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People, Your Competitive Weapon

     

People ultimately differentiate home building competitors. What a builder sells is the ability to convert the knowledge, creativity and skills of his people into homes that satisfy customers.

The sticks and bricks that make up a home are significantly less valuable than a home that fulfills a home buyer's dreams. The difference is the added value provided by people, the company's core productive resource. When home buyers select a builder, they have decided that as a total package, the builder's team of people have the best capability of adding value to the raw materials that go into a home.

Leveraging people assets into a profit-generating activity is one of management's key responsibilities. When planning for the future, management should consider organizational competencies that need to be developed to improve the company and enable achievement of long range visions and goals. People development is a necessary and ongoing element of the business development process that ultimately enhances the company's competitive advantages.

Commitment to training as a strategic tool starts with a business decision to budget training time and expenses. The majority of NHQ winning builders allocate 40 hours or more per year of training for each employee.

"Mercedes University" is an integral part of Mercedes Homes, a 1996 NHQ winner's strategic development. In cooperation with local schools, contract trainers and their own staff, an array of courses are available to employees and associates. Annual education plans tightly link development of company goals with training goals for each employee. Realtors and trade contractors also participate in the program.

When a future vision of the company includes stretch goals, such as adopting the Total Quality Management philosophy, there are additional demands on training. To achieve substantial changes in a reasonable period of time, an intensive, collective training experience can provide a powerful catalyst. Employees are willing to change when they have the skills and confidence to contribute to the new culture.

A panel of 1996 Baldrige Quality Award winners were asked what would have helped them "achieve their level of quality sooner?" All winners responded with one piece of advice - more training.

Over a three-month period, all Centex Washington employees rotated attendance in a 40-hour total quality training course. At the conclusion, employees had the knowledge and competence to move to the next level of quality management. Ongoing training sustains their continued development.

Creating a positive competitive business advantage ultimately depends on people constantly improving the company's ability to add customer value. Education and training are necessary to bring a future vision of the company to life. Rise above competitors selling sticks and bricks. Work smart. Leverage training into future profits for your company.