Security check

13 January 2011

TIn a world of diverse and complex security risks, delivering effective security and visitor management is a real challenge.

Risk management has the potential to impact multiple business functions. If integrated into the wider business risk strategy, security and visitor management can be seen as business enablers that ensure other parts of the business can operate with minimum disruption and risk. Modern security does not have to be viewed just as a cost, but more so a mechanism for contributing to the goals of an organisation including customer service and retention of employees.

The implications of getting security and visitor management wrong are immense. If people do not feel safe, then productivity and staff turnover can suffer. If visitors have a bad experience there is a possibility that customers and investors will take their business elsewhere. If visitors experience negative treatment the message they receive is that the organisation does not want them there. The visitor experience will influence the perception of 
the business, which is especially important in competitive times.

Excellence in security comes from understanding the wider challenge of securing the working environment, critical assets and infrastructure. 
By delivering a better user experience and a warm and friendly welcome the business reputation is being protected, and achieving robust and secure visitor management is critical – the challenge is to deliver 
the best from both.
The security sector has traditionally operated in individual silos with facilities and purchasing departments having to select different providers in each discipline to achieve their security specifications. In particular, the current price competitiveness of the guarding market has placed financial constraints on the development of the industry’s infrastructure. 
As a result, it is not uncommon for a single location to use completely different service partners for manned guarding, CCTV, front of house, access control, remote monitoring, keyholding and patrol services.

The tangible benefits for the FM function and end-user of rationalising the supply chain are significant. Decreased time in dealing with operational reviews and a streamlined back-office ensure effective time management, cost reduction and removal of conflict of interest between service lines.

The future of security
While key change drivers such as regulation, increasing employment costs, market consolidation and changing security requirements are stimulating industry change, the strength, initiative and ability of the competitive forces within the guarding industry are determining its shape. Companies that are embracing change and competing on product and service differentiation are moving ahead of their competitors. As a result, the security guarding industry has the opportunity to change from a low profit, mediocre-performing sector to become a profitable, stakeholder focused, professional partner.

Unless security guarding companies develop a knowledge base and the capability to provide solutions as opposed to manpower, they will not be able to move away from the cycle of cost reduction. There are constant calls for end-users to buy on quality not price; the stark reality is that there is no added value consistently coming from the sector to justify margin increases. Providing a well-trained guard at a post is not adding value, it is fulfilling a requirement. Developing an effective overall security strategy and providing a cost-effective solution adds a dimension that justifies a margin increase.

Companies that are adopting holistic integrated service solutions, combining manpower, physical and electronic security, are beginning to develop a competitive edge, creating two distinct market strategies: price competitive and value added. Companies that demonstrate value-added differentiators have the opportunity to benefit in increased returns, which results in improved levels 
of investment, in turn benefiting the end-user.

The challenge that faces the FM sector is to consider the way specifications are viewed. Is service being specified, for example, on the basis of ‘three people, 24 hours a day’ or ‘we have a building and people to protect and front of house impacts the first impression of our business – what is the most effective solution’? This question is at the core of the future of security and visitor management. As a result there are a number of companies that are moving towards combining the various elements of security.

Winning combination
In many corporates there is a clear move to softer customer interfaces during core working hours. Security providers able to offer intelligent spend are delivering a blended solution of concierge and security guards during the working week and then supplementing this with a combination of manpower and technology out of hours. The needs of the customer are not remaining the same and providers are facing the challenge of finding new ways to meet them. The move to concierge services has tangible benefits, such as, the friendly impression that an employee or visitor gains as part of a customer-focused welcome. The extended menu of services that a concierge service can offer including taxi ordering or local contact with florists and dry cleaners can also demonstrate added value.

Electronic security and associated technology continues to develop at a phenomenal rate. When combined with the increasing capability of communications networks, effective CCTV and access control can provide a cost-effective alternative to security guards. This change becomes particularly effective when combined with remote monitoring 
and emergency response.
Is the future a combination of security guards, concierge, technology and intelligent spend? The answer should be no. If businesses are managing their risks properly they should already be considering holistic, integrated, service solutions.

The fundamental questions for any business are:
- Have we considered our security risks recently?
- Are we protecting our assets, staff and visitors?
- Should we move to an integrated solution to meet our security, concierge and technology requirements by delivering intelligent spend? 

Paul Harvey is operations director of security, 
at Emprise Services



Working it all out

The numbers
1 guard x 24 hours a day (168 hrs/wk) x officer pay rate of £8.00 per hour = £100,000 approximate annual cost
Roughly £65,000 of this is incurred during nights and weekends (108 hrs/wk)
- In many cases the premises are unoccupied
- These costs are recurring every year

Mitigating the Cost of 24/7 Guarding
In the right circumstances, it is possible to implement technology solutions during out of hours periods, replacing manpower altogether.
1. CCTV – Good CCTV coverage can ensure that visually, all key areas are covered. Cameras can also be set ‘on alarm’ resulting in an event driven approach, which is now preferred to the conventional, continually recorded CCTV as it triggers action at the time of the event.
2. Remote monitoring – Camera ‘patrols’ can also be conducted by a remote CCTV operator to a pre-determined schedule.
3. Access control – Allows people with authorised access to enter the building at any time and visitors can use an intercom system which contacts a central control room to validate their entry.
4. 2-way audio – Can be used to alert intruders that the police are on their way in the event of an incident.

The benefits:
- The single biggest benefit of a blended solution is that once the system has been installed, other than maintenance, there are no large recurring costs
- Payback can be achieved in less than 12 months, with significant annual savings
l These savings can be re-invested in improving the terms of the manpower element of the contract, driving up standards by:
1) attracting higher calibre personnel
2) decreasing staff turnover
3) increasing management support
4) motivating the service partner by delivering profitable contracts


FM QUICK FACTS
£3.2bn: The estimated turnover 
of the security industry 
in the UK
75%: The top 20 security providers’ control 
of the market