TTC Land: Changing Leader’s mindset

Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land) is under comprehensive restructuring process. Mr. Nguyen Dang Thanh, Chairman cum General Director of TTC Land shared that: “I still prefer to use the word "transformation" over “restructuring”, because the nature behind all those changes is the changing in mindset”. He also said that the transformation is a continuous and nonstop process.

According to Mr. Nguyen Dang Thanh, TTC Land's Board of Directors and Board of Management did not determine when the transformation process ended, but it has been already started and taken effect on the daily works. The time the company becoming stable with smooth operation may be after the next 6 months (in other words, 1 year from the date Mr. Thanh is appointed as CEO). Then it will come to a fruitful and successful period, lasting for several years, in which we will begin to prepare for the new phase.

Mr. Nguyen Dang Thanh – Chairman of the Board of Directors cum General Director of TTC Land 

At the beginning of the conversation, Mr. Thanh shared his feelings as "first love" with TTC Land that it is just like the previous times he changed his job but it has more emotion and the most interesting experiences in his 20- year working in finance - banking, real estate. There are much of excitement, enthusiasm and many ideas, but also inevitable difficulties.

"Whatever we can say that the banking industry has a very well-organized system while real estate businesses require both intensive understanding in legal issues, services, and speedy skills in decision-making as well as problem solving" said the former Deputy General Director of Sacombank.

Before joining TTC Land, Mr. Thanh planned to move into a completely new industry, which are the technology startup models. But the " predestined relationship" with Mr. Dang Van Thanh, who is both the former boss and the teacher, made Mr. Thanh realize that he could not pursue his own intentions. As a result, Mr. Thanh became the "captain" of TTC Land at the period he-called "navel of the real estate market", during which there are major changes in policies and legal frameworks.

Within nearly 6 months in the new position, Mr. Thanh recognized the challenges of a real estate enterprise in general and of TTC Land in particular, such as in project legal, project development, investment related works and so on. However, the biggest difficulty for him is non-controlling over the plan.

Previously in his former positions, he always set up plan along with detailed timeline and controlled it. Therefore, he could foresee main parts of the result and when the results are in direction, it will certainly create great motivation. However, during time participating in TTC Land and being deeply involved in the real estate field, Mr. Thanh shared that: “There are many external factors that I could not predict. The main issues are still relating to real estate legal. The authorities have become more cautious and hesitated with real estate market than before. Currently, it looks like everything is running then stops immediatly that pulls everything to one side, creating shocks and many arising issues to solve”

The initial mission of Mr. Thanh is improving and promoting the real estate segment as it is playing an important role in the restructuring company after long time wearing the old "shirt", which is no longer suitable for the new development stage.

Mr. Thanh thinks that the viewpoint of restructuring is becoming clearer and stronger due to both external and internal reasons. This requires a new and different way of working, instead of owning a land, building apartments to sell only to be so-called doing real estate in the past, today apartments and houses must be built in residential area with convenient utilities. In other words, it requires the enterprises to have the business philosophy behind, which is firm and clear, in order to develop sustainably.

The policy of TTC Land is temporarily focusing on residential real estate, which must be well done. Currently, the Company has 33 projects in both large and small scales, of which 18 projects are completing legal procedures.

Mr. Thanh said the company's land fund expansion will not be stopped at 18 projects under completion while there are still many opportunities in the market. The development of real estate projects in the future will not follow the old method (investment from 10 years in advance) but may take from only 3 to 6 months to get project transferred. This is a way to help accelerate business activities.

“The financial structure, the human resource structure, the mode of running structure, and operation of the business are the most important, because these are the core points. We must have the core points firstly in order to do something else. All these factors need to be restructured at the same time. I still prefer to use the word "transformation" over “restructuring”, because the nature after all those changes is the changing in mindset, Mr. Thanh shared his opinion.

For financial structure, the important factors are short, medium and long-term capital structures; debt balance; cash flow. Particularly, with the capital structure for real estate projects, in theory it takes 3 years but it actually is up to 5 years sometimes. According to Mr. Thanh, enterprise must build a different structure as back-up for that or must restructure their finance again to have the mechanism that when the first payment is due, it immediately turns other structures on to support and prevent the company from being passive. From the beginning, when building the financial plan of the project we must do this.

Regarding of cash flow, the most important factor for a real estate enterprise is ensuring the high accuracy of the forecast and being always ready to solve the issues of cash flow in and out. In other words, enterprises must be truly proactive, because you meet financial - credit institutions only when you need money, then you will experience not favorable conditions, or short timing.

Every week, Mr. Thanh meets from 2 to 3 partners on average, to discuss all aspects and relating plans. Until now, TTC Land has just gained positive initial results. However, through discussions, working sessions, agreements, memorandums, he believes that in the next 6 months there will be very specific results.

The final goal of TTC Land is ensuring interests for shareholders. In the coming time, the Company will pay dividends in cash, until investors realize that it is not necessary to receive cash dividends then it will come back to creating the surplus, accumulation for company to become bigger and stronger.

Have you ever felt discouraged when joining TTC Land at a time of "congestion" on real estate legislation?  

At TTC Land, there is a general policy of implementing the transformation process. Right before joining, I immediately felt that, for at least in the 01st year, things would not be easy. Confronting with challenges is absolutely tiring and hard, but challenges always bring me useful experiences. Of course, there are many sacrifices such as time with family, including weekends, because I am contributing not only to commercial part, but also the transformation of a 15-year old company. In general, this has been one of the most enjoyable experience during the previous 20 working years with more emotions.

During implementing the comprehensive restructuring, which part do you find the most difficult?

The most difficult thing is still finding the people suitable with the new way of business in the new phase of TTC Land. We are currently implementing a recruitment program to join the TTC Land team, requiring personnel capable of making differences, but must have the same orientation, mindset, and working perspectives, especially senior positions. My point of view is creating values, so we need to people who share the same mindset to create value for customers to buy products, thereby creating value for TTC Land.

Is TTC Land’s recent change in Board of Directors included in the personnel restructuring plan?

There were 2 employees previously TTC Group sent to support, now they return to work for the Group (TTC Land is a member of the Group). For the other positions, I have discussed and reorganized, due to the different way of working and point of view. My mindset of is that "everything needs to be right at the beginning". It means that all decisions must be firstly right and in order to do this, I need time to know who can do what. If not, there will be errors, later when deciding one thing we need to do 3 more ones. Initially, it will be very tough, which many people may assume it is unnecessary. However, if we do not work on that way, the values we pursue and would like to put into TTC Land will not be achieved.

This change may make your employee worry and how do you deal with that?

We have been carrying out the building company culture program that every 2 or 3 weeks, there are meetings to discuss freely about orientation and points to be changed. As we have clearly identified this as strategy to transform and accepted that personnel fluctuations are unavoidable.

Certainly, I can’t please everyone. The question is, what will TTC Land in the future be like that everyone must look forward to and in order to make it happen, we need unity and sharing vision in same direction.

There are many forms and I do not just talk the theory but dig into work by work, share in detail, guide people, adjust from one method to another, work together with the team and solve problems with everyone.

In every problem, every stage I always would like to work with the team. This is not “biting off more than I can chew” but strictly committing to the principle of "everything needs to be right at the beginning”. Once the senior employees are in right positions, they will be able to decide themselves, then then I will grand them the right to fully make decision. Hopefully, by the end of this year, I can achieve that goal.

Which orientation TTC Land would like to reach?

TTC Land is a real estate enterprise with mission to create credibility and trust in the market, not only based on billboards, but also based on products and ways to supply products to the market. I'm not too ambitious, but I'm taking step by step to get there. Accordingly, housing product is a key element, I require much higher in quality, design and so on. It is certainly the work of each department from design to engineer, etc. However, I would like to put this topic on top from the beginning, so that in the same segment we can offer appropriate price with must-be better quality.

Source: Stock Investment