Production homebuilders are companies that build and sell multiple homes, usually in a planned community, within a short period of time. These homes are usually built on land that the company has acquired and developed for this purpose. Division Presidents are the top-level executives responsible for the overall performance of the division. In this blog post, we will explore the role of a Division President in production homebuilders for companies like Pulte, KB Home, Centex, Toll Brothers, Richmond American Homes, and LGI Homes. We will discuss the leadership skills required to lead different functional groups such as sales, construction, land acquisition, customer service, finance, and marketing. We will also examine how compensation is tied to the division’s profitability and how it is based on the number of homes delivered each year.
Responsibilities of a Division President:
The primary responsibility of a Division President is to ensure the overall performance of the division across all aspects of homebuilding operations, including Land Acquisition, Entitlement, Development, Sales, Construction, Procurement, and Marketing. They are responsible for developing, implementing, and achieving the strategic and annual operating plans of the division. They need to monitor relevant changes in the marketplace and work to continuously position the division to take advantage of opportunities. Division Presidents recommend long-range strategic and tactical plans for land acquisition and future communities, based on market research and competitive data in the local market, to meet future supply/business plan goals. They recruit, train, motivate, and manage division management in executing the agreed-upon plans and objectives of the company. Division Presidents also develop, implement, and manage customer satisfaction and quality programs to continually improve buyer acceptance and satisfaction ratings for the company. They also develop an external, local network to ensure continuous success of the Company’s strategic plan relative to his/her local market.
Leadership skills required for a Division President:
A Division President needs to have excellent leadership skills to lead different functional groups. Here are the leadership skills required to lead each functional group:
Sales are one of the most critical functions for a homebuilder. The Division President needs to have excellent sales leadership skills to drive sales growth. They need to have a deep understanding of the local market and customer preferences to design marketing campaigns and sales strategies that resonate with the customers. They need to set aggressive sales targets and motivate the sales team to achieve them. They need to monitor the sales pipeline and provide guidance and support to the sales team to close deals.
Construction is another critical function for a homebuilder. The Division President needs to have excellent construction leadership skills to deliver high-quality homes on time and on budget. They need to ensure that the construction team has the necessary resources, including labor, equipment, and materials, to deliver the homes. They need to set aggressive construction targets and motivate the construction team to achieve them. They need to monitor the construction process and provide guidance and support to the construction team to deliver high-quality homes on time and on budget.
Land acquisition is a critical function for a homebuilder. The Division President needs to have excellent land acquisition leadership skills to identify and acquire suitable land for development. They need to have a deep understanding of the local market and zoning regulations to identify and evaluate potential land parcels. They need to negotiate with landowners and other stakeholders to acquire the land at a reasonable price. They need to work closely with the development team to ensure that the land is developed according to the agreed-upon plans and timelines.
Customer service is a critical function for a homebuilder. The Division President needs to have excellent customer service leadership skills to ensure that the customers are satisfied with the homes they purchase. They need to set aggressive customer satisfaction targets and motivate the customer service team to achieve them.
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