: "Can you help me get a box, put a person in it, and then press the button and come out to know if the pedestrian is still not good, is it 60 points or 70 points?"However, there is no such box in the world. Excellent talents may not be successful in the new environment, but it takes more process to integrate into the organization.
General Electric Company (GE) launched the global talent recruitment plan in 1990, and its one-in-a-million selection method initially inspired Peng Zhibin and his human resource management team.
In 2013, they planned aThe new recruitment plan of "30% Master’s degree and 70% Doctor’s degree in the world".This plan has deeply influenced Yang Guoqiang, prompting him to make a new decision-to start the "Future Leaders Plan" and recruit doctors from famous universities all over the world. Country Garden promises these talents with high salaries and high career prospects, which is rare in the real estate industry in China.
▲ Country Garden "Future Leaders" Publicity Page
By the end of 2016, more than 400 doctors had joined Country Garden.
But Yang Guoqiang, who only has a high school education, is still not satisfied. He issued a latest mobilization order to the inside:
In 2017, Country Garden will recruit 300 new doctors, of which at least 200 doctors are recruited and opened overseas.
This is a heavy recruitment job, which means that in 2017, according to the selection rate of 10%, Peng Zhibin and the human resources management team need to interview about 3,000 people, with an average of at least 30 people every day, not including interviewing other management personnel.
In the past three years, he has interviewed more than 10,000 doctoral students, which has become one of the most important daily work of the human resources department of Country Garden.
In Peng Zhibin’s view,What these doctors have in common is that their EQ and IQ are both high and their interpersonal interaction ability is strong.Less willing to invest in scientific research, and hope to realize the value of life quickly. They belong to an alternative group of academic doctors, which is exactly the criteria for doctor selection in Country Garden. "What we want is wonderful flowers," Peng Zhibin said.
This group of "double-business" schoolmasters have different growth paths in Country Garden. They have a halo and have greater opportunities for training and promotion."Future leaders" all have corporate executives as mentors, and some will be chosen to be secretaries around Yang Guoqiang. After rotation training, they will go to the first-line training belt project, and those who perform well will be promoted in a short time.
In the last two years, doctoral students began to enter the team of regional presidents of Country Garden.
For example, Hu Guotao, president of Country Garden Australia, is a doctor who graduated from Imperial College, and has been in Country Garden for less than 3 years. Dr. Yu Runze, the chief strategy officer of forest city who once worked in the World Bank, has only joined Country Garden for more than two years.
The internal goal of Country Garden is to train more than 100 doctors to become project general managers, regional managers or higher by 2017.
3, the rules of the game of airborne troops
At the same time, senior professional managers continue to be reused. In recent seven years, the scale of Country Garden has leapt forward, and a large part of it comes from the contribution of senior professional managers.Yang Guoqiang’s team of professional managers has grown from Mo Bin, the airborne president in 2010.By the end of 2016, there were more than 1,400 foreign professional managers in Country Garden, and most of them found a sense of professional existence in Country Garden.
Different from peers, most of them are used to internal training and promotion of regional managers.The internal cultivation speed of Country Garden can’t keep up with the development speed.Therefore, many regional presidents are airborne from outside. These professional managers often have excellent performance history, and once they are endowed with the rights and responsibilities of government officials, they can often open up a new world in a regional market with dull performance.
In 2016, in the internal ranking of Country Garden’s regional performance, Shandong region performed generally. The whole Shandong market is about 640 billion yuan, while Country Garden accounts for less than 0.7%. Zhuang Qingfeng, the assistant president of the group, immediately parachuted into Shandong and served as the regional general manager. He was a star professional manager from China Shipping. He once earned nearly 17 billion yuan for China Shipping in five years with only one real estate project.
The presidents of Country Garden Jiangxi, Shanxi and other regions are all headed by new outsiders in 2016.Under the guidance of performance, personnel replacement occurs at any time. Regions are also beginning to split, and some regions with poor performance will be merged into the surrounding regions with good performance.
In Country Garden, there are as many stories about the resignation of the regional president as the reward of merit, and the rules of the game in Country Garden are to make waves and wash sand.. "We have a lot of old players who have left. If the performance is not good, they will be eliminated, and you only have one year."A human resources person in Country Garden said.
04
Adjust the management structure according to the development scale
In July 2010, after Mo Bin came to Country Garden as the president, the first thing he set out to do wasLaunch a comprehensive management structure reform.To improve the operational efficiency of enterprises.
Previously, Country Garden’s management mode was strong control by the group, and directly connected with local projects. The regional configuration is relatively simple, usually a regional president plus an office director, plus a driver. The region does not have much real power and visibility in the whole group.
By 2010, Country Garden’s national projects showed increasing momentum, and Yang Guoqiang began to have more expectations for the growth of performance scale.In order to match the expanding development speed in the future, Yang Guoqiang instructed Mo Bin to change his mind and build Country Garden into the usual management framework of a large real estate enterprise.
In the future, Yang Guoqiang hopes to continue to enlarge the region and eventually merge and cut it into 10 regions. Make 10 "small country gardens", which are mutual interests. The authority of financial management is still in the hands of the group to avoid a real "captaincy".
In the gradual decentralization of the group, in the past six years, each region began to become a small kingdom under Country Garden, and it became a self-contained. Regional presidents become little kings, and their achievements are judged by regional sales performance. The scale of each region eventually merged to form the "Big Mac" of Country Garden with hundreds of billions.
At the headquarters executive meeting held once a month in Country Garden, the regional "kings" will sit in the front row according to their performance, and their performance will be impressive.
Market competition is cruel, performance is king, survival of the fittest. The ups and downs of the vice president of the group can best explain this point. If the total performance of the region is outstanding, it will be promoted to vice president of the group, but if the performance falls behind one year later, the position of vice president of the group will be lost.
05
Be Huawei in the real estate industry
Similar to Vanke, Country Garden also hopes to become Huawei in the real estate industry. Within Country Garden, Huawei is the benchmark. In the past six years, some shadows of imitating Huawei can be seen in a series of changes in Country Garden.
Huawei is an international company, which has a bright spot in the design, architecture, process and even information system at the top of the strategy.The corporate culture is wolf-like, with high execution, while the interpersonal relationship within the enterprise is relatively simple, and its talent strategy leads the world.As early as 2003, Huawei recruited more masters than the number of college students who graduated from Seoul, South Korea. This was once considered by the industry to be the reason why Huawei can surpass Samsung. Ren Zhengfei’s talent motivation is stronger than Yang Guoqiang’s, and he says that he wants to train professional managers with an annual salary of hundreds of millions. In terms of business innovation, Huawei also planned to enter the "no man’s land" and explore the blue ocean market.
All this is what Country Garden is doing.The difference is that the transformation of family business has a long way to go. Although many professional managers have been introduced, at least five seats in Country Garden’s executive list are related to Yang Guoqiang.
06
Incubation and Training System of Management Talents
Country Garden Group’s "Leadership Development Project" is a "Whampoa Military Academy" to build professional managers and provide high-end talents for the company’s national strategic expansion.Aiming at the four different stages of talent development in Country Garden, namely, reserve management cadres, middle managers, middle and senior managers and senior managers, the Leadership Development Project has formulated personalized sub-brand planning projects-"Xinyu" plan, "Spreading Wings" plan, "Leading Xiang" plan and "Nirvana" plan.Innovative enterprise talent training mode, forming a symbolic enterprise training project brand.
The four plans cover different levels of enterprise management, radiate different stages of talent training and development, incubate and cultivate management talents in the whole process and for a long time, and create an integrated management talent training model for enterprises.
Let’s focus on the Nirvana Plan-training future regional presidents.
In order to further promote the construction of the leadership echelon of the Group, Country Garden has implemented the Nirvana Plan to focus on training regional core managers, with a view to exporting important personnel of enterprise executives with the help of professional training plans.
A. Overview of Nirvana Plan:
As early as 2010, Country Garden implemented the Nirvana Plan. After five years of mature development, it has delivered more than 70% of senior management talents for enterprises. Qualified potential talents are selected in the form of global selection, and they are professionally evaluated. Professional evaluation is carried out through online evaluation of FLA, and six centers jointly issue questions to train future regional presidents in many links.
B. Selection criteria
As a leader in the real estate industry, Country Garden will pay more attention to the operational ability and team management ability of talents in the selection process. In order to better control these abilities, Country Garden will be evaluated by the vice president of operations, the vice president of engineering and the vice president of human resources.
After reporting in the evaluation process, the selected talents will enter the enterprise talent pool, which actually ensures the state of strict entry and strict exit, as well as the result of selecting the best among the best. In the follow-up work, HR will continue to follow up and arrange corresponding work every month.
C. Training planning
Country Garden will regularly carry out intensive training according to the overall training and learning plan, mainly focusing on the training of talents’ organizational ability, leadership and professionalism. The semester lasts for two years, because Country Garden firmly believes that only long-term persistence will get the due return.
D. Curriculum design
Curriculum design is mainly around students’ organizational ability, and it is integrated into leadership courses, and all-round training is carried out through employees’ thinking, ability and governance model.
E. Curriculum design-professional competence
Before all professional courses are studied, professional tests should be carried out, and professional curriculum design should be carried out through investment, financial funds and costs, marketing, operation and engineering.
F. Evaluation method of talent pool outbound
At present, Nirvana Plan has successfully delivered a number of regional presidents for enterprises.
According to the person in charge of Country Garden Project, the success of Nirvana Plan firstly benefits from the attention and personal participation of enterprise executives, otherwise it will be difficult to land, or even will not be recognized internally. Secondly, the professional strength of human resources plays a great role in the growth and evaluation of talents, and finally lies in the execution of enterprises, which has greatly helped the success of the project.
Overview of Lu Country Garden’s Human Resource Management System
(Note: Although the data is from 2013, we can still get a glimpse of the leopard.)
Recent course recommendation
(7.16-17 Shanghai | Strategic Talent Planning, scan 2D or click to read the original text to view the course outline)
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This course is based on Mr. He Xin’s experience as the general manager of functional departments and the president of corporate universities in many Fortune 500 companies, such as Country Garden, Ping An, Wanda, China Resources and Carrefour. He participated in and led the implementation and consultation of talent planning, training and exhibition in many first-line enterprises, and made a comprehensive and in-depth study. All viewpoints and cases in the course are centered around the practice of the world’s top 500 enterprises, covering central enterprises, private enterprises and foreign enterprises. Case teaching is combined with tool summary, integrating theory with practice and applying it flexibly.
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Fully understand the key implementation elements of talent strategy, and master the training and development tools for key positions;
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Guided by the case of benchmarking enterprises (challenges and solutions), we should think about the design, implementation and landing of our own enterprise talent strategy.
Wonderful recommendation in the past
Three tables to establish a strategic-oriented performance index system
Shen Yue’s Talk on Localization of Foreign Enterprises and HR’s New Strategic Thought
Kang Lan, Chief Talent Officer of Fosun Group: International Talent Strategy of China Enterprises
From strategy to implementation, establish a human resource management system to promote business growth.
Organizational transformation, HR are you ready?
Source: Guotai Junan Securities Research
Image source: Pharmaceutical Online
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