Periodically companies in the security services sector enter into crisis, the reasons for crises are different and the reactions in the same way; In this article I would like to share some of the appreciations that over the years I have observed when this type of situation is generated.
By Luis González Nogales
The theory indicates that when a crisis is generated, the first thing to execute are the plans (which are supposed to be updated) for crisis management, contingency and business continuity. This is true in most cases when the crisis is generated by natural phenomena such as earthquakes, floods, and other phenomena of similar magnitude; including those of the type generated by violent actions such as coups d'état, declared or undeclared wars, terrorism, etc.
However, when crises are of another type such as:
Recurrent structural crises in the sector, such as the lack of access to the hiring of personnel product that other sectors of the economy such as construction, agribusiness or the growth of free zones, make these jobs more attractive than that of guard or security guard.
Economic crises of the country either by macroeconomic or microeconomic management internal or by effects of international crises where companies initiate processes of cuts in their costs and expenses and that of physical security is usually one of the first to be affected.
Crisis due to political-social problems that ultimately become economic crises such as those mentioned in the previous paragraph.
Crisis due to constant increase in costs either due to an increase in the country's inflation, or periodic increases in minimum wages which cannot be transferred to customers for different reasons.
We must remember that security services are not in the category of inelastic prices, but on the contrary are extremely sensitive to prices, the effect of this are the multiple complaints of the associations of the sector about companies called ghosts or in other ways, which maintain very low prices, even below the real cost.
These types of crises have the particularity that since they are not of impact like those generated in a surprising and generally violent way (by nature or people) their formation is slower but not for that reason of less impact and negative consequences.
In these crises there are several groups of people who suffer it directly and immediately. The first are the partners who see the distribution of dividends, returns on investment and the investment itself made in danger vanish. The second is lower-income workers such as cleaners, security, customer service and others who are on the front lines of being affected by staff cuts.
As well as some items of expenses in advertising, training, training and technification of personnel for example.
And with these activities or "measures" is what begins what many managers like to call "survival measures", having the effect that a process of destructuring of good management practices such as planning begins, since under the stigma of crisis it begins to be considered that with such diffuse horizons carrying out long-term strategic planning is useless, since it can have a multitude of very changing variables. This is the prelude to abandoning operational planning and moving to day-to-day management.
This means that good practices for measuring indicators are lost and without these analyses, improvement actions are forgotten and little by little the crisis is entering a downward spiral that in the end will end in a vortex of bankruptcy.
At this time the most important thing in my opinion and consideration is to do the opposite is to say:
Staff cuts; if it is necessary to make the cuts of personnel it is necessary to start them from those of higher remunerations downwards, compact functions and distribute responsibilities, perhaps some manager of those who are currently called " collaborators " instead of workers is reluctant to this assumption of new responsibilities that will undoubtedly require more work and time, but collaboration must always be in two directions, when they are on the rise with good annual incentives and when they are in decline with greater contributions and hours of work. In most cases, from the economic point of view, the remuneration of an executive at the managerial level will possibly be higher than that of three or four basic workers who will guarantee us the company clean, cared for, and with a customer service that goes in the proactivity of the satisfaction of the same.
Other expenses: although it is necessary to carry out an in-depth analysis of the other costs and expenses mentioned, it is important to maintain everything directly related to the turn of the business and that may affect it, you can reduce the sponsorship of events or support to organizations but not the advertising that generates sales.
Planning, this is perhaps the biggest mistake that is made, although long-term planning becomes complex, if it should be mandatory to establish the planning cycle whether it is annual, semi-annual or even monthly, adjust to it and clearly establish the objectives, expected results, measurement parameters and responsibilities of each one in a clear and objective way.
In this aspect of planning and monitoring, the definition of indicators, which in practice is forgotten, must be a priority and it is even necessary to analyze which are not being carried out and are important to establish in these moments of crisis.
The measurement of the indicators must be reinforced in the sense that their frequency must be reduced in order to analyze the behaviors (here if day by day) of each aspect of the business and how to improve or enhance it if it is on the rise. If there are breaches, what caused them, if they are failures of processes or procedures and above all responsible for them and what are the proposals for improvement.
Some actions of companies for their customers in times of crisis.
One of the aspects that are most abandoned in times of crisis is communication, and especially with customers, which generates losses of service posts, alarm accounts, etc.
Communication must be strengthened in several ways. The first is that the private security service provider must make an exhaustive risk analysis of the company to which it provides services and determine if it can reduce some positions or change them for electronic security systems.
The above is because over time in different circumstances or specific situations there have been increases in physical security, which have become obsolete, it is always better to propose with arguments a reduction of their costs to the client to the competition and do it.
The second is to carry out an analysis of the equipment assigned to each post or position according to its mission, for the same reasons mentioned above equipment is provided in specific situations that over time are not necessary and that charge an extra cost to the service.
Finally, you must periodically give the client information on how he has behaved, for example, the arming and dismantling system, the number of false alarms, maintenance, etc., so that he has that perception of attention and continuous concern of the company that gives him service for his safety and not only when the alarm is triggered or when they make the charge.
In the case of physical surveillance, it is important to maintain that communication with the client with actions such as letting him know the levels of rotation in his positions, the incidents detected, the proposed improvements that have already been made and those that remain to be implemented and in short everything that reinforces in the different managerial levels of the company to which service is given that the concern, Risk analysis and improving your safety is in the best hands.
If all of the above you do not do it, rest assured that the competition will look for how to do it and undermine your perception of the client, preparing better to survive the crisis and be in a stronger position to grow when times improve.
Greetings.
*Luis González Nogales is Executive President of INCASPRI. If you wish to contact him write to [email protected]
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