By Wayne A. Endicott
Does quality sell? Will naming yourself a "quality builder" translate into improved market success?
The answer is a resounding "yes," according to winners of the National Housing Quality Award–but only if your quality promises are based on a true dedication to customer-focused quality processes and continual improvement, and not just an empty promise.
That's the message from the winners of this year's NHQ Gold Award, presented Wednesday, January 11, at a seminar session at the 2006 International Builders' Show in Orlando. The three seminar participants included Vernon McKown of Ideal Homes, Norman, Okla.; Denis Leonard of Veridian Homes LLC, Madison, Wis.; and Paul Barnes of Shea Homes, San Diego.
In a session moderated by Frank Alexander of the NAHB Research Center, which sponsors the program, the three speakers gave insight into how their quality-assurance programs work and how they can be marketed to potential buyers.
The key to success in implementing a quality program is to get everyone in a company on board, Paul said. "The whole organization must adhere to a common set of values to achieve quality processes," he added. The Shea Homes team set its goal to become the "most respected builder in the country" by establishing a set of core values, including honesty and integrity, respect for individual customers, teamwork within the Shea organization and instilling a competitive spirit throughout the company.
Once you establish quality as a goal, however, it is time to include the customer in the loop, Denis told the audience. "We build homes that enrich the lives and realize the dreams of our customers," he said. "To do that, you have to approach the market one home at a time and one customer at a time."
First, it's important to define core processes and then set performance expectations within those processes to know. But at all times, the main focus has to be the customer, Denis iterated.
With that in mind, his company tracks and reviews its results on a regular basis at quarterly management meetings, monthly or weekly department meetings and biweekly team meetings. In addition, one-on-one meetings between staff members are expected every week to keep everybody on the same page. Denis said that once goals are set and benchmarks established, performance must be measured against those goals.
Building in quality
"The entire process should be focused on designing in quality," Vernon suggested. This requires input from everybody on the team, from the builder's staff to the trade people who supply various services.
Vernon says that it is necessary to constantly encourage feedback during the building process. Just as important, he told the audience, is to survey customers following closing and to periodically hold focus groups so that you can "dial in" the customer's point of view. "You need to set up a customer care department and track defects that may occur. Once you do that, you can focus on correcting recurring problems."
Quality within the organization is a benefit that can be sold, Vernon says. "We think quality assurance and awards like the National Housing Quality Award are marketable. They differentiate you from your competitors."
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