Not Standing Still; What Builders are Actually Changing to Meet the New Reality (George Casey)
1. Not Standing
Still
What Builders are
Actually Changing
to Meet the New
Reality
By
Andy Warren, John Burns, Kathleen Cecilian, and
George Casey
2. Not Standing Still
A Focus on Human
Capital
Andy Warren
President
Maracay Homes
3. People Performance Formula:
1. Start with the right people
β Gateway to Maracay
2. Equip them with the resources they need to
be successful
β Maracay Method
3. Hold them accountable for results
β Visible metrics; FOSA
4. Not Standing Still
Analysis Opens
Opportunities and
Identifies Risks
John Burns
CEO
John Burns Consulting
5. Builders and Developers Have Become Very
Analytical
β’ Microneighborhood Analysis
β’ Microeconomy β Where do they
work, in addition to
demographics and
psychographics.
β’ Resale- Have seen and
understand every recent resale.
β’ Pushing Hard on the Architects
β’ Giving them a (small) budget to
actually do research!
β’ Prove it, prove it, prove it!
β’ Pushing against their creative
nature.
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realestateconsulting.com
6. Builders and Developers Have Become Very
Analytical
β’ Consumer Research, especially Developers
β’ Mining their email Interest Lists Hard
β’ Visiting people in their homes to see
how they live
β’ Focus groups, especially realtors
β’ Conjoint cost tradeoff analysis
β’ Using technology
β’ Google Earth with overlays
β’ Zillow and realtor.com on ipad while
in the field
β’ AVM and RMBS tools
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7. Builders and Developers Have Become Very
Analytical
β’ New Tools and Statistics
β’ Proprietary Risk Indices
β’ Proprietary Submarket Grading
β’ Demand Models by Household
Composition and Price Range
β’ Centralizing Data Collection and
Disseminating
β’ Equity partners push even harder
β’ Make me fall in love with this deal
β’ You better know every answer when
I ask the question
β’ Protect my downside, with 3 opinions
β’ Upgrade your salespeople and your
management team
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realestateconsulting.com
8. Not Standing Still
The New House:
Re-Thinking the Entire
Business
Kathleen Cecilian
President
Cecilian Worldwide
9.
10.
11.
12. Not Standing Still
A 93 Year Old Start-
up:
With Cashflow
George Casey
CEO
Orleans Homes
13. Orleans Homes
Goal: Become the prototype 21st century
homebuilder
β’ Use Bankruptcyβs 2nd chance wisely
Four Main Focus Points
β Market Niche focused
β’ Operate like a consumer driven company
β’ Organize to do marketing and market research different
β Operationally Excellent
β’ Learn to be world class operators
β’ Cycle time reduction
β’ Benchmark against best
14. Orleans Homes
β’ Four Main Focus Points (continued)
β Organizationally Efficient
β’ Use technology; what would Apple do?
β’ Focus on productivity by being smarter
β’ Morale is a competitive weapon
β Great Stewards of Capital
β’ Teach organization the discipline of investors
β’ Recognize that cheap debt is gone; have to make
equity returns