Step 2: Begin with the end in mind

For Stephen Covey in “The 7 Habits of Highly Successful People,” this step comes first. But experience shows that a little time spent on step 1 typically results in a more realistic and compelling step 2.

What are you after from Lean building? In this economy, you may think “margin improvement” goes without saying, but don’t be shy about saying it first, and loudly. These days, cold, hard profit makes all the difference with banks, investors, suppliers, and trades. Meeting your obligations with aplomb pays off with more options of what to build, where you get to build it, favorable financing terms, and the best crews from your trades. Everything gets easier — and better.

A significant positive “bump” in culture, both internally and with your suppliers and trades, is another major goal. With Lean — when implemented wisely — cultural improvement comes quite naturally. Likewise, it is critical to establish that Lean process is never about “dumbing down” the houses or otherwise making them hard to sell. You can assume your sales and marketing staff harbors this concern, and with good reason, as a good look at the product built around the country during the downturn confirms. The ultimate issue is value, and many have forgotten it or chose to ignore it. Done right, Lean always increases value.

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