"When the owner-CEO of a regional homebuilding powerhouse opens the hood and talks about what's in there, what's striking are two things. One is a Peter Drucker mantra, you can only manage what you can measure. The other, amidst a whirlwind of buzzwords, truisms, and abstractions, is an utter absence of jargon, striking in its clarity, honesty, and rigor. Listen, for a moment, to one such regional homebuilding enterprise business leader."
"You have to have a benchmark to judge your decisions to see what is working. Buzzword-free, no abstractions. No mumbo-jumbo. No phony ring to it. You need to do that at the city levelnot macrofor accounting, he goes on, No real change can be implemented if you do not have the correct reports to measure each home. Measure each home."
"Our homebuilding company's executive details the basic weekly, monthly, and quarterly reports, and the reporting framework works because it strips out jargon, avoids noise, and focuses on the data that shows whether the company is building well, selling well, and taking care of customers. Every metric has a precise definition, a clear owner, and a direct link to on-the-ground actions."
Real-time information is necessary to manage a homebuilding business effectively. Benchmarks must be set at the city level rather than at a macro accounting level to judge decisions and reveal what is working. Weekly, monthly, and quarterly reports should strip out jargon and noise and focus on whether the company is building well, selling well, and taking care of customers. Each metric requires a precise definition, a clear owner, and a direct link to on-the-ground actions. Ground-level operationalization of data discipline is spreading across homebuilders and developers and prevents errors, blown closings, busted budgets, missed underwriting assumptions, unhappy customers, costly rework, and tightening capital.
Read at www.housingwire.com
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