Does the world really need one more average homebuilding company?

The title to this post is the exact question posed in the first-ever post on Escape from Averageness®, in April 2009.  We have stated it in different ways, more recently, “Does the world really need another average homebuilding company?”

La Brea Tar Pits

It’s a question we have raised for more than a dozen years, from before the start of the economic downturn known as the Great Recession.  Although the logical answer may be clear, it is hardly a rhetorical question.  What the question points to is a more important question:  How do you create an alternative to averageness?  How do you achieve sustainable competitive separation?

Sustainable (permanent).  Competitive (dominant).  Separation (advantage).

Settling for average is the road to extinction.

Consider the plight of RB Builders, the mythical homebuilding company portrayed in The Pipeline: A Picture of Homebuilding Production©, facing the world following the end of the halcyon period known as The Age of Homebuilder Entitlement:

In many ways, RB Builders was a product of that age, just another homebuilding company satisfied with occasionally adopting other builders’ “best practices”, content to be good, no-better-but-no-worse than the other builders with whom it competed, a building company with a middle-of-the-road approach to delivering the value its homebuyers demanded.  

The previous 10 years had been good for RB Builders.  But, it was becoming a dangerous approach to business, because – as the saying goes – “the only thing in the middle of the road are yellow lines and dead armadillos”.  

It was becoming a homebuilding no-man’s land. 

Locked into an operating model – into organizational structures, management systems, processes, cultures, and employees – that could not deliver extraordinary levels of distinctive value, the company found itself dumped into a teeming mass of homebuilders that all looked the same, sounded the same, and priced the same.  Indistinguishable from other builders, and unable to create any type of competitive advantage, RB Builders was trapped and sinking – like a modern-day dinosaur – into the tar pits of average-ness.

 

We are SAI Consulting.

Our consulting firm is engaged exclusively in the residential construction vertical, on behalf of clients intent on improving operating performance, profitability, and economic return.  We are uniquely qualified to serve our clients’ interests, because we have solved problems and implemented solutions as the senior managers in enterprises just like theirs.

Our knowledge and experience within a specific industry – combined with the depth of our consulting methodology and the choice of approaches we offer in how that consulting is delivered – sets us apart from any and all other consulting firms.

  • We are not a solution in search of a problem.  We focus a distinctive, systems-oriented, constraints-management problem-solving methodology at addressing an individual client’s specific set of operational circumstances.
  • We will work with clients under either a conventional, fee-based consulting approach, or under a results-based consulting approach.  Under a results-based approach, we are compensated exactly like our clients’ owners, teammates, and financial statements — solely as a share of the results that our consulting enables clients to achieve, solely as a share of the value we help to generate, measured in terms of the actual improvements to financial outcomes.  So – if you happen to be looking for a consulting firm willing to be your business partner, you should consider doing business with us.
  • Pipeline workshops™ and Pipeline seminars™, conducted in various channels, feature the type of learning that occurs in a production situation constructed to replicate the competitive, fast-paced, rapidly-changing, uncertain, risk-laden, variation-filled operating and business environment in which our clients must operate.  Visit the Pipeline Workshop™ website:  buildervelocity.com

Our clients engage us because:

  1. We have a firm grasp of the operational performance issues they face, and we structure our work in ways they understand;
  2. We focus the effort to improve operational performance directly on a specific sequence of solutions that rapidly translate into increased profitability and higher economic return;
  3. We are the leading experts in our chosen areas of consulting, including business workflow, team-based performance compensation, and production management;
  4. We synthesize a broad range of widely-accepted management tools into customized business solutions;
  5. We are committed to a type of consulting and client-consultant relationship defined by economic value, business results, and shared benefits, one that is fully-conscious of the existing capacity and capability for implementing change, and fully-intent on producing learning that increases internal capacity/capability and lessens dependence on us.