2021, the fork in the road for construction enterprises (Part 2)


The original Li Fu and the architectural front 2020-12-19 are included in the topic prediction: 2021

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The fusion and transformation of the big era

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24

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“2021 foresight” speech review 21 Li Fuhe, 46, Wen / Li Fuhe (WeChat official account: building frontiers) Click here to see “2021, the watershed of construction industry (Part I)” note editor: This is Mr

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Li Fuhe’s “foreseen 2021 and the year of construction of Panzhihua” The shorthand manuscript of the forum was slightly abridged, which was confirmed by him

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When the industry enters the watershed, what challenges will enterprises face? I think for most enterprises, they may have reached a fork in the road

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What does “fork in the road” mean? It is a key node, which may be two or three forks

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It is not that there is no way to go, but you have to make a choice

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Engineering enterprises have come to the key node of a new era, that is, the node of China’s development from the well-off level to the preliminary modernization

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Each enterprise has many choices

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You can be bigger, better and stronger

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The total number of Chinese construction enterprises and survey and design enterprises is 130000, while the number of unqualified enterprises is about 500000-600000

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In the United States, there are more than 300 million people and 700000, so there is room for development

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But at this fork in the road, every enterprise has to make a choice

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So in which aspects has the enterprise come to a fork in the road? The first is the fork in the living environment

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There is only an enterprise of the times, but no enterprise of the times

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It’s hard for an enterprise to start, to grow bigger, to succeed, but it’s easy to fail, because this era is changing rapidly

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I picked a paragraph from the Internet about my views on Resignation: “the post-60s say what is resignation; the Post-70s say why they want to quit; the post-80s say that I will quit if they give me a high salary; the post-90s say that I will quit if leaders scold me; the post-95s say that I will quit if I feel uncomfortable; the post-00s say that I will quit if leaders don’t listen.”

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This passage shows that people of different times have different views on work

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In 2019, Zhang Xiaolong said at the annual meeting of wechat that many people resign from wechat

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In high-tech enterprises like Tencent, most people think that young people are trying to squeeze in

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How can some people quit? This is the new era

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Even if the income is very high, it will not completely solve the problem of retaining people

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In the construction industry, we should all agree that the performance of our central construction enterprises is excellent

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CSCEC ranks 21st among the world’s top 500, China Railway ranks 50th, and China Railway Construction ranks 54th

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In China’s top 500, CSCEC ranks third, China Railway ranks seventh, and China Railway Construction ranks ninth

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But let’s look at another set of data

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In China’s Shanghai and Shenzhen A-share market value (Note: refers to 2020 / 12 / 7), CSCEC ranks 60, China Railway ranks 88, and China Railway ranks 116

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The main business is the seafood industry, which sells soy sauce

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Its annual revenue is only more than 20 billion

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What’s the market value? 500 billion

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The market value of a 20 billion soy sauce company is less than 250 billion yuan, which is twice as high as that of the 1.5 trillion yuan company

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If you think about what era it is today, just from the performance of the market value, it’s heartbreaking

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Chart 1: ranking of central construction enterprises, so we need to think about what kind of design and construction enterprises do the new era, engineering industry and customers need? What kind of design and construction enterprises do government customers, manufacturing customers and real estate customers need? What kind of subcontractor does the general contractor need? What kind of products do end users need? Engineering, an ancient industry, gives us too much habitual thinking, while the times require us to have new thinking

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This is the fork in the road of the times

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The second is the strategic fork in the road

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Everyone is doing the 14th five year plan, and I think the strategy of engineering enterprises has come to a fork in the road

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The era has given us more and more new breakthroughs, but there are fewer and fewer options for enterprises, so many enterprises begin to be confused

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Can so many new businesses and new models boost enterprise transformation? Although there are many new businesses and new models, it is not the same thing when enterprises really do it

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For example, survey and design enterprises do the whole process consultation and architect responsibility system, and they find that they have many difficulties when they go in

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Construction enterprises also have many difficulties when they do engineering general contracting and investment business

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There are three popular words in large engineering enterprises, which are called “stronger”, “better” and “bigger”

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We can often read these three words in leaders’ speeches

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We need to think more about the relationship between “being strong”, “being excellent” and “being big”

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Is it causality or juxtaposition? If these three cannot be done at the same time, which two do you choose? If only one can be achieved, which one do you choose? In addition, many leaders often say in their speeches, “solve problems by development”

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What does this “development” mean? In the early years, Comrade Xiaoping also said “solve problems in development”

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At that time, development could indeed solve problems

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Maybe the development that Comrade Xiaoping said was not quite the same as that many of our leaders said

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Some enterprises told me that they must maintain a growth rate of 10%, which is the lower limit

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Some enterprises said that they should maintain a growth rate of 30%, otherwise they would not be able to cover ten pots and eight covers

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Obviously, the external market no longer supports such a growth rate, at least for most enterprises

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So many enterprise leaders told me that they are very anxious

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I think today is the time for enterprise strategy A fork in the road

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The third is the fork in the road of organization

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In my observation, many engineering enterprises have produced serious internal turnover in organization, and they are growing bigger, but the efficiency of organization has not improved, or even decreased; whether it is a large design institute with more than 3000 people or a large construction enterprise with more than 10000 people, the high efficiency of enterprises in the scale is getting lower and lower

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From the external point of view, the enterprise can survive because of customer satisfaction, and from the internal point of view, because of the vitality and high efficiency of the organization

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However, it is difficult for engineering enterprises to maintain organizational vitality and efficiency

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There are many reasons for low organizational efficiency, for example, the consciousness and ability of organizational personnel can not keep up with the changes of the times and customer needs; after the scale of the organization becomes larger, the vertical organizational level is increasing and the horizontal organizational departments are increasing, forming a horizontal organizational diaphragm and a vertical Department wall; efficient management techniques, such as informatization, are difficult to promote in traditional engineering enterprises, The chain of command relies on a large number of systems and processes to support, either leading to command failure or blind command

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As a result, the administrative color of enterprises is becoming more and more serious, and large enterprises are sick, ineffective organizations, bloated, zombie departments and business organizations are popular

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In large-scale engineering enterprises, the traditional linear functional organization has become a huge management habit and inertia, and the reform of flexible and flat organization has many difficulties

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How to solve the problem of enterprise organization involution has become an important obstacle to the progress of enterprise management, and I think the organization management of engineering enterprises has also come to a fork in the road

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The fourth is the fork in the road of project management

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The project department is the organizational foundation of large enterprises and the front line for engineering enterprises to face and serve customers

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Enterprises often say that “site is the market” and “doing a good job in the current project is the best marketing”

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Taking a project depends on doing a good job in the project, making profits depends on doing a good job in the project, and cultivating talents also depends on doing a good job in the project

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The project department is not only a combat unit, but also the place where engineering enterprises arrange the most resources.

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