Glenn Master
It’s hard to believe that I’ve been in the field of loss prevention for twenty-five years. To put things into perspective, I started doing this line of work almost a decade before the first iPhone was introduced. To some readers just starting their careers, that may seem ancient, and you would be correct in that assumption. As my career progressed, I have been very fortunate, either through dumb luck, opportunity, or a combination of those factors, to take part in building loss prevention programs from the ground floor. The irony is that I am still at it, now for the fourth time. Surprisingly, for as challenging as it is, having a proven blueprint to work from makes each build a little easier.
Before I dive into the details of this long journey, keep in mind that not all programs are created equal. One of the other tidbits of information I left out is that my career has also been in the supply chain, spanning retail, hybrid e-commerce, and now direct fulfillment. I’ve had the opportunity to take part in the evolution of e-commerce as it progressed from business-to-business (B2B) to business-to-consumer (B2C). This ever-changing environment not only made developing a program challenging but also forced my hand to be persistently fluid as the global business itself was transforming. If all of this was not riveting enough, the field of loss prevention was also undergoing a major change, where careers within the supply chain itself were beginning to grow. I can’t underestimate the saying right place, right time.
When a company decides it needs a loss prevention program, typically something has occurred, usually in succession with something that has facilitated that need. It doesn’t matter if the company is a startup or has been around for 100 years. Nor does it matter on its size, rate of growth, or how many employees the business has. The one driving factor is usually centered on the progressive loss that has occurred. This loss may have a significant impact on the company’s profitability, or its customers are pushing for change. Additionally, the company does not employ a subject matter expert who can successfully identify the exposures and create programs to mitigate those exposures.
"Creating a program is not that difficult if it is approached with a plan."
I’ve also seen numerous companies pursue program development without having a full understanding of what loss prevention really is. Often, losses have occurred due to security exposures or theft, and a common mistake is thinking the program should be reactionary. This is where all too many companies go down the road of hiring a retired law enforcement officer to head the program. During my time in the industry, I have met and worked with numerous professionals who came out of law enforcement, most of whom were very talented but had little, if any, business experience in the private sector.
The Value of Experience
What the C-suite sometimes fails to recognize is often the most obvious resolution within any profession—there is no substitute for time and industry experience. A loss prevention professional can’t walk off the street and be expected to run a law enforcement agency as the chief or agent-in-charge. So, why should we assume that a former law enforcement professional can walk into a business and immediately create a department from the ground floor in the private sector? Not to say that it’s not possible, however it is extremely difficult. The learning curve and internal relationship building for any business is normally six months. And when a company is hemorrhaging money, waiting six months to make an impact is not a viable option.
Fundamental Principles
After years of building programs, I’ve found that you must hit the ground running and focus on the following key areas:
Business Acumen. This is one of the most important attributes that most professionals miss and can set the stage for long-term success—or rapid failure. Regardless of what company I have worked for or in what capacity my responsibilities encompassed, during the first 90 days of employment, I’ve made a conscious effort to visit as many locations as possible. And while visiting those locations, I would avoid the nickel-and-dime tour in favor of walking the floor with a member of operations management. I’ve often referred to this approach as ground-up politics, which serves multiple purposes.
• First, it provides you with an operational understanding of the processes and procedures within that facility.
• Second, it allows you to see the operational challenges firsthand, which builds a foundation to determine how you can best formulate an effective loss prevention strategy on the fly.
• Third, it shows the operators that you truly care about their business and genuinely want to help them.
By putting your business hat on first and your loss prevention hat on second, you are then seen as part of the solution to an operator’s problems. Once you’ve accomplished this at enough locations, word will quickly spread throughout the organization of your role as a true business partner.
Help me, Help you. For those of you who have seen the movie Jerry McGuire, this classic line came out of the locker room conversation Tom Cruise, playing a sports agent, was having with his one and only client, Cuba Gooding Junior, who was playing an NFL wide receiver. In that speech, Jerry McGuire profoundly begged his client, Help me, Help you. This term works just as well, if not better, in business.
It boils down to human nature. Have you ever met someone overwhelmed or asked to serve as an expert in a role or responsibility where they are not? In most companies that never had a structured, industry-standard loss prevention program, I’ve found that operations, human resources, or a combination of both have been asked to serve as subject matter experts in loss prevention, asset protection, and security. If you offer to take that work off their plate, you will be surprised by how many will gladly hand over the responsibility. Using this approach, you will have successfully accomplished the task of taking on the work you were hired to do without pushing internal partners to give it to you.
Understanding Personalities. If we were all robots with no personalities, there would be no need to mention these criteria. But, of course, that is not the case. There have been countless books written on human behavior in the workplace, and regardless of whether you are hourly, salary, entry-level, mid-management, or have a seat at the executive table, each person has a different personality, both personally and professionally. While the overall company culture might lead the herd in a certain direction and towards a common goal, individualism will always be present.
For a loss prevention professional, it’s easy to lose focus on how important it is to develop relationships within the organization. However, the task of selling yourself as the answer to reducing or eliminating loss isn’t enough. If a company has never had an industry-standard program, there will be skepticism about what your role is or should be, how you will go about achieving those objectives, and what impact you will have on the person you are supporting. To sell folks what they don’t necessarily think they need takes skill.
However, overcoming this is not as difficult as it sounds and can be achieved by developing an effective relationship with the person you are dealing with. Reach an understanding of what makes that person tick, personally and professionally. Find commonalities, no matter how small they may be. You will quickly come to realize that trust will grow, and a partnership will follow. Once that partnership forms, that person will soon become an ally and help spread the word to their peers. It truly is a domino effect, and it works.
Return on Investment (ROI). These are the most important three words in business. Globally, almost every business is held to standards that reflect cost savings, revenue generation, accuracy, and quality. In loss prevention, I’ve often heard how hard it is to justify the department’s worth. How are you supposed to gauge results with a metric that implies that spending money on initiatives or headcount will save the company money? And when building a program, the ability to achieve and show ROI must be accomplished quickly. That’s why it’s so important the department head takes a measured approach that resembles building floors in a skyscraper.
In the first year, most of the time will be spent being tactical versus strategic. At any given time of the day, you will act as the Private, Sergeant, Lieutenant, and General. The one major benefit of playing all these parts is that it allows you to identify problems quickly and easily. In the industry, we all know this as “low-hanging fruit.” Whether it be theft or erroneous maintenance agreements on equipment that can be canceled, put forth the effort to identify loss, determine the root cause of the exposure, and put measures in place that mitigate the loss and prevent it from occurring again. Then, take that ROI and use it to start building the team, one person at a time.
Communicate Success. You are your best advocate, and make sure everyone knows it. I’ve always liked to pre-empt a formalized goal process by keeping a running log of our accomplishments. This includes measurables such as how many investigations were worked, how much money or product was recovered, and how much money was saved for operations. Talk it up to management, leadership, and anyone else who will listen. Try, if possible, to provide a year-end “state of the union” for your program to executive leadership. The point is, don’t be afraid to talk about the benefits you are creating for the organization. Before you know it, everyone in the company will know who you are and what your program is about.
Keep It Simple. For as daunting as building a program can be, your best avenue is to keep it simplistic to the point where everyone can understand the mission. I’ve always relied on three basic concepts:
1. Create an environment that emphasizes Loss Prevention versus Loss Reaction.
2. Everything being developed is aligned with industry standards.
3. Regardless of what our responsibilities are in the company, we must focus on two things: profit and loss. If we’re not all working together to promote profitability, then we're all impacted by what loss will bring to the organization.
In summary, creating a program is not that difficult if it is approached with a plan. There is a fine line between success and failure, and the pendulum can swing in either direction very quickly. If done correctly, you will discover that what you create will become a critical part of the business and ultimately change company culture. That is the secret of success— from the ground floor to the top of the skyscraper.
