Finding builders full of good people operating with no better than marginal processes is common. So what’s that got to do with profit margin? Plenty.
I once worked with a builder I’ll call Survivor Homes, with an unusual combination of truly fantastic people yet miserably failing processes. Each day was a panic while everyone ran around with their hair on fire, desperately picking up the pieces scattered about work sites and the office. Customers, suppliers, and trades alike sent signals that something had to be done. A quick look at the numbers suggested Survivor had plenty of staff for the volume of homes they built, but they were bending under the burden of inefficient and outright broken processes. How does this happen? Shouldn’t we expect great people to produce similarly great process?
Beware of comparison margin shopping
The margin conversation
The schedule rules
Scott Sedam is president and founder of TrueNorth Development. His articles appear monthly in Professional Builder and his Lean Building Blog appears on www.HousingZone.com. Sedam welcomes your questions and feedback at firstname.lastname@example.org and encourages budding “Leanistas” to join the LeanBuilding Group on www.Linkedin.com.