1. Homebuilder
Opportunity

2. Have you gotten the
most out of the
housing downturn?
(some might say, CRISIS?)

3. Can you see your way
to making 10% pre-tax
margins?
(are you making them now?)

4. Are you positioned to
make the most of an
eventual recovery?
(given current inventory levels, it
won’t take much of one to have a
significant impact on the industry)

5. Have you used the
downturn to invest in
your people, processes
and systems?
(“hunkering down” doesn’t count
as an investment strategy)

6. Can you see your way
to becoming the lowest
cost customer to each
of your trade partners?
(are you there already?)

7. What if your chief
competitor could
answer YES to each of
the preceding questions
sometime in the next
six months?

8. What would happen to
your business?

9. On the flip side . . .

10. . . . what kinds of
opportunities would
you have

11. if you were making
10% pre-tax,

12. if the time your
people spend
firefighting was a
fraction of what it is
today,

13. and instead, they were
able to focus almost
strictly on work that
adds value in the eyes
of your customers?

14. Can’t say for sure, but I
think it would look
something like

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peti Dominance ry
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ge rao I
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“Employer of Choice” ic e”
to Talent ho s
“Supe f C ner
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to Cu alue” om d e P
stom
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“C o Tr
t

16. I mean, we could be
talking about the likes
of . . .

17. vs.

18. vs.

19. vs.

20. or, finally . . .

21. vs.

22. These companies
reinvented their
competitive space and
were able to answer
YES! to at least a few
of the preceding
questions.

23. Let’s look closer at two
companies that can
answer YES! across the
board
(and have been able to do so for quite
some time)

24. What about the
company that invented
LEAN?
Toyota

25. Over the past 40 years, Toyota share price has
9,000%
outperformed Ford by nearly 17X!
8,100%
7,200%
6,300%
5,400%
4,500%
3,600%
2,700%
1,800%
900%
0%
Dec-72 Dec-75 Dec-78 Dec-81 Dec-84 Dec-87 Dec-90 Dec-93 Dec-96 Dec-99 Dec-02 Dec-05 Dec-08 Dec-11
TM F .SPX

26. And, one of America’s
most successful
manufacturers

27. Over the past 15 years, Danaher stock has outperformed
its peers by 764% and the S&P by 800%!
1,000%
900%
800%
700%
600%
500%
400%
300%
200%
100%
0%
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
DHR GE SI MMM JMHLY TYC PHG .SPX

28. But wait, there’s
more. . .

29. Since the inception of its Lean efforts in the
24,000%
mid-80’s, Danaher’s stock has outperformed
21,000%
that of its peer group and the S&P
18,000%
by more than 21,000%!
15,000%
12,000%
9,000%
6,000%
3,000%
0%
Feb-85 Feb-87 Feb-89 Feb-91 Feb-93 Feb-95 Feb-97 Feb-99 Feb-01 Feb-03 Feb-05 Feb-07 Feb-09 Feb-11
DHR GE SI MMM TYC PHG .SPX

30. So what does it mean?

31. Many game-changing
opportunities remain in
homebuilding
(Even NVR, the Wall St. darling of the
industry, doesn’t have an
insurmountable advantage)

32. Bottom Line
Differentiation will be
LESS about WHAT we
do and MORE about
HOW we do it

33. Would it be worth 20
minutes of your time to
learn more?

34. Contact Bryan Bennett
972.672.3053
bennett.bryan@verizon.net