Performance Capability Evolution Model - Homebuilding Industry |
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© Summit Strategy Group, Inc. |
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Ownership & Management |
Business Planning |
People |
Process |
Capital |
Performance Management |
Industry Supply Chain |
Land |
Product |
Customer Focus |
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"Visionary Leadership" |
"Strategically Driven" |
"Culture of Excellence" |
"Operational Supremacy" |
"Financial Strength" |
"World Class Execution" |
"Seamless Integration" |
"Quality Communities" |
"Premier Market Position" |
"Quality Relationships" |
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Level 4 Externally Synergistic |
Relationship Excellence |
Visionary; External Focus; Strategic Partners; Distributed
Leadership |
Own Competitive Sandbox; Product Life Cycle, Market Life Cycle |
"Human Capital"; Strategic Job Families |
Re-engineered Processes Optimized Both Internally and Externally |
Industry Leading Performance |
"Wisdom"; External Relationships; External Integration Measures |
"Strategic Partner" ; Full Spectrum; Intercompany Process
Integration |
Strategic Land Relationships; Multi-Year Land Position; Price is
Competitive Advantage |
Integrated Community Focus, Product and Services; Significant
Customer Choice |
Customer Life Cycle; Mega-Customer; Ownership Needs; Company
Supports Individuality |
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Level 3 Internally Optimized |
Process Excellence |
Strategic Focus; Cross Functional; Collaborative Team; Team
Development |
Long Term Focus; Competitive Position; Optimized Overhead |
"Human Resources"; Competencies; Development |
Integrated Cross Functional Processes; Internal Focus |
Growing Profits; Strong Net Worth; ROCE; Cash Reserves; Product
Line Profitability |
"Knowledge"; Lead and Lag Balanced; Cycle Time Measures |
"Trade Partner"; Design Reviews; Collaboration; Mostly Materials
& Labor, Some Other Partners |
Land Driven by Strategic Requirements; Strong Land Position;
Pricing is Competitive |
Product Line Life Cycle Focus; Wide Availability of Pre-Defined
Choices; Enhanced Community Design |
Relationship Oriented; Targeted Customers; Markets Needs;
Customer Selects Process |
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Level 2 Efficient |
Predictable Operations |
Long Term View; Team Based; Empowering Others; Exception Focused |
Multi-year Forecasts; Operating Models; Managed Overhead |
"Personnel" Policy; Procedure; Benefits |
Repeatable; Documented Process Standards |
Stable profitability; Retained Earnings; ROA & ROI Focus;
Community Profitability |
"Information"; Mostly Lag Measures; Limited Leading Indicators;
$ & Time Measures |
"Low Cost Provider"; Scope of Work; Performance Expectations;
Bidding, Material Supply Chain |
Land Opportunity Focused; No Major Land Gaps; Market Pricing |
Plan/Option Development Focus; Target Market Driven; Product
Standardized; Value Engineering |
Sales Process Focus; Targeted Market; Customer Fit; Company
Directs Customer through Process |
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Level 1 Functional |
Consistent Operations |
Operational Focus; Stable & Consistent; Individual Competence;
Leader Directed |
One Year Focus; Dept. Budgets; Home GP Oriented |
"Payroll"; Minimal Policy and Process |
Limited Structure; Not Documented; Not Repeatable |
Inconsistent Profits; Restricted Cash Flow; Home GP Oriented |
"Data"; Limited Information; Lag Oriented; Delayed & Dis-integrated;
$ Measures Only |
"Vendor"; Inconsistent Vendors; Or Stable Vendor with Unsure
Costs |
React to Land Availability; Limited Land Position; Frequently
Overpriced |
Individual Plan Orientation; Internally Driven Product
Requirements |
Sales Transaction Focus; Any Willing Buyer; React to Buyers;
Heavy Emphasis on Selling |
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Based on earlier version © Summit - Inside
Outside - Tesseraction |