Did we mention process?
John McManus write for BUILDER Magazine:
What comes to mind for many leaders in home building, as they try both to make their 2015 numbers and project forward to model business for 2016, is a need for and a breakdown in processes. This makes sense. Many–if not all–companies let go of many people during the bad years, from 2007 to 2011 or so. They tried to hold on to the ones they could not do without, the best and the most productive, and the most expert in their fields.
As the market rebounded, these same industry leaders begin to rebuild, adding new talent to the existing experts to build operations in preparation for the big bang – the long-awaited surge in starts.
But what about process? The operations of a 2006 home builder should not be the operations of a 2016 home builder. Right?
Times have changed, people have changed, and maybe most importantly, technology has changed. It is so easy to rebuild what was – that is a basic human instinct. If something was taken from you, get it back, even if you have to build it from scratch. To ruthlessly pick apart that process is much harder – and it requires a real commitment to change (or at least the possibility of change).
But what about process? McManus notes LGI Homes as an example of process born in a time of very tight margins. Combined with a culture that permeates the entire organization, LGI has been successful adhering to their strict process. And it works – LGI makes dreams come true with their “why buying makes cents” approach to first-time buyers. This cannot happen without process, every step of the way.
Do companies, large and small, need to map new processes that avail of access to richer streams of real-time data, whether its discovery into “the who” of a potential customer base, the “when” of subcontractor crew schedules, the “what” of fire code compliant sub-flooring, the “how” of getting manufacturers to collaborate to develop new home systems ranging from kitchens to exterior finishes, to room comfort systems.
The bottom line is that yes, process is important and yes, process needs to adapt to a changing world of technology. Process does not and cannot exist in a vacuum. Take a moment to look at your company’s process through fresh “2016″ eyes, and tell us what you see.
Our business process review can help. Our home building software experts will look at your business with our knowledge of home building technology and processes that comes from working with hundreds of builders across North America. If you are interested in a business process review of your company, send us an email.
Continue reading “The Process Dilemma” at builderonline.com.
See below an illustration of LGI Homes’ culture and process from the perspective of a first-time home buyer.
The Big Picture: Why Buying Beats Renting – An infographic by the team at LGI Homes