The Death of the Zero Item Walk
by Bob Mirman, Eliant CEO

Printer-Friendly

It’s time for a funeral.

 

Mark Twain once commented that “The reports of my death have been greatly exaggerated.” With all respects to Mr. Twain, I would like to suggest that continuing reports of the benefits of the ‘Zero-item’ Walk Through’ have also been greatly exaggerated.

 

In fact, I would like to publicly call for the death of the ‘Zero-item’ Walk Through’ or ZiWT for short.

 

Builders who believe in the ZiWT speak of it in hushed and reverent tones, as if it were the quest for the Holy Grail, when in reality, it is no more than a snipe hunt. At best, it’s a total fantasy; even worse, it’s a counter-productive, destructive force which undermines your buyer’s trust, eats away at customer satisfaction levels, and reduces homeowner referrals.

 

Zero-Item vs. Zero-Defect

The ‘Zero-Item’ concept is, no doubt, a distant cousin of the ‘Zero-Defect’ concept, a decades-old quality assurance approach in which defect or error tolerance was set at zero in order to set the highest expectation for performance. (Note: ‘Zero-Defect’ is also a term used by President Clinton to rather optimistically describe the number of his congressional supporters he expected to leave his side once they learned the truth about Monica Lewinsky.)

 

The ‘Zero-Defect’ concept is certainly viable in the new-home industry. While it is arguable that any new home can be delivered defect-free, the ‘Zero-Defect’ target is an effective method for setting positive expectations for construction personnel, including sub-contractors.

 

The ZiWT is another matter entirely. Since many builders do a poor job with their ‘Zero-Defect’ performance prior to the walk-through, it is all too often left for the walk-through supervisor to make up for construction short-comings. In fact, many builders place so much emphasis on the ZiWT that the walk-through supervisor will do anything to keep the punch list as short as possible. In our focus groups, walk-through personnel tell us that they experience different types of overt or implied pressure to keep the punch list short and sweet:

 

1.       Punch-list length is included in the Performance Evaluation.

2.       Bonuses tied directly or indirectly to average punch-list length.

3.       Walk-through personnel with very few punch list items are afforded more recognition at company events, meetings, and newsletters.

4.       Customer service and operations managers frequently mention the need to keep punch-lists short.

5.       The walk-thru supervisor is held responsible for making sure the punch list items are cleared, thereby making short lists more likely.

6.       The walk-through supervisor does not want to make his peers look bad by submitting a long punch list. This is particularly true if he/she is part of the construction department.


 

In a ZiWT environment, there is plenty of pressure to produce a ZiWT, or close to it. Unfortunately, given this degree of motivation, many walk-through supervisors have developed procedures to scam the system and make it look like the punch list items are as scarce as …well, a friendly IRS agent during an audit. Here’s what they do:

 

1.       The walk-through person does not bring a walk-through form or piece of paper on which to record the list. Sound unbelievable? Here’s a quote from a homeowner at a recent focus group: “When I asked him if he was going to write these down, he said ‘Don’t worry, I’ll remember’.”

2.       The walk-through supervisor keeps two lists, one ‘official’ list for the homeowner, and one for him. Guess whose list is shorter? This “double-booking” works particularly well with first-time buyers. This is the most common technique used to make the punch-list appear small.

3.       Items are grouped. 26 paint touch-ups are listed only once as “Paint touch-up.” Three broken fixtures are listed once as “Lights.” Several chips in the countertop are included as “countertop.”

4.       Walk-through supervisors have been known to ignore relatively small defects and not point these out to the new buyer. Or, as related by new buyers during our focus groups, the walk-through person will “minimize” the defect by claiming “All flooring looks like that” or (my personal favorite line) “It’s within industry standard.”

 

In short, if your system requires a ZiWT, you will get a ZiWT or damn close to it. But it is clear that a ZiWT does not necessarily mean that your construction practices are sound or your quality assurance is above par. It may simply mean that your staff has found back-handed ways to give you what you want.

 

These back-handed practices are so prevalent that we now assume any punch-list item count to be the absolute best case scenario. In all likelihood, the actual number of items is 25-50% higher than the ‘official’ list.

 

Solution: Forget the ZiWT. Reward walk-through and construction personnel whose buyers report high levels of satisfaction with the “Condition of home upon move-in,” as measured in post move-in surveys. Conduct pre-walks 2-3 days before the final walk-through. Remember that the most impactful issue on future referrals is not the number of walk-through items, but the speed with which you resolve the punch-list.

 

Mirman’s Law: The difference between the ‘official’ punch-list count and the actual count is directly proportional to the degree of emphasis placed on the ZiWT.

 

When customers see two lists or no lists, when they see that some items do not get written down at all, they lose confidence in the system…your system! They will not trust what they are told and, most importantly, they will be hesitant to refer their friends.

 

ZiWT sets up customers and builders for weakened relationships and ultimate failure. It’s time it went away.

Copyright 1999, Eliant Inc.
All Rights Reserved