Builders: Electronic Signature Key to Improving Efficiency & Satisfaction

Builder Hot Topics: Efficiency, Productivity, Buyer Experience

The Solutions Blog has devoted quite a bit of virtual space focused on improving efficiency and productivity -- particularly on the operations side of homebuilding. Take a look at recent Blog articles:

• Builders: Increasing Productivity Helps Offset Labor Costs & Availability
• What Can Builders Do to Up Their Productivity?

Efficiency, Productivity to Buyer Experience

We've also been talking about the Home Buyer Experience -- before, during and after the new home purchase:

• Customer Service: A New Paradigm for Builders
• Have You Asked: What is Our Buyer Experience Gap?
• Builders: Consider Value-Unique Experiences

CRM Offers Experience and Efficiency Opportunity, too!

One key concept emerges from all the articles highlighted above: the builder's universe is expanding! There aren't any islands left, in other words! Thinking about buyer experience is no longer limited to the sales office or marketing. It encompasses operations -- from construction to warranty, too. 

Efficiency can be thought of similarly: how long does it take your sales agents to process a sale? Do you have 25-40 documents ranging from Purchase Agreement to Options Orders to Avigation (yes; that's a real word!!) Disclosures?

Document Processing is More than Creation; Consider These Stats

How long does it take for your agent to generate these documents -- and how many signatures are required? Do you realize that 37% of documents are missing a necessary signature, initials or dates?

And, many people don't always consider the post-signature activities required to support documents: that's the proper collection, filing and retention. 51% of businesses report that some or all of the documents needed are mis-filed or lost!

Efficiency, Productivity Moves Beyond Operations!

In other words, are you certain that Lot 55's purchase agreement package is completely processed, stored properly and accessible?

Electronic Signature Can Go Beyond Purchase Agreements!

You're probably familiar with electronic document signature processing as it relates to purchase agreements (CPS CRM, for example, provides seamless integration with DocuSign to obtain signatures for all documents, distribute the documents amongst all necessary entities in a specified order and save a completely executed set). And, the value is not only for the builder: buyers appreciate the ease and ability to obtain and store a full set of accessible, executed documents. That doesn't even take into consideration processing a sale with buyers in multiple locations!

And, have you considered the value of electronic signature for your warranty/customer service operations? Why not provide your customer service rep or vendors with the ability to accept electronic signature on work orders via phone or tablet? CPS WarrantyWatcher does exactly that -- and keeps a copy in the lot's permanent history file, as well!

There's now another touchpoint (or two!!) for improving efficiency, productivity and the buyer experience!

Builders: Get Added Value from Your Buyer Surveys

Rating our experiences... that's a concept that has started-up brand new companies and entered almost everyone's life in the last 10 years.  There used to be pen-and-paper questionnaires.  Today, we have Yelp, TripAdvisor, Amazon, Survey Monkey ... even primary care physicians are asking for feedback!

 Get Proactive: Engage buyers mid-stream with surveys

Traditionally, many homebuilders took advantage of post-closing surveys.  Pen-and-paper has migrated to web-based. Some builders utilize results to evaluate sales agents and construction managers.

We'd like to suggest surveys be a part of your ongoing communications process.

Doesn't it seem a bit abrupt to ask "How did we do?" out of the blue for such a major event as a home purchase -- although it can make sense for a dinner out or hotel stay.  There have probably been many "great job" and "could have been better" events from the first sales office visit through closing. 

Finding those mid-stream results -- and managing around them -- not only engages your buyer and enhances the customer experience but allows the builder to manage people and process on a more timely basis.

Earlier CPS Solutions blogs talked about initiating and maintaining the communications process during the construction process.  Keeping your buyers informed; providing stage-of-construction photos -- CPS' FieldCollaborate offers a Buyer Portal just for that reason.  Why not schedule a survey after the first Construction meeting?

Now, your buyers are involved in the feedback process and engaged to the level needed to provide meaningful feedback.  It's no longer a perfunctory "How Did We Do?" at closing; you've initiated full-scale dialogue. And, that's the type of communication that will generate referrals!

Find out how we can help you integrate SurveyMonkey into CPS' construction and warranty software!

What's In Your Tool Belt to Help Build-in Quality?

Interesting MultiFamily Executive article highlighting the growing demand for new housing and resultant labor constraint issues. The demand for labor has emerged as an issue for both single- and multi-family builders, nationwide.

FieldCollaborate
Quality Inspection Checklist

Do you know the last time builders reported such widespread labor shortages was just before 2001?

The demand for labor has forced the use of "B" and "C" quality trades, which will result in more issues and increases the demand for more oversight. Without a well-qualified and experienced labor force, builders are facing increasing quality issues. Field Managers were already being asked to produce more; how best to produce more with better quality?

Technology should be top-of-mind as a way to consistently survey, assess and respond to quality issues. And, mobile technology allows Field Managers to work directly from the job site -- yet remain in contact with vendors and the corporate office.

Quality issues can be observed and reported for followup as punch items and builders are able to create Quality Inspection templates aimed at catching issues as early and consistently as possible.

One big gain with mobile in the quality world is real-time reporting. Take a look at CPS' FieldCollaborate. Field Managers are able to record a quality issue, automatically email the vendor, post the issue to the Portal (including pictures) for vendor review and then close the ticket when resolved. All from their truck or construction trailer.

And, there's also the ability to analyze data over time -- in real time. Are today's problems consistent with issues last week or last month? Is this vendor consistently late or slow to complete tasks? All of that information is available on the mobile device while dealing with today's quality issue.

FieldCollaborate also provides scheduling, punch and safety tools -- as well as a homebuyer information Portal to keep builders in 24/7 communication with their clients.

Homebuilder #1 Referral Driver: Keeping Buyers Informed

Eliant, the home building industry's largest firm specializing in managing the consumer experience, notes in a recent Builder & Developer article that the single largest referral driver is how well the builder keeps buyers informed regarding the status of construction!

Keeping Your Buyers & Homeowners Informed 24/7

That statistic is part of a very interesting article by Bob Mirman, Eliant's founder/CEO, as he points out similarities between hospitals and home builders.

Hospitals & home builders, you might ask? Drill down a bit: patients and home buyers are anxious, worried, confused and scared as they're involved in an unfamiliar environment. Not for the same reason but.. still concerned. Mirman suggests empathy goes a long way towards making everyone feel comfortable.

Mirman's second point is the value of contact when delays are encountered -- or anticipated.  He suggests asking: do your employees proactively reach out -- and how?

The third and most critical point is the impact of status updates -- and isn't that the case with most consumer-facing businesses? Mirman noticed and appreciated the daily calls from the assigned staff internist.  He knew he'd get the latest information and didn't need to worry about voicemail, missed calls or miscommunication through a 3rd party.

Think about your operations: how do you keep buyers up-to-date? 

We'd like to suggest taking a look at CPS' FieldCollaborate with its Portal.  Your buyers have access, 24/7, in real-time, to stage-of-construction photos and schedules.  It's their "piece of the pie" automatically generated from use of FieldCollaborate's construction scheduling application.  Tie it to your website and other than taking photos, no extra work is needed on your part.  Status updates are automatic, always visible and right there, 24/7 -- on their desktop, laptop, phone or tablet! 

Referrals can be a key sales driver; we've just learned that status updates are the #1 key referral driver!

New Home Construction: Velocity and Profitability

Are you on the construction side of the new homes industry? Great recent Builderonline article by Mary Salmonsen; you can read it here.

Shifting focus to velocity can enhance profitability

Salmonsen highlights one of SAI Consulting Fletcher L. Groves' concerns: the under-consideration of project velocity in builders' business processes.

Or, to paraphrase a comment by John McManus mentioned in a previous Solutions blog: builders need to work with greater velocity or... learn the pain.

In other words, rather than putting a laser focus on individual lot margins, apply some of that attention, data collection and reporting to the amount of time required to build that home. That's cycle time.

Of course, cycle time doesn't live in a vacuum -- and can't be measured in the abstract, either.  Do you have a published schedule -- and do you track progress against it? Does everyone look to a specific schedule or do you have multiples floating within the company?  If there's one, not only can you measure cycle time but you're able to provide consistent, reliable schedules to your vendors.  They're able to better plan and their planning helps them become more consistent, efficient and profitable. That's a win/win!

Are you able to report on which vendors show up on time, or have the highest level of rework, consistently have safety issues, always fail field inspections? That information helps shape a long range vision of your construction cycle and helps deliver consistently better results.  And, it should be available relatively easily and consistently to be effective.

We'd like to suggest CPS'  FieldCollaborate as a software tool to help you develop consistent schedules and measurement tools.  You're able to quantify and measure quality items, delivery times, subcontractor consistency, safety assessments and punch items.  It all helps highlight factors impacting your construction cycle and allows you to be proactive about the next lot, phase and community -- and design for long-term profitability.

Homebuilder Vendor & Buyer Portals Improve Efficiency & Productivity

Are you familiar with the concept of a Portal -- sometimes referred to as a neutral platform in the cloud?

Portals provide users with the ability to view -- and sometimes update -- information developed by a variety of systems and managed by different organizations in a single location. Typically, they're accessible via the Internet and available, anytime/anywhere.

What can a construction Portal do for your organization, vendors and/or buyers? An effective Portal provides data access, governed by credentials, to all appropriate stakeholders.

Let's take a look at a real-world example: vendors log into CPS' FieldCollaborate Portal to view or print their construction schedules, punch items, and safety assessments.  In addition, they're able to view the latest builder documents and drawings.

Home buyers, on the other hand, log into the FieldCollaborate Portal and find their home's schedule as well as stage-of-construction photos.

If we consider just this set of participants, can you think of the reduced number of phone calls, faxes, emails and misunderstandings? Portals make the entire enterprise more efficient and productive!  Home buyers feel empowered and their satisfaction levels improve, as well.

Home builders use Portals to share information internally, as well.  What's more disruptive than having multiple sources for information?  A well-managed Portal provides the same information to everyone (governed by access credentials, of course) -- and it's all available anywhere, anytime via the cloud!

2017 Means More Buyers, More Selections: How to Manage Customization

A Builderonline article, Your Biggest Competition isn't Other Builders, highlights advantages to purchasing a new home when compared with an existing home sale.  The author, Myers Barnes, highlights 7 key selling advantages.

The second key advantage is customization and that asks a basic but key question:  who wouldn't want input on design and product selections?  The article suggests reminding home shoppers that a new home will reflect their personal style -- not someone else's taste.

FieldCollaborate: Improve customization processes

And, a reminder: Millennials -- expected to be a key 2017 buyer profile -- are very keen on customization and personal style!

Some of you might be thinking, "Oh, customization; tried that.  It adds time to our schedule and it's tough to keep track of all the selections, changes, re-selections. Not even sure they're profitable."

But...customization is a key selling advantage for new homes.  How can a builder's current process be better managed to efficiently offer something that home shoppers really like?

Previous Blogs mentioned the need for simplification and process analysis.  Scott Sedum's 25 Essential Scheduling Practices article in ProBuilder offers several steps to consider:

(1) Provide only the number of options customers will pay for and can be kept 100% current - revisit annually.  Do you know how many times each option is selected?  If every sale has a particular option, wouldn't it improve operations to make it a standard feature?

Ask accounting to provide an "options ordered" list and review with sales.  It's a great selling advantage to have an extensive list; take the time to analyze that all your costs are included and the scope isn't so extensive to unduly burden the team refreshing the list at the beginning of each year.

(2) Coordinate cut-off dates with sales for option selections and changes -- and help manage everyone's expectations. Sedum mentions, "It takes skilled salespeople, a focused management team and a company-wide commitment to maintain this discipline." Not maintaining such an approach impacts schedules and costs and can create negatives in home buyer perceptions, as well.  No one wants to hear the neighbor was able to add the granite counter top after cutoff when they couldn't!

We'll suggest a third:

(3) Take advantage of technology so your team knows when options are added or deleted -- and can easily browse all appropriate documentation including drawings.  CPS' FieldCollaborate offers scheduling software tools and provides field managers 24/7 data access necessary to keep up with options activity.  They're able to see what has been ordered on Lot 12 -- and when.  It's possible to view drawings -- all from their smartphone and tablet!

Customization is a powerful selling advantage; make sure that your operations are nimble enough to manage the necessary processes. CPS can help you determine what processes will best help you -- CPS•CRM manages option selections including cut-offs and FieldCollaborate provides critical 24/7 access to selections, schedules and drawings.

New Home Construction Web Portals: 24/7 Access for Vendors & Buyers

Are you familiar with the concept of a web portal, sometimes referred to as a neutral platform in the cloud?  Portals provide users the ability to view — and sometimes update — information developed by one or more systems from a single web-based location.

Give Your Vendors 24/7 Access to Schedules & Punch

What would a construction portal do for your construction process — inside and outside the company, including vendors and home buyers?  Effective portals improve communication and collaboration by providing real-time data access to enterprise information.

Let's take a look at a real-world example: CPS' FieldCollaborate Portal allows a builder's vendors to log-in — any time, 24/7 — and view their construction schedules, punch items and safety assessments.  And, they're able to pull up builder documents and drawings, too.

Home buyers, on the other hand, login to the FieldCollaborate Portal to view their home's schedule and stage-of-construction photos.  The Portal keeps home buyers actively engaged throughout the home buying/construction cycle, which in many areas can take nine months from the time of contract acceptance to closing. Great for out-of-town buyers!

Home builders use the Portal, as well, to share information within their enterprise. When we consider the entire set of participants — the builder, vendors and homebuyers. 

Think about the number of phone calls, faxes, emails and misunderstandings that can be eliminated!

What's more disruptive than having multiple sources of information?  Your portal provides the same information to everyone (governed by access credentials, of course) — and it's all available 24/7, in real-time, via the cloud!

Portals improve communication and that makes the builder's entire enterprise more efficient and productive — resulting in more profit for both the builder and their vendors. Ask us how FieldCollaborate and Portals can improve your scheduling, communication and efficiency!

How to: Build a Construction Team Pipeline

You've probably read the news: the construction industry is facing a severe labor shortage.  And, the US Bureau of Labor Statistics tells us construction workers tend to be older: the median age is now almost 43 years old!

Bringing technology to work on the jobsite!

There are some solid reasons behind these statistics: almost a decade of very slow growth within the industry.

A perhaps larger business issue needs to be addressed, however: how to energize a new generation of workers to consider not only a construction trade -- but the construction business -- as a career path.

And, today's construction team member -- as well as the construction environment -- isn't your father's!

Many of today's senior construction executives started out "swinging a hammer" -- and Millenials and Gen X'ers haven't learned or aren't interested in skilled labor jobs.

At the same time, many schools have pushed skilled trade courses off their schedules -- not enough people are interested and these classes can cost more to produce.

Consider ideas suggested in Dian Zhang's Builder article, Bringing Young Blood to the Construction Labor Force and a few of suggestions, as well:

• Rebuild the image of construction work -- spread the word that there is a vibrant, well-paying industry looking for all levels of employees.  There are production workers, yes; but also an entire team of workers supporting the home building industry.  It's not just the trades, in other words.  Let your world know there are opportunities at all levels -- and much of the home building world is entrepreneurial in nature. Get involved in trade associations -- as well as business groups.
• Bring back mentorships and apprenticeships -- those are definitely good ideas.  Build a system within your organization to support your team members in these efforts.  Reward their success bringing in a new team member or mentoring someone just as you would home completions! 
• Sponsor activities at your local schools and colleges -- show students you are actively using technology in the business, for example. Bring iPads, iPhones, Android devices to schools -- and show them how you schedule, track construction progress, read floor plans -- using today's technology. 

Here at CPS we've been thrilled when asked to provide our FieldCollaborate software to construction management programs at schools and colleges.  Let us know if we can help you build the pipeline of interested and educated construction professionals!

Construction Data Portals: Immediate Collaboration

Are you familiar with the concept of a Portal -- sometimes referred to as a neutral platform in the cloud?

Portals provide users with the ability to view -- and sometimes update -- information developed by a variety of systems and managed by different organizations in a single location. Typically, they're accessible via the Internet.

What could a construction Portal do for you, your organization, vendors and/or buyers? An effective Portal provides data access, governed by credentials, to all appropriate stakeholders.

Construction Portals facilitate Collaboration

Let's take a look at a real-world example. Vendors can log into CPS' Field Collaborate Portal and view or print their construction schedules, punch items, and safety assessments.  In addition, they are able to view builder documents and drawings.

Home buyers, on the other hand, log into the Field Collaborate Portal and find their home's schedule as well as stage-of-construction photos.

If we considered just this set of participants, can you think of the reduced number of phone calls, faxes, emails and misunderstandings? Portals make the entire enterprise more productive!

Home builders use Portals to share information internally, as well.  What's more disruptive than having multiple sources for information?  A well-managed Portal provides the same information to everyone (governed by access credentials, of course) -- and it's all available anywhere, anytime via the cloud!

Scheduling: An anchor point for today's home builder

Are you building homes with paper & pencil, fax machine and a mobile phone to call your subcontractors and let them know when to show up?

If that's the case, you're probably wasting not only time but money.  And, not doing your vendors or home buyers any favors.  They're late, you're late... everything can feel as if it is in a state of chaos.

Let's talk about a pivot in homebuilding processes

Today's home building environment isn't that of 10 years ago.  Back in the day, many suggest that production (or, operations) was, as Scott Sedum mentions in ProBuilder, an afterthought when compared to finance, sales and land development. Now, Sedum suggests, homebuilders need to be great builders of product.

Clark Ellis uses a baseball analogy in a recent Builderonline article suggesting we're seeing a switch from "long ball" to the SF Giants style "small ball" playing with a focus on operational details.

Sedum suggests visiting Dr. W. Edwards Deming's carefully crafted statement, "Uncontrolled variation is the enemy of quality." to which he suggests adding "and profit."

Of course, some might argue variation is at the very heart of new home construction.  There are different size lots, different elevations, options, upgrades... the variations seem endless.

How is it possible to manage all of this variability and deliver the desired result -- a well-constructed home, on time, within budget? How to manage all these variables in addition to weather, labor shortages, mistakes and rework?

The key, suggested by Sedum and many others, is schedule.  A good schedule means that you've adequately addressed critical issues so that your schedule becomes the anchor in your operations. Getting to the endpoint of a "good" schedule suggests that the builder has addressed what Fletcher Groves identifies, in Builderonline, as process mapping and workflow.

We're going to be talking about many of these "critical issues" in the hopes of addressing how to develop and maximize the effective use of a construction schedule.  Stay tuned!

Builders: Are You on Track for Profit?

ProBuilder, in August 2015, had a great article entitled The 12 Processes for Sustainable Profit with the subtitle: How to establish sound business systems that ensure a healthy bottom line.

The processes range from land/lot selection to product design to sales & marketing processes.

ProBuilder suggests builders shouldn't focus on traditional questions or their answers.  For example, the article suggests virtually all sales training focuses on getting the deal.  That's great but..there needs to be a focus on determining the true total cost of the deal to determine it is a "good deal."

We're going to focus on Process #9: Building Schedules. The article says:

The best builders are the best schedulers -- and the best schedulers are the best builders. 

CPS FieldCollaborate; getting to a healthy bottom line!

What are you doing to be the best scheduler?

While it is true that it doesn't make sense to automate a bad process, we'll suggest that it doesn't make sense to schedule with a cell phone or pen & paper.  Take a look at CPS' FieldCollaborate -- an automated scheduling software application designed for homebuilders.  You're able to create your own standard templates and schedule from either a desired start or completion date. Your vendors  are assigned work dates and field managers track, record and monitor progress. 

Of course, there are all sorts of bells and whistles, too: a Vendor Portal to share schedules and drawings, Safety Assessments, Ratings, Punch Lists.

Key is the ability to create consistent schedules and measure results -- anywhere/anytime and accessible by all of your stakeholders (corporate staff, schedulers, field managers and your vendors).  

Yes; there are trade and material shortages, options/upgrades, all sorts of weather -- the list is endless. But, nothing beats an accurate and predictable schedule to enhance your operations and profits.

Mobility: What Benefits Are Available for Construction Operations

Did you see last week's blog highlighting the value of mobility tools to the construction industry?

Nile Lars suggested, in an Insights.Wired article, that mobility solutions add real value to the construction process.  Generally, construction-related businesses are managing multiple projects, in a variety of locations, with most staff working remote -- and all participants have a need to communicate status, results and financials.  Depending on the project, you might also want to add in vendors to the mix, as well.

FieldCollaborate Mobile:  Anywhere/anytime schedule access

Lars suggests several key benefits available throughout the entire construction life cycle:

-- Improved communications as mobility keeps the field and corporate office connected.  Easy sharing of data and images as everyone has anywhere/anytime access.

-- Better workflow processes as a result of real time data.  Field managers, for example, can indicate a task has been completed and approved for payment and, using mobile devices and an integrated system, accounting can issue payment.

-- Increased productivity.  Think improved efficiency, no more double data entry, missed phone calls, lost faxes and the like!

-- Ability to integrate systems and outside staff. Now that field managers and corporate staff have anywhere/anytime access to data, why not offer access to your vendors?

And, mobile tablets and smart phones offer the ability to go beyond data: field managers, for example, can capture onsite images, videos and audios to back-up activities onsite as well as distribute to corporate staff.  Document sharing is becoming more and more popular, as well.

Mobility enables  field staff  and vendors to be active participants throughout the enterprise -- saving time, enhancing communications and strengthening workflow processes.

House of Cards Offers Construction Strategy, too!

Recently, Koka Sexton wrote that the much-anticipated second season of Netflix' House of Cards offered some interesting lessons as well as sales strategies;  you can read his article here.

We're going one step further to suggest some of those same House of Cards strategies might apply to your construction team, as well!

Vendor Portal: Information as Networking!

Which ones?  How about #1:  Know (and grow) Your Network? Sexton suggests selling is a team effort -- and new home construction is certainly a team effort with architecture, estimating, field management, subcontractors and accounting (amongst others!) actively involved.

How does this concept of construction networking play out?  We're suggesting collaboration is key; keeping subcontractors in the loop, providing up-to-date schedule information, offering real-time access to drawings and other construction related paperwork. It's the classic win/win approach as both builder and vendor become more efficient with all the related benefits accruing to both!