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updates were totally subjective and based on each project manager’s assessment of the contracts’ current status. In addition, the spreadsheet was updated manually, which made it prone to error. To make matters worse, the report did not link to the company’s construction schedule.
The project management report wasn’t much more effective. Granted, it was an impressive looking set of schedules alongside the other financials. It contained an expense breakdown that included a time sheet indicating how each project manager divided his time among several projects. It also tracked several expense items that were charged to the project level. The problem was that the project managers didn’t fill in their reports accurately; they estimated their time and project expenses well after the fact. The end result was a batch of minutiae on which no one took action.
The builder decided not to integrate or update his stand-alone, manual procedures. He based his decision on a defensive and “safe” set of constructs that would enable him to maintain the status quo — not move forward. You can imagine what that did for the systems he was trying to improve. How can you avoid making the same mistake in your organization?
How to Become More Comfortable With Change
Use the following tips to become more comfortable with change and to make decisions based on what “should be” rather than on what has been done in the past:
- Top management must embrace change and compel staff to drive a value-based decision-making process. For example, if your customer service manager is dead-set on not updating or improving the company’s warranty claims process, he or she had better be able to provide good reasons why the process should remain as it is. Chances are those reasons won’t outweigh the benefits of an improved system.
- An integrated, automated system is ultimately the only way to eliminate redundant data entry and information retrieval. If you maintain separate databases, they should at least be electronically synchronized and perpetual.
- Every “feature” of a new or updated system must yield measurable, demonstrable results that make a personal difference in your company. Just because one builder accomplishes something with a given system or software program does not mean another builder can attain the same results.
- A demonstrable result is the result of written procedures that employees follow all the time.
- Measurable results translate into quantitative and qualitative differences that can be implemented and documented.
- Budget for sufficient resources (staff time to review different systems, software training, working with a consultant or vendor, etc.) to evaluate and implement the new system or upgrade. This does not simply mean an automatic conversion from one system to another and getting through it as quickly as you can. It involves assessing every aspect of your company to see where change will make a difference, and then taking the time to allow that change to improve the operation.
A system decision is a real opportunity to take stock of your company’s character and culture. This makes true change more attainable and prevents the past from controlling the future.
Earlier Articles in This Series
- To read, “Know Your Technology Needs Before You Invest,” Part 1 of this series, published April 14, click here.
- To read, “Strategic Planning Software Can Help Focus Your Business Model,” Part 2 of this series, published April 21, click here.
- To read, “Does Your Planning Software Match Your Project's Sophistication?” Part 3 of this series, published May 5, click here.
- To read, “Don't Put the CAD Before Your Product,” Part 4 of this series, published May 26, click here.
- To read, “Manage Prospects and Buyers More Efficiently With Technology,” Part 5 of this series, published June 9, click here.
- To read, "Automate Your Selection and Change Order Processes,” Part 6 of this series, published on June 23, click here.
- To read, “Scheduling Software Can Improve Your Cycle Time,” Part 7 of this series, published on July 7, click here.
To read, "An Effective Purchase Order System Enhances Efficiency," Part 8 of this series, published on July 21, click here.
To read, "Don’t Fix New Software If It Isn’t Broken," Part 9 of this series, published on November 24, click here.
To read, "Beware Software Consultants Who Are Salespeople in Disguise," Part 10 of this series, published on December 8, click here.
To read, "Eight Ways to Drive Internet Leads and Sales," Part 11 of this series, published on January 12, click here.
To read, "Excessive Web Site Graphics Can Stunt Sales," Part 12 of this series, published on February 2, click here.
Note: Various software products are mentioned throughout the tech talk series. The intent is not to recommend these products as being right for you, but to identify some fairly well-known players and to note a few new ones. My apologies to vendors who are not mentioned — the omission was not intentional.
Bill Allen is president of W.A. Allen Consulting and a member of NAHB’s Business Management & Information Technology Committee. His company, headquartered in Redmond, WA, provides information technology consulting services and process management assistance to the home building industry. Allen can be reached at 425-885-4489 or via e-mail. Or visit the W.A. Allen Consulting Web site.
Want More Information About Using Technology in Your Business?
NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications.
BuilderBooks.com also offers a variety of publications about computer technology. To view or purchase these publications online, click here.
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NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org.
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