This case examines the transformative journey of CIFI Holdings (Group) Co., Ltd. ("CIFI"), a private real estate company in China, and how it gradually strengthened its organizational capabilities through targeted organizational and human resource (HR) initiatives across different stages of its development—with a special focus on the major transformation undertaken in 2022. From the beginning, CIFI prioritized building and sustaining a capable management team. During its First Five-Year Plan, the company expanded nationwide while deepening its talent pool through a combination of internal development and external recruitment. In the next phase, CIFI focused on retaining talent by implementing its "Six Highs" strategy.

In early 2022, Chief Human Resources Officer (CHRO) Ge Ming proposed a comprehensive organizational restructuring. Following a successful pilot, the plan gained strong backing from Chairman Lin Zhong. The restructuring covered all key areas of the organization, including structure, human resources, and compensation.

CIFI streamlined its organizational structure by flattening hierarchies and consolidating departments. A revised job system was introduced to promote better person-job alignment and encourage open competition for roles, thereby enhancing performance. These efforts not only reduced headcount but also significantly boosted operational efficiency. On the compensation front, CIFI implemented a "broadband compensation" system linked to roles, which recalibrated inflated salaries to better reflect industry norms and yielded notable savings in management costs.

Throughout this reform process, Ge Ming encountered numerous challenges but navigated them by upholding core principles, maintaining clear communication, and remaining flexible. Senior leaders, including Lin Zhong and Lin Feng, also played pivotal roles—striking a thoughtful balance between the art and science of managing change.

Through this case, students gain valuable insight into the development of organizational capabilities and the essential factors behind their successful growth. It also offers a close-up view of the motivations, challenges, and strategies that drive effective organizational change, providing a deeper understanding of change management in practice.