Performance Capability Evolution Model - Homebuilding Industry
      © Summit Strategy Group, Inc. 
                         
      Ownership & Management Business Planning People Process Capital Performance Management Industry Supply Chain Land Product Customer Focus
     
 
"Visionary Leadership" "Strategically Driven" "Culture of Excellence" "Operational Supremacy" "Financial Strength" "World Class Execution" "Seamless Integration" "Quality Communities" "Premier Market Position" "Quality Relationships"
  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
  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
  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
  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
                         
                         
      Based on earlier version © Summit - Inside Outside - Tesseraction