Tag Archives: business process review

Process Makes Perfect

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

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BIG BUILDER: Four Live-or-Die Dimensions

You can’t manage what you can’t measure; you can’t improve what you can not recognize.

An excerpt from Fletcher L. Groves, III via Big Builder…

Over the years, I have learned to reduce everything to its essence. Improving operating performance and business outcomes comes down to getting the job done in four critical areas: (1) developing a strategic and marketing discipline; (2) having a clear perspective towards how value is created; (3) creating a business context in which everything makes sense and generates the right sense of urgency; and (4) developing a focus on managing operations and solving problems as a system.

…a Strategic Discipline.
…a Horizontal Perspective.
…a Business Context.
…a Systems Focus.

…continue reading via Big Builder.

Before we begin implementing software, we sit down with homebuilders to plan how their software will impact their business, and vice-versa. We call this a business process review (BPR), and it sounds a lot like Groves’ step 4. With your strategic discipline, horizontal perspective and business context in mind, we take a deep dive into your current processes within the framework we have developed over years of working with large homebuilders.

The first step in a traditional BPR analysis is to define all projects expenditures, creating a structure to collect and evaluate costs, making sure that no elements are overlooked. Similarly, the BPR analysis creates a framework for understanding and quantifying the potential benefits that a solution can deliver. Many believe that it is too difficult to quantify potential benefits, and therefore avoid evaluating their processes. However, by decomposing the potential benefits of savings, and tallying the business processes researched into non-denominational units of effort (Effort Units), it becomes easier to uncover potential gains, and begin the quantification process.

Request a consultation, a demonstration, or a full business process review.

 

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