2006 NHQ Award: Business Results / Past Winners

In scoring applicants for the National Housing Quality award, each of the first seven categories – leadership, strategic planning process, performance management, customer satisfaction, human resources, construction quality and trade relationships – represent an equal number of points. The final category – business results – accounts for 30 of the possible 100 points an applicant can score. The reason for the weighting is simple: quality management must be a tool to build a more profitable business.

The path to superior financial performance is as varied as the organizations listed on the facing page. While each of these organizations achieved honorable mention, silver or gold awards, none of them did it in the same way. What they all have in common is the metrics to measure their business performance on every front. Review the list below, Metrics That Matter, to begin your measuring your performance in business critical areas. Remember, what is measured can be improved.

Leadership

• Employee evaluation forms/satisfaction survey
• Communication effectiveness
• 360 evaluations/reviews

Strategic Planning Process

• Quarterly reviews
• Monthly measurements
• Weekly evaluations
• SWOT analysis (Strengths, Opportunities and Threats)

Performance Management

• Process improvement team actions/outcomes
• Process improvements
• Job cost cycle time
• Contract signing to dig start cycle time
• Framing to occupancy cycle time

Customer Satisfaction

• Willingness to refer at time of closing
• Willingness to refer after one year
• Average number of days to complete a service order
• Home buyer process satisfaction (sales, construction, orientation, design center, options/upgrades, mortgage/closing procedures)
• Product quality: home buyer satisfaction with workmanship/installation, products/materials
• Warranty cost per house (percentage and dollar amount)
• Top three warranty cost line items
• Annual product surveys
• Realtor surveys

Human Resources

• Employee turnover percentage
• Average cost of employee training per year
• Average training hours per employee per year
• Employee satisfaction
• Employee development plans
• Employee retention
• Recruitment success rate

Construction Quality

• New home orientation
• Punch list sign-off
• Service list sign-off
• On-time closings
• On budget performance (per home, per community)
• Safety – number of accidents per 100 employees
• Even-flow production – performance against plan

Trade Relationships

• Job evaluation forms (measure job readiness)
• Trade partner satisfaction surveys
• Schedule variance analysis
• Chargebacks

Business Results

• Profit – gross and net
• Return on equity
• Debt to equity ratio
• Sales – units and dollars
• Revenue by product
• Market share
• Sales per employee
• Profitability per employee
• General and administrative expenses (percentage of revenue)
• Land assets