The art of simplification is a real profit booster. Mastering it is like striking gold.
Hey offsite builders! Let’s dive a bit deeper into the world of offsite construction, where the dance between customization and simplicity holds the key to success. Inspired by an article I wrote for the January 2023 issue of Colorado Builder magazine titled, “The Cost of Complexity,” I’ll take you on a journey to unravel how finding the right balance can elevate your offsite construction game to new heights.
The Conundrum of Complexity
Have you ever been overwhelmed by too many choices? Sure you have. Well, the construction industry, including offsite, often finds itself in that predicament.
Builders often fall prey to what I like to call the “options fallacy.” It’s the belief that bombarding customers with choices equals happiness. This belief is a bit of a myth, as too many options can actually lead to what’s known as “selection fatigue.” Customers might claim to want more options, but when faced with a myriad of decisions, confusion and frustration tend to take center stage.
Let’s put it into perspective with a familiar scenario. Imagine offering six home plans. Sounds generous and reasonable, right? But wait, each plan comes with three façade options and two floor plan modification options. Beyond that, you’re also likely dabbling in options for common finishes like roofing, exterior cladding, doors, windows, floor coverings, etc.
With only a few options in each of these areas, suddenly, you find yourself with a staggering 783 billion unique permutations of your product. Mind-boggling, isn’t it?
The Options Fallacy Unmasked
Now, let’s bust the “options fallacy” myth wide open. Sure, customers might express initial excitement at the prospect of numerous choices. But the reality is that when they’re tasked with making dozens of decisions, things take a turn. Selection fatigue sets in, and the result? It’s not just lost sales for you; it’s lost cash and lost time. Every additional option adds a burden of additional supplier management time, paperwork, inventory, training, and a host of other hidden costs and delays.
Here’s the truth bomb: in the realm of offsite construction, a plethora of options isn’t the Holy Grail. Rather speed is king, making simplicity a far more attractive proposition.
Lessons From the Pioneers of Simplicity
Ever wondered why companies like Tesla and Apple, the heavyweights of profitability, keep their options refreshingly low? It’s because they’ve cracked the code of the cost of complexity. Take my recent experience buying a Tesla: the online configuration process was a breeze. Five selections to make, four optional add-ons, and voila, a total of 320 permutations. Simple, straightforward and definitely not a headache.
Contrast that with the traditional homebuying (or building design) experience. It typically requires hours, sometimes weeks or months, of decision-making followed by months (or years) of deliberation, second-guessing and changes. The simplicity of Tesla’s approach is not just refreshing, it’s a lesson in efficiency and customer satisfaction.
Applying Lessons to Offsite Construction
Now, let’s bring it home to offsite construction. The parallels are striking, and the benefits of simplicity are undeniable. So, how do we go about balancing customization and standardization to reap the rewards of streamlined decision-making, reduced costs, increased efficiency and a compressed schedule?
1. Evaluate option frequency
● Dive into your sales records and identify your best-selling options.
● Strategically cut down options across the board.
● Apply the 80/20 rule – focus on the options that bring in the most business.
● Prioritize the crowd-pleasers and ditch the rest.
2. Slim down building plans
● Do we really need a gazillion home/building plans? Consider merging similar plans and streamlining the selection process.
3. Make exterior choices easy
● Simplify life by standardizing roofing, cladding, doors and windows.
● Explore geographic or development-based standardization for flexibility.
4. Keep interiors simple
● Less is more when it comes to interior finishes. Trim down paint colors and flooring options.
● Stick to the favorites – it’s what people want.
5. Declutter cabinets and countertops
● Streamline cabinet styles and colors. Choose quality over quantity.
● Trim down countertop choices to what customers like the most.
Embracing Simplicity as a Strategy
By now, you might be thinking, “Wait, isn’t this counterintuitive?” Well, yes and no. Embracing simplicity as a strategic imperative is the not-so-secret sauce to success in offsite construction. It’s not just about making life easier for your customers; it’s about unlocking tangible benefits for the industry.
From heightened efficiency and reduced costs to accelerated sales cycles and build times, the advantages of simplicity are profound. In a world where customization has been the hero, the real innovation lies in finding that sweet spot. It’s about meeting customer needs while keeping your operations sleek and simple.
In the pursuit of transforming the offsite construction landscape, the wisdom of “reduce your complexity” stands as a guiding principle. Inspired by the lessons from industries where simplicity reigns supreme, offsite construction companies should work to navigate the delicate dance between customization and standardization. By strategically slashing options, streamlining processes and prioritizing customer-centric choices, the industry can usher in a new era of efficiency, affordability, speed and customer satisfaction.
As Leonardo da Vinci wisely noted, “Simplicity is the ultimate sophistication,” and in the realm of offsite construction, simplicity may well be the key to unlocking a future of sustainable success.
Ready to keep it simple and smart? Let’s do this!
Daniel Small is a Denver, Colorado-based management consultant to the offsite construction industry. He specializes in Lean Construction and Manufacturing and Six Sigma methodologies. For assistance with improving your offsite manufacturing process, contact him at 719-321-1953 or [email protected]. Or visit www.LeanOffsite.com
