The Indian real estate market has proven its resilience as it weathers various supply chain challenges, rising interest rates and macro-economic changes. To meet the dynamics of the sector, companies in the sector are moving from the traditional method to the new method of management standards, which paves the way for clear and efficient management structures.
According to the latest statistics, there has been a significant change in the demographics of home buyers in India, with the average age dropping to 30 years. The real estate sector is also the subject of many activities and investments across the spectrum. There is also a stronger focus on implementing the latest technologies in the world, such as artificial intelligence (AI), robotic process automation (RPA), virtual reality (VR), and others. site visualization, forecasting of property sales times and digital design of buildings under construction, ultimately saving time and effort with the property search process. On the other hand, this digital advancement is helping developers to manage operational challenges such as creating customer information across different platforms and creating customized solutions.
This new generational shift in the industry highlights the importance of tech-savvy employees and data-driven analytics and forecasting. This paradigm shift has created a need for real estate organizations to recruit and train highly skilled employees with opportunities to grow across departments to gain a competitive advantage in the industry.
Therefore, to live in the environment of digital and data problems, organizations are trying to update their customer strategy. Some of these changes in organizational structures that lead to agile workers include:
1. Flat and thin guide: More and more real estate companies are moving to a lean, decentralized structure where decision-making power is delegated to functional/business units. This helps ensure greater control over project traps, as well as faster resolutions if they escalate.
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2. Project teams: We have seen great success in real estate teams that adopt a project-based team structure, resulting in a matrix organization. These teams are highly motivated and creative, which allows the organization to do its best by assembling the best team under one project manager. For example, few players in growing countries see issues related to timely delivery of projects, individual/group responsibilities and responsibilities that result in high risk. GT experts planned to conduct a management study to address the issues through one-on-one meetings with senior executives and star actors and project site staff. This analysis resulted in a major change and a new organizational structure with clear divisions of roles and responsibilities. A comprehensive performance linked incentive system was designed to encourage team performance throughout the organization and to balance individual performance requirements.
3. Senior Strategic Management Office (SMO): An increasing number of organizations are benefiting from establishing a central strategic management office that serves as a channel of communication and coordination between management teams and business heads. This allows the CEO and the management team to free up their bandwidth from administrative tasks, without losing control. For example – GT supported a large real estate agency in their global transformation program by designing a new organizational structure that empowered decision-making and empowered teams to make decisions. main. This was also supported by using the balanced scorecard method, developed management, performance and individual level performance scorecards. A clear set of KRAs, KPIs and job descriptions for stakeholders in operations and business unit leaders was created, and a control level matrix was created for each of the key functions. ALM describes the workflow for SAP and the employees responsible for each step.
4. Dedicated customer experience department: Real estate companies play an important role in ensuring a smooth and positive customer experience, from the inquiry to the end of the distribution. The organization is investing in sales and marketing training to provide a world-class customer experience and strengthen their competitive edge.
5. IT as a core function: As smart homes are making their way to India, organizations have seen a paradigm shift for their IT departments. In the digital age, the IT department has now become a key role in promoting cross-functional expertise and new digital initiatives.
6. ESG and sustainability as a focus: The environmental standards that real estate companies must adhere to have changed dramatically. Globally, many real estate organizations have introduced roles such as chief sustainability officers. This trend is being noticed by the players in India, but there is a lot of focus on investments to bring the right talent on board, who will take this initiative into the built environment.
As the needs of the sector change, businesses need to reinvent themselves and adapt to new performance standards in order to better meet key strategic objectives. By adopting these new technological advancements, innovations and best practices the real estate sector can have an impact on the workforce and meet the needs of consumers.
(By Sumeet Abrol, Partner, Grant Thornton Bharat)