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Procuring a Quality Security Program: Balancing Quality with Cost

A publication from AlliedBarton Security Services

Procuring a Quality Security Program: Balancing Quality with Cost

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Finding the right balance between a high quality security program and procuring it at the best value is more challenging than ever before. Studies by Perpetuity Research and Consultancy International show that by drawing upon the experiences of those engaged in the procurement process, security leaders have the ability to flag potential problems and identify ways to overcome them while at the same time identifying best practices. This is especially important in security where the ability to prepare for, prevent and respond to emergencies is essential to operational success, and yet many organizations are pressured by an adverse economy. Business leaders are focusing on value and are seeking lower costs from suppliers but are they truly getting the best value for the service being provided?

The traditional approach to procurement has changed. Carter & Kirby (2006) present traditional versus new age procurement in this chart. This approach allows for better informed decisions, more knowledgeable providers and a balanced look at cost and quality.

Traditional Procurement New Age/World Class Procurement Price Total cost of ownership

Adversarial Collaborative

Late supplier involvement Early supplier involvement

Prescriptive specifications Performance

Quality control Quality assurance

Inspection Prevention

Acceptable quality levels Total quality management

Just in case Just in time

Contract based Performance based

Win/lose Win/win

Many suppliers Few suppliers

Gatekeepers Facilitators

The reasoning for this shift is clear. We must all be ever conscious of costs; however, the prudent executive also understands that the path to the best cost must also involve a determination of value. A lower cost option today may likely be more costly in the long run when it offers minimal value. Greater collaboration, a focus on quality, a partnership approach and better education by the procurement professional, and the service provider, are advantageous to all involved. This holistic view can result in the careful development of a service specifically to meet the organization’s requirements that provides value and benefits both parties.

The systematic nature of the procurement process can lead to informed decision making. A thorough review of needs, costs, value and service options can help identify the provider that is best suited to meet your needs.

Today’s quality focused security programs can help create an environment that is a strong deterrent to crime, conveys your organization’s commitment to safety and security, and provides peace of mind to your employees and visitors. In contrast, a significant security incident can result in clients, or potential clients, choosing to do business elsewhere and can negatively impact employee productivity. This is not a decision to be made lightly.

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The measure of the quality of a security program is truly tested when an organization is facing a crisis. Yet, this situation is exactly what the security program is designed to help prevent.

Careful vendor evaluation can provide the right balance between quality and cost. While budgets are tight and the directive from senior leadership continues to be ‘do more with less,’ cost cannot be the reigning decision making factor in security. Are you willing to risk brand damage due to a security program that was implemented based on cost or will you secure your organization with a quality program that can offer value?

Invitation to Bid (ITB)An invitation to bid is often used when commodities are being procured and the lowest price is the major concern. This works well when complete design specifications are known and products do not vary significantly among the vendors. The award goes to the bidder who conforms to all of the terms and conditions of the ITB at the lowest cost.

Security, however, is not a commodity. If security officer procurement is based only on lowest cost, the program will be based solely on paying the officers the lowest possible wages. Additionally, a cost-focused program has ramifications that go far beyond wage. Training, management support, recruiting, employee engagement and executive oversight are just some of the factors that influence the success of a personnel business such as security services. If security selection is determined by lowest paid wages, the result will be just what you see – an individual. Without ongoing training, careful screening and industry-specific expertise, how can you expect that individual to perform at an optimal level when you need them the most? The true value – and the potential for real results – is in the entire security program. When it comes to the safety and security of your people, your property and your brand to security officers, you need to look beyond wages.

Beyond WagesWages are the single largest cost driver in a security officer program. But there are other costs that if reduced or sacrificed all together, would negatively impact the quality of security officer services. Management support, learning and development programs, and other resources directly correlate to security officer performance and security program success.

Training - Every company values quality training and many say it is paramount to their success. Companies in the security services industry are no exception. Training is critical to ensuring that security officers, and the managers who support them, are properly prepared for their daily duties as well as unexpected challenges.

It is time to push aside old notions of low-skilled security officers. Thanks to training, the security officer of the future has arrived. Security officers are often the first line of defense and are an important part of a facility or community’s safety and security, working in conjunction with local law enforcement and first responders. Today’s security officer may use high tech vehicles to patrol airports, transit stations and campuses. You may find highly skilled and trained security officers piloting a host of IP-connected digital applications that include closed circuit television, life and fire safety systems, and remote access control systems. A continued emphasis on the importance of industry specific training has created security officers who are in sync with the needs, expectations and regulations of the particular industry where they provide services.

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Benefits - Benefits and recognition programs significantly contribute to recruiting, retaining and motivating superior employees. Employees at all levels deserve benefits that contribute directly to their quality of life. Those who are rewarded are better focused, have longer tenure and are more engaged in their work and responsibilities.

Benefits do not always relate to medical or life insurance costs, but can be fringe benefits that can include any reparation employees receive from their employer outside of monetary compensation or wages. Fringe benefits may also be referred to as perks of employment and can come in many vary forms.

Uniforms - Are your officers on duty to convey a strong security presence? Or is it more appropriate to project an atmosphere of customer service? Regardless of the security objective, a neatly uniformed, well-groomed security officer should command respect and authority and help to project a professional image for your organization.

A uniformed security presence is a deterrent to crime and a clear sign that misconduct will not be tolerated. Additionally, if an emergency occurs, individuals will know where to turn for help if uniformed officers are consistently present.

Management/Supervision - Local managers need to be the empowered decision makers who understand the needs of your organization. Effective managers routinely handle scheduling, ensure all posts are filled, order proper uniforms for every employee and conduct on-site training. Management is also responsible for continual training and compliance with local law, industry regulations and contractual obligations.

Managers and supervisors are the leaders who set high standards for service; standards that are maintained through continuous, effective supervision. Without their guidance, the day-to-day activities and the entire security program may be compromised.

Request for Proposal (RFP)An RFP is often used for procurements within service industries. This selection format is appropriate when the method of service is more important than price alone. An RFP must include specific evaluation criteria and the weight or value assigned to each criterion. It is also important to establish security officer qualifications and desired program outcomes.

A minimum, or specified wage, should be established, creating a common baseline for comparable responses from vendors. If accurate wage determinations can be made for the service and location of the procurement, it will assist in making an apples-to-apples comparisons of vendors.

Other specifications may be helpful for making comparisons such as desired training, uniform preference and benefits. Immediate and future needs must be considered. Establishing only minimum training requirements can limit the focus to initial training and overlook the critical need for continuing education and career growth opportunities for your security team. While the immediate needs are a priority, careful consideration should also be given to the long-term goals.

A decision should also be made on minimum uniform requirements as some companies provide uniforms at no cost and others use payroll deductions to require officers to pay for their own uniforms. Benefits can also vary greatly from organization to organization and clear requirements – and standard language – help level the playing field.

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The following are examples of criteria that should be considered when designing a quality security program:•Experience/CapacityoftheCompany•PersonnelQualifications•ScreeningStandards(includingbackgroundscreening)•PastPerformanceRecord–ClientReferencesfromSimilarBusinesses(considerationshouldbegiven to size, scope of duties as well as similar operational environments)•TechnicalAbilitytoAddressScopeofWork•TransitionPlan•FinancialStability•Price•LocalBusinessPreferences•Small/Minority/VeteranorotherDisadvantagedBusinessPreferences

Each criterion will need to be weighted based on the priorities of the procurement. Other extrinsic variables can be evaluated in the RFP format such as leadership training, motivation and incentive programs, career path planning and community involvement.

Informed Decision MakingEvery company is different and has unique processes in place for assuring they receive the exact security service they are in need of. A smart selection is not made overnight but is vetted thoroughly with research, proper documentation, ongoing discussion and relationship building with the vendors. It is always important to establish your needs and make your goals known up front. The more you educate your potential vendors about your situation, the better the probability of identifying a well-matched partner. Also, in doing so, opportunities may exist to streamline the development of your security plan or the vendor may help to identify opportunities for improvement.

Take the challenge out of the decision making process by first identifying what is more important to your organization and therefore, what selection method is best suited for your needs. An ITB will likely not give you a complete view of the quality of a security provider. And the risk associated with selecting the wrong security provider can be significant.

Utilizing an RFP can help you find a balance of cost and quality. Identifying and contracting the right partner – the one best-suited to meet your needs with tailored solutions – will allow you to efficiently enhance the safety and security of your environment.