DIGITAL DIALOGUE

A New Age of Natural Selection

Brittain is editorial director, digital, for LP Magazine. Formerly a director of learning design and certification, Brittain managed the development of the LPC and LPQ certification programs in collaboration with the Loss Prevention Foundation. Prior to that he was vice president of operations for the industry’s largest executive search and consulting firm. In his thirty-plus years in the LP industry, he has helped build and enhance many learning initiatives and provided career counseling for thousands of industry professionals. Brittain can be reached at jacb@lpportal.com or by phone at 704-246-3143.

We live in a time of great change. We work in an industry where our ability to adjust to the needs of the customer and the dynamics of a global market sculpt the landscape of retail. We serve in a profession that demands that we adapt and adjust to business strategies, retail partners, and the many elements that can impact company profitability. This isn’t exactly breaking news. We know this. We preach this. We embrace these principles as a critical aspect of what we do. Why then, are there those that are so resistant to certain types of change?

Why do some applaud advancements in technology, but fail to take advantage of the technology that’s available right at their fingertips? Why do some advocate the value of training and education, but fail to support an industry certification program? Why do some lecture their teams on the power of information, and then not take simple steps to stay informed? How is it that we can see the train coming and stand on the tracks rather than jumping on board?

This all began as part of a conversation with a friend at the recent RILA conference as we traded stories about old cell phones and new technology, but it applies to each of us in many ways. Imagine not having access to your cell phone on an everyday basis. Imagine your work week without the convenience of a computer. Just look around your home or your office and consider all of the devices that we now depend on that didn’t exist just a generation ago. And what we often fail to remember is that most of these products evolved…with our input.

As consumers, we took control of what we had, provided feedback regarding what we liked, what we didn’t, and what we wanted, and actively participated in the growth and development of these products. Whether it’s a program, a device, a practice, or an application, this is the new wave of natural selection, and we are all part of it.

Change is inevitable, and technology is an important part of that. It is a fact of life, and a law of business. As such it is our responsibility to amend, aspire, progress, and evolve. This is a new age of natural selection, and in order to survive, we must continue to adapt.

What Are Some of the Hurdles Holding Us Back?

■ Unless the end result of using this tool is so compelling that it’s worth the hassle, the status quo is easier. That may be true, but easier doesn’t necessarily equate with better. ■ We don’t want to invest precious time learning something if what we’re doing now is good enough. I guess that depends on how we define “good enough.” But are we sacrificing long-term benefits for short-term gains? ■ When it comes to technology, we know that the minute we get comfortable, it will just be replaced by something else.

Is this just another way of saying “why bother,” or are we delaying the inevitable until some of the bugs have been worked out? Recognizing the difference is an important distinction. There will always be a “next.” ■ Lacking awareness that there is a need for change. When we fail to recognize or understand that the change can be valuable to us, we can easily fall behind and end up playing catch-up later. The benefits of staying current can be extremely valuable. ■ Fear of the unknown and concerns we will not have the necessary skills to do new things, or that previous skills will be deemed obsolete. Going into a dark room is difficult even for the bravest of souls, and we have a natural tendency to want to stay in control. However, most would argue that staying current provides the best opportunity to remain in control. ■ The change is perceived as a threat to job security, power, or influence. Resisting or opposing change for political or self-serving reasons is often poorly veiled and quickly revealed. This practice can just as easily threaten security, power, or influence.

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■ We are creatures of habit. We long for stability in our lives, which represents a comfort zone we want to live in. This is perhaps the most common reason that we resist change. But often these changes only require minor adjustments that simply modify our way of doing things and become new habits over time.

This phenomenon applies to the loss prevention industry in many ways. It’s posted in our news stories. It’s a topic of discussions. It surfaces in our practices, and ultimately in our results. There are strong organizations and intelligent people that are reluctant to embrace change. We face them every day. And occasionally, that face is the one staring back at us in the mirror. This isn’t to imply that we should randomly embrace every gadget or technology that comes along, but there are clearly times when each of us should challenge our own convictions.

Sometimes we alone are responsible for holding ourselves back just by failing to open a door. Five-year-olds are using technology on a daily basis that some of us still shy away from. I know my grandsons do circles around me, and I’m pretty sure that I’m not the only one. How about you?

There will never be a substitute for patience, good judgment, interpersonal connections, or basic principles. But change is inevitable, and technology is an important part of that. It is a fact of life, and a law of business. As such it is our responsibility to amend, aspire, progress, and evolve. This is a new age of natural selection, and in order to survive, we must continue to adapt.

The Spice of Life

Variety seems to be the topic of choice among our readers over the past few months, with a healthy balance of interest in different types of news stories. This was reinforced by attention to specific articles as well as participation in discussion groups and other online media. This balance offers a welcome insight into the heart of the industry, and the desire to approach our information on a broader, more global scale.

We don’t want our information presented in tabloid formats flooded with shootings, tragedies, and scandal. While these incidents may be important and newsworthy, it’s not enough. We also want growth. We want to hear about the positives. We want to take lessons from what has happened and learn from those that can help us develop our skills.

At the same time, we want the occasional opportunity to escape to a lighter side, which can also be healthy and productive. After all, nothing says “loss prevention” like a woman entering a supermarket wearing no pants and stealing two cases of wine. The story did, however, emphasize that she was wearing slippers—an important detail as they tried to track her down among all the other drunk, half-naked people walking the streets carrying two cases of wine.

Perhaps one of the more polarizing stories that we saw recently involved a “Theft is not a priority” comment made by a director of operations for a large retailer while appearing in court during a lawsuit. Several news sources reported the comments. Feeding the fury, company stores were victimized by two separate burglaries less than a week apart immediately following the initial story, with tens of thousands of dollars in merchandise stolen in each incident.

Most of the discussions, as one would suspect, were not exactly supportive of the company comments. However, there were others that did support the director’s remarks. One operations leader commented that they “don’t necessarily believe the article was that far off… The reality is that especially if we look at our stores, they have so many priorities with sales, visual, customer service, etc. that if you asked most of them to be honest, LP is not going to rank high on their list.”

Is this a “reality” in the stores, as these comments might suggest? Is it a lack of awareness or training? Is it that a loss prevention culture has not been instilled in the organization? Is this an issue of approach to the subject of theft and loss? Were the comments misconstrued? Is this simply a matter of semantics? With the passion that we carry for our profession, there were some strong opinions. What do you think?

Tragedy in Buffalo

Although difficult to discuss, we would be remiss not to mention the tragic events that occurred in the Buffalo area involving a regional LP manager for a major retailer that was arrested and recently plead guilty to manslaughter charges in the death of an assistant store manager in one of his stores. Claiming to be in “desperate financial straits,” authorities believe the RLPM went to the store at about 4:30 a.m. to steal money, but he unexpectedly encountered the manager, who arrived to unload a truck.

The victim was believed to have been stabbed following a physical encounter in the store office. Hours after the killing, the RLPM returned to the scene to “console workers” after the incident was discovered. In the weeks following the killing, the 39-year-old went on to burglarize at least three other stores before his arrest, prosecutors revealed. As a part of his plea, he agreed to pay $223,000 in restitution.

Far too many robberies and burglaries occur in our stores, and violence is an ugly reminder of what can happen when desperate people do desperate things. Every incident is tragic, changing lives and devastating families. But as legal closure is brought to this case, personal and professional closure is still hard to find. Tonight in northwestern New York there is a wife without a husband, and children without a father. It should never happen. It should absolutely never happen like this.

Information is best when we put it to use. Take the steps to get involved and stay informed. There are no more excuses.

25 YEARS AT SAKS FIFTH AVENUE

THE EVOLUTION OF ROSAMARIA SOSTILIO

EDITOR’S NOTE: Rosamaria Sostilio was recently named senior vice president of asset protection for Hudson’s Bay Company after twenty-five years in various LP roles with Saks Fifth Avenue. She began her career on the sales floor at Bloomingdale’s in Boston before moving into loss prevention as a detective. She joined Saks Fifth Avenue as a store LP manager before moving into a corporate role. Sostilio has been active in the National Retail Federation and recently took over as chair of their LP advisory council.

EDITOR: That doesn’t mean that you will move to Canada, does it?

SOSTILIO: I’ll continue to live in New York, but will have the pleasure of visiting Canada often. We have stores across Canada from the Atlantic to the Pacific, so I’ll have a great opportunity to explore the country. I have a whole new awareness of Canada and the Canadian culture, and I love it. It’s very exciting.

EDITOR: Has the integrated company been established long enough for you to know what your loss prevention organization will look like?

As we move into omni-channel retailing, unit integrity is as important as shortage control. We’re on a cost stock ledger, so we take cost inventory, which makes it even more important to know where the units are. We’re getting very involved in unit integrity and omni-channel, and leading the way with that in the organization.

EDITOR: It’s been twelve years since the magazine last featured you and Saks. Much has changed. Tell us about the new company that exists today.

SOSTILIO: The new company is an amazing organization. Saks is now owned by Hudson’s Bay Company. The three banners operated by HBC are Lord & Taylor, Saks Fifth Avenue, and Hudson’s Bay. I’m so delighted about getting to know the HBC team and the extraordinary heritage of the company. The explorers for HBC were those that essentially discovered Canada. Lord & Taylor, of course, is one of the oldest department stores in the United States, and Saks Fifth Avenue has its own heritage.

EDITOR: Is Hudson’s Bay Company the predominant owner?

SOSTILIO: Yes. Hudson’s Bay Company is the parent company that each banner is operating under. SOSTILIO: When I took this job on November 4th of last year, I immediately did a compare and contrast of the organizations, looking at the entire LP group and determining how to best structure the team. By January I had my synergies aligned and my go-forward team in place. In early February I was able to bring the three corporate banners together in New York. We got to know each other and set our new direction. We’re an asset protection division now, which includes traditional LP and shortage control under one banner. We’ve taken the best components of all three teams and developed one unified program. From a people and a program standpoint, the division is fully integrated.

EDITOR: Do you have specific individuals reporting directly to you that represent the Hudson’s Bay, Lord & Taylor, and Saks divisions?

SOSTILIO: Yes. Tony Caccioppoli took on Saks and Lord & Taylor as the asset protection vice president for the U.S. In Canada we have Don Jobe as the divisional president for Hudson’s Bay. He and Tony work together.

EDITOR: How do you personally manage your time and presence between the different entities?

SOSTILIO: I’m very hands-on. The people part of this business is my favorite part. Developing teams is what I really love to do. It’s my passion. The

Rosamaria Sostilio

whole organization has teleconferencing capabilities, so I feel like I can be in Canada at a moment’s notice. I’m really getting to know my team, but I’m getting to know all the store people as well. I take care of the corporate team, but I also try very hard to stay in touch with what’s going on in the field.

EDITOR: Have you established specific key objectives and accountabilities for asset protection?

SOSTILIO: Absolutely. We’re adding more accountability to the process. I want to make sure that everyone understands that we own the process and we own the results. Accountability and teamwork are really the two primary pillars that we’re focusing on.

EDITOR: From a financial standpoint, is the key objective shrink performance?

SOSTILIO: As we move into omni-channel retailing, unit integrity is as important as shortage control. We’re on a cost stock ledger, so we take cost inventory, which makes it even more important to know where the units are. We’re getting very involved in unit integrity and omni-channel, and leading the way with that in the organization.

EDITOR: Over the years you and the Saks organization have had a reputation of low turnover and high associate involvement in LP initiatives. I would imagine that remains a key objective of yours. How do you accomplish that and why is it that people want to stay?

SOSTILIO: I think it’s important that everyone feels that they belong and everyone has a voice. It’s very important for me to have diversity and to reinforce that every opinion matters. I don’t make decisions in a silo. I like hearing everyone’s input and opinion and make my decisions accordingly.

I look for people who are engaged and committed, which are two very investigations. And when things get dicey, as they sometimes do, I stand shoulder-to-shoulder with them, which I think they appreciate.

EDITOR: How did the Canadian team react to that?

SOSTILIO: The Canadian team is incredible. I feel like I’ve already known them for years. I didn’t know what to expect, but it works both ways. I’m sure they were nervous meeting me as well. They were very welcoming and forthcoming.

EDITOR: Speak about where you are today with training and people development, and the commitments that you have in place.

SOSTILIO: Training is the strength within the organization. We have programs for associates as soon as they come on board. We have a recognition program for top talent that gives specific direction to help prepare for future management positions.

We also have a succession and recognition program for top talent that I have more people with more ideas on the team.

Our asset protection managers need to understand the business and work with the teams in the stores. They work side-by-side with the general managers, supporting business initiatives within the organization. Whatever the company is moving toward, we are there for support. We have a very strong role within the organization and are looked at as go-to people.

EDITOR: What are the priorities of an asset protection manager in a store? Is it shortage, apprehending shoplifters, investigating employee theft? You mentioned that they’re considered a business leader in the store. Is that where you start in terms of their priorities?

SOSTILIO: They develop a strategic plan with their general manager. Together they analyze the shortage results and put together key measurable initiatives. Once finalized, they work within that plan all year long and, course-correct as necessary. Functional direction comes

ValeStock / Shutterstock.com

Part of our overall success is that everyone is cross-trained. Although I have specialists, we take steps to ensure that the regionals and the store teams have diverse training. They work to understand the business in its entirety, and I don’t have silos within my functional area. When we strategize, it’s about sitting at a table and working together. This is really key for us.

separate things. You can be engaged and not committed, or committed and not engaged. I look for both and work really hard with the team to achieve that.

We have a spirit committee that develops suggestions on how to recognize team members and an appreciation day to celebrate successes. We are a team. We do things together. I’m right there with them on programs, situations, and that provides exposure to corporate projects and the opportunity to work with corporate teams. It takes associates beyond the store level, giving them a better understanding of corporate and organizational agility, business acumen, and other important competencies that they will need to move forward. Training is a passion for me, and I’m looking forward to creating more programs now from the corporate AP team, but they work day-to-day with operations and the general manager to meet the various needs of the local stores.

EDITOR: What technology initiatives do you have in place currently or are thinking about putting in place?

SOSTILIO: We have a very strong remote-viewing program. From the

corporate offices I can remote view all of the stores.

EDITOR: What is the predominate goal of the remote monitoring that’s in place today?

SOSTILIO: We can use it in many different ways. We can use it to help the stores from an internal investigations standpoint. We can marry up POS transactions with video. We don’t use it as much right now for shoplifting. That’s still handled locally in the store. But we team working on solutions to those challenges.

EDITOR: One of the issues that has received significant notoriety since we last interviewed you is ORC. Twelve years ago you were putting ORC initiatives in place. Where are you today specifically within the Saks organization, and how does that apply to the Canadian stores?

SOSTILIO: As we all know, organized retail crime doesn’t have boundaries. We’re still very aggressively trying They work to understand the business in its entirety, and I don’t have silos within my functional area. When we strategize, it’s about sitting at a table and working together. This is really key for us.

EDITOR: In terms of your personal management style, beliefs, or how you attack shrinkage, how would you say you’re different today than you were twelve years ago?

SOSTILIO: I’m definitely a lot more patient. I’m calmer than I used to be,

I want people who think differently than I think. I like to be challenged. I focus on diversity in thought, and that’s very, very important. There are still challenges for women in asset protection. There are people who still don’t want to take you seriously. That’s something that I’ve always had to overcome. You need to have faith in yourself.

have the ability to use it however needed. We can monitor parades or disturbances. Whatever is happening, we have viewing capabilities on the streets and in the parking lots. We can use it in many different ways.

EDITOR: There’s much talk about emerging retail trends, such as mobile POS, omni-channel, and smart technologies. How are you responding to those new developments?

SOSTILIO: The company is exploring all of those channels. Omni-channel is very important in this organization. We need to be able to ensure that merchandise is fulfilled for customers through every channel possible. It should be seamless for the customers with whatever channel is used. If they want to order online and pick up at the store, we’ll make that happen. Our division is right there with the rest of the corporate to attack it. We’re working very closely with the NRF [National Retail Federation], lobbying to get stricter laws and distinguishing it from shoplifting. ORC is at a higher level than shoplifting, so we’re working on it on many different fronts. From a legislative standpoint, my team is very involved in legislative committees and work closely with the NRF, working with the stores and local, state, and federal authorities trying to break up these rings. We’ve had some successes. We have to take a very holistic approach. There isn’t one easy answer, and there isn’t one easy way to attack it.

EDITOR: What do you think is key to your approach to ORC incidents?

SOSTILIO: Part of our overall success is that everyone is cross-trained. Although I have specialists, we take steps to ensure that the regionals and the store teams have diverse training. which I think just comes with age. But a lot of my core values have stayed the same. My love of people and watching people develop and grow has always been one of my passions. Mentoring teams is really what I love every single day. I love developing strategies and watching the success and execution of the strategies. I’m still doing that today.

My approach is a bit more global today. I’m not as tactical as I was because my job has evolved. I definitely have more long-term vision. At that time I was more of an executor. I can still execute when I need to, but my day-to-day job is a much more strategic and long-term focused. In this new role having to develop a vision and a strategy for the three banners, I’m definitely using those skills a lot more. But my core values haven’t changed. I’m still the same person. I lead with my heart. I think I always have. I don’t believe those core values really change.

We have a spirit committee that develops suggestions on how to recognize team members and an appreciation day to celebrate successes. We are a team. We do things together. I’m right there with them on programs, situations, and investigations. And when things get dicey, as they sometimes do, I stand shoulder-to-shoulder with them, which I think they appreciate.

continued from page 30

EDITOR: As you look across the LP profession, we still have lots of things that we can do better. If you could snap your finger and make some changes, what might be some of those changes?

SOSTILIO: As a profession the business is very much defined by the organization and the needs within that organization. It’s not something that you can say you would apply the same way across the board. There are unique aspects to it. To be successful, you have to understand what your company really needs. You can’t just apply generalities to the business. I think that’s what makes our industry unique. Retail is so vast and so different. Teams are called by the same names, but if you really dig in, things can be handled very differently. You really have to understand the culture of each company and then what their needs are. That’s very different across retailing.

Contact_halfPageAD_FINAL_7x4.625.pdf 1 4/29/14 5:22 PM

EDITOR: You are a woman LP executive at a premiere retailer. The reality is that even today you are still an exception. What are your views of women and diversity in asset protection?

continued on page 34

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continued from page 32 SOSTILIO: Diversity is defined in so many different ways. I like people with diverse backgrounds on my team. I have a woman on my team that runs investigations who is a former prosecutor. I have a woman on my team who is a CPA. I have a gentleman on my team who is getting his masters in technology. I try to bring in people with all different types of backgrounds. I can teach anyone the fundamentals of asset protection and how it fits into our team and into our company. That’s easy for me to do. I’ve been doing it for twenty-five years.

I want people who think differently than I think. I like to be challenged. I focus on diversity in thought, and that’s very, very important. There are still challenges for women in asset protection. There are people who still don’t want to take you seriously. That’s something that I’ve always had to overcome. I dig my heels in deeper and just move forward. I don’t focus on negativity. I surround myself with people who are positive. You need to have faith in yourself.

I try to help everyone—not just women. I try to help and mentor. I love to do that. I’m very involved with NRF’s Women in LP group, and I really support that organization. Joan Manson does a fantastic job running that group. I encourage women to take advantage of what’s out there. It’s still difficult being a woman in LP, but you just have to deal with it.

EDITOR: Speaking of the NRF, you’ve been involved for a long time and are now the chairperson of their LP committee. Tell us how you see yourself in that role over the next few years.

SOSTILIO: The NRF is clearly a very important organization for the industry. I think every person in retail should take advantage of the NRF and what the organization offers. I’m really proud to be in that position. Being voted into that position by my peers was an incredible honor.

I remember twenty-five years ago when I went to my first meeting. We were in Atlanta, and I think I was one of three women who were in attendance. I remember my eyes were just as wide as saucers. Having evolved and grown, I’ve seen how the organization has changed and developed. As I walked on stage last year to accept my nomination, it was a very proud moment for me.

I’m hoping that I can continue to inspire and work with the loss prevention community. I want to understand what individuals in the industry need and help organizations get there. The NRF is an incredible organization. They just have so many resources available, and they’re working to change the conference. Steve Ippolito is now the content-planning chair. Vicki Cantrell, who is the NRF’s senior vice president of communities, is wonderful and really smart. She brings a fresh perspective and helps us decide new ways of tweaking the conference. The board members are now really much more involved in the content and allowing the NRF to do what they do best, which is planning and delivering a great conference experience. I encourage everyone in the loss

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EDITOR: The 2014 conference will be held in Fort Lauderdale. What are a few things particularly exciting about the agenda that we should be looking forward to?

SOSTILIO: There are going to be a lot of really interesting aspects to this year’s conference. One new component is a debate that will take an important topic and feature opposing points of view on the subject, which is very exciting. There’s going to be greater ability to interact during presentations by using technology to help further engage the audience members. But this is only the beginning. You’re going to see the NRF conference evolve even more next year, once we get feedback from the tweaks that we’re making this year. team to do better. We reinvent ourselves constantly. I think a lot of it has to do with the environment, what’s going on in the world, and what we’re facing. That’s going to be important to our company, and we’re going to continue to tweak and hone our program to be the best in the industry. My goal is to always be best-in-class. I have to get to know my talent. I have to continue to advance our programs. There’s a lot out there to do, and I’m really looking forward to it. Every day that I come to work I feel like I’m starting a new job again. I’m really happy that after twenty-five years, I can’t wait to get up in the morning and come to work. I’m terrible at taking vacations because I really enjoy being here. Hopefully, it will continue to stay this much fun.

EDITOR: I can hear it in your voice.

SOSTILIO: I’m not just saying it. I have a passion for what I do. I work in midtown Manhattan. It doesn’t get more exciting than that. I’m surrounded by amazing people. I’m getting to know different executives in the organization. It’s all new to me, but the management team in the company is great and very supportive. Of course, I think my own team is the best team in the company. They’re amazing.

EDITOR: Who has been instrumental in helping mold you and your career?

SOSTILIO: I take a lesson from everyone that I meet—people that I like and people that I don’t like. I try to take every interaction as a learning interaction. It’s not all wonderful. Sometimes you meet and work with people that you really don’t like. For me, even that is a learning experience. I’ve had great bosses throughout my career, but more than that, I try to really pay attention. I’m very present when I’m meeting and interacting with people. There’s a take-away from every interaction I’ve had. It’s really all about the people. I love what I do, and I feel blessed that I’ve had the opportunity to do what I like to do. This doesn’t feel like work to me.

EDITOR: You’ve been a key industry leader for a long time. What’s next for Rosamaria Sostilio?

SOSTILIO: I’m never happy with the status Loss Prevention 4.pdf 1 14/04/14 18:37quo. I always challenge myself and my

EDITOR: It comes through loud and clear. I suspect you’ll say the same thing in another decade as well. Thank you for speaking with us.

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