There are times when thinking about the
future can lead to great things. For homebuilders, this is one of those times.
No longer a simply sticks and bricks business, our industry is becoming
increasingly technology and Internet-driven, and the fast-paced change is
providing a lot of opportunities—if you stay on top of them.
Web-based buying consortiums, even flow
production, mergers, internet home auctions, national builders sharing computer
services: you don’t have to look far to see changes to the traditional
homebuilding business model.
These changes affect how your
organization must perform to remain competitive and flourish in the future. What
will your future be and what do you need to do to get there? Answer these
questions by leading your senior management team to create a future vision for
your company. Here are some suggestions for getting started.
It is essential that your team
recognize that industry changes are destined to transform today’s builders into
entirely new companies. While you may not be able to control changes, you can
evaluate how it affects your business.
Brainstorm business and
marketplace developments and their potential to threaten the company’s continued
success. Keep up to date on current technologies and examine possible
breakthrough developments that could lead to extraordinary success, particularly
if other builders are slow to react. In either case, being one step ahead of the
game now could put you miles ahead down the road.
Prepare a series of contingency plans
can prepare for a range of potential trends and breakthrough changes. Be
prepared by planning at least three scenarios:
- Sustained Evolution: assumes present trends will continue on their current trajectories or cycle.
- Back to the Past: upset in the business environment that changes the current business model.
- Breakthrough Change: one or more developments take place that dramatically improves marketplace opportunities, operating efficiency, costs or the homebuilder business model.
Do not wait until a threat or a
breakthrough event occurs or a trend matures before you start planning your
future vision. There will not be enough time to think through the proper course
of action; it will be too late.
Nobody knows exactly what the new home
building business model will be or when the inflection points will occur.
Success depends on your company’s flexibility to respond to whatever scenario
occurs. Stay abreast of industry developments so you can recognize when it is
time to act. Then, be prepared to act, not only by having a plan ready to be put
into place, but also by having the capabilities to carry it out. This often
means having people on staff with the knowledge and skills that can lead your
transformation when the time is right.