LPportal.com | V12.2 March-April 2013
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LOSS PREVENTION
MAGAZINE THE VOICE OF LOSS PREVENTION
DIGITAL JOURNEY
Leveraging New Technology in Loss Prevention INTERVIEW WITH DAVID LUND DICK’S SPORTING GOODS TUNING UP PEP BOYS’ LP ORGANIZATION SURVIVAL SKILLS FOR DOING MORE WITH LESS
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Contents
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6 PUBLISHER’S LETTER The Benefits of User Conferences By Jack Trlica
Digital Journey: Leveraging New Technology in Loss Prevention
8 ON THE WEB 10 RETAIL SPONSORS 12 INTERVIEWING General Loss Interviewing—Part One By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP
New tools for Sears Holdings’ LP field organization
By William M. Titus, Sears Holdings
26 ACADEMIC VIEWPOINT What Is the Relationship between Wages and Employee Theft? By Richard C. Hollinger, Ph.D.
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38 ASSOCIATIONS IN ACTION Conference Participation Can Transform the Industry By Lisa LaBruno
From Running an LP Organization to Running a Marathon
48 MY TURN Make Time for Self-Improvement By Joe Box, Jr.
A conversation with David Lund, DICK’S Sporting Goods
56 EVIDENCE-BASED LP Taking It to the Next Level By Read Hayes, Ph.D., CPP
By James Lee, LPC, Executive Editor
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57 SOLUTIONS SHOWCASE - InstaKey Security Systems - Tyco Integrated Solutions
Tuning up LP for Greater Horsepower and Better Performance
60 INDUSTRY NEWS - Feds Release 2012 Counterfeit Seizure Statistics - i3 International Conference Held in Puerto Rico By Robert L. DiLonardo
Organizational changes at Pep Boys
61 CALENDAR
By Adam Paul, Contributing Writer
62 CERTIFICATION The LP Industry Goes Back to School By Catherine M. Penizotto
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63 PEOPLE ON THE MOVE
Survival Skills for Coping in a Doing-More-WithLess Environment
64 ADVERTISER DIRECTORY 65 VENDOR SPONSORS 66 PARTING WORDS What Is March Madness? By Jim Lee, LPC
Prioritizing tasks to get more done
By Walter Palmer, CFI, CPP, CFE, PCG Solutions
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Publisher’s LETTER
The Benefits of User Conferences
T
hose of us associated with the magazine are lucky to be offered the opportunity to participate in a variety of meetings hosted by retailers, associations, as well as solutions providers. We don’t always have the availability to attend, but when we can, we like to participate. Speaking specifically about user conferences hosted by solutions providers, the benefits are many. We get to hear presentations by retailers about how they are implementing the host company’s product. We hear about the latest technology developments and, sometimes even, about what’s in the works that may not be public knowledge…yes, we can keep a secret. We also get to enjoy the networking. Often, there is robust discussion about issues with technology or customer service, brainstorming of solutions, and pie-in-the-sky wish lists. In my experience, this give-and-take may be the most valuable part, especially for the solutions provider who is willing to take both the positive and negative feedback as constructive criticism that they can turn into positive changes for their users. During these discussions you may hear one retailer voice an issue they are having, only to have another retailer offer a solution that they have discovered. More than once I’ve heard an attendee tell another retailer, “Talk to me at break, and I’ll tell you how I solved that problem.” At other times, the host will have their development team in the meeting to offer their insights. How valuable is it to have a room full of experts together talking in detail about a technology that is critical to the success of an LP operation? Most recently I attended one such educational conference sponsored by i3 International (see page 61). They host what they call INNOVISION every two years. I’m not sure if it’s because they are a Canadian company, but this conference is scheduled in February in a warm location. This year it was held in Puerto Rico. (I hear that salt-water
MAGAZINE 700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax
fishing may have something to do with the location choice as well.) I mentioned above that one of the benefits I get from these events is getting to know a company better. Visiting with vendor partners at traditional industry events often doesn’t give you the opportunity to really get to know the company. Having not only the face of the company present, but also other executives as well as staff for several days is typically just not possible except in meetings like this. Every company is unique, but few have a back story like i3. This is a family-owned company founded and run by Vietnam refugees who fled the end of the war in 1975 by boat. Jack Hoang is president, Bob is VP of international development, and Vy is EVP of sales and marketing. Vy opened the conference with an emotional presentation about the family’s escape from Vietnam to a refugee camp where they waited in desperate circumstances for an invitation to immigrate to North America. Canada provided that opportunity. I mention this for two reasons. First, it illustrates the importance of getting to know a company. Second, it explains why family is such an integral element to the success of i3. Many of the attendees brought family with them and the event included spouses and children in many of the activities. It was great fun experiencing that side of people who you often only know in a business context. However, my message is not to promote i3. The bottom line is that LP executives and, especially, their staff should seriously consider the benefits of attending user conferences. The benefits are many and valuable…whether they are held in San Juan or Saint Paul.
Jack Trlica Editor and Publisher
LossPrevention and LP Magazine are service marks owned by the publishers and their use is restricted. All editorial content is copyrighted. No article may be reproduced by any means without expressed, written permission from the publisher. Reprints or PDF versions of articles are available by contacting the publisher. Statements of fact or opinion are the responsibility of the authors and do not necessarily represent the opinion of the publishers. Advertising in the publication does not imply endorsement by the publishers. The editor reserves the right to accept or reject any article or advertisement.
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EDITOR AND PUBLISHER Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com CONTRIBUTING EDITORS Robert L. DiLonardo Walter E. Palmer, CFI, CPP, CFE Amber Virgillo CONTRIBUTORS William A. Alford, LPC, CFE Read Hayes, Ph.D., CPP Richard C. Hollinger, Ph.D. Gene Smith Shane G. Sturman, CFI, CPP David E. Zulawski, CFI, CFE DIGITAL EDITOR John Selevitch JohnS@LPportal.com CREATIVE DIRECTOR Larry Preslar PROOFREADER Amy Trainor DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com 704-844-6080 A D V E RT I S I N G
ADVERTISING MANAGER Bonnie Dodson 828-479-7472 office, 704-943-5797 fax BonnieD@LPportal.com WEST COAST REPRESENTATIVE Ben Skidmore 972-587-9064 office, 972-692-8138 fax BenS@LPportal.com S U B S CR I P T I O N S E R V I C E S
NEW OR CHANGE OF ADDRESS www.myLPmag.com POSTMASTER Send change of address forms to Loss Prevention Magazine P.O. Box 1088 Lowell, MA 01853 LossPrevention aka LP Magazine (USPS 000-710) is published bimonthly by Loss Prevention Magazine, Inc., 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105. Print subscriptions are available free to qualified loss prevention and associated professionals in the U.S. and Canada at www.myLPmag.com. The publisher reserves the right to determine qualification standards. International print subscriptions are available for $99 per year payable in U.S. funds at www.LPportal.com. For questions about subscriptions, contact circulation@LPportal.com. Periodicals postage paid at Matthews, NC, and additional mailing offices.
© 2013 Loss Prevention Magazine, Inc.
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ON THE WEB
EYEONLP
Editorial Board
Check out the new EyeOnLP.com page for the latest videos of what’s on the mind of LP executives and solutions providers, plus assorted videos we think will interest the industry.
Some people are asking us, “What Is EyeOnLP?” We’re glad you asked. Video host Amber Virgillo gives you the scoop only as she can.
Columns
There are a number of new articles on the magazine website you may have missed. Visit the Columns page at LPportal.com for these and many more. Online Investigations: Partnering with PROACT By Scott Sanford Establishing Greater Rapport with Management and Store Associates By Herman O. Laskey, Jr., LPQ, CFI Go-to People in LP Jason Evans, Stage Stores By Jim Lee, LPC, and Amber Virgillo, LPQ Is an Honest LP Person an Oxymoron? By Amber Virgillo, LPQ
LP Insider
Bob MacLea Senior Vice President, Loss Prevention, TJX
Leo Anguiano, LPC Senior Director, Asset Protection Rite Aid
Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA
Jim Carr, CFI Director, International Loss Prevention, Rent-A-Center
Randy Meadows Senior Vice President, Loss Prevention, Kohl’s
Ken Cornish Vice President, Retail Operations, The Kroger Co.
Dan Provost, LPC Vice President, Global Loss Prevention, Staples
Francis D’Addario Emeritus Faculty Member, Strategic Influence and Innovation, Security Executive Council
Tom Roan Group Vice President, Loss Prevention, Macy’s
Charles Delgado Vice President, Manager of Asset Protection, BJ’s Wholesale Club
Tim Shipman, LPC Director, Corporate Investigations and Crisis Management, Delhaize America
Patti Felz Vice President, Loss Prevention, Polo Ralph Lauren
Mark Stinde Vice President, Asset Protection, 7-Eleven
Barry Grant Senior Vice President, Operations & Loss Prevention, CPI Corp
Paul Stone, LPC Vice President, Loss Prevention and Risk Management, Best Buy
Bill Heine Senior Director, Global Security, Brinker International
Be sure you get the latest news and features with our weekly e-newsletter. ■ Current LP, retail, and technology news, ■ Original content from magazine staff and contributors, ■ Latest white papers from solutions providers, ■ People on the Move listings, and ■ A little fun to brighten your week. If you are not receiving the LP Insider, visit the magazine home page at LPportal.com and click on the links under e-newsletter to read the latest issue or to sign up. If you would like to contribute articles to the e-newsletter or have any comments, contact us at newsletter@LPportal.com.
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Ken Amos, LPC Divisional Vice President, Loss Prevention, Walgreens
Sonya Hostetler Vice President, Asset Protection & Safety, Walmart Stores U.S. Frank Johns, LPC Chairman, The Loss Prevention Foundation Gary Johnson Vice President, Loss Prevention, Vitamin Shoppe Paul Jones, LPC Senior Director, Global Asset Protection, eBay
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Bill Titus Vice President, Loss Prevention, Sears Holdings Bill Turner Senior Director, Retail Operations, Cole Haan Claude Verville, LPC Vice President, Loss Prevention, Safety & Hazmat, Lowe's Stanley E. Welch, LPC Vice President, Director of Loss Prevention, jcpenney Keith White Senior Vice President, Loss Prevention and Corporate Administration Gap Inc.
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interviewing
General Loss Interviewing: Part One “ A
ll my life’s a circle; Sunrise and sundown,” sang Harry Chapin. It may be just a natural part of life, but it seems like what was comes around again. Wide and narrow lapels and ties, pedal pushers now capris, bell-bottom pants, chukka boots, Nehru jackets, but, thankfully, leisure suits have not seen fit to return in force yet. It seems, though, general loss interviewing has returned as an investigative tool once again. Over the last year we have had a number of organizations request information and training about how best to conduct general loss investigations.
History of General Loss Interviewing
For those who may not be familiar with general loss interviewing, it was a common practice, maybe thirty years ago, to walk into a high-shrinkage store or department and interview all the associates in an attempt to determine the cause of shrinkage in the location. Remember, this was an age where inventories and store controls were in their infancy. The store had a 5 percent shrink and investigators were not sure if it was the result of paperwork, or internal or external dishonesty. The idea that one could know the store was actually missing two sweaters, their style, and colors, was unthinkable back then. Was it a problem with refunds, which falsely appeared to be a merchandise problem, or was it a serious shoplifting problem contributing to the losses? Investigators entering the store rarely had any information to help them resolve the shrinkage other than to talk with each associate to find out what they knew. Today organizations are blessed with the ability to closely establish a store’s inventory and product selection, plus companies have exception-reporting systems to target poorly trained or dishonest store associates. The exception-reporting programs allow loss prevention to mine the extensive store data and identify potential dishonest employees at the location. Many companies today prefer to limit employee interviews to those they have clearly established are stealing from the location. Using an exception-reporting system, organizations can now focus their investigative resources on the individuals most likely to be involved in theft and then clearly prove that. However, there will be certain cases where shrinkage may not be attributable to a particular associate or operational inefficiency making general loss interviews a technique of choice.
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by David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP
Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (www.w-z.com). Zulawski is a senior partner and Sturman is president. Sturman is also a member of ASIS International’s Retail Loss Prevention Council. They can be reached at 800-222-7789 or via email at dzulawski@w-z.com and ssturman@w-z.com.
Internal Resistance
Once loss prevention has made the decision that general loss interviewing may be an effective way to reconcile shrinkage in a high-loss location, the next priority is selling the decision to human resources, legal, and operations. Many times the decision to do general loss interviewing will face resistance because of perceived difficulties and operational problems caused by the investigators in the store. In addition, there may be additional problems in the wake of a general loss investigation. For example, in one high-shrink location on the East Coast, we obtained theft admissions from the entire management team and staff at the location. This resulted in the termination of everyone at the store by the end of the day, which left the district manager with no one to operate the location. In most instances it is difficult to know the extent of the problem until the interviews have concluded.
For those who may not be familiar with general loss interviewing, it was a common practice, maybe thirty years ago, to walk into a high-shrinkage store or department and interview all the associates in an attempt to determine the cause of shrinkage in the location. Another potential problem is the perception of how the interviews will be conducted in the store. Many members of human resources, legal, and operations have the perception that each of the employees will be accused and “interrogated.” Wisely, they are reluctant to put their people through that situation without evidence of wrongdoing. The general loss interviews have the potential to cause personnel and legal problems if they are not handled correctly. The selection of the interviewers should be carefully done with an eye toward their skills and evenhanded personalities. Generally, the organization’s best and most experienced interviewers should be used for general loss investigations. In addition, the location continued on page 14 |
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continued from page 12
selected for general loss interviews should be investigated using traditional means in an attempt to identify the reasons for the shortage first.
Selling to Management
When selling the general loss interviews to the other management teams, it is often beneficial to walk them through a non-confrontational approach to the interview. It is often helpful to simply ask a series of questions and let them respond. ■ Is it permissible to have a voluntary conversation with an employee about business practices at the store? ■ Is it permissible to ask an employee about his position and job responsibility at the store? ■ Is it permissible to tell an employee about what loss prevention does and its scope of responsibility? ■ Is it permissible to tell an employee about how losses occur and the types of document manipulations that may contribute to losses in the store? ■ Is it permissible to tell an employee about the investigative methods loss prevention uses to identify people responsible for losses in the store? ■ Is it permissible to tell an employee about some of the reasons people make errors in judgment and take things from the company? ■ Is it permissible to ask an employee if they have taken money or merchandise from the store?
Besides resolving the shrinkage problem, another positive aspect of the general loss interview is the opportunity to do loss prevention awareness training with each associate on a personal level. In most cases the management teams will acknowledge that in each and every one of the above questions, an employee may be told or asked about the topics. They have in effect agreed that the use of an introductory statement is an appropriate pathway to conduct an employee interview in a high-shrink store. This conversational non-confrontational approach allows an investigator to have a conversation with the associate and make a determination whether to proceed with the inquiry or look for other operational or external problems at the location without creating morale issues.
As part of the team approach, consideration should be given to staffing levels during the interviews, plans for hiring replacement workers should individuals be terminated for theft or policy violations, and the level of confidence in existing management at the store. In a large number of the general loss investigations that we have been involved in, it was a management problem that allowed the losses to accumulate. Most investigators who have entered a store and found the location dirty and disorganized have come to find that this is a breeding ground for theft and shrinkage. In addition, employees who are not attentive to customers and operational policies are generally allowed to exist because of poor supervision and management at the location. The other management teams should also expect secondary information to arise during the interviews related to sexual-harassment, hostile workplace issues, poor management practices, and violation of policies and procedures, which contribute to the overall health of the store. An important part of the general loss interviewing is partnering with the other management teams to successfully resolve the issues uncovered. The general loss interviewing will create additional work for a variety of people to deal with, and they should know in advance the potential outcomes from the investigation. Besides resolving the shrinkage problem, another positive aspect of the general loss interview is the opportunity to do loss prevention awareness training with each associate on a personal level. These interviews can also be used to reinforce policy and procedure, shoplifting awareness, and make the associate feel an important part of the company’s operation.
Upcoming Columns
In the next several columns we will deal with the initial organization of the investigation in a high-shrink location. There are a number of options investigators have to plan and execute their investigations. Some of the options can streamline the process, generating significant information prior to the arrival of investigators at the store, while others offer little or no help. We will focus on those strategies that we have found most beneficial in concluding a successful investigation. However, because many organizations have different resources, financial constraints, and personnel policies, we will also include those approaches that are more difficult to use.
Potential Outcomes
Part of the discussion with the management team should revolve around the potential outcomes following general loss interviewing. One disconcerting result of general loss interviewing is discovering that the store is operating significantly differently than the organization’s strategic plan. In essence, there is a big difference between what we think is happening and what is really happening at the store level.
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W-Z Tip of the Week
Visit the EyeOnLP.com page for weekly advice and suggestions on all things interviewing from Michael Reddington, CFI.
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Photo illustration by Chris Trlica and Larry Preslar
Cover Feature
Digital Journey Leveraging New Technology in Loss Prevention By William M. Titus
DIGITAL JOURNEY
I
magine walking into a location for a visit. As you sip your morning coffee, you pull up the store’s current performance from your iPad or tablet PC. At a glance you have all the vital statistics and performance trending information you need. As you enter the store, the tablet’s GPS identifies your location and sends you three alerts that require your immediate attention. During your visit you identify possible signs of theft, so you pull the IP-video CCTV feeds from your tablet and review the footage. A week later you complete a follow up visit from two states away via video-chat from your tablet. Do these ideas sound like some far-fetched dream of a future loss prevention organization? They are not. This is the present at Sears Holdings. While our customers are accessing Shop Your WaySM special member offers from their mobile devices, our Sears and Kmart loss prevention teams are using similar devices to dynamically access performance rankings, theft statistics,
Loss prevention team members using the mobile applications during a store inspection.
This digital journey is not about technology for technology’s sake; it’s about giving our professionals a competitive advantage in understanding their business and making informed decisions. outlier reports, and a vast array of other data, reports, and charts that visually demonstrate the risks and relative “health” of a given store location, district, or region. As our economic and technological landscapes have changed, so has the loss prevention industry. More often, loss prevention and retail in general are being challenged to do more with less. How can we drive profit while mitigating risk and improving performance? Our strategy at Sears Holdings has always been to empower our teams with technology that helps them increase efficiency and make informed decisions.
The external dashboard allows the user easy access to review not only external-theft performance, but it also provides quick access to narratives and exceptions. The field teams can now quickly validate case procedures and ensure each report is written correctly.
Technology Is a Journey
We started on what we call our “digital journey” over five years ago with a series of incremental steps aimed at leveraging the emerging technology landscape. At the time we had no idea smart devices were the end game, but we knew that to stay competitive, we needed to be prepared for the future. Every time we’ve considered implementing new technology, our first step has always been to review our current processes and ask ourselves three questions: █ Can we eliminate this process or task? █ Can we centralize this? █ Can we automate it?
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Each iPad is managed via “Over the Air” (OTA) programming. Every team member’s iPad is automatically configured with the apps, email, and VPN to ensure a simple initial setup. |
LPportal.com
DIGITAL JOURNEY We call this process “task modernization.” From our first web-based applications to our current mobile solutions, our vision has always been to leverage systemic and technological advances that deliver the highest value to the enterprise. This digital journey is not about technology for technology’s sake; it’s about giving our professionals a competitive advantage in understanding their business and making informed decisions.
Investing Strategically
The demands of end users have continually exceeded network infrastructures, but as quickly as network providers can meet demands, consumers and developers create new ones. This cycle of evolution continues throughout the landscape—IP phones have replaced traditional landlines, smartphones have replaced cell phones, online video has replaced video rental stores, e-books have replaced book stores, and we all know what happened to the music industry. Consumers have even connected their homes to control everything from their alarms to their thermostats via smartphone. With so much change in technology, how can the loss prevention industry keep up? Our first priority has been to invest in data. From collecting data about theft to census data to enhance environmental risk models, our ability to make actionable decisions based on business results, trends and outlier activities consistently results in the greatest payback.
An early version of Sears Holdings loss prevention digital roadmap depicts how leveraging technology can increase overall efficiency and reduce cost.
Similarly, we constantly challenge ourselves to better manage our data and improve the delivery method to end users. The focus is to make our teams more agile and prepared with actionable information. We’ve always believed that knowledge is power, and our technological investment decisions reflect that philosophy. continued on page 18
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DIGITAL JOURNEY continued from page 17
By integrating our app to take advantage of the iPad’s built-in GPS, users can quickly see stores nearby. By tapping on any store on the map, the user can pull up vital statistics for each store, including shrink and other key metrics.
We began our journey years ago by transferring our data from a myriad of spreadsheets and disparate sources to a uniform data storage platform. This paved the way for the establishment of key metrics on our business and a means for developing goals and rating mechanisms for our locations. Our latest investment in a business intelligence platform has allowed us to standardize and optimize reporting on key areas of loss prevention, such as theft, shrink, labor utilization, and investigations, as well as non-LP-related areas, such as sales, financial, and pricing. We’ve taken advantage of the explosive growth in mobile computing by equipping our field personnel with iPads, giving them access to data via a quick swipe of a finger that might have required hours to compile in the past. We invested the better part of a year preparing our infrastructure for the new devices: █ We updated our existing web applications to properly render on the new screens. █ We built iOS applications to truly take advantage of all the capabilities of these devices, such as the accelerometer, GPS, and touch navigation. █ We built mobile device management (MDM) profiles specific to our team’s needs to manage application deployment. █ We invested in a team of professionals who created visually insightful charts and reports that allow field personnel to instantly view trends over time, performance to goal, and performance relative to peers.
Our Journey Continues
Users can view live video and control each PTZ directly from their iPad or iPhone. Users can also access pre-recorded video on the device to aid with an investigation.
We are busy developing models to help us explain the past and predict the future. We’re able to implement those models through our business intelligence platform to create scoring algorithms, cluster algorithms, and regression-based metrics.
We are busy developing models to help us explain the past and predict the future. We’re able to implement those models through our business intelligence platform to create scoring algorithms, cluster algorithms, and regression-based metrics. This sets the stage for even greater peer-topeer benchmarking, outlier analysis, and forecasting methodologies.
The shortage control dashboard provides the user a one-stop page to review shrink performance, meeting participation, and audit results. Every panel is interactive, allowing the user to drill down and access outliers with a tap or swipe of the finger.
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DIGITAL JOURNEY This sets the stage for even greater peer-to-peer benchmarking, outlier analysis, and forecasting methodologies. Giving our field teams the ability to “analyze on the fly” has provided a real return on investment for our LP enterprise since deployment five months ago. Some key advantages we are realizing here at Sears Holdings include the following: █ Store visits that used to take a full day are now completed in a few hours, often allowing managers to visit multiple stores in a day. █ Everyone in the company has access to the same information, allowing for true transparency in reporting and alignment of goals. █ Managers can consistently drive key behaviors by ensuring the most important aspects of performance, such as compliance, meeting notes, and case performance, are covered during every visit. █ Access to store outliers and the ability to dive deeper into results allows our team to work almost exclusively from the iPads. █ Access to our IP-video CCTV allow our teams to easily review video from their mobile devices without having to be in store.
Redefining Talent
To improve the science of data, we have added statisticians to our team. To enable agility and speed in our
The LP mobile homepage serves as the launching pad for each of the loss prevention iPad applications. This integration allows the user to jump between applications without having to exit the app itself.
product creation, we now have dedicated developers inside our LP organization. To manage our infrastructure and integrate with IT, we have team members with backgrounds in data architecture, project management, and systems. To combat the modern day thief who wields a computer instead of a lined bag, we have an experienced online fraud team. Our investigators are skilled in SQL and other query tools. The traditional loss prevention roles within the corporation have changed. Making streamline simplified technology available to our field teams involves a complex
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DIGITAL JOURNEY team of players who spend their day analyzing consumer and criminal behaviors, both in-store and online. At the corporate level we’ve created new teams, such as: █ LP Systems and Technology works as our liaison between LP and IT to ensure we are involved in system changes, infrastructure upgrade, and have a voice on new company initiatives, including mobile checkout, loyalty promotions, and so forth. █ LP Business Intelligence works to design and develop new mobile and web applications and reports for our field and corporate users. █L P Analytics works on researching and developing new performance metrics and predictive models to gain insights from our data and performance.
From our web applications to our mobile solutions, we have always held the belief that when the content experts—in our case, loss prevention—are responsible for application design, the end user always wins. We currently design and develop our own mobile apps, which have allowed us to reduce the time to deployment considerably.
The Sears Holdings’ development team discuss mobile application workflow and design. Left to right is (standing) Carlos Bacelis, senior director of LP operations and analytics; Emil Santos, lead developer; Don Burkett, divisional vice president of systems/technology; and (seated) Ram Kandukuri, director of LP business intelligence.
e -Commerce/Payment Systems teams are an integral part of investigations, scouring millions of online transactions annually. The same kinds of transformations are also true for our field teams. Traditional security roles are still vital, but we’ve also adjusted our core competencies to include a Digital Innovator section. This new section helps us identify competencies, such as forward thinking, early adopters, computer literacy, and systems knowledge. From our web applications to our mobile solutions, we have always held the belief that when the content █
continued on page 22
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DIGITAL JOURNEY continued from page 20
experts—in our case, loss prevention—are responsible for application design, the end user always wins. We currently design and develop our own mobile apps, which have allowed us to reduce the time to deployment considerably. Additionally, having teams who work with loss prevention and safety data daily allows them to build up expertise and anticipate the needs of the end user.
The Future
What we have developed thus far should only be considered our beta version. We are continually reiterating and refining our existing dashboards and audits to be smarter. At this point we have provided our store teams with faster customized access to information. Our next challenge is to build enhanced automation, alerts, and scheduling into our various systems. Building
on the concept of intelligent reporting, we will develop a calendar app to help our teams schedule the most important tasks and improve time management. We are building “smart audits” to manage which questions are asked in each store, based on each store’s specific opportunities. More importantly, we are integrating our various systems into a single core application to drive greater efficiency. Whether you’re accessing POS exceptions, financial reports, CCTV, or training programs, everything our teams do will be seamless and integrated. Whether the next device innovation takes the form of a wrist watch or some type of virtual heads-up display, it is certain technology will continue to evolve. Be prepared to say goodbye to your PC and your laptop. Eventually, tablets will go the way of the VCR, but you can be sure whatever replaces it will be connected and mobile. After all, it’s a journey, not a destination.
WILLIAM M. TITUS is vice president of loss prevention for Sears Holdings Corporation. Prior to his appointment to VP of LP at Sears, Roebuck and Co. in April 2003, Titus was senior VP of LP and risk management at OfficeMax. He also held LP and operations management positions with T.J. Maxx and Montgomery Ward. Titus is chair of the Loss Prevention Research Council and past chairman of the National Retail Federation loss prevention advisory committee. He holds a management and accounting degree from the University of Southern California. Titus can be reached at 847-286-1945 or william.titus@searshc.com.
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“I’m certified. Here’s why.” Sandy Chandler, LPC, CPP Regional Director, Loss Prevention Rite Aid Corporation
With the evolution of our profession, it is imperative that retail LP professionals become true business partners. Whether you are a seasoned LP professional or just starting out, the Foundation certification courses have valuable content to meet that goal.
These courses contain a wide range of subject matter that validates our ever-changing roles, showing how valuable our position is to our retail organizations. The LPC allowed me to become more proficient on some subjects not previously utilized. For example,
“I have a job. Why do I need certification?”
Certification not only prepares you for the future, it helps you when you need it most—in your current job. Certification refreshes and validates your knowledge base while teaching you critical business expertise to roundout your skill set. It not only covers key components of loss prevention, it teaches you solid business skills to prepare you for your next promotion. “Yeah, but…” “It costs a lot.” Certification is very affordable and can even be paid for in installments. It is one of the best investments you can make for yourself and will pay for itself over again as you advance in your career. “I don’t have the time.” Certification was designed by seasoned professionals who understand the demands on your time. The coursework allows you to work at your own pace and at your convenience. Everyone is busy, but those who are committed to advancement will find the time to invest in learning. “I’ve never taken an online course.” The certification coursework is designed with the adult learner in mind. The online courses are built in easy-to-use presentation style enhanced with video illustrations to elevate comprehension and heighten retention. “What if I fail?” Both the LPQ and LPC certifications have been accepted for college credit at highly respected universities, and as such, passing the exam demands commitment and study. However, the coursework includes highly effective study and review tools to fully prepare you for the exam. In the event you fail the exam, you can review the coursework and retest after 30 days. “Okay, how do I get started?” It’s easy to get started. Go online to sign up at www.LossPreventionFoundation.org. If you need help or want more information, contact Gene Smith at Gene.Smith@LossPreventionFoundation.org or call 866-433-5545.
the compliance module enhanced my expertise, giving me an edge in our highly regulated retail environment. In order to promote career knowledge and advancement, the Rite Aid LP department endorses both the LPC and LPQ courses, and selects key personnel every year to receive scholarships. Why?
Because these certifications provide the business skills necessary to maximize our contributions, not only within our department, but to impact the company on multiple levels, substantiating a higher return on investment and further advancing our industry through continued professional development.
SM
POWERED BY THE LOSS PREVENTION FOUNDATION
ACADEMIC VIEWPOINT by Richard C. Hollinger, Ph.D. Dr. Hollinger is chair of the Department of Sociology and Criminology & Law at the University of Florida, Gainesville. He is also director of the Security Research Project, which annually conducts the National Retail Security Survey (soccrim.clas.ufl.edu/criminology/srp/srp.html). Dr. Hollinger can be reached at rhollin@ufl.edu or 352-294-7175. © 2013 Richard C. Hollinger
What Is the Relationship between Wages and Employee Theft?
Not surprisingly, they documented that “better quality” employees were less likely to steal. They also discovered that higher store manager turnover could result in less monitoring and thus, produce higher employee theft. You may recall that the link between above-average managerial turnover and high shrinkage is a finding that we have consistently observed over the twenty year history of the National Retail Security Survey. In fact, I have been demonstrating for some time now that the single most consistent factor that can be used to predict shrinkage is employee turnover, especially among managers. Moreover, Chen and Sandino went on to examine whether or not there is a relationship between high property crime in surrounding neighborhoods and employee theft. They confirmed a negative relationship, meaning that high property crime predicts lower employee theft. A potential explanation for this finding is that firms use better control systems in high property crime areas, which seem to reduce both shoplifting by customers and employee theft.
I
t has been over thirty years since John C. Clark and I published our book, Theft by Employees (Lexington Books, 1983). When you finally complete the daunting task of publishing a work of empirical research findings, it is always the hope of the authors that the conclusions drawn from the data will withstand the test of time. As such, it is particularly gratifying when I come across research studies that validate the conclusions that John Clark and I stated in this seminal work published over three decades ago. When this happens it makes you feel confident that your hypotheses and findings were then, and still are, correct.
New Research
Recently, I found an article published in the Journal of Accounting Research (50, 2012: 967-1000) entitled, “Can Wages Buy Honesty? The Relationship between Relative Wages and Employee Theft.” The article was written by Professors Clara Xiaoling Chen of the University of Illinois-Urbana and Tatiana Sandino of Harvard University.
Cost-Benefit Analysis
The two authors went on to conduct an actual cost-benefit analysis of increasing employee wages. They predicted that increasing employee wages would translate into a benefit of recovering 39 percent of the cost of the wage increase in terms of lower levels of employee theft. While this does not cover all of the cost of the wage increases, Chen and Sandino speculated that higher employee wages will also result in higher employee effort levels as well as produce a reduction in turnover. These indirect benefits would likely cover the remaining 61 percent of the wage increase, clearly recovering the remaining costs. In short, increasing wages can be justified on the bottom line, since the cost of raising employee wages would result in higher profit margins and essentially pay for itself. The authors also conclude that these results suggest that “overpaid employees do reciprocate to their employers for generous compensation.” This means that they work harder, are absent less, and are more productive. In addition, the lower inventory shrinkage relationship with higher wages when more employees are present also “suggests that relatively higher wages in the workplace mitigates against potential collusion among coworkers.” With the real possibility that U.S. minimum wages might be increased in the near future, many have speculated that these higher wages would have a negative effect on the profitability of many retail businesses. If the findings of this research are correct, exactly the opposite might be true. In summary, an increase in employee wages, especially in the retail industry, might actually reduce shrinkage losses and thus increase, not decrease, profits.
An increase in employee wages, especially in the retail industry, might actually reduce shrinkage losses and thus increase, not decrease, profits. Since the Journal of Accounting Research is not a periodical that most criminologists regularly read, I was particularly pleased to discover that these two researchers, working in a completely different discipline, had come to many of the same conclusions. In 1983 John Clark and I found that when we examined the self-reported responses of over 9,000 employees in three different industries, employees who felt equitably paid were significantly less likely to steal from their employers. Alternatively, employees who were not satisfied with their wages were more likely to commit employee theft. Chen and Sandino used two complementary store-level datasets provided by the convenience store industry to test whether relative wage levels were negatively associated with employee theft. Using three different measures of employee theft, including shrinkage and cash shortages, high relative wage levels were found to be consistently negatively related with employee dishonesty. This means that the more people were paid in comparison to others in relatively similar work settings, the lower was the occurrence of employee theft.
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ATTENDEES
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Forward looking. Cutting-edge. That’s what the educational program at the Retail Asset Protection Conference is all about. Recognized in the industry for delivering the only retail conference covering the full spectrum of asset protection, the program focuses on emerging challenges facing industry professionals. No stone is left unturned.
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INTERVIEW
From Running an LP Organization to Running a Marathon
A Conversation with David Lund of DICK’S Sporting Goods By James Lee, LPC, Executive Editor
INTERVIEW EDITOR’S NOTE: David Lund, CFI, LPC, is the vice president of loss prevention for DICK’S Sporting Goods based in Pittsburgh. DICK’S Sporting Goods operates over 500 authentic, full-line sporting goods stores, 83 specialty golf retail locations, two specialty running stores, and four distribution centers in 44 states. Lund is responsible for all of the company’s strategic LP programs and shrink-reduction initiatives. With over twenty years in the industry, he has held a variety of field and corporate positions with Polo Ralph Lauren, Bed Bath & Beyond, and Federated Department Stores. Lund is currently the chair of the Retail Industry Leaders Association LP steering committee.
One thing that any leader has to do right at the beginning of the interview process is be very clear that, while everybody aspires to do more and be promoted, the jobs that you’ll be promoted into are very rarely where you live today.
EDITOR: When did you decide on a career in loss prevention? LUND: I wanted to get into federal law enforcement, and went to school at York College of Pennsylvania where I earned my degree in industrial commercial security. I thought that would differentiate me from others who were getting criminal justice and law enforcement-related degrees. I had some great professors there who taught me that the private sector had a lot of opportunity, and I learned a lot that has been applicable to my retail career even though our studies were primarily focused on physical and uniformed security. While I was in school, I had a few part-time jobs catching shoplifters at Sears and doing video surveillance for a private investigator. When I got out of college at 22, my first jobs were selling cars during the day while working full time as a security officer at night in the Washington D.C. area. I was hoping to work my way up into management at a uniformed company. It just so happened that one of my car customers was Rich Mellor. During the test drive, Mr. Mellor asked me why I was selling cars. I told him about my background and career goals, and he got me a job as an LP agent in a Woodward & Lothrop store. That’s how I got into loss prevention. EDITOR: That’s a great story. I have to ask, did he buy the car? LUND: No, he didn’t end up buying the car. I guess he knew I’d be a better LP practitioner than I was a car salesman.
EDITOR: So you started at Woodies. Where did you go from there? LUND: I have been a self-proclaimed job hopper. I have been presented with many progressive opportunities and have been fortunate to have a number of people help me along the way. I left Woodward & Lothrop and went to work for John Bocker at Britches of Georgetowne.
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That’s where I learned a lot about distribution center security and corporate office security, as well as investigations and things like running cable and installing covert cameras. That’s also where I had my first exposure to integrity interviews and interrogation by sitting in as a witness. From there I got a lead from some mentors from my Woodies days, Tim O’Connor and Michael Llewellyn, and went to go work for Mike Montelone at Stern’s Department Stores. I started out as a corporate investigator responsible for the New Jersey market.Soon after, Mr. Montelone gave me a big opportunity when he gave me responsibility for the New York City region. Working investigations in the city and out on Long Island was a trial-by-fire environment and is really where I cut my teeth as an investigator. Stern’s was where I also got my first corporate role. As an investigator, I often complained about the poor cash shortage reporting we received from the sales audit department. We were often chasing our tails for shortages that didn’t exist. Mr. Montelone said, “If you think it’s so broken, then here it is. You fix it.” He gave me responsibility for sales audit as well as managing central investigations and the company’s exception-reporting system. This eventually turned into my first LP operations role. I left Stern’s after four years, just when things were starting to click, when my wife took a job back home in the Washington D.C. area.
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EDITOR: So you moved to D.C. for your wife’s career. LUND: Yeah, she had been gracious enough to follow my career while she was growing her career. We have a great partnership, so I followed her to D.C. and went to go work for Mike Zuege at Family Dollar. I was there just a year before Tim O’Connor, who had also left Stern’s, called to tell me he was starting a brand new LP department for a music instrument retailer called Mars Music in Fort Lauderdale. What mid-twenties, kid-less couple wouldn’t want to go spend a couple of years in South Florida? It was a great opportunity to be part of starting a department from the ground up. Plus, I love music, and it was a really creative environment. I worked there until the company closed. I’d probably still be there if the company had survived. I learned a lot about leadership as well as the hardship of travel and how to effectively manage that, which can be an important part of what we do. Unfortunately, I also learned how to close stores; not an experience that any of us want, but still a valuable lesson in career fragility. |
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INTERVIEW Near the end of Mars Music, I had an awful lot of job opportunities, but couldn’t find the one that I really wanted. But when I was leaving for the very last time on the very last day, literally right before the door closed behind me, my cell phone rang and Jim O’Connor, through an important recruiting resource, offered me a great opportunity at Bed Bath & Beyond. I learned a lot about “managing up” from Jim. He has a very even approach and taught me to deal with some of the tougher personalities that one might encounter in a competitive, fast-paced, corporate environment. He remains a good sounding board today. Two years later I hooked back up with Tim O’Connor who landed at Polo Ralph Lauren. There I had my first global responsibility for investigations as well as domestic corporate security. After two years of fashion shows and eighty-mile commutes to Madison Avenue, I went to DICK’S Sporting Goods and moved to Pittsburgh. That was seven years ago. EDITOR: What was DICK’S like when you arrived? LUND: DICK’S was growing. It was about the half of the size it is today, without any of the subsidiary companies. I came to work for Mr. Montelone again in the newly-created role of senior director of LP operations. There were no promises that promotion would be part of the picture, but it was an opportunity to grow my career, try something different, in a new genre of retail that was really interesting to me. Plus, I got to work for a leader who I trusted and who had made investments in me in the past. I was traveling extensively and internationally at Polo, which was tough with my kids getting older. It was time to be thoughtful about settling down a bit and find some
good schools. My goal has always been to be promoted, but I wasn’t here even three months before I realized what a great place this was to work and what a great LP team we had. I immediately felt that even if I never got promoted, this was home and that would be okay. EDITOR: But you did eventually get promoted. LUND: I was given responsibility for the department in 2007 and I was formally promoted to VP in late 2008. EDITOR: You mentioned that your wife was also on a career path. How challenging were all these moves on your wife’s career? LUND: The moves were catastrophic. With the move from D.C. to Florida, she was able to actually get promoted and grow her career. Then our son was born in 2001 when we were in Florida. We were both going to work every day and just like every parent who has kids in daycare, you get those calls that the kid is sick or he bit somebody and the conversation goes, “Well, I went last time, now it’s your turn.” Unfortunately, your career can suffer when you have to leave the office to take care of kids or leave early or arrive late to drop children off. We realized that the situation was causing both of our careers to suffer, so we had the really tough family discussion that so many couples have. Her workplace was a little more flexible, and I was traveling about 90 percent at the time, so it really wasn’t realistic for me. We made the decision that her career would be the one that would take the hit if it needed to. It was a tough decision because we were both in great places. My wife was able to see the big picture for our small, but certainly growing family and made a tremendous
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INTERVIEW opportunities for people to grow through certification and education inside or outside of our department, because I want people not only to feel valued, but I know that education will translate to happier people and bigger dividends in what they can do for our company. However, I don’t force it or require it; people have to want to grow.
sacrifice. With that, however, came incredible responsibility for me. There was no more two-salary safety net. EDITOR: As a manager, what do you tell young people about accepting promotions and moves? LUND: One thing that any leader has to do right at the beginning of the interview process is be very clear that, while everybody aspires to do more and be promoted, the jobs that you’ll be promoted into are very rarely where you live today. Sometimes they are not jobs that you ever expected or wanted to have, like sales audit. We had some pretty big moves early in my career where kids weren’t a consideration, and I was fortunate for that. Not everybody has that luxury.
From a leadership perspective, I try to provide opportunities for people to grow through certification and education inside or outside of our department, because I want people not only to feel valued, but I know that education will translate to happier people and bigger dividends in what they can do for our company.
EDITOR: And for those who don’t have that luxury? LUND: I look for stretch assignments, meaning something that will give an individual the opportunity to grow, give them a chance to learn something new or participate in a different way. That could be leading a project, delivering a presentation, becoming a mentor for a newer person, or leading an initiative that they may have a passion around. The idea is that the added value they get from those enriching activities will broaden their experience and make them promotable, if not here at DICK’S, somewhere else. And while it’s hard sometimes and they may not realize it at the time, that extra work really is something that’s going to make them better in the long run. That is how we grow.
EDITOR: And how many stores do you have today? LUND: We’re now at about 520 stores. Plus, in 2008 we acquired Golf Galaxy, which adds another 83 stores, and last year we opened two new specialty running concept stores called True Runner. Who knows what’s on the horizon. We’re more than the DICK’S Sporting Goods big-box stores that everyone recognizes.
EDITOR: What would you say to individuals going through this dilemma? LUND: I’ve been given an awful lot of opportunities, but a lot of them I had to go ask for. Fortunately, I have a wife who has been exceptionally supportive and has consistently embraced the risk that comes with change and the unknown. But there are a lot of people who are unwilling to take the risks, because they feel that they may fail, and that failure seems more painful than not trying. If you want your career to grow, you’ve got to make some pretty tough sacrifices, because the fact of the matter is, especially in our industry, more often than not, the job that you want isn’t where you live. You also have to know when family and stability are more important than salary and title. It may not make sense to uproot and move your family for a job that may or may not produce what you want. That kind of thinking was impossible for me to comprehend fifteen years ago. So, from a leadership perspective, I try to provide
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EDITOR: Let’s take a closer look at your current situation. How did DICK’S get its start? LUND: DICK’S Sporting Goods was started in 1948 by an 18-year-old named Dick Stack. Dick was working at an Army surplus store in Binghamton, New York, and had a passion for fishing. He was asked by the store owner to come up with some ideas to help get them into the fishing tackle business. The long story short is that he was insulted by the owner who didn’t take his ideas seriously. Dick abruptly quit and went to his grandmother’s house to commiserate. DICK’S grandmother gave him $300, quite literally, from her cookie jar and encouraged him to open a small bait-and-tackle shop on his own. Dick ran and expanded the store for years until one of his sons, Ed Stack, became very involved in the business. Ed, our current CEO and chairman, has grown the business from a two-store chain into the company it is today.
EDITOR: How many direct reports do you have, and what are their responsibilities? LUND: Today I have eleven direct reports, including eight regional directors on the DICK’S Sporting Goods side, one regional director for specialty concepts, one director of LP operations, and an administrative assistant. EDITOR: How is the LP organization set up? LUND: The LP function here is a shared-services model. We provide support, not only to the DICK’S Sporting Goods brand, but also to our other retail brands, our four distribution facilities, and our store support center. We’re fortunate because senior management here places a high premium on loss prevention. They know that we don’t |
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INTERVIEW just contribute in the sense of mitigating theft, but we also bring the awareness training, auditing, and investigation components. We are fortunate to have one-to-one LP and operations relationships on both the district and regional levels. Our directors, regional managers, and district LP managers are world-class retail professionals who get deeply engaged in all aspects of the business and happen to have a loss prevention specialty. This really helps drive our business because those managers are looking out for one another and promoting each other’s objectives, which at the end of the day are ultimately to serve our customers and provide a great shopping experience. We also have a talented team of people here at our store support center that support loss prevention in general—whether it’s the distribution centers, here at the office, or out in the field—from an investigations perspective, business analytics, operations, and other day-to-day functions. Then there is compliance. We sell firearms at DICK’S, and any time you deal with something that’s federally regulated like that, there are a lot of requirements that take tremendous attention to detail. We have some key people who support all those areas for the whole enterprise. We are blessed to have such great talent working every day to support our stores in the field and from the home office in Pittsburgh. They all work really well together to protect the company’s assets and support a great shopping experience in our stores. EDITOR: What are some of the projects or initiatives that you and your team are most proud of?
LUND: The most dramatic is probably our migration to IP video, which
is still a work in progress. In 2006, we were not in a financial position to deploy IP cameras, but we knew it was inevitable. So, we started positioning for that by wiring for IP and using encoders and decoders with our analog system so when we did come to a place where we could use IP camera technology, the wiring, which is the most labor-intensive component and most disruptive to open stores, would already be there. Because of that, in 2010 we actually started to retrofit some of our stores to accept some of that newer technology at a much lower cost. Just being thoughtful and knowing that you can’t always have what you want right now, there may be things you can do to put yourself in a better position to get it when you can afford it later. We have also broken the sound barrier on analyzing data. EDITOR: What have you done on the data analytics side? LUND: In 2010 we had the opportunity to work with a college intern. He was originally interning with our merchant organization and came to work with us because we had some extra work to get done during one of his breaks from school. We found great promise in him and, ultimately, and unexpectedly to him, we offered him a job opportunity in our department. That was when our LP analytics department was born. He has specific knowledge about our merchandising and allocations, systems, a finance background, and great Excel skills. He has revolutionized the way we look at data, the way we report data, and how we allocate our financial resources to attack shrink. For example, instead of attacking baseball gloves as a category because we have high shrink in baseball gloves, we can get very surgical and
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INTERVIEW for three years, you should really be comfortable with our processes and procedures and know DICK’S Sporting Goods well. Then, we simply propose the concept and recruit them. Now that the program has enjoyed some success, we have more managers approaching us to participate as they see it as an alternative track to growth here at DICK’S. We have found that it is often easier to teach someone loss prevention than it is to teach them DICK’S Sporting Goods.
protect the premium brands and/or the price points that are most affecting the shrink. More importantly, now we can really go after very specific areas that are relevant to individual stores, districts, and regions. This has made us a lot more efficient, and now everything that we do has pretty significant ROI calculations against it. EDITOR: How do you go about finding new talent for your team? LUND: Because we are growing so fast, it’s been really difficult for us to find the top-quality talent as quickly as we need it all over the country. So we recently started a program that we call the Sales Manager Reserve Corps or SMRC, where we identify store operations folks who have an interest or experience in loss prevention. Like the military reserves, we provide some basic training and then keep them warm with continuing training until we need to deploy them.
I would tell you that anybody on this planet can run a 26-mile marathon. They might not run it in two and a half hours, but they’ll definitely be able to finish if they put in the time and energy to training. Like almost anything in life, if you create a plan, you’re dedicated to that plan, and you stick to it, you can do it.
EDITOR: What happens after you identify a candidate? LUND: First, they go through seven training rotations related to things like taking inventory, conducting assessments, identifying areas of operational shrink and internal investigations; things of that nature that are a little out of their normal scope of responsibility in their store roles. They get a taste for whether or not they like loss prevention, and we get a sense for who they are and whether they’d fit into the department. Then, when we have opportunities where they can be interviewed to be promoted into places where they live or where they’re able to relocate, they are ready. We’re really proud to say that we have about twenty people on the proverbial bench or ready to join the bench, and we just hired our fifth store manager into the LP department as a district LP manager. EDITOR: Is the training done internally? Is the LPC or LPQ part of that training? LUND: It’s all done internally right now, but beginning this year, all who are hired through the program will be provided with company-sponsored LPQ scholarships.
EDITOR: How do you identify candidates for the program? LUND: We’re working on more formal criteria, but right now we look for managers who have been with the company for a minimum of three years and demonstrate attention to detail and a passion around controlling operational shrink. Having been a manager in our stores
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EDITOR: With all you do at DICK’S and with a relatively small staff, how do you have time to accept and lead the LP steering committee at RILA? LUND: You have to make time for things that you love and things that matter. I started out as a participant on the steering committee and really loved interacting with the other LP executives. Leaders like Dennis Klein and Stan Welch who have led the RILA conference over the last several years inspire others to contribute. I also have to say that Lisa LaBruno and the rest of the RILA staff really make it easy for us to be engaged and contribute without making the work overwhelming. Having a great co-chair like Dennis Wamsley helps, too. When you see how passionate everyone is for delivering high-quality content and supporting loss prevention, you can’t help but want to be more involved. So, I started with just being a committee member, then a track sponsor, then I became a co-chair, and this year I’m the chairman. I am afraid of what might be next.
MARCH - APRIL 2013
EDITOR: What is your expectation for this year’s conference? LUND: We couldn’t be more excited about the conference this year and the content that the committee’s been working so hard to prepare. I hope those LP professionals reading this will check out the conference agenda and consider coming to Orlando at the end of April. They won’t be disappointed. It is shaping up to be another great conference. [See page 28.] EDITOR: You are also a member of the board of directors for the Loss Prevention Foundation. Why do you support that organization? LUND: The Loss Prevention Foundation is something that really continues to provide a great deal of credibility for our industry and illustrates that loss prevention is a self-sustaining profession. It’s full of people who care about advancing the craft, not only as a career, but as an industry. Now, when you say that you’re a loss prevention continued on page 36 |
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professional, or you’re LP qualified or LP certified, you can back that up with rigorous testing and education, which is extremely important. EDITOR: Before we go, I want to ask you about something most people won’t know about you—that you’re a NASCAR fan. LUND: That’s true. I gained an interest in NASCAR while I was working for Family Dollar, where a lot of our store associates were enamored with the sport. Before that, like a lot of people, I thought of NASCAR as being a sport where cars just drove around in a circle. But as I learned more about the sport so that I could build relationships with the people in the stores, I found that there was a tremendous amount of strategy and tactics involved in winning races and building teams. As my interest grew, I saw that it was a sport that I could really connect with. There are a lot of leadership lessons to be learned from sports, and NASCAR is no different. EDITOR: Something else I know is that you run marathons. LUND: That’s also true. I run to burn off some steam and try to stay fit given all the hours I spend in the car, on a plane, or at my desk.
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EDITOR: How did you get started with that? LUND: When the 2009 Pittsburgh Marathon was announced in October 2008, DICK’S Sporting Goods was the title sponsor. Even though I had never run more than two miles in my life, I decided to participate. It started out as a bucket list thing and a challenge to see if I could really do it. So, I incrementally learned to run 26 miles in about six months. Based on that experience, I would tell you that anybody on this planet can run a 26-mile marathon. They might not run it in two and a half hours, but they’ll definitely be able to finish if they put in the time and energy to training. Like almost anything in life, if you create a plan, you’re dedicated to that plan, and you stick to it, even though you might have some bad days or shortfalls during the plan, you can do it. Since 2009 I’ve gone from just trying to finish to trying to run a little bit more competitively, and now I run two marathons a year along with a bunch of smaller races. EDITOR: Lastly, being the humble, gracious person you are, I know you attribute a lot of your personal and professional success to others. Who would you like to mention? LUND: I know that this might sound like a cliché, but I would not be where I am today without the enthusiastic support of my wife, who has encouraged us to accept strategic, sometime risky changes. I’ve already mentioned Mike Montelone, Michael Llewellyn, and Tim O’Connor, who gave me multiple opportunities to advance my career. There are a couple of other people who have been great sounding boards for me whenever I was considering career opportunities; offering great perspective on the pros and cons of making a move and not being afraid to provide critical feedback. One of those is you, Jim. The other is Walter Palmer. There are many others who have had a dramatic impact on my career. I have been fortunate to work with some great teams and great leaders. I am truly the product of an industry and the many people in it who recognize hard work and reward it with guidance and opportunity. I only hope that I can provide as much in return to those building their careers as I’ve received in mine. |
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ASSOCIATIONS IN ACTION by Lisa LaBruno LaBruno leads the asset protection offerings in the areas of loss prevention, retail crime, workplace safety, disaster recovery, operational audit, research, and benchmarking for the Retail Industry Leaders Association. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad. LaBruno can be reached at 703-600-2024 or lisa.labruno@rila.org.
Conference Participation Can Transform the Industry
W
ith three years of conference planning under my belt, I have learned some things about our industry’s commitment to education. There are many asset protection executives who see real value in attending industry conferences, like RILA’s Retail Asset Protection Conference, and maximize the experience by bringing teams or leading a session. I have the privilege to work with executives on RILA’s Asset Protection Leaders Council and Loss Prevention Steering Committee (LPSC) who are dedicated to their own and their team’s personal and professional development through education. Members are quick to volunteer to present at the conference, or “volunteer” a team member to present, and have solid showings of team members in attendance. But, I have also learned that there are many industry executives who have a tendency to under-value the educational opportunity an industry conference can offer and they are not chomping at the bit to lead a session.
“Professionals who share knowledge, experience, and passion for their industry are in an important way transforming the lives of others, while at the same time gaining a sense of noble satisfaction.” My training as a litigator and college professor taught me to search outside myself for answers, value teaching moments, and embrace public speaking. I’ve always seen these “outcomes” as benefits, having no downside. That is, until now. In fact, my passion for education can work against me when planning our asset protection conference.
It Comes Down to Expectations
I assume my industry peers share my passion for education, my desire to learn from others who are smarter than me, and my love for teaching others, all in an effort to advance the
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industry. Imagine my disappointment when AP executives ask for “exhibit hall only” passes at the conference. The notion of attending the conference and opting out of the educational sessions is hard for me to grasp. I can’t help but think, “You’re making the effort and incurring the expense to be here; why not learn something while you’re at it?” This reminds me of an executive who told me that the day he needs to look outside his organization for answers is the day he will retire. Or, when someone recommends that we open the exhibit hall earlier in the day before retail attendees come down with a bad case of “information overload” from the many thought-provoking sessions that usually precipitate their arrival to the showroom floor. Or, when I notice that of the nineteen sessions slated to be led by retailers at the 2013 conference (as of the time this article went to print), only five were developed through speaker proposals. Translation—26 percent of retailer speakers volunteered to lead a session without prodding. Don’t get me wrong. We believe the conference program is best-in-class, with seasoned executives sharing cutting-edge information (more about that later in this article). My only point is that it took some effort on RILA’s part and that of our LPSC to get there. Finally, despite record-breaking attendance year after year, truth be told, it represents only a fraction of the industry.
Reasons to Participate
There are perfectly legitimate reasons for less than industry-wide commitment to education and teaching through conference participation; reasons such as budget constraints, staffing challenges, and schedule conflicts. But, when those are set aside, I am left wondering whether there exists a lack of interest or a lack of awareness of the benefits for both the attendee and the company he or she represents. I can think of many reasons AP executives may want to present at our conference. Some are looking for new opportunities or personal recognition. Others want to showcase their team and their company, which can be an effective recruiting tool. Others believe in advancing the industry through information-sharing. Others are simply passionate about the retail industry. |
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As driven professionals looking to advance our careers, shouldn’t we strive to be recognized and respected by others within the industry? RILA conference speakers demonstrate thought leadership, expertise, and passion. Isn’t that an image we all should aspire to portray? I am hard-pressed to think of a better way to market oneself than by sharing your intelligence and experience to a large peer group. Great leaders inspire action. One presentation can change how others think, act, and operate. I recently came across this quote: “Professionals who share knowledge, experience, and passion for their industry are in an important way transforming the lives of others, while at the same time gaining a sense of noble satisfaction.” I don’t know about you, but I don’t get many opportunities to transform the lives of others. Additionally, there is real value that comes along with having access to top executives in the industry that you may not otherwise have by simply attending a conference. By co-presenting with another retailer, participating as a panelist, or facilitating a roundtable discussion, you have the opportunity to network and benchmark with other industry thought leaders. These interactions will undoubtedly expand your knowledge base, and the connections can be instrumental in developing future opportunities. Finally, presenters who are willing to share the details of their work can get instant feedback about their own company’s initiatives. This frame of reference can be invaluable, as it is derived from an external and objective peer group. Perhaps I’ve struck a chord with some of you who were otherwise predisposed to sitting on the sideline. Perhaps you will reconsider your own participation as a speaker. If so, take the initiative to give a presentation or lead a roundtable at RILA’s 2014 Retail Asset Protection Conference. You never know what great opportunities may come your way.
range of topics, including how to achieve personal and organizational success, key challenges, and where the retail AP industry is headed. ■ A premier omni-channel fashion retailer will share the impact of doing business in today’s environment. ■ A leading authority on the future of global security, cyber-crime, and terrorism will provide a front-seat view into the digital underground on emerging technology and security trends that will drastically redefine the markets in which retail operates. And, the conference breakout sessions offer something for everyone regardless of attendees’ focus area or experience. With tracks designated for audit and analytics; investigations; leadership and development; strategy and planning; technology and innovation; and workplace safety; the conference program is anything but one-dimensional. In addition to covering a broad range of topics, it will deliver content that is relevant, forward-thinking, and, perhaps most importantly, actionable. When you factor in the networking opportunities and the chance to see and experiment with emerging technology on the showroom floor, the value that comes with attending RILA’s Retail Asset Protection Conference cannot be understated. When registering his team for this year’s conference, one LP executive asked that we keep one registration a secret from the registrant. The executive planned to “reward” (his word, not mine) his team member with the conference registration in recognition for his solid performance. This is an example of an industry leader who sees the value in education and who prioritizes the professional development of his employees. It should come as no surprise that this same industry leader embraces the opportunity to teach others; he’ll be presenting at the 2013 conference as well. To register for RILA’s 2013 Retail Asset Protection Conference, go to www.rila.org.
2013 Conference Highlights
For those still content to sit on the sideline, consider moving to the audience. There is still time to register for the 2013 conference. Year-after-year RILA and our LPSC strive to deliver a program that covers the full spectrum of retail asset protection. Walter Palmer recently wrote an article in RILA’s Asset Protection Newsletter in which he questioned whether the AP industry is one-dimensional, putting so much emphasis on theft. In it Walter challenged readers to review the various industry conference programs for an answer to his question. I thought this quick snapshot of some of the general sessions slated for the 2013 conference may help answer that question: ■ Safety executives from Caterpillar, Dow Corning, and Honeywell will share how they made it to the list of 2012 America’s Safest Companies. ■ A 25-year retired FBI special agent and expert forensic psycholinguist will share the results of her empirical research of factors in communicated threats that relate reliably to action by the threatener. ■ A panel comprised of retail LP pyramid heads having varied tenures will share their unique perspectives on a broad
Check out the new EyeOnLP.com page for the latest videos of what’s on the mind of LP executives and solutions providers, plus assorted videos we think will interest the industry. Some people are asking us, “What Is EyeOnLP?” We’re glad you asked. Video host Amber Virgillo gives you the scoop only as she can. EYEONLP
LP Magazine | MARCH - APRIL 2013
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PARTNERING WITH RETAILERS
Dave DiSilva
Conducting Proactive Online Investigations eBay’s Global Asset Protection team effectively partners with
allows the user to click on the outlier then directs you to the listing on eBay.
over 300 retailers to proactively identify and remove stolen property listed on our site. Criminals use many online venues to sell stolen merchandise, and eBay continues to be the Internet industry leader in the effort to combat it. Our collaboration with retailers and law enforcement is well chronicled. Continuing with our partnership principals, we thought an instructional guide to demonstrate best practices when conducting online investigations would be valuable. Part one of this two-part column provides an insider’s view of searching for stolen product on our site.
■
■
Step 1: Know Your Merchandise and the Factors That Affect Pricing
T erapeak.com A subscription-based search tool provides the investigator searches of completed listings by product, seller ID, and category going back one year. It has a reporting feature that provides the top sellers of specific merchandise and the ability to create basic exceptions reporting that is emailed to you on a daily, weekly, or monthly basis. Terapeak provides free training videos to walk the subscriber through each function of tool. O RC Workbench orc-solutions.com/products/products.htm This subscription-based site provides a site search and case management tool in one. It provides the capability to search seller listings by city, state, or zip code with built-in links to social media sites.
An investigator armed with this knowledge may calculate pricing thresholds to highlight outliers in price and volume. ■ Understand your merchandise and the landed cost to focus on implausible listings and sellers. Continuing with our ■ Identify your high-shrink items at a description and SKU level. partnership principals, we ■ Work with your shortage control team to focus on merchandise loss minus thought an instructional paper shrink issues. guide to demonstrate best ■ Know where your high-loss stores are located, and what merchandise practices when conducting contributes the most to overall loss. online investigations would ■ Know your clearance, BOGO, and loss leaders with understanding of the Dave DiSilva is a member be valuable. pricing cycle. of eBay’s Global Asset ■ Partner with merchandise buyers and planners to be notified of new hot Protection team. products and the launch dates. ■ Be aware of new and grand reopening store product giveaways and Step 3: Review the Seller’s Business Plan door busters. Now that you have identified a seller that is potentially involved in criminal ■ Partner with your marketing department to obtain launch dates of coupons, activity, calculate the profitability of the seller. Try using this free pricing and loyalty and award programs, and the implications of the benefits on product profit calculator: ecommercebytes.com/cab/tools/calcs/ebay_fee_calculator pricing for members. ■C ost of Goods—Using your cost of an item and knowledge of lowest ■ Partner with your inventory and shortage control team to understand the markdown price, BOGO history, and coupons available, calculate the product life cycle from purchase order through the clearance process lowest price. to jobbers. ■ Many retailers are using eBay as another way to reach their customer. ■C ost to List—Using the eBay fee calculator, determine the Check to see if your company is an eBay seller. approximate fees.
Step 2: Locating Merchandise Listings Outliers
■
Now that you have a clear understanding of your high-shrink merchandise and true cost, you are ready to locate listing outliers. There are several tools that can help accomplish this.
■
■ The eBay Advance Search
■
ebay.com/sch/ebayadvsearch/?rt=nc, Located on the eBay site, it searches current and recently completed listings by merchandise description category type, price range, zip code, and user ID. You can review feedback history for items sold and the selling prices. This free site provides searches by product for any currently listed items that sell for over $100. The reporting returns the current average list pricing and recently ended auctions averages of price and listing duration. The outliers of current listings are plotted on a scatter graph. The graph is interactive and MARCH - APRIL 2013
S ales Volume—Evaluate the sales volume and price of the merchandise to determine if the pricing is realistic and sustainable. P rofitability—Determine the profitability by using the following formula: (Listing Price) – (Cost to List + Cost to Ship + Lowest Cost to Acquire Merchandise) = Profit/Loss.
If your calculation returns a loss on substantial volume, you may have a criminal seller or an employee discount abuse issue. If the business plan returns a loss greater than your employee discount rate, you may have located a criminal seller.
■ GetMarketPrice.com
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C ost to Ship—Determine the approximate shipping cost by carrier minus the shipping charged by the seller.
In the next column we discuss next steps, searching other online venues for stolen goods, and the available tools to help.
|
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Feature
Tuning up LP for Greater
Horsepower and Better Performance Organizational Changes at Pep Boys By Adam Paul, Contributing Writer
Organizational Changes at Pep Boys
I
t’s always refreshing to see a company that’s been in operation for nearly a century adapt new technologies and move away from old ways of doing business. There is somewhat of a danger in being in continuous business for that long—the danger of complacency; the danger of thinking “We’ve always done it that way;” or even the danger of simply bucking change for the sake of taking a safe, risk-free position. Pep Boys is a company that has seen substantial change in the ninety-one years it’s been in business. This American auto parts icon hardly needs an introduction. Originally founded in 1921 as a single retail location in Philadelphia, Pep Boys is now a $2 billion powerhouse that operates over 700 stores throughout the U.S. and Puerto Rico, as well as running over 7,000 service bays. It’s a multi-faceted business operation that caters to all aspects of the consumer automotive industry, from parts and service to shade-tree, do-it-yourself mechanics. Pep Boys thoroughly embraces the unique American love affair with the automobile, and carries thousands of aftermarket parts for customizing your ride; a pastime that is perhaps more important to Americans than any other culture in the world. If it belongs on a car or truck, there is a good chance Pep Boys can sell it to you, fix it for you, or upgrade it.
A Multifaceted Loss Prevention Landscape
It’s hard to encapsulate the loss prevention challenges endemic to Pep Boys without having a good feel for the landscape of this very diverse company. While Pep Boys has the usual retail challenges, it must also contend with some issues that are peculiar to the type of business it conducts, which is more or less unlike anything out there. The business model isn’t solely retail, it is also comprised of a service
president of asset protection; a position he held for four years. Not only is Hoppe a career loss prevention and operations professional, he’s also a career auto parts expert. Hoppe got his start in the industry in 1995, when he began a stint with Western Auto Supply Company, where he was a store manager for two years. After that, he embarked on a ten-year career with auto parts giant Advance Bryan Hoppe Auto Parts, where he started as a store manager. By the time he left Advance in 2008 to join Pep Boys, he was in charge of asset protection for the company. While career loss prevention executives aren’t particularly rare, it’s definitely rare to see an executive who has worked within the same industry segment for his whole career. Typically, loss prevention executives tend to cross-pollinate, moving from retail segment to retail segment, even though the actual product each company sells might be totally different. In this case Hoppe brings a remarkable amount of focused expertise from which Pep Boys can directly benefit.
The Way Things Were
When Hoppe came on board in 2008, he found Pep Boys to be pursuing an asset protection model that was, for the most part, outdated. “We were following an SOP-based model,” says Hoppe, “a model where we would conduct lots of investigations
Whereas a substandard AP model can oftentimes be blamed on substandard personnel, clearly, this wasn’t the case at Pep Boys. It was just a matter of the way they were looking at the problem. Hoppe has an interesting, but poignant anecdote to describe the problem: “When someone walks into a Home Depot and asks for a drill bit, what do they really want?” he muses. “They want a hole. That’s the problem. We were so focused on the drill bit that we lost sight of the hole.” segment with lots of parts, tools, and other consumables to track, as well as a massive reverse logistics model to track core returns. On top of that, Pep Boys also has five distribution centers, where the chain’s gargantuan parts supplies are stored. Finally, there are over 19,000 associates who work in the stores as well as the distribution centers. In charge of the company’s loss prevention efforts and directly in charge of this formidable array of hydra-like problem areas is Bryan Hoppe, who was recently promoted to the position of vice president of store operations. Up until this promotion, Hoppe was the vice
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and audits.” As a matter of fact, Hoppe found that the LP staff in place included top-notch professionals who believed in what they were doing and gave asset protection their best efforts. Whereas a substandard AP model can oftentimes be blamed on substandard personnel, clearly, this wasn’t the case at Pep Boys. It was just a matter of the way they were looking at the problem. Hoppe has an interesting, but poignant anecdote to describe the problem: “When someone walks into a Home Depot and asks for a drill bit, what do they really want?” he muses. “They want a |
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Organizational Changes at Pep Boys hole. That’s the problem. We were so focused on the drill bit that we lost sight of the hole.” Essentially, what the LP department of Pep Boys was trying to do was to kill the shrink problem with standard operating procedures, almost, in a sense, trying to legislate the shrink problem out of existence. Areas of shrink would be indentified, and then large, detailed, and expansive audits would be performed. The audits would in turn prompt the genesis of a new series of rules, procedures, and checklists that needed to be followed by the individual store—all the while completely missing what the root cause of the shrink problem was in the first place. “Our entire shrink plan was SOP based, with not a lot of root-cause analysis,” states Hoppe, “We were doing things that
to Hoppe, “In my mind there are three different types of loss prevention organizations. The first is the police/audit type, where everything is a criminal investigation. The second is the consultant culture, where extensive rules are developed and an attempt is made to legislate shrink out of existence. The third is what I call ‘operationalizing the LP,’ and that’s what we went with.” Even though you might not find “operationalizing” in your dictionary, Hoppe’s concept of the idea definitely bears looking into. Essentially, Hoppe implemented a structure in which loss prevention professionals started to perceive themselves as business partners with operations. They began to take ownership of loss prevention problems rather than blaming it on another department or even some unseen thief. “Cradle to the grave, we now own the
“In my mind there are three different types of loss prevention organizations. The first is the police/audit type, where everything is a criminal investigation. The second is the consultant culture, where extensive rules are developed and an attempt is made to legislate shrink out of existence. The third is what I call ‘operationalizing the LP,’ and that’s what we went with,” says Bryan Hoppe of the organizational change made at Pep Boys. were industry best practices for years, but we wound up with hundreds of SOPs.” As with other companies, Pep Boys also had a strong investigative loss prevention model that focused heavily on investigations, both for internal and external theft. The investigations model is a vestige of early loss prevention efforts, a mindset of cops versus criminals, and curiously, it still pervades modern loss prevention even though it’s been proven multiple times in different market sectors that outright theft isn’t usually the major cause of shrink within an organization. “We were seeing shrink as a theft problem rather than a business problem,” says Hoppe. All of these audits and SOPs were eventually becoming burdensome to the stores and store managers, who simply couldn’t keep up with the rules and procedures being pushed down from above. “With all the stuff a store manager has to think about, you’re getting his attention for around 15 to 30 minutes per week,” states Hoppe, who soon realized he needed to remove burdens from stores, rather than add to them.
Turning the Rudder
It didn’t take Hoppe long to realize that the ship needed to change course. He took stock of his situation, and found himself surrounded by quality and seasoned loss prevention professionals, but ones who needed a new focus. According
shrink problem,” states Hoppe. “We all share the responsibility to manage shrink.” An excellent example of this was Pep Boy’s move to have high-shrink products spider-wrapped at the distribution centers as well as reaching out to vendors to have them rethink their packaging rather than letting the stores deal with the problem. It was a classic loss prevention problem—certain products were packaged from a sales standpoint rather than from a security standpoint. In the old way of doing things, “We would build an extensive audit and then update the SOP,” says Hoppe. In the new way of doing things, “We had the distribution centers wrap the merchandise. They’re set up to do that, while the stores aren’t.” The solution not only solved that particular shrink problem, it shifted the burden of dealing with that problem away from the stores and onto the distribution center, which was better equipped to deal with it. “We needed to take the job of merchandise protection out of the stores,” states Hoppe. Ownership of shrink is also a big theme in Hoppe’s master plan. He describes former practices at Pep Boys like this: “In the past, we’d send an auditor to a store. Twenty-one days later, an investigator might come by. Seven days after that, perhaps an AP manager would pay the store a visit. Then there would be a question; who owns what?” This example illustrates the overlap in duties, as well as the complete lack of ownership of the actual responsibility for the problem.
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Organizational Changes at Pep Boys Pep Boys sends the old part to be refurbished and then the refurbished part is sold again, starting the process over again. With this model, the customer had an overwhelming incentive to return the old part, because they inevitably wanted a refund of their core charge. Pep Boys associates, however, had no such incentive, and subsequently, many core return parts were thrown away, forgotten, or lost, resulting in a huge expense. Realize that without the rebuildable core, Pep Boys can’t resell that part, and the part therefore becomes a loss to the company. “Ninety-five percent of our reverse logistics never made it onto the pallet,” says Hoppe, speaking of the way it used to be. “It was process shrink, not theft.” Hoppe decided to curb this by giving each core part a bar-coded “license plate.” Now, when a core part is returned, it’s scanned into the system and tied to a manifest. Hoppe and his team can now tell whether that part made it onto the pallet, and subsequently made it to the distribution center. “Before, there was a lack of buy in at the store level. It resulted in a big, black hole at the end of the year,” says Hoppe. Associates were also polled, asking their opinions on the AP process in general. During this process, it was noted that the conventional LP awareness program using posters that were posted in each retail location were universally disliked and seldom if ever read. Hoppe and his team replaced these with a fun course and more personalized instruction at the behest of employees, which has thus far turned into a success. In addition, the program includes an online training technology that encourages associate participation and reinforces the messaging (see sidebar page 46).
Like many loss prevention executives who have seen the light on outdated LP models, Hoppe started out in part by eliminating certain roles within the LP department. The investigator role and the auditor role were axed, with those personnel shifted over to the larger, more overarching asset protection role. Hoppe then modeled the organizational structure of these personnel after the operations division. For each operations position, a corresponding asset protection position was created, and thus the area and divisional levels of operations and LP became perfectly aligned. Currently, each AP manager is responsible for everything shrink and claims related within the stores under his control.
New Ideas and New Technology
Hoppe’s new ideas came in the form of an “eye-level” shrink program, comprised of three separate components. First off was the requisite corporate culture change needed in order to convince non-asset protection employees that AP was important and reducing shrink was everyone’s responsibility. This was followed by innovation, which comprised of SOP refinements and the building of a better AP process. Finally, some investment was inevitably needed to equip Pep Boys with a much needed shot in the arm technology wise. Part of Pep Boys’ technology purchase was devoted to the widespread roll out of CCTV systems and DVRs, which the company had previously not devoted much attention to. This also helped the company curb in-store theft as well as the inevitable shrink and accidents that are associated with Pep’s service-bay operation. One of Pep Boys’ biggest process refinement and technology rollouts revolved around the reverse logistics model that necessarily pervades their operations. It’s a problem that’s peculiar to auto parts and similar stores, and it revolves around the concept of a core charge. The way it works is that the customer orders an auto part, and besides the cost of the part itself, the customer is charged what is known in the industry as a “core charge.” The customer then installs the part he or she purchased, and brings the old part back into Pep Boys, and is subsequently refunded the core charge fee. From there,
The Road Ahead
With current shrink numbers literally a shadow of what they used to be, one would think Hoppe would have every reason to sit on his laurels and simply keep going in the same direction, but he’s not. This may be part of the reason he was promoted to the coveted role of VP of store operations. While AP still falls under Hoppe’s continued on page 46
Hoppe’s new ideas came in the form of an “eye-level” shrink program, comprised of three separate components. First off was the requisite corporate culture change needed in order to convince non-asset protection employees that AP was important and reducing shrink was everyone’s responsibility. This was followed by innovation, which comprised of SOP refinements and the building of a better AP process. Finally, some investment was inevitably needed to equip Pep Boys with a much needed shot in the arm technology wise. 44
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Organizational Changes at Pep Boys continued from page 44
Challenging Conventional Thinking inAsLP Awareness part of the philosophical changes implemented by
jurisdiction, he could have easily filled his old spot with one of his protégés. However, he decided to take a different course of action, hiring LP industry veteran Kevin Cook to lead the charge. Cook is also a veteran of Advance Auto Parts and is extremely results driven. When asked why he would Kevin Cook recruit someone outside the company rather than promote from within, Hoppe stated, “I knew he would come in and question everything I did. Kevin’s mandate is to improve on what we have right now, not what we had four years ago.” It’s an interesting philosophy to be sure, and it’s a bold one as well, since all of Hoppe’s decisions will be scrutinized for efficacy at his own behest. Putting a fresh set of eyes on what Pep Boys has been doing for the last four years under Hoppe’s watch is also incredibly humble, to say the least. That’s mainly because Hoppe is trying to build a leaner, meaner Pep Boys rather than trying to validate his accomplishments. “He’s going to revisit everything I’ve done,” states Hoppe.
Bryan Hoppe at Pep Boys, the company’s conventional awareness program was replaced with different messaging as well as new communications technology to gain both sustainable and measurable impact with their 19,000 associates. The results have included a 95 percent voluntary participation in the awareness initiative that has helped create a significant cultural shift throughout the company. In September 2012 the magazine hosted a webinar where Hoppe talked about some of the changes in their awareness program. Christine Tutssel, vice president of sales for Axonify, discussed their communications technology that Pep Boys uses as part of this program. The archived webinar is available on the magazine website, LPportal.com, for anyone interested in hearing the Pep Boys story. You may also scan the QR code here to register to listen to the webinar, sponsored by Axonify.
ADAM PAUL is a business writer based in Los Angeles, California, and an ongoing contributor to LP Magazine. He can be reached at AdamP@LPportal.com.
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My Turn By Joe Box, Jr. Box came to the Navy Exchange Service Command (NEXCOM) Enterprise as a loss prevention/safety manager in January 1996. He is currently the director of LP/S international markets, distribution centers, and corporate offices where he oversees initiatives aimed at the reduction of shrink and accidents, which have a direct impact on the profits of the company in the Europe, Japan, Guam, and Hawaii districts. He is also tasked with the development, implementation, execution, monitoring, and oversight of policies and programs, including capital expense, supply-chain security, CCTV, access control, safety, hotlines, personnel security, pre-employment/ background screening, and corporate investigations. Box is a member of the Loss Prevention Foundation, Retail Industry Leader’s Association, National Retail Federation, Food Marketing Institute, ASIS International, and Association of Certified Fraud Examiners. He can be reached at joe.box@ nexweb.org or at 757-440-4548.
Make Time for Self-Improvement
I
n 1996 the Navy Exchange Service Command (NEXCOM) hired Fritz Hirchert as the new director of loss prevention and safety. Many of you in traditional retail likely know Fritz from his many years with Home Quarters, Payless Cashways, and other retailers, including Montgomery Ward where he started as a store detective. I transferred from the European region and was the first person to report directly to him. During my first week of transition, Fritz set me down and we reviewed my resume. During our conversation, Fritz said to me, “I notice you have a wealth of security, loss prevention, and safety experience, but I notice you didn’t indicate any academic background? Did you go to college? Why don’t you tell me your story?” I told Fritz of my academic debacle going to a division III school in Wisconsin on an athletic scholarship, and what happens when your focus is on sports versus academics. My academics suffered so much, I had to leave school, but had always “planned” on going back to school one day to get my degree. At that point, Fritz asked me to “define plan.”
“Leadership development is the most important aspect of knowledge, education, and training for growing yourself within an organization. One of the major weaknesses of any organization is the failure to spend sufficient time developing our leaders and subordinates at the strategic level.” I didn’t really have a plan, but saying it sounded good. I didn’t really expect he was going to focus on that, but he did. Fritz said, “I tell you what, pick a school, any school in Virginia and register for a class. I will approve your tuition to be paid through the company’s tuition assistance program, but first show me where you registered, for which class, and the date it starts.” I was stunned that someone outside of my family was willing to invest in my academic career. I researched various colleges and universities that offered criminal justice or criminology programs. I began by taking one class at a time since I had not been in school for years and was unsure of the academic expectation and workload
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on top of my corporate LP responsibilities. My goal at the time was to obtain an associate’s degree, which I ultimately completed in two years. While I was happy to meet my goal, I was not satisfied with an associate’s degree. I knew at that point, I wanted to keep going and work on my bachelor’s degree. Deep down I knew that most of my counterparts in the retail loss prevention industry had their degrees, and I wanted to complete mine in order to move up the career ladder. So, pure motivation, sacrifice, and drive led to me to complete my bachelor’s degree in criminology.
Life Gets Complicated Sometimes
I should have realized then that getting my bachelor’s degree was the easy part, because my life was about to get more complicated. Right before graduation, my wife and I found out we were expecting our first child. I took a two-year hiatus from school before beginning the search for a university that would accommodate my needs based on a demanding travel schedule, now two young children, and a wife who worked full time as well. I focused on a master of business administration (MBA) program that encouraged students to expand their professional competencies within and beyond the classroom. I chose a MBA program because I felt it would provide a wider, deeper understanding of the key functional areas of business with courses that focus on managing complex interactions while defining and solving real-world business challenges. In addition to mastering analytical tools and technology necessary to solve complex management problems, the MBA program emphasized leadership, communications, teamwork, ethics, and skills for managing diversity. I did not want to stay focused strictly on loss prevention and safety, but wanted more in-depth knowledge and understanding of business across all levels of a matrix organization. I think too many times loss prevention, asset protection, safety, and security people (depending on how one looks at their role) are stereotyped or stove-piped into |
LPportal.com
Foreman Adverts_Jan_09:Layout 1
a single niche versus being broad, business-oriented professionals. Loss prevention and safety deal with every facet of protecting the bottom-line of business profitability and are not single niche positions. I am a life-long learner and will continue to learn everything I can about business, whether it’s through benchmarking or keeping abreast of the latest technological advances. Everyone looks at his or her competition in business to maintain the advantage, and it’s no different when managing oneself. I believe in making the time for self-improvement, although I did not realize the importance of this until later in my career. It’s never too late to maintain your own competitive advantage through academic pursuit or some type of certification, such as LPQ, LPC, CFI, CPP, CFE, or whatever makes sense in your situation.
An Individual Development Plan
I encourage anyone reading this to sit down and develop an annual individual development plan. Ask yourself the following questions: ■ What are your priorities at this particular time in your life and for the foreseeable future? ■ What are your visions, dreams, desires, goals, strategies, and action steps in each area? ■ How much “time” will you set aside to achieve your goals? ■ What specifically is calling you in this area? ■ What are your priorities for growth in the coming year? ■ What is your vision or calling for your vocational life or career, and what specific goals do you need to work toward to accomplish this? ■ What are the specific steps and tasks involved in actually implementing the strategies above? ■ How do you schedule these into your calendar? Remember, “I don’t have the time” is not an excuse. For the young professionals out there, seek out the strategic leaders who will teach, coach, mentor, and invest their time with you and help guide you to your career goals. These are the leaders who will allow growth and succession planning within their organization. Leadership development is the most important aspect of knowledge, education, and training for growing yourself within an organization. One of the major weaknesses of any organization is the failure to spend sufficient time developing our leaders and subordinates at the strategic level. One last thing: I could not have completed my MBA without the strong support of my wife, family, manager, friends, and peers. I had a lot of assistance along the way, and without their support I could not have accomplished my goals. I know many of you can give reasons for not going to school—job, travel, family—but if you set your mind to it and start taking one class at a time, you can persevere and do it. So, when you start down your path, make sure it’s clear to everyone where you want to go. After all, they want you to succeed…just as I do.
1/12/09
4:15 PM
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David J. Foreman, RPh., ND
Herbal Pharmacist The
®®
Coping with
Allergies
According to the Asthma and Allergy Foundation of America website (www.aafa.org), “an estimated 50 million Americans suffer allergies” (1 in 6 Americans). In the past, most people linked allergies to the change in certain seasons. For many, though, allergies are a year-round problem. The usual triggers are foods, dust mite particles, animal dander, pollen, mold and yeast. Exposure can lead to symptoms such as coughing, sneezing, runny nose, wheezing, asthma and sinusitis. Until you can eliminate the culprit(s) that trigger your allergy symptoms, I suggest you use supplements to help fight your allergy woes. The top supplement on my list is the herb Butterbur. Rosmarinic acid is another supplement on the rise for allergy sufferers. This compound is found in rosemary, basil, sage and mint. An extract of Rosmarinic acid may begin to help in as few as 3 days. Life Extension’s Butterbur Allergy combines butterbur and Rosmarinic acid to give you a 1-2 punch. Another favorite is the herb Nettle (leaf). Be certain the product you purchase is the leaf and not the root. The root is great for prostate health, but won’t help your allergy symptoms at all.
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Feature
Survival
Skills for Coping in a Doing-More-with-Less Environment By Walter Palmer, CFI, CPP, CFE
Survival Skills
I
n the November-December 2012 issue, we looked at the pervasive business culture of “doing more with less” and how, many times, we are trying to fool ourselves and our organizations as to how much can be done with limited resources (see “Doing More with Less? Myth vs. Reality” page 15). While we gave some suggestions on how to change this environment, the reality is that most of us must learn to cope with this situation. In this article we will discuss some survival skills for navigating this difficult issue. Unfortunately, there are no “magic bullets” that completely solve the issue for most of us. Certainly, one could focus on being more productive through diligent use of daily to-do lists or use of one of the popular time-management systems on the market. However, with the workloads that many are trying to meet, most will find they still run out of time to get to everything that needs to be done.
The survival skills discussed here are geared toward understanding the full scope of the workload and then prioritizing for the most effectiveness that you can generate as an individual and as an organization. Instead, the survival skills discussed here are geared toward understanding the full scope of the workload and then prioritizing for the most effectiveness that you can generate as an individual and as an organization. The skills necessary for survival and, hopefully, flourishing in this environment include the following: ■ Identify all task responsibilities, ■ Measure time allocation, ■ Prioritize tasks, and ■ Negotiate resources. We touched on all these points in the previous article, but this edition we will focus on the prioritization aspect.
The Problem
One of the greatest challenges that each of us faces in this era of constant communication and overabundance of information is how to prioritize where we spend our time. There is so much pressure—either externally imposed or self-imposed—to be in constant contact, to respond to text and email messages within minutes, and to never admit that there is more on your plate than you can handle, that we find ourselves constantly behind the curve and dashing from task to task with little time for thought or reflection.
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As a result we often find that we are never able to get to very important activities and tasks, both at work and in our personal lives. A couple of years ago I was speaking with a group of professionals in our industry on this topic and asked for a show of hands as to how many in the audience would say they are satisfied with their work-life balance. Of the approximately 75 people in the room, not one hand went up. I asked the same question of a different group two days later and got one hand raised out of the fifty people in the room. For as much as we talk about the importance of work-life balance, it seems pretty clear that not many are achieving this desired state of being. But, this goes behind guilt about not spending enough time with our significant other or our children. You will find the same types of responses when you ask a group of people questions like: ■ Are you spending adequate time making sure you develop yourself professionally? ■ Do you make time to work on new ideas that you think could have a significant, positive impact for your company? ■ Do you devote the needed time to your direct reports? Do you make time to give them feedback, listen to them when they have a problem, and engage with them? ■ Do you set aside time each week for relationship building both within your organization and within your professional network? ■ Is your work aligned with your stated performance objectives for the year? How much of your effort is in support of those goals? When those questions get asked, you find out just how hard people are working and yet failing to spend hardly any time on some of the most important responsibilities they have to accomplish.
Prioritization
Prioritization requires the ability to synthesize the tremendous amount of information that bombards us, each and every day, and distill those action items that will be the greatest benefit to us and our company. From our work with clients across a wide spectrum of size, market segment, and geography, we find the inability to prioritize to be a chronic problem. What typically occurs is that we try to prioritize too many items. For instance, in training and awareness programs, it would be a considerable success if you could get every single one of your employees, including part-timers, across the country to consistently execute three to four actions every single time. Yet, many programs try to communicate far too much. We once had a client who wanted to communicate almost twenty-five separate training points on electrical safety alone… in one month. If you overreach, your net effect is marginalized. Better to solve those three to four issues that are most impactful to your company and then, and only then, move onto the next set of highest priority issues. In the print media there is a saying for this: “All emphasis is no emphasis.” To say it another way—if everything is in bold, nothing is in bold. |
LPportal.com
Survival Skills
A Prioritization Framework
To help us prioritize those items that are essential to our long-term success, let’s use a framework suggested by Stephen Covey back in his classic 1989 publication titled The 7 Habits of Highly Effective People. There are many nuggets in this work that keep it in the ranks of best-selling business books even today. But, the most useful point in the entire book happens to be about prioritization (see sidebar below). In his chapter on “Put First Things First,” Covey suggests a simple grid that has two axes. The vertical axis differentiates between things that are important and those that are not. The horizontal axis is based on whether things are urgent or not urgent. The resulting grid (below) yields four quadrants.
Covey’s Time/Prioity Grid Urgent
Not Urgent
Important
I
II
Not Important
III
IV
Quadrants I vs. II. When I’ve asked audience members to identify where they should spend most of their time, the usual choice is quadrant one. After all, quadrant I contains those items that are both “Important” and “Urgent.” These are the things like pressing deadlines, the crisis that erupts unplanned, a new order from an important client, a health problem for you or a loved one, and other significant events that have to be addressed here and now. However, Covey maintains, and I agree, that the things that are most important to your long-term success actually occur in quadrant II. These are items that are “Important,” but “Not Urgent.” Think about what goes into this bucket. Here are some suggestions to consider: ■ Long-term planning ■ People development ■ Relationship building ■ Spiritual life ■ Personal health or exercise ■ Prioritization ■ Professional development, such as attending a conference ■ Family time
Example Activities Urgent
Not Urgent P revention ■R elationship building ■P lanning ■P hysical fitness ■F amily
Crisis ■P ressing problems eadline-driven Important ■ D projects
■
I nterruptions, some calls ■S ome mail, Not Important some reports ■S ome meetings ■P opular activities
■
■
■
T rivial, busy work J unk Mail ■S ome phone calls ■T ime wasters ■
No doubt, you can add many more items to this list both in the professional and personal arenas. Few would disagree that these are important items, but you will notice that most of them do not have a deadline attached to them. These are the things you have to make room for on your schedule if you hope to accomplish them—especially in the era of “doing more with less.” There is also a distinct relationship between quadrant II and quadrant I. The more time you spend in QII, the less time you will likely have to spend in QI. For instance, if more time is spent planning a process and training the appropriate personnel, the less likely it is that they will make errors that require “fighting fires.” The more time spent maintaining your health, the less likely it is that you will need to be rushed to the emergency room for care, which is clearly a QI situation. The more time you spend developing your people, the less likely it will be that you will have to step in, last minute, on a project they are running that is going badly. Of course, in our line of work there will always be a crisis to be addressed. Some of that is the nature of our industry and job responsibilities. But, even in areas such as theft, more time spent on training, prevention, and education activities is likely to result in fewer incidents that need to be investigated. Urgent, but not Important. Quadrant III activities are things that are urgent, but not important. How can that be? Usually, that’s because it’s urgent to someone else, but not important to your goals. These are interruptions, distractions, time wasted in non-productive meetings, and other demands that are usually foisted upon us by someone else. These can also be the endless emails that you are copied on that don’t really need your involvement or attention. To reduce our time in this area, we must learn to say “No.” How often has someone asked you to be involved in something—a task force, a committee, or a special event—that is a few months down the road and, without much thought, you say “Yes”? Then, as it gets closer to time, you start asking yourself, “What was I thinking?” Keep in mind this one little rule—“A ‘Yes’ to one thing is a ‘No’ to another.” And, that other thing is often a quadrant II activity that you no longer have time for in your schedule. Not Urgent and Not Important. Finally, Quadrant IV activity is mindless time-wasting. Sitting down and relaxing in front of a television show might be a good release for you, but you might question the value of following a dozen reality shows. Checking and rechecking Facebook or Twitter over and over again out of fear of missing something will do little for your long-term success. Capturing a handful of photos of your child’s soccer game is reasonable, while snapping 300 photos of one game just creates a cycle of time commitment to manage them that is very low on the yield curve.
An Action Plan
Use this framework as you plan out your work for the week, month, and year…you are planning your work, right? Try to spend at least 10 percent of your time on QII activity,
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Survival Skills
The 7 Habits of Highly Effective People
both at work and at home. Ideally, try to get the number up to 30 percent. This is not easy in a “do more with less” environment, but you will begin to notice that you start to get ahead of the curve. You might even find yourself being truly “proactive” now and again. The results won’t be instantaneous. You won’t suddenly find yourself getting all of your work done in forty hours a week. But, you’ll find all kinds of benefits that save you time. ■ A new opportunity will pop up as a result of reconnecting with a former colleague. ■ You will implement a new process at your company from what you learned at a professional conference you attended.
By Stephen R. Covey
This book was the first of a series of highly acclaimed titles from Stephen R. Covey, who was recognized by Time magazine as one of the twenty-five most influential Americans. The book has sold over 20 million copies in thirty-eight languages and appears near or at the top of most lists that rank the best business books of all time. The book discusses moving from a state of dependence to independence and then interdependence through the following seven steps: Habit 1—Be Proactive Making the decision to improve one’s life by making changes where one can versus reacting to external forces. Habit 2—Begin with the End in Mind Developing a personal mission statement based on principles that can form the basis of long-term goals. Habit 3—Put First Things First Spending time and focus on the key items on your personal mission. Habit 4—Think Win-Win Seeking relationships and agreements with others that are mutually beneficial. Habit 5—Seek First to Understand, Then to Be Understood Putting oneself in another person’s place and listening empathetically to both feelings and meanings of what is being expressed. Habit 6—Synergize Finding ways to leverage individual differences to create a whole that is greater than the sum of the individual parts. Habit 7—Sharpen the Saw Taking time for renewal and balance of one’s physical, mental, social, and spiritual dimensions.
If more time is spent planning a process and training the appropriate personnel, the less likely it is that they will make errors that require “fighting fires.” You will get rid of the high-cholesterol medicine you’ve been taking because you have spent some time in the gym. ■ You will find time in your schedule because you can remove yourself from projects that your subordinates are now able to manage as a result of the time you spent with them on training and development. You are also likely to find that you don’t really miss “Ice Road Truckers,” “Dance Moms,” or the various pawn-shop shows. You might find that actually engaging with the other people you are with at lunch is more rewarding than checking the score of the baseball game on your phone, checking every email that buzzes in, and tweeting a photo of your plate of lasagna. Finally, and probably most importantly, when your boss comes to you and says, “Bill, we are going to have to do more with less,” you can quickly show him where you are spending your time, what priorities you are pursuing, and ask him to weigh in on what items you should drop off your list. Can you imagine having one of your employees having that type of information at their disposal? Can you imagine them having concrete priorities that have been well thought out to share with you? Can you imagine them coming to you to get your input on the items they have in the different quadrants? As a manager of people, I can’t imagine anything better. ■
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WALTER PALMER, CFI, CPP, CFE is president of PCG Solutions, a loss prevention training and consulting firm. Prior to moving to the vendor side, he spent sixteen years as an LP executive with Babies“R”Us and Kay Bee Toys. Palmer is cofounder of LP Magazine and LPjobs.com and remains a contributing editor to the magazine. He is very active in the LP industry as a frequent speaker at industry events both in the U.S. and internationally. Palmer can be reached at 859-963-3517 or via email at wpalmer@pcgsolutions.com.
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Evidence-Based LP by Read Hayes, Ph.D., CPP Dr. Hayes is director of the Loss Prevention Research Council and coordinator of the Loss Prevention Research Team at the University of Florida. He can be reached at 321-303-6193 or via email at rhayes@lpresearch.org. © 2013 Loss Prevention Research Council
Taking It to the Next Level
I
“
nnovate, collaborate, evaluate. Let’s take it to the next level.” That’s what the fourteen LPRC board of advisor (BOA) members have declared for the members of the Loss Prevention Research Council (LPRC) and its research team. To that end, the advisors are driving that mandate by guiding and staffing a set of working groups and action teams.
Co-Leaders—Jeff Fulmer, Barnes & Noble; and Adam Estep, Big Lots Current Members—Sears, Best Buy, Kroger, Lowe’s, Walmart, Big Lots, DiSa, and Proteqt
Video Analytics Working Group
Groups and Teams
Objectives—Determine group’s video analytics capabilities, needs, and requirements both current and future; focus on LP and non-LP behavioral and pattern analytics, facial identification, and other forensic analytics Leader—Ahmad Lightfoot, T.J. Maxx Co-Leaders—Fred Becker, Bloomingdales; and Brad Buckley, Sears Holdings Current Members—Big Lots, Sears, Kmart, T.J. Maxx, Toys“R”Us, Bloomingdales, Verint, 3VR, i3 International, and Axis Communications
The BOA and staff determined the best way to provide specific problem and solution areas focus and actionable results is by establishing ongoing working groups and action teams. Working groups innovate and field evaluate current and emerging procedures and technologies that apply across retailer type, while action teams integrate similar retailers to systematically attack common problems. Both groups and teams combine retailer, solution partner, and high-risk product manufacturer networking and brainstorming with the LPRC and University of Florida research teams to produce validated results. This following list of objectives, leaders, and members is dramatically evolving, but current as this article was submitted.
Supply-Chain Protection Working Group
Objectives—R&D to enhance distribution center, cargo/transport, delivery protection, accuracy, efficiency, and safety Leader—Kevin Taparausky, Marmaxx Packaging Innovation Working Group Co-Leaders—Willson Burggraff, Sears; Mike Combs, The Home Objectives—Develop and test protective packaging and warning message Depot; Steve Main, Kroger; and Jeff Silvia, Big Lots innovations in multiple retail formats with a variety of products Current Members—Marmaxx, Sears, The Home Depot, Leader—John Voytilla, OfficeMax AutoZone, Dick’s Sporting Goods, and Big Lots Co-Leaders—Jeff Kellogg, MWV; Shannon Hunter, OfficeMax; and Josh Matinger, Toys/Babies“R”Us Current Members—Lowe’s, The Home Depot, CVS, Rite Digital Journey Working Group (newly forming) Aid, Walgreen’s, OfficeMax, Toys“R”Us, and MWV Objectives—Use R&D to innovate and evaluate protection for key areas, including online selling, mobile POS, RFID/ IP cameras/alarms, digital/remote/2-way reporting/auditing, Predictive Analytics Working Group virtual working spaces, and store layout and design Objectives—Identify and measure key crime and loss factors for Leader—Don Burkett, Sears Holdings directed action; determine business applications for the predictive Co-Leaders—TBA model and educate the group on statistical approaches to help Current Members—TBA them better understand how to interpret the workbook Leader—Carlos Bacelis, Sears Holdings Co-Leaders—Dan Romanic, Big Lots; Dave DiSilva, Organized Retail Crime Working Group (newly forming) eBay; and Bob DiLonardo (ROI expert) Objectives—Study and recommend procedural and Current Members—Big Lots, Publix, Sears, CAP Index, technological ORC theft and fencing control The Retail Equation, Wegman’s, Rite Aid, Cabela’s, enhancements across retailer and product types Ferguson, Nike, Sterling Jewelers, and Jewel-Osco Leader—TBA Co-Leader—Deanna Bonachea, Big Lots Current Members—TBA Benefit Denial Working Group Objectives—Innovate and field test benefit-denial technologies and techniques across retailer types and product categories; Sporting Goods Action Team work toward authorization testing; increase benefit Objectives—Innovate and evaluate high-risk product denial concept exposure via mass communications protection for sporting goods sector Leader—Tim Fisher, Best Buy continued on page 58
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Solutions Showcase Instakey Security SystemS
Personified Key Control Solutions
A
s our business accountability grows, loss prevention and asset protection professionals are challenged to do more in less time. Through the tracking of individual unique identifiers and integration of multiple data sources, this information becomes simpler to obtain and utilize. Each of us have numerous unique identifiers to manage on a daily basis, such as social security number, employee ID number, login credentials, safe codes, alarm codes…the list goes on and on.
What about Keys? Isn’t It Important to Know Who Has Which Keys?
InstaKey® Security Systems is one of the only key-control program companies to serialize each and every key with a unique serial number. This serialization creates another security mechanism to control and manage access. It’s not about what key, but who has it or doesn’t. With today’s data integration techniques, this restricted, serialized key assignment to a key holder adds another layer to the location’s or product’s security. Knowing who has access is one of the most important elements during any investigation. It’s not just a key, but it is that serial-numbered key. “With an individual’s signed-off receipt for that serial-numbered key, the key holder’s accountability improves and results in better personnel safety and
product security,” states Karl Beagle, Weis Markets director of asset protection. InstaKey also offers a layered approach to key-control practices, so more areas can be secured through the availability of diverse lock types. By supplying different locking mechanisms on the same keyway, the number of keys per key holder and location can be reduced, limiting potential liability and future replacement costs. “We’re now able to secure our high-shrink product fixtures, cash drawers,
fuel dispensers, doors, and padlocks—all on the same key series,” explains Beagle. “Plus, we’re able to control duplication efforts through restricted key sections and established authorization procedures, which provides another solid cornerstone to our safety and security footprint.”
What Happens When a Key Is Lost Or Unaccounted For?
InstaKey has a solution for this as well. By providing lock cylinders with a revolutionary and simplistic rekeying avenue, a rekey now only takes a single key turn. When a key is lost or unaccounted for, a “rekeying kit” that includes the next set of operating keys, a unique step-change key, and simple instructions are utilized. It’s as simple as turning a key. “We can now rekey an entire store master key set or single cash office access key for just the cost of the replacement LP Magazine | MARCH - APRIL 2013
keys. No more core swaps or locksmith call outs to change out the entire store. It really is that simple and cost effective,” says Ed Van Fleet, Brookshire Grocery’s vice president of loss prevention.
Doesn’t Key Management Take up a Lot of Loss Prevention Time and Resources?
InstaKey has this one covered, too. By providing the only patented, web-based software platform specifically designed to manage key control, called SecurityRecords. com®, it’s up to each client to determine how deep they want to dive into their data and how best to maximize the tracking features. Program administrators maintain data integrity while assisting with procedural training and program performance metrics. “I believe the best part of our key-control program is that our client’s own their data, and it is always available for them whenever or however they need it,” says Cita Doyle, InstaKey’s director of sales and marketing. From partnerships with human resources, operations, and facilities, LP leaders can streamline key-control responsibilities through employee data integration and automation of key-holder management. “Our leading clients have elected to drive their key-control data down to store level, so store managers can maintain serialized key issuance and compliance digitally,” explains Doyle. “These electronic key receipt and key log programs establish key-control audit history providing the LP organization visibility as to know who has access to which areas in real time, while re-enforcing consistent standards for each key holder’s compliance. This data integration capability and information sharing modernizes the overall effectiveness of our client’s key-control programs.” InstaKey Security Systems demonstrates their marketplace best practices by working with each client to customize their key-control program needs. If you haven’t reviewed your key control recently, you may want to look into InstaKey Security Systems’ Personified Key Control solutions.
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continued from page 56
Leader—Bill Napier, Cabela’s Co-Leader—David Lund, Dick’s Sporting Goods Current Members—Dick’s Sporting Goods, Cabela’s, and Walmart
Food and Drug Action Team
Big-Box Specialty Action Team (newly forming)
Objectives—Innovate and evaluate high-risk product protection in the big-box specialty sector Leader—John Doggette, Lowe’s Co-Leaders—Josh Machtinger, Toys“R”Us, and Dom Zuccala, Big Lots Current Members—Lowe’s, Toys“R”Us, and Big Lots
Objectives— R&D pharmacy internal theft and external robbery control; innovate and evaluate high-risk product protection of DVDs, open-merchandising male vitamins/enhancement, and cosmetics; identify high-risk product manufacturer partners Leader—TBA Co-Leaders—Maureen Grande, Wegmans; Jeff Martin, Kroger; Joe D’Agostino, SUPERVALU; and Erin Knight, CVS Current Members—Wegmans, Walgreen’s, CVS, Kroger, SUPERVALU, Publix, Jewel-Osco, Walmart, Meijer, BJ’s Wholesale, and Kmart
Small-Box Specialty Action Team (newly forming) Objectives—Innovate and evaluate high-risk product protection in the small-box specialty sector Leader—TBA Co-Leaders—TBA Current Members—Sterling Jewelers, Advance Auto Parts, AutoZone, Pep Boys, and Barnes & Noble
Department Store/Mass Merchandising Action Team
Concept to Action
Objectives—Explore the effectiveness of employee awareness programs while observing generational differences Leader—Chad McIntosh, Bloomingdale’s Co-Leaders—Marc Smith, Sears Holdings; and Steve Hodgkins, jcpenney Current Members—Bloomingdale’s, Sears, Marmaxx, and jcpenney
Apparel/Footwear Action Team (newly forming)
Objectives—Innovate and evaluate high-risk product protection for footwear/apparel sector Leader—Brian Bazer, Dress Barn Co-Leaders—Tony David, Fred Meyer, and Jeff McPike, Nike Current Members—Dress Barn, Fred Meyer, and Nike
Each working group and action team will set quarterly deliverables in order to meet their objectives while generating ongoing, actionable results to all members. Research includes offender interviews, surveys, focus groups, locational innovation via StoreLab, data analytics, and randomized field experiments. The keys to success are strong leadership combined with needed resources, active members, ready access to data and locations, and a skilled research team. The LPRC board of advisors is making sure all these ingredients are in place, and truly taking evidence-based loss prevention success to the next level. To become involved with any of these working groups or action teams, contact me at rhayes@lpresearch.org.
If your business is about doing business with loss prevention, security and safety executives from the
AUGUST 4 -7, 2013
restaurant industry,
M Resort Spa and Casino Las Vegas, Nevada
then the NFSSC Annual Conference is a must-attend event
34TH ANNUAL CONFERENCE
for you. No other
NATIONAL FOOD SERVICE SECURITY COUNCIL
event allows you to meet and interact with the industry’s top decision-makers.
Exhibit space and sponsorship opportunities are available! For more information, call 240-252-5542 or email Jim.Forlenza@nfssc.org.
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Solutions Showcase Tyco Integrated Security
Who’s a Chief Visibility Officer? By Steve Sell, Director Marketing, North America Retail
I
n our retail reality we hear words like “real time,” “traffic analytics,” “data mining,” “customer insight,” “cloud computing,” “mobility,” “inventory visibility,” “smart-this,” “networked-that,” “connectivity,” and the list goes on and on every day. This dialogue is part of the growing demand customers place on the business of retailing, created by their ever-increasing expectations. Having the right product on the shelf is now just part of the equation. Retailers use exponentially evolving technologies to do more with less, and nobody knows this better than loss prevention and retail security professionals. These new technology opportunities essentially reframe the role of LP professionals.
Retail Visibility— The New Game
Given that technology at its core delivers insight and visibility around people, places, and things, isn’t “retail visibility” the new game? Perhaps the role of an LP professional, then, has expanded to Steve Sell, Director Marketing something we could term “Chief Visibility North America Retail Officer” or CVO. Loss prevention leaders have always maintained a fast pace to keep up with evolving technologies, and now they must move at the speed of light. The quest for innovation and improved return on investment (ROI) races beyond the LP metrics of old, and decisions made in the LP arena demand a new level of collaboration across the enterprise leadership team. Higher store performance requires loss visibility, intelligent product protection, and inventory visibility. Consider that EAS
Given that technology at its core delivers insight and visibility around people, places, and things, isn’t “retail visibility” the new game? Perhaps the role of an LP professional, then, has expanded to something we could term “Chief Visibility Officer.”
and its peripherals now join a networked conversation with cameras, physical security, and POS to tell a story far larger than “Who took it?” and creates a conversation that has long-term benefit. IP video and RFID can partner with advanced software to help offer visibility into why losses occur. The CVO influences a broader spectrum of change and adoption in the retail world, viewing technologies in the store as a unified force of higher performance. The CVO utilizes technology like EAS and video not just to see a criminal in action, but to uncover insight around all customers, marrying collected data with RFID and powerful analytics tools. These are no longer discreet or stand-alone technologies. Instead they work together; their specialized
capabilities complementing each other for optimum effect.
A Collaborative Dialogue
The CVO is an essential piece of the LP puzzle who analyzes what the store needs by approaching store performance as a collaborative dialogue in the organization and between machines in order to expand ROI into new areas. How a retailer should use its technology is a question the CVO addresses by asking, “What drives the highest visibility across the supply chain and, ultimately, in our stores?” The right choices pay long-term dividends and drive customer satisfaction. A CVO considers higher visibility in every decision. After all, hasn’t LP always been about “visibility?” Who is your Chief Visibility Officer?
Information in this article is current as of March 1, 2013, the publication date. No part of this document may be reproduced in whole or in part without the prior written permission of Tyco Integrated Security. License information available at www.tycois.com. © 2013 Tyco. All rights reserved. Tyco is a registered mark. Unauthorized use is strictly prohibited. LP Magazine | MARCH - APRIL 2013
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Industry News by Robert L. DiLonardo DiLonardo is a well-known authority on the electronic article surveillance business, the cost justification of security products and services, and retail accounting. He is the principal of Retail Consulting Partners, LLC (www.retailconsultingllc.com), a firm that provides strategic and tactical guidance in retail security equipment procurement. DiLonardo can be reached at 727-709-6961 or by email at rdilonar@tampabay.rr.com.
Feds Release 2012 Counterfeit Seizure Statistics
U
.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) recently released results of ongoing efforts to protect America from the trade of counterfeit and pirated goods in the annual Intellectual Property Rights (IPR) Fiscal Year 2012 Seizure Statistics Report (www.cpb.gov). The agencies’ expanded efforts lead to 691 arrests, 423 indictments, and 334 prosecutions in the fiscal year ending September 30, 2012. In recent years the Internet has fueled explosive growth in the numbers of small packages of counterfeit and pirated goods shipped through express carriers and mail. In fiscal year 2012, the agencies heightened efforts against the sources of these small shipments—the websites involved in the trafficking of counterfeit and pirated goods.
In recent years the Internet has fueled explosive growth in the numbers of small packages of counterfeit and pirated goods shipped through express carriers and mail. In fiscal year 2012, the agencies heightened efforts against the sources of these small shipments—the websites involved in the trafficking of counterfeit and pirated goods. A total of 697 such sites were taken down by ICE, with CBP handling the forfeitures. Although seizures dropped by 7.8 percent to 22,848, the agencies believe the strategy of pursuing the sources of counterfeit goods will provide long-term results in decreasing the flow of counterfeit merchandise into commerce. The value of seized merchandise increased 13.5 percent year-over-year to $1.26 billion. The average seizure value was about $10,450. The three most confiscated category of items in 2012 were handbags and wallets; watches and jewelry; and wearing apparel and accessories. The 24/7 Wall St. blog
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(www.247wallst.com) recently published a list of the ten most copied merchandise categories based upon seizure value (listed below). 1. Handbags/Wallets (Value = $511.2 million, or 40% of the total)—It should be no surprise to this audience that handbags and wallets were by far the most counterfeited item in terms of MSRP, with the total value of the seizures up 142.2 percent compared to 2011. The CBP credits a portion of the large growth in seizures to “successful interagency-coordinated enforcement operations,” including Operation Market Day, which was primarily a sting operation, coordinated in conjunction with ICE. Of the approximately $511 million worth of handbags and wallets seized in 2012, more than $446 million worth originated in China. 2. Watches/Jewelry (Value = $187.0 million, or 15% of the total)—Seizure value rose by 8 percent from $173 million in 2011. The number of seizures rose by over 43 percent to 2,197, up from 1,491 in 2011. Once again, China was most responsible for these counterfeit items with $91.3 million in retail value seized by the federal government. In addition, 98 percent of counterfeit items smuggled from Singapore were watches and jewelry, with an estimated MSRP of $9.2 million. 3. Wearing Apparel/Accessories (Value = $133.0 million, or 11% of the total)—Counterfeit clothing and accessories were the most seized items in 2012, with more than 7,800 seizures, or about 29 percent of all seizures. But, the number dropped from nearly 8,100, and the total retail value also dropped from $142.3 million in 2011. About 73 percent of seizure value in 2012 originated from China. 4. Consumer Electronics/Parts (Value = $104.4 million, or 8% of the total)—Last year consumer electronics seizures were 10 percent of total value. About $71.5 million in seized merchandise originated in China. Of all counterfeit products originating from Hong Kong, consumer electronics were the most seized; 23 percent of all seized items from the country. Seizures of knock-off smartphones and tablets have risen exponentially in the last couple of years. 5. Footwear (Value = $103.4 million, or 8% of the total)—The federal government seized more than $103 million worth of footwear in 2012 in nearly 1,900 seizures. While most of the footwear that was seized used to be athletic shoes, knock-offs of high-end dress shoes are becoming more common. The vast majority of footwear seized in 2012 originated in |
LPportal.com
Calendar China. In fact, 10 percent of the total value of goods seized from that country was footwear, higher than all but two other products. 6. Pharmaceuticals/Personal Care (Value = $83.0 million, or 7% of the total)— Seizures dropped from nearly $142 million in 2011. China was responsible for 56 percent with an estimated $46.9 million worth of products seized. In addition, this category constituted 76 percent of seizures of products originating in India, with an MSRP of over $5.3 million. 7. Optical Media (Value = $38.4 million, or 3% of the total)—Although it represented only 3 percent of the value of all seized items in 2012, optical media was seized by CBP agents nearly 2,900 times in 2012, making the product the third-most confiscated item. However, seizures dropped by about 31 percent over 2011. The agencies believe that since optical media only includes tangible items, such as movies or music on a CD and not digital transmission, the real scope of media counterfeits is likely significantly understated by these figures. 8. Computers/Accessories (Value = $34.7 million, or 3% of the total)—The value of this year’s seizures was more than 50 percent higher than last year, yet the number of seizures dropped by 22 percent. More than 90 percent of the products seized originated from mainland China or Hong Kong, with the value totaling $18.3 million and $13.4 million, respectively. 9. Labels/Tags (Value = $26.3 million, or 2% of the total)—The $26.3 million seizure was nearly 80 percent lower than 2011. About $7.3 million worth originated from China, and another $3 million came from Hong Kong. This category is interesting because these counterfeit labels and tags would have been affixed to brand knock-offs. If the average “retail value” of a single tag or label is about 5 cents, then the federal government confiscated over 500 million units. 10. T oys (Value = $13.6 million, or 1% of the total)—The $13.6 million seizure was about 38 percent lower than 2011. Approximately $10.5 million worth of toys seized in 2012 originated in China, by far more than any other country.
i3 International Conference Held in Puerto Rico
March 6 – 8, 2013 Jeweler’s Security Alliance 35th Annual Security Seminar and Expo Flamingo Hotel, Las Vegas, NV www.jewelerssecurity.org March 10 – 13, 2013 Food Marketing Institute 2013 Asset Protection Conference Pointe Hilton Tapatio Cliffs, Phoenix, AZ www.fmi.org March 26 – 28, 2013 Merchant Risk Council e-Commerce Payments & Risk Conference Aria Resort, Las Vegas, NV www.merchantriskcouncil.org April 10 – 12, 2013 ISC West International Security Conference & Expo Aria Resort, Las Vegas, NV www.iscwest.com April 28 – May 1, 2013 Retail Industry Leaders Association 2013 LP, Audit, & Safety Conference Gaylord Palms Resort, Orlando, FL www.rila.org May 8 – 10, 2013 International Organization of Black Security Executives Annual Spring Conference Hosted by Limited Brands Columbus, OH www.iobse.com June 4 – 5, 2013 Retail Council of Canada Evolution of Retail Toronto (ON) Congress Centre www.storeconference.ca June 12 – 14, 2013 National Retail Federation Loss Prevention Conference & EXPO San Diego (CA) Convention Center www.nrf.com
INNOVISION 2013, a user conference sponsored by Toronto-Based i3 International, took place February 11 – 13 at the Gran Melia Resort outside of San Juan, Puerto Rico. The gathering included 28 retailers, 32 integrators, and 12 representatives of i3 (wearing black shirts above). Attendees heard presentations by retailers about implementation of technology in their companies, discussion of product improvements made from suggestions offered at previous conferences, as well as brainstorming sessions focused on new products and applications. The event also included numerous networking opportunities and social events where attendees and their families participated. To read more about the benefits of user conferences, see the Publisher’s Letter on page 6. LP Magazine | MARCH - APRIL 2013
August 4 – 7, 2013 National Food Service Security Council 34th Annual Conference M Resort Spa and Casino, Las Vegas, NV www.nfssc.com September 24 – 27, 2013 ASIS International 59th Annual Seminar and Exhibits McCormick Place, Chicago, IL www.asisonline.org
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Certification by Catherine Penizotto Penizotto is the vice president of analyst services for Agilence, an intelligent-based reporting solution provider. She also volunteers as the academic and retail partnership liaison for the LP Foundation and offers assistance to retail organizations and associations with student programs. She is the owner of OPTIC Loss Prevention LLC, a consulting and liaison firm founded in 2010. Penizotto has thirty years of retail management experience in specialty clothing, full-service automotive aftermarket, grocery, and discount big-box retail. She has been a mentor in the NRF’s Women in LP Caucus and is a member of the LP Foundation’s LPC exam committee. Penizotto can be reached at catherine.penizotto@ losspreventionfoundation.org.
The LP Industry Goes Back to School
M
any of today’s seasoned LP professionals, including this writer, honed and earned our LP education on the front line, learning the industry as we went and growing with the fast-changing environment. While that “learn-as-you-grow” education was once the norm, it is becoming exceedingly rare in today’s complex LP world. Simply put—things have changed. Gone are the days when the primary functions of the LP department were physical controls, dishonest associates, shoplifters, and shrink. No longer is the sheer quantity of resolved cases and a good shrink number a valid gauge of effectiveness. Today’s fast-changing, high-stakes, technology-laden world has added new items on the LP plate, such as safety and risk, organized retail crime, fraud, data
Several retail trade associations and organizations are serving the industry by carving out a piece of their annual conferences to promote, educate, and introduce college students to the abundant opportunities
this industry has to offer.
protection, crisis management, business continuity, supply-chain security, mobile technology, e-commerce, and workplace violence to name just a few. In addition, today’s LP is no longer an expense department, but rather a partner in the business, expected to manage large budgets and align the LP initiatives with company goals. It’s a complex and heavy load. Today’s industry leaders recognize that they need talent, and not just eager, energetic individuals with a good work ethic. Today’s executives need educated talent—those who are intellectually equipped to hit the ground running and mentally prepared to take on the myriad roles and responsibilities facing LP professionals today.
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Going Back to School
In order for students to arm themselves with the relevant courses that will help get them in the door to the LP industry, interest in our industry must be fostered early on. While many students become aware of the LP industry through professors or select courses, a number are learning about LP from industry professionals who have taken the time to visit colleges to talk to students about career offerings in the loss prevention industry, as well as dispel old notions and myths. Several retail trade associations and organizations are serving the industry by carving out a piece of their annual conferences to promote, educate, and introduce college students to the abundant opportunities this industry has to offer. One such organization is the International Organization of Black Security Executives (IOBSE). An important part of the annual IOBSE conference is the student day that kicks off the week’s events. The IOBSE is committed to not only teaching college students about the security and loss prevention industry through member visits to colleges, but they also afford a number of selected students the opportunity to attend their spring conference. Those students selected must pass a rigorous vetting process that includes stringent GPA criteria and intense interviews with IOBSE committee members. The education committee members work to educate the selected students before the event. That hard work is quite evident in the caliber of the students who attend this conference. They come well-prepared to network and eagerly engage in conversation to tap into the career experiences of those professionals in attendance. The student day is full of valuable career instruction and guidance to help the students understand what choices they have and how they can most enhance their career opportunities. The IOBSE student program is one that truly embraces the spirit of mentorship and giving back and will continue to benefit the loss prevention industry by turning today’s high-potential students into tomorrow’s leaders.
Recruiting Tool
Another association striving to educate college students is the Retail Industry Leader’s Association. RILA is once again offering a select group of college students the
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People on the move
John Carro has been appointed Regional
Scott Byers has been named Director
Andrew Burchett has been appointed LP Manager for Stein Mart.
Jodee Nodsle has been named
Alan Thompson has been appointed
Regional LP Manager for Gordmans.
Theresa Rowsell has been appointed Senior AP Business Partner for Target.
Chad Mackiewicz has been promoted to
James Blakely has been appointed Regional
Mike Andreotti has been promoted
Tony Howland has been appointed District LP Manager for Banana Republic.
Rich Groner has been promoted to Area AP Manager for lululemon athletica.
Frank Albany has been promoted to Senior
Doug Rajala BA, has been promoted
Raul Ramirez has been promoted to
AP Investigator for Advance Auto Parts. Risk Manager for ALDI, Inc. Divisional LP Manager for AutoZone.
of LP for Golfsmith International.
LP Manager for LP Innovations.
to Regional LP Manager for Best Buy Canada/Future Shop.
Director, AP, for Luxottica Retail.
Chris McCarrick, CFI has been
appointed Senior Manager, Physical Security and Corporate Investigations, for BI-LO/Winn-Dixie.
have been appointed Regional Security Managers, and William Ball has been promoted to Director of Security for McDonald’s Corporation.
Melissa Lauricello, CFI has been appointed
Jon-Michael Shinn has been appointed
Jonathan Carroll has been promoted to
Kevin Cook has been promoted
Regional LP Manager for Brooks Brothers.
Sam Ayache, CFE and Jennifer Schaefer
District LP Manager for NAPA Auto Parts.
Regional LP Manager for Brookstone.
to AVP of AP for Pep Boys.
Jim Crispyn, Chad Greinke, Raymond Sosa, MBA, CFI, Marc Venier, and Matt Woolley
Brad Trew has been named Director of Special Investigations for Reed Research Ltd.
have been promoted to Senior Regional LP Managers; Kevin Plante, LPC has been appointed Director of LP and Financial Reporting and Analysis for CVS/Caremark.
Leo Anquiano, LPC, and Kirk VanZee
Director of LP for David Yurman.
have been appointed Senior Divisional Directors of AP, and Sandy Chandler, LPC has been promoted to Divisional Director of AP for Rite Aid.
Mike Jackson has been promoted
Dan Polestra has been appointed Regional
Drew Brennan has been appointed Executive
to Regional Director of LP for Dick’s Sporting Goods.
Director of AP for Saks Fifth Avenue.
Adam Fulton has been promoted to
Scott Burns has been appointed District LP Manager for Sports Chalet.
Michael Zang, CFI has been appointed
Dan Provost, LPC has been promoted to VP of Global LP for Staples.
Senior Director of LP for GameStop. LP Director for GAP China.
opportunity to learn more about LP, showcase their skills and knowledge to potential employers, and network with industry professionals through their College Student Program. The students attending their conference this year in Orlando are sure to once again catch the attention of industry leaders looking to bring on college-educated talent. Students present a retail LP-related project in a session devoted to them. The attendance at last year’s student session was outstanding. “The college student program is a recruiting tool,” says Lisa LaBruno senior vice president of retail operations for RILA. “It exposes retailers and solution providers to talented and driven young people who are passionate about pursuing a career in retail asset protection. A number of last year’s student participants were hired by retailers who met them at the conference.” Garth Gasse, RILA’s new director of retail operations, AP, adds, “Short-term this program increases awareness about the retail AP industry, as well as the possible career opportunities it offers. Through participation in this significant research
to Senior Group Manager, AP Operations, for Target.
Director, Global AP, for Under Armour.
Marty Andrews, CFI has been promoted to Director of LP and Risk Management for Vans, 7 For All Mankind, Splendid, and Ella Moss. David Williams has been appointed Director of North American Sales for Vector Security. Ted Sendejo has been District LP Manager for Walgreens. Brett Davidson has been promoted to Market AP Manager and Lorrussia Averett has been promoted to
AP Manager for Walmart.
Rob Wynn, CFE, CFI has been promoted to Director, Food Safety and Quality Control, for Weis Markets.
To stay up-to-date on the latest career moves as they happen, sign up for LP Insider, the magazine’s weekly e-newsletter, or visit the People on the Move page on the magazine’s website, LPportal.com. Information for People on the Move is provided by the Loss Prevention Foundation, Loss Prevention Recruiters, Jennings Executive Recruiting, and readers like you.To inform us of a promotion or new hire, email us at peopleonthemove@LPportal.com.
project and the partnerships it offers, high-potential college students are given the chance to learn all about the industry. Longer term, we hope that the program will generate interest in the AP field as a future career opportunity.”
Foundation Partnership
The Loss Prevention Foundation proudly partners with IOBSE and RILA by providing LPQualified course and exam scholarships to give these students the added advantage of the LPQ designation—a certification preferred by over sixty companies nationwide. As you make your plans to attend this year’s spring conferences, consider the impact you could have on the industry by “going back to school” and engaging these students in conversation, networking with them, offering your experiences, and listening to their perspective on current relevant topics presented in their session. For that small investment of your time and interest, you and the industry will both be enriched.
LP Magazine | MARCH - APRIL 2013
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nutechnational.com
Palmer, Reifler and Associates............................9
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Protection1 Security Solutions...........................35
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Protos Security........................................................3
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The Retail Equation.................................................5
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High Theft Solutions
Vendor Advisory board Alpha Diane Wise Global Marketing Manager
Corporate Safe Specialists Ed McGunn President/CEO
Intelligent Loss Prevention Jay Leedy Business Development Manager
The Retail Equation Tom Rittman Vice President, Marketing
Axis Communications Jackie Andersen Business Development Manager, Retail
Detex Ken Kuehler National Account Manager
Milestone Systems Trenton Thoms Retail Sales Manager
Security Resources, Inc. Kris Vece Business Development
Checkpoint Carlos Perez Senior Director, Global Marketing
i3 International Vy Hoang Executive Vice President, Sales and Marketing
NuTech National Greg DeTardo President
Tyco Integrated Security Kevin E. Lynch, LPC Executive Director
ClickIt Inc. Jim Paul Director of Sales
InstaKey Security Systems Cita Doyle, LPQ Director of Sales & Marketing
Palmer, Reifler & Associates Jeff Welch Executive Director
Verisk Retail David Duhaime President Verisk Crime Analytics
Protos Security Patrick Henderson Vice President
LP Magazine | MARCH - APRIL 2013
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Parting Words
What Is March Madness?
Jim Lee, LPC Executive Editor
A
nswer: Is it where all LP associates are evaluated on last year’s personal performance and held accountable for shrinkage? Or is it where some are just evaluated on their performance and not held accountable for shrinkage? It’s a trick question. The real answer is, it is the NCAA basketball tournament where people like me fill out our “brackets” picking enough winners to perhaps win a pool of money. Right on, basketball fans! I am a basketball fan, born and raised in Indiana where basketball is a way of life for six months out of the year. I will be at the NCAA tournament rounds 2 and 3 this year in two different sites. The games will be great, the players fun to watch, and the coaches…ah, the coaches. I think watching the coaches is like watching a leadership seminar. Whether you are a fan of basketball or not, you can learn from some of the great coaches’ leadership principles. Let’s look at two and some of the building block statements that they lived and coached by.
thought. And number three is, you should have your emotions moved to tears, could be happiness or joy. But think about it. If you laugh, you think, and you cry, that’s a full day. That’s a heck of a day. You do that seven days a week, you’re going to have something special.” Valvano was also often quoted saying the following: ■ How do you go from where you are to where you want to be? I think you have to have an enthusiasm for life. ■ I asked a ref if he could give me a technical foul for thinking bad things about him. He said, of course not. I said you stink. And he gave me a technical. You can’t trust ‘em. ■ The reason people find it so hard to be happy is that they always see the past better than it was, the present worse that it is, and the future less resolved than it will be. ■ Life is not measured by the number of breaths we take, but by the moments that take our breath. ■ I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.
John Wooden
The first is the legendary John Wooden, a man who coached ten championship teams at UCLA and was perhaps viewed as much for his leadership qualities as his trophies. Here are a few Woodenisms: ■ Don’t mistake activity with achievement. ■ The people who turn out best are those people who make the best out of the way things turn out. ■ Ability may get you to the top, but it takes character to keep you there. ■ The true test of a person’s character is what they do when no one is watching. ■ If you don’t have time to do it right, when will you have the time to do it over? ■ Never make excuses. Your friends don’t need them and your foes won’t believe them. ■ You can’t live a perfect day until you do something for someone who will never be able to repay you. ■ It is amazing how much can be accomplished if no cares who gets the credit. ■ Failing to prepare is preparing to fail. ■ Don’t let making a living prevent you from making a life. ■ It is what you learn after you know it all that counts.
Regionals
Those are some pretty impressive thoughts from two legends of leadership, but I am not done with leadership and life statements. A couple of years ago some very bright regional LP managers wrote for the magazine. Here is some of what they said: ■ You must carry out your duties with honesty, integrity, fairness, ethics, and professionalism. ■ You must be willing to surround yourself with talented people and challenge them to get better. ■ You must create an environment where everyone’s thoughts and ideas are respected. ■ I learned by watching, listening, and taking notes of others doing their work. ■ There is significant value in learning the business from an operational standpoint. ■ It is important to be a part of an organization with integrity, vision, and upward mobility. ■ More important than money is enjoying the job and quality of life. ■ The company is important, but more so the person you work for. ■ My career has historically edged out over my personal life. As I have gotten a better comfort level with my position, I have achieved more home balance. ■ I am fortunate to have a very supportive spouse who understands my career is important to us. ■ I consider LP the greatest job ever. Pretty powerful statements by two great coach’s and some astute regional types. And it is all under the banner of March Madness—what a great country.
Jim Valvano
The second coach is Jim Valvano, a man who won a championship at North Carolina State when no one thought they could and later died way too early from cancer. In his memory the Valvano Foundation has become one of the greatest contributors to cancer research. Perhaps you have heard his final speech given just days before his death: “To me, there are three things we all should do every day. We should do this every day of our lives. Number one is laugh. You should laugh every day. Number two is think. You should spend some time in
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MARCH - APRIL 2013
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Field vision is important in retail. We all need a
Chief Visibility Officer With Tyco Integrated Security behind you, the sharpest ideas, services and solutions are right at your fingertips. Your EAS, video, analytics, RFID and security work seemlessly together. Your visibility around shrink, inventory accuracy, safety, and overall store performance is crystal clear. That means you can drive better customer experiences and higher profits. And with all that power you quickly become - what we like to call a Chief Visibility Officer. So, let’s talk about how we can help you improve your retail visibility.
Steve Young Football legend
Visit us at Booth #305 at RILA LP 2013
Sharper thinking. Better retail visibility.
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