Planning and approach

George Fletcher, a professional with more than 20 years in the security industry, shares his opinion on the elements that could lead Latino companies to a phase of growth.

by Eduardo Vargas

George Fletcher's experience is quite a lot, as he accounts for a quarter of a century working in the security industry, during which time he has participated in the creation of four companies and has played an important role in establishing sales, as well as in the development of positioning strategies. His career in the industry includes work in more than 30 countries in Latin America and the Caribbean, in addition to his participation as treasurer and vice president of the SIA (the Association for the Security Industry), co-founder and director of ALAS (the Latin American Security Association) and, at present, he is dedicated to directing consulting projects for the security segment.

The lines that follow expose the conversation with this professional.

Eduardo: George. In Latin America, more precisely in the security market, we have different classes of companies that are focused on providing solutions at different scales, according to budgets, prices, availability, quality, in addition to other factors that present different situations for the end user who is himself the final consumer. How can integrative companies be advised so that through their objectives and strategies they can obtain growth within the security industry?

George: Eduardo, first of all let me thank you for this opportunity to share my point of view on this important issue, which is in itself important and will allow the integrating companies of Latin America to take into account tools to take advantage of the opportunities and technology in the market.

First we have to go to the origin. When a person or a group of people found their own integrating company, they should have a short, clear and concise mission, as well as a vision that meets the same characteristics; it is also important to have a management group composed of highly qualified and experienced people in the areas of sales and facilities.

Needless to say, a strategic plan with simple and clear objectives, along with a continuous measurement system, are essential.

Now, when it comes to sales and marketing, the following guidelines should be taken into consideration:

Focus: Choose a couple of vertical segments, for example financial and oil sector, or retail and government. The objective here would be to become a benchmark in the segment, getting involved in trade associations, chambers of commerce and where it could network with its target customers. Concisely, you have to go where the investments are: this year it may be in ports and airports, the next in urban security, another in the migration of banks to digital technology for recording and transmission.   

Training: Have your entire sales team certified in a Miller Herman-style sales course; this is well known in the IT world and is quite good because it develops sales capabilities in projects that can take six to 12 months to close, and where one can be negotiating with four or five people in different departments to win the sale   .

Leasing and rental: look for ways to lease the system to the customer. This makes it possible to offer a complete package that includes service and preventive maintenance, and although in the short term it is more capital intensive, in the long term the profitability is phenomenal.    

Corporate image: Pay attention to everything related to your corporate image, and if you have the same logo from 10 years ago it's time to change it. Pay close attention to your website because today it is your "showcase" to the outside world, and they are more likely to look at the virtual space than to take the time to go to your office. Also be sure to post testimonials from satisfied customers on the page. E: Currently there are many companies that during their existence have maintained a commitment to quality, service and attention, and that continue to contribute to the industry by remaining as companies that invest in their personnel, training and image to continuously offer quality and reliability of their services.

George, what suggestions could be made to integrators regarding the operational part and installation?

G: Those companies that based their values on their services and products, on the guarantee, support, support, training and shared responsibility, are the ones that today enjoy local leadership in each of the countries of Latin America.

In the operational and installation part we can consider the following:

Cooperative: in North America it is common for medium-sized companies to form cooperatives or purchasing groups; find a way to do the same. This can result in better prices and purchase conditions, more sensitivity in support on the part of the supplier (due to the cumulative purchasing power of the group), and not to mention the opportunity to share experiences and best practices with similar companies. This could be done in the main cities of the country and in the regions, because this provides the opportunity to provide services to national or multinational companies that require companies with attention in several countries.   

There are also cases of cooperation between the so-called "big" industry and SMEs (small and medium-sized enterprises). I was recently in Colombia and learned of an important project where Siemens and two medium-sized companies are cooperating on a security project.   

Owned or proprietary products: This may be easier said than done, but you could stop selling solutions developed by your own company or that are only available from a supplier. Today the trend is leaning towards open platforms, and the speed of innovation and change is tremendous; you can leave this in the hands of companies that are 100% dedicated to manufacturing, so that the company is dedicated to its own thing.   

Certification: Certify all technicians in some courses that are already available as offered by WINGS, in addition to other partnerships; the topics are varied (intrusion, access, CCTV, fire and, of course, in networks).   

ERP: Today there are already ERP platforms designed specifically for Integration and Monitoring companies.   They include specific modules for project management which is fundamental in this medium. In addition, of course they do accounting, CRM and in general increase the efficiency and productivity of the company.  It would be an important but indispensable investment in future success.

And: Excellent George, I agree on his riddles and suggestions, especially in the part of certification and own products. It is important to have a qualified staff and be 100% focused on the services and products of which one has more knowledge, and let manufacturers take care of the development, engineering, quality and service of the technology they provide.

Now I would like to touch on the financial aspect, because it is important that the income that integrators project is conceptualized in their action plan, in the corporate objectives and goals for their business growth.

G: I think this is the most important part, because it supports the durability and profitability of the integrator to be able to adapt to the technological changes, prices and trends that the security market provides due to its growth.

In the finance part, the following objectives are important:

Income distribution: It is important to ensure that at least 30% of revenue comes from service and maintenance items, which will help cash flow when there are not so many projects. Another option is to have under-contracted installation teams, demanding minimum levels of certification and giving incentives for compliance in time, quality and customer satisfaction. No client should represent more than 10% of the integrator's revenue.    General Reports: The objectives of the financial department should be focused on an orderly and very simple structure, which consists of:     

• Keep information updated daily
  
• Establish a good organization of all documents   
  
• Keep records and documents of processes and procedures   
  
• Have key reports available at the push of a button

In this way, if any day of the week a potential buyer is going to enter the company would take an excellent impression of the organizational structure.

And: In my experience, I think that there are some integrative companies to which this information arouses the interest of investing in a solution of values as you have presented, and that there should be a mission and vision as you have shared it. In addition, I think that the integrator must express to the end user his commitment, and show him that he has a leading company, with image, organization, stability and projection.

G: As eduardo has always said, security is a scenario of values and services involved. The Integrator must be linked with greater determination to all areas of the company, since each of them will contribute to the valuation of one hundred percent  of all the foundations that make up the leading company. 

For this we could think of the general strategy of a company, according to the book "The Discipline of Market Leaders", by Michael Treacy and Fred Wieserma, which says that a firm can excel in one or two of the following areas:   

• Product Leadership   
• Closeness to the customer   
• Operational excellence

It is important that companies identify where they want to stand out, in order to develop strategies and objectives around this factor. I would personally choose closeness and operational excellence.

In the end, any security project resembles the construction of a house or a building, because the client will want these three things because they were fulfilled above all:

• Execution of the project as agreed
• Realization of the project by the stipulated economic resources
• System quality and installation as expected

If a company starts by achieving these three objectives, it will generate a good reference in its customers, in addition to the probability that it will be recommended to other potential customers.

And: George, I share with you the awareness and need to set objectives on the part of the integrating company in its mission and vision, in being short, clear and concise, all this backed by values of guarantee, support and training so that the true meaning of the investment can be justified as a whole that adds value for the end user. 

I am very grateful for your participation and for giving your time and expertise to our readers.

Author: Julián Arcila Restrepo

Chief Marketer

Communications professional, MBA, specialized in designing and executing successful Public Relations and Digital Marketing campaigns with more than 14 years of experience in areas related to communications.