March - April 2019 by Loss Prevention Magazine

MARCH–APRIL 2019 | V18.2 LOSSPREVENTIONMEDIA.COM

LOSS PREVENTION MAGAZINE THE AUTHORITY ON ALL THINGS ASSET PROTECTION

MAKING A WORLD OF DIFFERENCE

TOP LP TEAMS ENABLE GLOBAL OPERATIONS BY TACKLING A WIDE RANGE OF INTERNATIONAL CHALLENGES COMBINING OPERATIONS AND AP IN TOTAL RETAIL LOSS THE IMPROBABLE HISTORY OF THE INK TAG WHY WE’RE ALL MILLENNIALS NOW

TABLE OF CONTENTS 6 EDITOR’S LETTER

LP Must Partner with Supply Chain

By Jack Trlica

10 RETAIL SPONSORS

Making a World of Difference

12 INTERVIEWING

Thought and Gesture

By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

Top LP teams enable global operations by tackling a wide range of international challenges

26 CERTIFICATION

Broaden Your Understanding

Interview with Rick Snook, LPQ, Axis Communications

By Garett Seivold, LPM Senior Writer

28 LPM EXCELLENCE

LPM “Magpie” Award: Applauding Excellence

Combining Operations and AP in Total Retail Loss

Featuring Shannon Hunter, Office Depot, and Stuart Rosenthal, Checkpoint

40 EVIDENCE-BASED LP Crime-Place Networks

By Read Hayes, PhD, CPP

42 FUTURE OF LP

Cyber Security Starts with Physical Security

A profile of Paul Jaeckle of Meijer Stores

By Tom Meehan, CFI

By James Lee, LPC, LPM Executive Editor

50 ASK THE EXPERT Alexa Needs You

Interview with Steve Sell, CONTROLTEK

52 SUPPLY CHAIN

Modern-Day Pirates Pillage Different Seas

The Improbable History of the Ink Tag

By Maurizio P. Scrofani, CCSP, LPC

62 PERSPECTIVES

Solution Provider Sales Strategies

Interview with David Ewton, Bosch; Mike Isch, STANLEY Security; and Robb Northrup, siffron

Recognizing the thirty-fifth anniversary of this innovative EAS tag

65 SOLUTIONS SHOWCASE InstaKey

By Bob DiLonardo, Consultant

66 LPM DIGITAL

Heralding a New Era By Kelsey Seidler

69 PRODUCT SHOWCASE 69 CALENDAR

70 PEOPLE ON THE MOVE

Why We’re All Millennials Now

72 ADVERTISERS 72 SUBSCRIPTION FORM 73 VENDOR SPONSORS

14 myths about the millennial generation’s attitude toward work and career

74 PARTING WORDS

Potpourri: A Miscellaneous Collection of Thoughts By Jim Lee, LPC

By Bruce Tulgan, RainmakerThinking

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EDITOR’S LETTER

LP Must Partner with Supply Chain L ast issue I posed the question in this column, “Why Supply Chain?” As I suggested, “With the evolution of omni-channel retailing where customers can order online, pick up in store, or return items delivered to their homes at nearby stores, the supply chain and inventory control play a much more important role than a decade ago. And because asset protection organizations play a vital role in supply chain, we have focused more editorial on the subject.” That column received a good deal of positive response from readers. In late February, I decided to attend the Retail Industry Leaders Association (RILA) LINK2019 retail supply chain conference for the first time. I wanted to compare the perspective of supply chain professionals to that of loss prevention professionals. While omni-channel was indeed a significant point of discussion throughout the conference, loss prevention and risk management issues were hardly mentioned. Maybe I shouldn’t have been surprised, but I was.

Focused on Moving Merchandise

Historically, supply chain operations have focused on logistics—moving merchandise from point of manufacture on another continent to our shores by container ship, from West Coast to East by truck or rail, or from distribution centers to stores. As one presenter described it, “Our task is moving boxes.” Thus, the large expo hall was by far filled with transportation and logistics exhibitors, primarily

companies representing ports of entry, trucking, and distribution center facilities management. There were only a handful of booths addressing either data analytics or software applications that included asset protection or risk management. One of those was Profitect, a well-known analytics provider in the loss prevention space who also supports supply chain. Along with big names like DHS and FedEx, one of the distribution and trucking vendors who was a premier sponsor of the conference was National Retail Systems (NRS) represented by their Senior Vice President John Tabor, who is active in both RILA’s supply chain and asset protection conferences. Perhaps because Tabor comes from a security background, he told me that loss prevention and logistics security is one of the differentiators NRS enjoys in discussions with retailers.

The Need for LP in SC What did the absence of loss prevention and risk management topics at this conference mean to me? It says loss prevention and asset protection organizations must partner with their supply chain peers to ensure that security and risk are managed in the complicated logistics challenges presented by omni-channel retailing. “Moving boxes” in retail today is significantly more complex in this buy online, pick up in store, return by mail or in person, and ship from store environment. Your supply chain and logistics peers have their hands full literally

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trying to deliver (pun intended) an excellent customer experience demanded by today’s omni-channel consumer. It’s the asset protection organizations’ responsibility to ensure that these complex delivery and returns programs meet not only the customer service objectives but also the loss prevention, risk, and inventory management goals that minimize shrink and maximize profits. As supply chain asset protection expert Maurizio Scrofani, CCSP, LPC, said in our interview in the January–February edition, “Twenty years ago we were shaking doors, making sure everything was closed. Today we’re studying data, looking, literally, for the blank space. What can I not see that I need to manage?” While LP has been analyzing data for a long time, it appears that supply chain may be behind the curve somewhat. Perhaps LP can help their supply chain peers move the needle on analytics and help solve retail’s challenge of “moving boxes” quickly and securely. Incidentally, Maurizio has more to say about supply chain on page 52 of this issue. If you are part of your asset protection supply chain team, I would welcome your perspective on this topic. Write me at JackT@LPportal.com.

Jack Trlica Managing Editor

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EDITORIAL BOARD Charles Bernard Group Vice President, Asset Protection and Comprehensive Loss, Walgreens

John Matas, CFE, CFCI Vice President, Asset Protection, Investigations, Fraud, & ORC, Macy’s

Erik Buttlar Vice President, Asset Protection, Best Buy

Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA

Jim Carr, CFI, CCIP Senior Director, Global Asset Protection, Rent-A-Center

Randy Meadows Senior Vice President, Loss Prevention, Kohl’s

Ray Cloud Senior Vice President, Loss Prevention, Ross Stores

Melissa Mitchell, CFI Director, Asset Protection and Retail Supply Chain, LifeWay Christian Stores

Francis D’Addario, CPP, CFE Emeritus Faculty Member, Strategic Influence and Innovation, Security Executive Council

Richard Peck, LPC Senior Vice President, Loss Prevention The TJX Companies

Charles Delgado, LPC Regional Vice President, Store Operations, Academy Sports Scott Draher, LPC Vice President, Loss Prevention, Safety, and Operations, Lowe’s Scott Glenn, JD, LPC Vice President, Asset Protection, The Home Depot

Joe Schrauder Vice President, Asset Protection, Walmart Stores Tina Sellers, LPC Director, Asset Protection, Retail Business Services LLC, an Ahold-Delhaize Company Hank Siemers, CFI Vice President, Global Retail Security, Tiffany & Co.

Barry Grant Chief Operating Officer, Photos Unlimited

Quinby Squire Vice President, Asset Analytics and Insights, CVS Health

Bill Heine Senior Director, Global Security, Brinker International

Mark Stinde, MBA, LPC Senior Vice President, Asset Protection, JCPenney

Frank Johns, LPC Chairman, The Loss Prevention Foundation

Paul Stone, CFE, LPC VP Security, Goodwill Industries of SE Wisconsin

Paul Jones, LPC Director, Asset Protection and Risk Management, CKE Restaurants Holdings Mike Lamb, LPC Vice President, Asset Protection, The Kroger Co. David Lund, LPC Vice President, Loss Prevention, DICK’S Sporting Goods

Pamela Velose Vice President, Asset Protection, Belk Keith White, LPC Executive Vice President, Loss Prevention and Global Sustainability, Gap Inc.

Loss Prevention, LP Magazine, LP Magazine Europe, LPM, and LPM Online 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.

MARCH–APRIL 2019

LOSS PREVENTION MAGAZINE 700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax MANAGING EDITOR Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com EDITORIAL DIRECTOR Jacque Brittain, LPC JacB@LPportal.com MANAGING EDITOR, DIGITAL Kelsey Seidler KelseyS@LPportal.com RETAIL TECHNOLOGY EDITOR Tom Meehan, CFI TomM@LPportal.com SENIOR WRITER Garett Seivold GarettS@LPportal.com CONTRIBUTING WRITERS Read Hayes, PhD, CPP Walter Palmer, CFI, CFE Maurizio P. Scrofani, CCSP, LPC Shane G. Sturman, CFI, CPP Bill Turner, LPC David E. Zulawski, CFI, CFE CHIEF OPERATING OFFICER Kevin McMenimen, LPC KevinM@LPportal.com DIRECTOR OF DIGITAL OPERATIONS John Selevitch JohnS@LPportal.com SPECIAL PROJECTS MANAGERS Justin Kemp, LPQ Karen Rondeau DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com CREATIVE DIRECTOR Larry Preslar ADVERTISING MANAGER Ben Skidmore 972-587-9064 office, 972-692-8138 fax BenS@LPportal.com SUBSCRIPTION SERVICES

NEW OR CHANGE OF ADDRESS LPMsubscription.com or circulation@LPportal.com POSTMASTER Send change of address forms to Loss Prevention Magazine P.O. Box 92558 Long Beach, CA 90809-2558 Loss Prevention aka LP Magazine aka LPM (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 LPMsubscription.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 circulation@LPportal.com. For questions about subscriptions, contact circulation@LPportal.com or call 888-881-5861. Periodicals postage paid at Matthews, NC, and additional mailing offices.

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INTERVIEWING

Thought and Gesture “

by David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

here the heck is that file? I know I just had it.” “It’s right over there.” I said pointing at the file. Then I noticed my extended index finger aimed directly at the missing file at the point I said “there.” How had that happened? I hadn’t thought about pointing, but somehow, I had done it as part of my answer. The pointing finger is clearly understood to direct another’s gaze or attention to a particular area, but here it appeared without an apparent conscious thought on my part. This became a topic of conversation around the office—thought and gesture. Have you ever consciously thought about making a gesture while you were talking, or do they just happen naturally as part of the conversation? Certainly, actors plan some of their movements as part of a well-choreographed performance, but in day-to-day conversation gestures just seem to appear perfectly timed matching our words and meaning. So how does that happen, and what can we learn about the seemingly perfect natural selection of the right gesture?

When gestures do not match the words intended or emphasize or extend beyond the end of the sentence, an investigator should continue to explore these areas of concern. Cultural Differences People who use gestures generally fall into one of three large groups of users depending on culture and geographic regions of the globe. The groups that use gestures the least are the Nordic countries, Norway, Sweden, Finland, Greenland, and Denmark. Plus, you could include Asian communities such as China, Korea, and Japan who also make little use of gestures as part of their communication. The second group makes moderate use of gestures to communicate, which may increase as they become more excited. This group includes the Russian, German, British, Dutch, and Belgian peoples. The final group uses gestures extensively in communication, and they have historically culturally influenced others in the world. Here we think of the Italians,

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Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (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. © 2019 Wicklander-Zulawski & Associates, Inc.

Spanish, and Portuguese whose language incorporates gestures heavily to convey meaning. If we take a historical perspective, you can see their influence on the communication style of those in the Middle East and South America where early colonies were under their rule. The United States is a melting pot of people, and the gestures here vary depending on the concentration of a cultural norm. While nationality might play a part in the level of gesturing, the cultural norm is clearly more important. Common amongst all people are the basic human emotions—fear, anger, surprise, sadness, happiness, disgust, and contempt—but gestures themselves can be unique and geographically diverse.

Gestures versus Emblems Somehow, the gesture must be linked to thought and language in a specific way that does not require a person to consciously select and incorporate it in the conversation. The actions we take when getting ready to leave an encounter are predictive of what we are about to do. Shifting our feet and bodies, we start to turn toward our point of exit physically announcing our intention to leave. The trunk of the body moves away from the other speaker, eye contact diminishes, and we begin to collect our items, further suggesting the conversation is at an end. Sometimes these gestures and behaviors are conscious and other times not; we just do them without thinking. For example, when we feel anxious, we may use self-touching to reassure and support ourselves. The hands may hug or touch the face or body to comfort ourselves with the emotional support we feel we need. The term “gesture” is defined by Merriam-Webster as “a movement usually of the body or limbs that expresses or emphasizes an idea, sentiment, or attitude.” The spoken language and gestures are so closely related that unless they are consciously done, they must be part of the same process. Language is a series of descriptive terms strung together to communicate an idea while the gestures add depth to them by providing emphasis and spatial characteristics to the story. One could almost think of gestures as being a picture or drawing to add dimension and context to the words. continued on page 14 LOSSPREVENTIONMEDIA.COM

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Gestures can form pictures. He reached out (arm reaches out palm down), grabbed the pipe (hand clenches around the imaginary pipe), and swung it towards the guy’s head (arm and clenched fist swing toward new place in space). Gestures can add emphasis. These are rhythmic in-and-out or backward-and-forward movements that establish the important parts of the sentence. We (jabs/points down) will (jabs/points down) not (jabs/points down) let (jabs/points down) this (jabs/points down) happen (jabs/points down) again (jabs/points down ending gesture before completing word again). The regular movement adds emphasis to the language reinforcing the speaker’s anger or determination in this case. Gestures can provide a physical location for something being discussed in the abstract. I think we have all had problems like that (gestures to right and down). The gesture right and down provides a location for the problem. How do you feel when you have to deal with that (gestures to the location of the problem to add context to the question avoiding having to restate the problem)?

What we have noted in our interviews with those later found to be deceptive is a remarkable lack of gestures. Often these subjects seemed to be unnaturally locked down, limiting their movements and gestures. The gestures that were used seemed rapid, stiff, and mistimed with the words they had chosen. Emblems are different from gestures in that they don’t have to accompany words. Emblems are physical movements that can take the place of words: a wave equals “hello,” a palm extended toward another equals “stop,” a shrug equals “I don’t know,” a shake of head from side to side equals “no,” and a nod equals “yes.” Emblems can be used at any time, but gestures almost exclusively occur only during speaking and address what is being talked about. He drew back (pulls back imaginary bowstring) the bowstring. While several gestures may be included in a sentence, the emblem is used alone to convey a meaning—the “wave hello” says it all without needing to add other signs. While the gestures are used while the sender speaks and support the words spoken, the emblem may appear in stark contrast to the gesture, carrying a different meaning. (Shrugs) then we went over to (arm raises and points to space representing house) Jill’s house (arm drops to lap) to see her puppy. While the gestures support the words, the

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shrug would seem to represent uncertainty and contrast with the message of the words. The observant investigator would note this contrast in messages and explore it more fully.

Observe and Dig Deeper While emblems can occur at any time, the gesture is strongly attached to the speech being delivered. When a person gestures, the arms and hands are perfectly choreographed, matching movements to the chosen words ending before or at the appropriate syllable, but not after the sentence is complete. When gestures do not match the words intended or emphasize or extend beyond the end of the sentence, an investigator should continue to explore these areas of concern. One of the reasons a deceptive individual’s gestures may be mistimed is because of the tension held in the muscles as the body goes through fight, flight, or freeze to defend against the threat. The meanings of emblems also are culturally specific and can have altered understandings based on the cultural group or geographic location. But regardless of the emblem, they tend to remain stable over time because they are simple and short and therefore difficult to change. Some emblems originated thousands of years ago during the Roman Empire and are essentially unchanged today. So when we consider gesture and thought, which comes first? The old question—the chicken or the egg? It seems as if the gesture must predate the thought’s articulation since the gesture can begin slightly before the words are expressed. Plus, as the complexity of our statements becomes more abstract, the gestures increase and are joined to the words to expand understanding and meaning intended. But while the gesture may start to evolve as the mind begins to form a thought, they are essentially formed in a single process. So the chicken or the egg…yes. They form together. The first part of a thought is an image, which is described by language and the physical movements of the gesture. Now, we are sure that those who study speech and gestures may have disagreements with how we have described them here, but these complexities are probably outside of what we need to think about. Gesture and thought are joined to the words uttered by the speaker allowing the gestures to add emphasis, location, and depth to the string of words. What we have noted in our interviews with those later found to be deceptive is a remarkable lack of gestures. Often these subjects seemed to be unnaturally locked down, limiting their movements and gestures. The gestures that were used seemed rapid, stiff, and mistimed with the words they had chosen. This was nothing like the effortlessly choreographed gestures of those comfortable with their stories. When we see someone whose gestures are mismatched to their words, we should look more closely at what is being said and how before we eliminate them in an investigation. LOSSPREVENTIONMEDIA.COM

FEATURE

MAKING A WORLD OF DIFFERENCE TOP LP TEAMS ENABLE GLOBAL OPERATIONS BY TACKLING A WIDE RANGE OF INTERNATIONAL CHALLENGES By Garett Seivold, LPM Senior Writer

MAKING A WORLD OF DIFFERENCE

mong television business announcers doing stock market play-by-play, tit-for-tat tariffs and the “slowing Chinese economy” are frequent causes of shrill alerts and fretful dissection. Fundamentally, however, there is a bigger China story developing. This is the year that China will push past the US to become the leader in retail sales. According to calculations by market research firm eMarketer, growth of 7.5 percent will put China’s retail economy at $5.6 trillion, exceeding the US by $100 billion based on its 3.3 percent growth projections. American businesses have taken notice. In a quarterly conference call in January, Starbucks’ CEO Kevin Johnson said the company is “comfortable and confident” with its strategy in China, which remains, despite current softening, the coffee chain’s fastest-growing market. “We continue to play the long game in China,” he said. It’s not just China, of course. When retailers squint into the future to see where sales growth will come from, eyes often focus on opportunities and operations abroad. Capitalizing on that vision is complicated, however. It’s the uniform view among global risk analysts that the world is becoming more uncertain, more dangerous. Twenty-two percent of countries, for example, were rated as “high” or “severe” risk in a 2018 guide to political risk, terrorism, and political violence by Aon, an insurance and risk services firm. Bruce McIndoe, president of WorldAware, a global risk management firm, sees two emerging risk categories that pose a particular risk to the global Bruce McIndoe aspirations of retailers: societal risks and the escalation of friction between nation states. “While we always have had to deal with societal risks, such as citizen unrest in response to labor, human rights, and corruption issues, there are a number of countries

where divisive issues are currently fracturing the society,” McIndoe told LP Magazine, specifically citing risks from the rise of nationalism and populism across Europe and Asia as examples. “Similarly, while friction has always existed between nation states, rising globalization has coincided with more frequent instances of friction between countries over geopolitical issues ranging from trade, to domestic security, and beyond.” Matthew Bradley, regional security director at International SOS + Control Risks, similarly warned of risks to people and operations sparked by civil unrest and political instability. He additionally noted the growing risk from natural disasters and street Matthew Bradley crime to retail personnel engaged in sourcing and visiting manufacturing hubs, such as in Southeast Asia and Central America. “In many cases, preparing travelers for a high-risk

vest protests in France to potential fallout from the Huawei hullabaloo. It is a dynamic risk picture that puts LP squarely at the center of a retailer’s ability to exploit a Debbie Maples growing global marketplace. Case in point: American Eagle’s expansion into Mexico. Benefiting from a forward corporate vision, which provided an abnormally long lead time to plan and the resources necessary to execute, the company’s LP team was central to successful expansion. “Three years before going into Mexico we wrote a white paper on what we were going to need to do in order to do it right and establish a strong LP presence in each of the retail locations,” explained Scott McBride, the Scott McBride

For LP executives with global supply chain security responsibilities, typical problems are often amplified. The risk of criminal attacks against goods in transport is often the same—or higher—while traditional loss mitigation may be absent. location will mean measures to help keep workers safe from local violent crime,” he said. Those threats are reflected in the priorities of global loss prevention departments today. “I am concerned about international conflict—and how that impacts our travelers, expats, and basic employee safety,” said Debbie Maples, vice president of global LP and corporate security at Gap. She and others cited a wide range of global threats that are keeping them busy, from the yellow MARCH–APRIL 2019

LOSSPREVENTIONMEDIA.COM

retailer’s vice president of global loss prevention, safety, and security. He said LP was “unapologetic about how strong we wanted security to be” and that management saw value in giving them everything they needed. The “full court press” paid off. A few years in, American Eagle’s twenty stores in Mexico had the best shrink rate in the company, with a loss rate of close to 1 percent of sales. That impressive shrink rate was particularly critical in an environment with a supply chain that

MAKING A WORLD OF DIFFERENCE

Global Retail Shrinkage by Country, 2017–2018 2017–2018 Shrink as % of Sales

Shrinkage Value (USD $billion)

Rank, Based on Shrinkage %

Italy

2.32%

2.73

India

2.13%

0.53

France

2.06%

7.30

South Korea

2.04%

1.56

Brazil

1.99%

2.34

Span

1.99%

2.77

China

1.96%

13.52

1.88%

7.45

USA

1.85%

42.49

Russia

1.81%

2.52

Mexico

1.59%

1.62

Australia

1.47%

2.24

Japan

1.44%

6.20

Germany

1.43%

6.28

Country

(Source: The Sensomatic Global Shrink Index, 2018)

was too thin to accommodate average losses. “The low shrink was a huge advantage to the sales side. Because of the small pipeline for products we had, if losses had been 3 to 4 percent, we would not have been able to be in-stock and in-size,” explained McBride. “We were able to be strong when we walked into the country and to maintain it—it’s really a success story for our LP department and for our company to have such strong growth in an emerging market.” In a 2018 report by KPMG on the top risks facing retail, the firm highlighted the shifting geography of the global retail marketplace. “Although the United States remains the leading force on the global scene, as markets and regions transform with emerging technologies, talent, and capital, a shift from West to East is underway.” China is rising at a “breakneck pace,” says the report. India is ascending. So it’s noteworthy that—in the firm’s dissection of international risk—one in three of the primary risk drivers identified fall squarely within the security domain. For example, the report warns retailers of threats from social and

political instability, terrorist attacks, and delays in cargo delivery due to security considerations. The upshot is obvious: security and global retail are intricately intertwined. In today’s evolving retail environment, effectively managing international risks doesn’t just prevent incidents; it can make the difference between winning and losing in the global marketplace. And resiliency, a prerequisite for the success of an international retailer, extends far beyond crisis events. The retail companies that succeed going forward need LP’s expertise to enable the business to effectively manage both predictable and catastrophic challenges. For a sense of which ones are top-of-mind today, LP Magazine spoke with several leading global executives.

Strategy The very heart of an LP program—its strategic underpinnings—may need tweaking when applied to retail locations abroad, say experts, and must reflect local risks, standard practices, and available tools. There may be one way of doing things in the US, but investigations, LP MAGAZINE

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theft prevention, and security posture may all demand a different approach in international store locations. Executing strategy can also be complicated, both Hank Siemers by local cultural issues and technological differences, noted Hank Siemers, vice president of global retail security at Tiffany & Co. “We’ve found a problem of consistency in [point-of-sale] systems across countries. A lot of our global locations are in department stores, and they can have their own way for handling a transaction, so that’s something that can pose a problem and make it hard to develop patterns and conduct exception reporting that a retailer might rely on,” warned Siemers. He added that laws in some countries can require a different handling of loss incidents that involve employees. There are many such differences, explained Siemers, “and they can pose a problem to developing a consistent strategy across countries.” Language poses an obvious barrier and so can differences in LP terminology. For example, “loss prevention” doesn’t translate as well as “security” when liaising with law enforcement, government officials, and private security firms outside of the US, noted Siemers. The very core of LP, “inventory shrink,” can also be a point of confusion, according to Kevin Ach, vice president for risk assurance at EPIC Integrated Risk Solutions and formerly senior director of retail loss prevention and safety for Office Depot. “It can mean something completely different Kevin Ach in one country from another,” said Ach. For example, damaged products may or may not be included in calculating shrink, he said. “[At Office Depot] we put in a lot of effort to make it so we could compare apples to apples and

MAKING A WORLD OF DIFFERENCE measure shrink consistently across the world.” “It’s absolutely a challenge; you can’t just cut and paste,” agreed American Eagle’s Scott McBride, citing cultural variations from country to country and differences in compliance and legal issues, and in standard business practices. He said it took a long time and significant effort to develop an LP program that was both global and had appropriate localization, and that being present in the country was an important impetus. “It was important to go in and actually spend time on the ground, to change the programs, and to have time to leverage the other departments that were doing the same thing—legal, HR, investigations—as well as contractors and vendors,” said McBride. Tiffany & Co.’s Hank Siemers made a similar point and noted the strategic value of getting guidance from local attorneys, local police, and government agencies. For Debbie Maples at Gap, approaching issues from both micro and macro perspectives has helped spur LP success abroad. She suggested that LP executives need to understand the particulars of how theft prevention is applied locally as well as examining economic pressures from a company’s shrink perspective, and refining in-country strategy while staying in sync with a global philosophy. “It’s all about understanding how a global program relates to local challenges, and applying your global strategy with a local add-on,” she said. With a presence in sixty countries around the world, “it has become normal life for us.” Finding that balance can be more difficult than it sounds, however. Aligning security with risk in the US is easier than in many places around the globe, where there is often less clarity around threats and crime trends. “We do additional due diligence to learn what is normal for this environment,” said Maples, suggesting that local retail security norms provide a critical baseline from which strategy can then be adjusted. “It creates havoc if you don’t know what the norms are,” she said. “So I think being highly connected to what other retailers are doing to

protect product is important—to assess if you are in line or out of scope with what is happening.” She cited the example of deploying uniformed guards in stores, which may be off-putting in high-end shopping districts in some countries but commonplace—and expected—in others. Going into a country, even if an LP team thinks such visible security seems like overkill, Maples thinks retailers are better

the supply chain—you can’t get cargo vendors to take a freight claim.” He tracks the unwillingness of today’s vendors to accept skin in the game—including brokers, expeditors, and shippers—to the kidnapping industry that boomed in Mexico several years ago. When Mexican officials finally made a concerted effort to stamp out rampant hostage-taking, criminals turned their attention to cargo shipments, where

The very heart of an LP program—its strategic underpinnings—may need tweaking when applied to retail locations abroad, say experts, and must reflect local risks, standard practices, and available tools. off deferring to local norms to start. “I do think it’s important, when going in, to be trusting of the local security standards. Otherwise, the risk will migrate to you,” she said. “It’s easier to pull back and adjust the resources after you’re live.” Benchmarking also plays a critical role in international operations, Maples suggested, so LP back “in the mother ship” understands how a particular program or technology is impacting shrink when applied in a new environment. It’s not uncommon to experience different results, said Maples, “and it’s important to investigate why solutions aren’t translating and what additional support may be needed to fix it. Benchmarking is really important to drive an effective strategy.”

Logistics For LP executives with global supply chain security responsibilities, typical problems are often amplified. The risk of criminal attacks against goods in transport is often the same—or higher—while traditional loss mitigation may be absent. “There are enormous additional challenges in managing supply chain in certain countries,” explained McBride. For example, “As a company doing business in Mexico, you hold 100 percent of the cargo as it moves through MARCH–APRIL 2019

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thefts don’t garner the same press attention, public sympathy, and law enforcement scrutiny. A rise in cargo losses ensued and forced companies like American Eagle to buy its own insurance, devise its own cargo security measures, hire its own security escorts, and accept a greater financial burden for cargo losses. “It’s a different business model,” explained McBride. It’s also another level of risk. In Mexico, cargo thieves are more brazen and violent than their counterparts in the US. It’s less pick up and grab a few boxes at rest stops and more Wild West. McBride said it can be very violent, with criminal gangs chasing vehicles, shooting out tires, and kidnapping drivers and releasing them, naked, dozens of miles from the point of attack. Enhancing theft opportunity is often unforgiving terrain that renders GPS tracking nearly impossible for long stretches. “Over some rural mountain passes you might have zero cell coverage for fifty miles. So where do they set up the ambush? In those spots,” McBride explained. Although technology has limitations, it’s a critical component of a cargo security strategy, along with route planning, said McBride. His LP team conducts ongoing reviews of technology improvements, such as satellite-based

MAKING A WORLD OF DIFFERENCE surveillance, to increase as much as possible the visibility of its cargo in transit for quicker alerts if something goes wrong and to limit losses if it does, including kill switches on truck cab engines that they can trigger remotely. They’ve had success, but it’s a never-ending battle, suggested McBride. Each security enhancement ushers in countermeasures by cargo thieves, such as their developing jamming technology to block shipment-enabled GPS devices from communicating with cell towers. Accepting full responsibility for cargo raises the bar for security, but there are also challenges for LP in regions where it’s standard to have little direct control. At Gap, for example, supply chain security in Europe is fairly in sync with the company’s US strategy, but “in Asia it’s not uncommon for retailers to outsource more of supply chain strategy,” said Maples. “So it’s critical to create and develop those relationships, and to get your own best practices inserted into third-party programs, and to learn how

you can provide support from afar,” she said. “And to then inspect what you expect.”

Regulations As a luxury retailer with a reputation for quality, Tiffany & Co. is a desirable target of criminals across the globe. Protecting the iconic brand requires robust store protection and an advanced LP department; the company has, for example, a worldwide central monitoring station from which it can monitor every location. But differences in local laws and regulations are a complicating factor. They often place restrictions on a retailer’s advanced security systems, particularly as it relates to surveillance and privacy. Tiffany & Co.’s monitoring station, for example, can’t watch surveillance video in many European locations due to the General Data Protection Regulation (GDPR) established in 2016, noted Hank Siemers. Italy is a case in point, where video

LP MAGAZINE

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cannot be used as an investigative tool and can only be used to protect employees. As an internal theft prevention tool, then, all that great video is useless. As such, success—like that experienced by Tiffany & Co.’s security team—often hinges on the ability to nimbly navigate a world of unique obstacles. “When opening a new store, you have to know what you’re going to be able to do with your system to know if it’s viable,” advised Siemers, adding that even geopolitical issues sometimes filter into the installation of security systems. A camera manufactured in Israel—that you’ve come to rely on—may not be allowed in a store in Dubai, for example. The peculiarity of Italian surveillance law is a prime example, but it’s just one of many differences that necessitate a country-by-country approach to store security, Siemers explained. In China, local law enforcement gets very involved in security system installation, even

MAKING A WORLD OF DIFFERENCE

Top Causes of Modified Itineraries Security Threats

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37% Civil Unrest

36% Infectious Diseases

22% Hotel Concerns

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mandating additional cameras for their own monitoring and high-quality facial captures of everyone who comes and goes in a luxury store. In many countries in the Middle East, law enforcement similarly demands an additional level of up-front consultation, as well as mandating longer video retention times of ninety days. “Prior to any lease negotiation, we’ll do a full risk assessment to identify all such issues, including meeting with local police departments,” said Siemers. “Vendors are also very important and a valuable resource in this regard, and we typically get them very involved.” Top LP leaders uniformly cited implications from newly enacted and stringent European data protection laws, noting they have required significant attention and review. “Expectations for protecting data is super high, and it’s critical that LP organizations understand how data can and can’t flow, how it must be maintained locally, the ramifications for conducting investigations, and to have appropriate consultations with the legal team,” advised Maples. “It’s also important to understand the financial impact for violations. The cost can be crippling if you don’t get it right.” McBride also cited the value of collaboration with corporate legal and compliance teams, labor attorneys, and

GDPR. “Sometimes it’s a lot more subtle, so it’s important not to be complacent [about regulations] and to revisit with your team periodically, so you can do the necessary localization.”

Culture Just as local laws may demand that stores outside the US do things differently, local customs may dictate a different way of getting things done. To McBride, the biggest adjustment in managing LP internationally has been to the speed of business. “The pace at which work gets done is completely different from the US, even in Canada,” he said. “So issues like how long it might take to get a contract finalized is almost always longer, and you have to be understanding and respectful of that—although it can drive you a little nuts.” Maples believes that respecting local norms, especially in the ways that people communicate, is important to integrate into one’s leadership style. “One size doesn’t fit all, everything from greetings to the commands you give that may work in one country may not work in another. From a culture standpoint, asking a lot of questions, listening to learn, and doing your homework on cultural standards is all really important,” said Maples. “If you don’t, you won’t be able to persuade people—and you won’t recognize when

Differences in local laws and regulations are a complicating factor. They often place restrictions on a retailer’s advanced security systems, particularly as it relates to surveillance and privacy. with local law firms for their assistance in conducting associate training. “That helps us understand back here what we can and can’t do, and how actual policies might need to change, so we can devise plans that allow us to keep control of the business,” said McBride. He noted that not every legal development makes the same splash as the European Union’s MARCH–APRIL 2019

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you’re getting a nod of, ‘sure, we’ll do it,’ when they mean something else.” She added that respect should extend to LP’s review of local policies. “You should be asking why employee policies are the way they are, instead of making an assumption and insisting reflexively on change,” she said. “Know what your values are and the guardrails that keep

you to company standards but allow for differences where possible.” Flexibility is key to success, advised Siemers. “You have to be careful when you have security people from outside going into those other environments that they understand things from a local perspective,” he said. “You can’t go in thinking ‘this works in the US’ because it might not work there. You have to work through things, understand what is important to them, be willing to learn from them, and share what you know—and to be flexible in how you handle issues that arise.” For Tiffany & Co., one of those issues is enhanced risk from brazen and violent attacks on stores in Europe. With less-defined borders than in many other parts of the world, violent criminals move freely, traveling from Eastern Europe to attack a store in Amsterdam and then quickly escaping out of the country, for example. “From a luxury brand perspective, it’s something we’ve had to be aware of, to monitor, and it requires making good use of our communications network with local officials, law enforcement, and government agencies,” Siemers explained. “Attacks can be very violent, smashing a car into a store at 11 in the morning, or attacking an armored car transport. And in many cases, these are ex-military people, who are working on that level of tactical expertise. It can be very dangerous and puts people and high-end shipments at risk.” Cultural differences can also impact store design, which impacts LP and store operations. McBride noted that fitting rooms are absent from American Eagle stores in some countries in the Middle East in deference to local attitudes toward females changing clothes in a place other than their home. He said security training for travelers also needs to be designed to alert workers to cultural differences that may have ramifications on their safety, including attitudes toward the LGBTQ community and the overt wearing of religious symbols. More retailers may need to address such travel safety issues, suggests data from Business Resilience Trends Watch 2019, a survey by International SOS and Ipsos MORI. It found that only 27 percent of business travel risk programs include considerations specific to female travelers. Only 17 percent of travel risk programs cover LGBTQ considerations. Finally, Kevin Ach suggested that his experience with Office Depot taught him the value of treating culture as a two-way street. “You need to put boots on the ground to find the right local people, solid leaders that are part of that culture,” said Ach. “And then also bringing them into the US and exposing them to your culture and letting them learn from you.”

Talent

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so does luck, a good benefits package, and patience. He noted it once took eighteen months to find the right fit for regional security manager position in UK. “Not every country is as mature in the LP world as the US, and so sometimes very few people have the experience you’d want,” explained McBride. And often, he says, they know it. That can put pressure on budgets and make top talent prime targets for poaching by other retailers. “We’ve paid when we’ve needed to, and we’ve also, in places, been able to grow our own talent internally,” said McBride. “By finding people with a propensity for LP among store operations and spending time with them, giving them special projects, and then being sure to interview them when we have an opening.” He said that model has served them well in Mexico, where one LP leader is a former store manager. “She didn’t have an LP background, but we taught her that, and we’re able to leverage her other skills and things she does really well for LP.” Maples echoed the necessity of growing talent in less-mature LP environments. “In some countries LP is still very young, and there are not a lot of professionals who are well trained. You need to have a talent strategy and to invest in people to grow them,” she said. When getting started in a country, Maples said she has turned successfully to her network of global crisis management advisors for help. “Going on people’s reputation and recommendations is much better than strictly cold calling in a country, so developing that network of people, which can include other retailers, is really important to create a team that can deliver a quality program.” Although competition for talent is unavoidable, Maples said it’s important to be respectful of talent at other retailers, and to not use one’s position in a market to pick over talent at those who are still trying to build a program. Because finding talent is difficult, retaining strong performers internationally takes on added significance, said Maples. Their success was hard-fought, she said, but came eventually with the help of a strong

retention strategy. “You have to create a reason why people will stay for four to five years and to let them grow a career and reputation,” she said. It’s indicative of just how hard LP talent wars are fought internationally that Maples counts her ability to exceed average retention times as among her top successes. In Asia, where two-year tenures are commonplace, LP turnover at Gap is significantly better than average, including a majority of staff that has been there longer than the norm for the region. “It’s

Consistency is a critical aspect of maintaining a retailer’s image, but even brand protection may need to bend to local customs. Tiffany & Co. relies heavily on its luxury image, for example, but exactly what “luxury” is varies around the world, so LP operations adjust accordingly, according to Siemers. “We work with our management team and marketing so that we’re supporting them in delivering the experience that customers want and what is expected in that luxury environment,” he said. In

More retailers may need to address such travel safety issues, suggests data from Business Resilience Trends Watch 2019, a survey by International SOS and Ipsos MORI. It found that only 27 percent of business travel risk programs include considerations specific to female travelers. Only 17 percent of travel risk programs cover LGBTQ considerations. been helped by the fact that we have developed a succession path for people that lets them grow,” said Maples. “I’m proud of the fact that we went into Asia with very entry-level positions, and we’ve been able to grow those people into more senior leadership roles.” Additionally, when senior leaders leave—as people eventually do—the LP team has been able to include them within their regional networks that it relies upon to be effective. “We’ve been able to keep people for well beyond the traditionally normal time period, and then we’ve kept strong, healthy relationships with them,” said Maples.

Brand Protection A company’s brand—as a percentage of its market value—continues to grow; and, unlike other threats, risks to company reputation is not something it can insure against. And, as difficult as protecting a company’s image is domestically, it becomes even more challenging when trying to do so in far-flung places on the globe. MARCH–APRIL 2019

Europe, for example, that means security officers greet customers as they enter, something they don’t do in Japan. Such differences are detailed in security training videos that Tiffany & Co.’s security team specifically tailors for different parts of the world. That way, contract security officers in Tiffany & Co. stores have a clear understanding of what is expected of them, said Siemers. Maples observes a similar imperative with respect to company values. “Integrity, open-door, zero discrimination, those are values we consistently message all around the world,” said Maples, noting the importance of working with company legal teams and human resources in that effort. “In leadership forums for new leaders we say, ‘This is what we believe in, and this is how we present ourselves in our market,’ but we also make it digestible for the local audience. Our values translate all around the world, but some matters of execution might be different in some environments.”

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MAKING A WORLD OF DIFFERENCE continued from page 22

Safety As noted at the outset, employee safety sits atop most LP leaders’ list of international priorities and as a cause for concern. Disease outbreak, terrorist activity, worker uprisings—LP leaders regular contend with myriad real and potential risks to workers around the globe. Are retailers prepared to meet those risks? According to Matthew P. Branigan, CEO of Matthew P. Branigan Watermark Risk Management International, “levels of preparedness vary widely.” A typical blind spot that his firm sees is the failure of companies to fully understand the complexity of security in an international context and to appreciate the full universe of threats. “Many companies inventory threats and prepare to mitigate them, never realizing internal biases may prevent them from identifying all or even most of their critical threats,” said Branigan. “There needs to be greater awareness of the need to prepare to respond to any threat, or any incident, at any time—by developing a preparedness and response program that is ‘threat agnostic.’” With Gap’s extensive global footprint, enabling safe travel is a top priority for Debbie Maples. She noted some of the questions that she thinks LP departments need to ask: “How do we protect them? How do we meet our duty of care? How do we make sure people have a grasp of what the concerns are?” While Gap has a particularly mature travel safety program, it’s an area in which she sees, from her position on the Retail Industry Leader Association’s advisory council, that the industry still has room for improvement. But still-maturing programs have new advocates on their side, Maples said: traveling employees themselves. Today’s workers have started to be more proactive about their own safety and increasingly interested in learning about the risks they face abroad, she said.

Global risk information is critical, added Siemers, for both intelligence and to adjust security as needed, as well as understanding when threats are being embellished. Also critical are relationships with global partners that can provide assistance to employees in a medical emergency, an evacuation, and other emergencies, he said. His team focuses extensively on gathering and analyzing risk information and automatically generating relevant safety and health information to traveling employees. He even flew out to Korea to meet with US embassy representatives at the height of the Twitter war between President Trump and North Korea’s “Little Rocket Man” to get a realistic understanding of the nature of the threat.

responsibility of the LP team to know exactly where those employees are and to help keep them safe, making those new business opportunities possible. “We work to stay ahead, studying emerging markets to have a pulse on what the geopolitical risks are, what the societal risks are, and what employees need to know to travel safely to those countries.” Often, that means aligning security with business contingencies. If a trade war with China escalates and pushes manufacturing elsewhere, for example, where is it likely to go? “We’re constantly networking within the organization and keeping up with sourcing teams,” said McBride. “So we know that if something goes down where the volume will move and where people will be traveling to.”

For LP leaders who face the prospect of expanding into a new region internationally, the question of how to find people locally who can lead the effort has no easy answer. There are no shortcuts to establishing a program where you’ve never had a presence, and recruiting and retaining the talent to do it, say LP leaders. Risk analysis needs to be dynamic to be effective, added International SOS’s Matthew Bradley. He suggested that a country’s risk level isn’t stagnant and may be drastically different in the weeks following an election, for example. “It’s not just where employees are traveling that’s important—but also when,” he said. Bradley added that mobile phone apps designed for use by traveling employees provide a critical avenue for delivering safety information, providing updates, issuing alerts, and facilitating safety check-ins. “Driving all travel risk management from the same app is the way the solution is going today,” he said. On most any day, American Eagle will have at least twenty employees traveling to remote parts of the globe, as they look for chances to enhance global operations or scout out emerging garment factories. McBride said that it is the top

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Although globalization has leveled off in recent years, as retailers focus on improving existing operations and e-commerce, operating outside one’s home country is commonplace. Among the 250 top retailers, 66.8 percent have foreign operations, which account for 23 percent of total retail revenue on average, according to a report by Deloitte, Global Powers of Retailing 2018. Among the eighty retailers from the US in the top 250, 59 percent have stores abroad. On average, they are in more than nine different countries. Whether it’s protecting company personnel or addressing any of the other challenges described above, LP is clearly on the front lines of enabling global opportunity. Indeed, as retailers scramble to capitalize on globalization, the ability of LP teams to help their company navigate risks has been proving to be a bottom-line asset.

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CERTIFICATION Interview with Rick Snook, LPQ

Broaden Your Understanding

Snook is the business development manager for Axis Communications. He has over thirty-five years of sales, marketing, technical, and design experience in the electronic security industry. He was awarded The RA Henderson Award for his achievements and contributions to the security industry. In addition to his LPQ, he holds a Physical Security Professional (PSP) certification from ASIS International, CPTED Level 1, and an Axis Certified Professional (ACP) designation from Axis Communications.

As a solution provider, why did you feel it was important to pursue your LPQ certification, and do you plan to go on to take your LPC certification?

Having the privilege of being able to work with the retail industry, I felt it was important to continuously learn and embed myself within the sector, as I have done throughout my entire career. The LPQ certification provided me with a great deal of knowledge and challenged me to understand the retail loss prevention industry on a deeper level. The knowledge I gained gave me a small window of insight into the daily challenges facing the retail LP teams. The outcome for me is being able to find intelligent ways to integrate technology that delivers results for our retail customers while building a network of valuable partners that can deliver on these solutions. I am currently continuing my study to take the LPC certification in 2019.

community, I had no idea it was so in depth. The information was thorough and detailed.

Was the coursework what you expected?

I would recommend using the network of retail contacts available to you. Some information may not be clear and easy to understand as an outsider; therefore, you may need to ask questions to better understand the material. Don’t be afraid to connect with an LP professional. They are happy to assist and educate.

The coursework was more in depth than I expected for an entry-level program but covered the many facets of the industry and day-to-day relevant information. I was challenged throughout the course, and although threat levels and issues in today’s environment continue to grow, the baseline of information helps you to analyze these threats.

Initially, I thought I would just review the material in big chunks and take the exam. However, it became clear very quickly that I would have to set out a schedule and try and stick to it. Trying to balance life, work, and study time is never easy, but for those looking to take on the challenge, the year to complete goes by quickly, so set the schedule focus and make good notes.

The knowledge beyond technology was the most interesting because the threats and issues facing retail is not all about technology, but a well-rounded loss prevention program. It allowed me to broaden my understanding and approach when helping retailers in using technology and how to apply it with their programs. I can now ask better questions and be more strategic in my approach.

For me, I’ve learned to now ask retailers intelligent questions in understanding their programs and how to adapt technology to fit in the day-to-day operations. Understanding the moving dynamics in a program clearly identifies the need for advanced solutions that are effective, easy to operate, and not time consuming. If you could offer one key takeaway to someone currently considering getting certified, what would it be?

How would you compare the Loss Prevention Foundation certifications to other educational courses that you’ve taken?

Talk about the process of going through the coursework and taking the exam.

Looking at your own personal background and knowledge, what information in the course helped you the most?

What benefits have you seen from taking the course in how you approach and interact with retailers?

This program was equally as tough as other programs, perhaps because much of the material was new to me. The course should not be taken lightly. I am sure that long-standing LP leaders may not find it as challenging, but for someone new to the industry or on the vendor side, I would say embrace it and enjoy the challenge. How has certification changed your expectations of loss prevention as a career, for yourself and for others?

A focus on certification has been present throughout my entire career within the security industry. I feel it is imperative for anyone within this industry to have a minimum level of understanding. It allows you to learn and test your knowledge and clearly show to those working within the industry that you have an understanding—even if only via textbook. I am a firm believer that everyone should have a certification whether mandated or not. As an industry we need to continue to learn and grow as professionals, and having a designation provides that baseline. Would you recommend certification to others?

What was the most eye-opening information that was part of the curriculum?

The topics of interviewing and interrogation were the most eye opening. As much as I knew that it was a great skill for the LP

MARCH–APRIL 2019

I strongly recommend the certification to everyone, including those suppliers supporting the retail industry. Take the program, get your certification, and demonstrate to the LP community that you are invested in their industry. LOSSPREVENTIONMEDIA.COM

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Newly Certified

Following are individuals who recently earned their certifications.

Recent LPC Recipients

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Brandy Albano, LPC, Metro by T-Mobile Stephen Anderson, LPC, DICK’S Sporting Goods Guy Antolick, LPC, Amazon.com Bradley Byers, LPC, Lowe’s Christina Crain, LPC, Meijer Isabelle Devereux, LPC, John Lewis PLC Dennis Dixon, LPC, Amazon.com Mason Drawbond, LPC, Amazon.com Brian Fantom, LPC, K&G Fashion Superstore Klara Gibbs, LPC, TJX Lakeisha Gilyard, LPC, Fleetpride Michael Gray, LPC, DICK’S Sporting Goods Laurel Harrington, LPC, Lowe’s Douglas Haworth, LPC, Woods Supermarket Brandon Homes, LPC, DICK’S Sporting Goods Kelly Johnson, LPC, Bed Bath & Beyond Charles Jones, LPC, DICK’S Sporting Goods Alyssa Jones, LPC, Sears Holdings Christian Latson, LPC, HomeGoods Brandon Lollis, LPC, DICK’S Sporting Goods Curtis McGruder, LPC, AT&T Gregory Morand, LPC, Mavis Discount Tire Staci Noonan, LPC, Meijer Nicholas Pappas, LPC, Lowe’s Richard Peck, LPC, TJX Kevin Schmidt, LPC, Fleetpride James Vandermer, LPC, Big 5 Sporting Goods Randy Vickers, LPC, Ocean State Job Lot Kenneth Watson, LPC, DICK’S Sporting Goods Victor Wichi, LPC, GameStop

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Recent LPQ Recipients Daniel Assef, LPQ Jennifer Bailey, LPQ, Siffron Tara Balkcom, LPQ, Sears Holdings Craig Cambron, LPQ, Primary Arms LLC Caleb Hussong, LPQ Robert Jones, LPQ, Skogen’s Festival Foods Kristina Jones, LPQ, TJX Brian Kennedy, LPQ, Skogen’s Festival Foods Zara Lujan, LPQ, REI Laura Maggioli, LPQ, T-Mobile USA George Oancea, LPQ, TJX Joseph Park, LPQ, Heinen’s Fine Foods Mark Radford, LPQ, Walmart Stores Travis Robinson, LPQ, Walmart Stores Kevin Sterba, LPQ, Penske Bailey Thompson, LPQ, University of Indianapolis Manisha Tripathi, LPQ, Sears Holdings Aristide Vakunta, LPQ, University of Indianapolis Steven Weir, LPQ, Lowe’s Taylor Wiechert, LPQ, Lowe’s

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Professional development is key to a fulfilling career. Visit www.LossPreventionFoundation.org to find out more. SM

Educating an industry, one leader at a time. LP MAGAZINE

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LPM EXCELLENCE

LPM “Magpie” Awards: Applauding Excellence

The LPM “Magpie” Awards offer a means to celebrate industry accomplishments on an ongoing basis, recognizing the loss prevention professionals, teams, solution providers, law enforcement partners, and others that demonstrate a stellar contribution to the profession. The ability to influence change is a product of drive, creativity, and determination, but it also requires a unique ability to create a shared vision that others will understand, respect, support, and pursue. Each of the following recipients reflects that standard of excellence, representing the quality and spirit of leadership that makes a difference in our lives, our people, and our programs. Please join us in celebrating the accomplishments of our latest honorees.

Excellence in Leadership

Excellence in Partnerships

“I believe that as a leader it’s important to build and cultivate an atmosphere of respect where our internal customers want us to be a part of the planning process, knowing we can contribute at a high level, help them problem solve, and deliver results,” said Hunter. “Everyone on the loss prevention team should be a business owner. They should understand the company, have high business acumen, and help our partners achieve their goals.” Reflecting on his own career, Hunter points to a pivotal moment that he feels helped shape his future. “When I joined OfficeMax as a [district loss prevention manager], I believe I found a home. It was the first company I was part of where development was a priority—building on both my technical and leadership skills. I was encouraged to work on different projects and never shied away from learning more, getting involved, and contributing. When Office Depot and OfficeMax merged, I continued to take on roles with an expanded scope, eventually being promoted to my current position in 2018.” Hunter believes that there is a clear path toward professional development. “To be a true leader in the industry, you have to embrace an attitude of continuous learning, and that attitude must expand beyond yourself,” he said. “You must provide a safe environment for people to excel. You have to offer feedback and ask for feedback from the team. Your team should know you’re working as hard as they are to improve. You must show humility, put the team first, and continuously build credibility. Sometimes you’re going to make mistakes, but don’t be afraid to admit those mistakes, apologize, learn from them, and move on. That’s how you get better.” When asked what advice he would offer to young leaders, Hunter stayed on message. “Stretch yourself because that’s the best way to learn. Work with integrity and character, and always be genuine. Don’t be afraid to step out of your comfort zone. Find someone you trust and learn from them. Always prepare, prioritizing the most important things first. Listen first and then speak—which isn’t always easy to do. Recognize the people who’ve had an influence on you because none of us can do it alone. It’s all about the team.”

“Since I started my career as a store detective for Rich’s Department Stores while obtaining my business degree in economics, I found I loved the loss prevention industry and decided to build my career within it,” said Rosenthal. “As my career grew into district, regional, and director of loss prevention positions, I continued to learn as much as I could about loss prevention and the retail business in general. When I then made the decision to move to the vendor side of the business, I was committed to never forgetting where I came from and how I wanted to support the industry. I love what I do, who I do it for, and the customers—many of whom are friends.” When building business partnerships, Rosenthal feels the most important trait that a solution provider can hold is being a good listener. “When I moved into the vendor world, I reflected back on all the sales reps that called on me,” he said. “I wrote down what I liked and what I didn’t as I evaluated the kind of solution provider I wanted to be. I believe in listening to the customer, truly understanding their needs, and presenting solutions that achieve the best results. It’s important to me to never be a salesman, but a partner that makes the sale through consulting. There is a big difference, and it starts with listening. Find the right solution for the problem—be honest and help the customer make an informed decision. The best business partnerships occur when both parties feel great about doing business together.” Rosenthal also has some advice for young leaders working their way up the career ladder. “Be a sponge—listen and learn as much as you can from every positive and negative interaction,” he said. “Be willing to step outside your comfort zone. Retail is ever-changing, and it’s critically important to grow with the times. Ask questions and take it all in. If you do, you’ll earn respect much quicker, and your ability to be successful grows tenfold.”

Shannon Hunter, Vice President of Loss Prevention and Sustainability, Office Depot

Stuart Rosenthal, Vice President of Sales and Marketing, Checkpoint Systems

Nominate Your Peers at Excellence@LPportal.com We want this to be your program. Those of you working as LP practitioners witness these exceptional performances on a regular and ongoing basis, and we strongly encourage you to provide us with nominees for each of the award categories. We encourage creative nominations and want the program to cast a positive light on the many tremendous contributions of the loss prevention community. Nominations can be submitted via email to excellence@LPportal.com. 28

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INTERVIEW

COMBINING OPERATIONS AND ASSET PROTECTION IN TOTAL RETAIL LOSS A PROFILE OF PAUL JAECKLE OF MEIJER STORES By James Lee, LPC, LPM Executive Editor

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INTERVIEW EDITOR’S NOTE: Paul Jaeckle, LPC, is vice president of asset protection for Meijer Stores based in Grand Rapids, Michigan. He moved to Meijer in 2017 after nearly twenty years in various loss prevention and operations positions with Walmart. Jaeckle is very active in the industry serving as chair of the Retail Industry Leaders Association’s (RILA) Asset Protection Leaders Council, vice chair of the board of advisors for the Loss Prevention Research Council (LPRC), and member of the board of directors for the Loss Prevention Foundation and the National Association for Shoplifting Prevention. EDITOR: I want to start with your contributions to our industry and the various roles you have with different organizations. Let’s start with RILA’s Asset Protection Leaders Council (APLC). Tell us about the APLC and your role with them. JAECKLE: The APLC is a group of department leaders from the leading retailers across the US. It is a small, collaborative group of individuals who are focused on trying to solve many of the same types of problems within their companies. The council gives us an environment and platform where we can have open and transparent discussions that each of us may be facing, as well as trying to establish some continuity of the way that the industry looks at solving critical problems. EDITOR: What kinds of issues do you address? JAECKLE: Some of the more recent topics include the total retail loss report produced by Emeritus Professor Adrian Beck, self-checkout and mobile payment, and the integration of brick-and-mortar and e-commerce retailing and how to define the scope and exposure of loss with this channel. We’re not trying to necessarily solve the big topics with one-size-fits-all solutions but at least standardize the way people talk about common issues, provide clarity to the issue, and keep

What makes it nice having a retailer that chairs the group, whether it be myself or someone else, is that you have a boots-on-the-ground practitioner who helps steer the relevancy of the topics and projects that are commissioned on behalf of the APLC, making sure that we’re providing value back to those who are involved with the council. the topics relevant and on the front burner for awareness, resolve, and support. These are broad, wide-sweeping issues that allow the opportunity for decision-makers of their organizations to be able to talk through and to really understand what the scope of the issues are that exist in today’s retail environment and their impact to the asset protection business. The nice thing about the APLC is that it mirrors what is in play for a lot of other different functionalities through RILA. Supply chain has a similar council. The CEO ranks have a very similar mechanism. This works very nicely to be able to give that MARCH–APRIL 2019

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level of discipline related to an asset protection and loss prevention lens for the decision-makers. EDITOR: How often do you all get together for a face-to-face meeting? JAECKLE: We’ll pull ourselves together usually two times a year as a broad group, and then we may have one or two additional breakout sessions throughout the year. As an example, this upcoming year we’ll be together at the RILA asset protection conference in Denver in May. We will then be back together for the joint meeting that takes place between LP Magazine,

INTERVIEW conjunction with Professor Adrian Beck and Stephanie Lin, who is one of the research scientists at the University of Florida LPRC. It will be on the topic of self-checkout and the mobilization of payment devices within stores. What’s nice about this is that you have Adrian, who has conducted a significant amount of the study of this type of practice and understanding what works, what doesn’t work, who is doing what, and trying to assess risk. You have Stephanie, who is approaching it from why criminal activity happens a certain way, why do offenders do what they do, and what’s the mindset of the criminal element associated to that. Then you have me on the backend that pulls the science into the practice of what it all means and how a retailer can best be positioned to offset those risks but not slow your organization down from being able to remain competitive in this ever-changing state of retail we’re in today.

One of the things that makes Meijer such a great organization is how involved we are in the communities that we serve. That commitment is not just on the high quality of food and products we provide in our stores; rather, it also means our involvement with the community where our customers shop and our team members live. the APLC, and the Loss Prevention Foundation in October. Then there’s a third session that is being worked on now centered around self-checkout that will likely be hosted by a retailer midsummer. EDITOR: You have a leadership role in the APLC, correct? JAECKLE: I do. I chair the APLC and have done so for the last two years now. It’s been great to be able to work alongside of [RILA’s] Lisa LaBruno and some of her advisors that she brings in to help steer a lot of the topics. What makes it nice having a retailer that chairs

the group, whether it be myself or someone else, is that you have a boots-on-the-ground practitioner who helps steer the relevancy of the topics and projects that are commissioned on behalf of the APLC, making sure that we’re providing value back to those who are involved with the council. EDITOR: You mentioned Lisa and RILA. You’ve been a frequent speaker and moderator at their annual AP conference. Do you have a role to play this year in Denver? JAECKLE: As a matter of fact, I’m doing a breakout session in LP MAGAZINE

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EDITOR: You mentioned the LPRC. Speak a little about the value of the LPRC and your role in the organization? JAECKLE: Going back to when I was still at Walmart, I had the opportunity to be involved with the LPRC to make sure that I had my team fully engaged. That carried over when I moved to Meijer. The value of being engaged on the Loss Prevention Research Council is threefold. One, it has applicability to anybody in the LP industry, regardless of the level one has in their organization. Whether you’re leading a department, you’re a VP or director, you’re a manager in the field, you’re a corporate team member, or whether you’re just trying to understand how criminal activity works and the value of solutions put in place to offset those risks, everyone can learn from it. Second, the LPRC is taking their science to practice. As they work through certain projects and reports, engaging with the criminal community that is exposing some of the gaps and creating loss for retail establishments, their research gives you a better

INTERVIEW

understanding of how and why the psyche of individuals works the way that they do, so you can hopefully stay one step ahead. Finally, I find significant value in it because it’s a great way for me to help get my team engaged and develop their further learning. And it becomes a good platform for me to be able to take credible learnings and apply that with my senior leadership to help them understand that this is not just a Meijer issue but rather an issue affecting the industry. At the same time, it provides credibility to the solutions available that can be put in place to protect profitability and sales to manage against the risk of the deviant and criminal behavior that comes into our stores. Best of all, these insights are coming from an independent, credible organization built on research and science. EDITOR: One other organization you are involved in is the Loss Prevention Foundation. Why do you play a role in the foundation?

JAECKLE: My view is similar in terms of how we’ve talked about the other two. The LP Foundation is great because it gives our industry a platform to impact the direction of where asset protection is going. It is also deeply focused on and rooted in the development of individuals through its LPC and LPQ certifications. I took the plunge to earn my LPC back in 2013. Investing in this was one of the best moves I could have made. As an individual who had earned an undergraduate degree, had gone into the workplace, come back for graduate work, and then applied those learnings of both education with practical experience, the continuing education certification in my specified field was phenomenal and has helped me achieve a lot of the success I have today. What makes it so impactful is that all too often, especially in large organizations, we end up with a very specific, narrow viewpoint within asset protection. You may only be a security person, or safety focused, or a numbers MARCH–APRIL 2019

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guy. We may not have visibility into the other aspects of asset protection like supply chain or import security, finance, or legislation and legal risks. The foundation education touches all those and more to put asset protection into context of the larger enterprise. It’s an essential program for individuals wanting to grow their careers. EDITOR: That is great, Paul. We applaud you for your involvement in the industry and how you’ve been able to give back to others. Let’s shift gears a bit and look back at your college days and how you ended up in loss prevention. JAECKLE: I attended Western Illinois University where I majored in criminal justice hoping to go into law enforcement. I had a family member who was an Illinois State Trooper, which is where I wanted to end up. The university is in a relatively small town where there were basically three places to work. One of those was the local Walmart where I took a temporary

INTERVIEW Christmas job as a people greeter. One of the benefits of that position was I was the employee who often went out on a shoplifting incident as the witness with the store detective. It so happens that the store I worked in had a good store detective who made a lot of apprehensions. With my interest in law enforcement, I became intrigued with loss prevention and became a store detective with Walmart while I was still in school. Shortly after I joined Walmart and after I graduated, I was promoted to essentially what, at that time, was a district LP manager. Here I was, a 21-year-old kid who was supervising nine stores where most of my store managers had been with the company longer than I had been alive. What that meant for me was that you learn quickly that it’s a humbling experience and that you’ve got to be able to listen really well. You must be able to show value and credibility in what you’re saying but acknowledge when you don’t know the answer

because otherwise, you’ll get caught in a bluff. I enjoyed that job and was promoted to a regional position in the northeast with Walmart. I had gone back to graduate school in organizational design and had a good operations partner whom I trusted a lot. He was my mentor and still is to this day. We began to work on a transition plan for me into operations. It was the scariest conversation I’ve ever had because all I had ever known was the idea of being in law enforcement or loss prevention. However, with my graduate experience, my leadership, and life lessons I had accumulated over the years, I decided to take the plunge and relied on my instincts of knowing that I’d surrounded myself with good people who were going to help me through situations when I didn’t know the answer. It was a great decision because it gave me a completely different perspective in terms of what it meant to be in retail and not just from the LP side of things. I had the opportunity to open

stores in the District of Columbia, run a district in upstate New York for a while, and supported a lot of corporate programming rollouts for the stores I supported. It was extremely refreshing to think about things from a process and operationally driven organization and see how I could apply some of the leadership skills that I had acquired in asset protection to the operations side of the game. EDITOR: When did you return to loss prevention? JAECKLE: After four years in operations, I had the opportunity to come back to lead the stores in the eastern third of the United States. The territory had around 1,500 stores from Puerto Rico up to Maine. That was a phenomenal experience because it taught me the value of making decisions that are holistic in approach. I really had to rely on my team to be able to run that large operation. I was able to apply a lot of the learnings from operations into asset protection to help right the ship on where shrink had been

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INTERVIEW have what we refer to as the “central kitchen,” where we produce a lot of our prepared food and ready-to-eat meals that are shipped to our stores. Another thing that makes us unique is our specialty pharmacy operation. We ship pharmaceuticals to customers across the country, specifically to patients with complex chronic conditions. Many pharmacies cannot stock these types of medications in-house because of cost.

It was extremely refreshing to think about things from a process and operationally driven organization and see how I could apply some of the leadership skills that I had acquired in asset protection to the operations side of the game. going in the wrong direction at that time for the company. That also gave me the great opportunity to interact with Mike Lamb, who I consider one of my all-time favorite people both as a mentor and friend. When he was promoted to vice president with Walmart, Mike asked me to come into the home office to lead the corporate AP operations. I did that for about two years and really enjoyed the experience, education, and exposure it provided. It set me up for where I’m at today at Meijer because it gave me a much more strategic look at how programs are designed, why they work or don’t work, and a lot of executive presence of marketing and selling your ideas and programs. EDITOR: So now you are leading the AP team at Meijer out of Grand Rapids, Michigan. Talk about that transition and give our readers who may not know the company some background on Meijer. JAECKLE: When I first began talking to Meijer about my current

role, I was intrigued by the company and the opportunity. It has been a very refreshing experience because I’m surrounded by a really great team, and we’ve been able to collaborate to start to move the needle quickly on our goals over the past two years in both shrink and safety performance. It has also allowed me the opportunity to engage in other areas of AP like international security risks, supply chain, crisis management, and other areas too. For those who may not know, Meijer is a regional retailer centered in six upper Midwest states—Michigan, Indiana, Ohio, Kentucky, Illinois, and Wisconsin—comprised of more than 240 supercenters, specialty pharmacies, distribution centers, and a few off-shore global sourcing offices. We have a few things that help make us unique. One, we have our own manufacturing facilities that allow us to secure and control the process from cradle to grave and manage cost. We have our own creamery where we make many of our own brand dairy products. We also have a nut roasting facility. In addition, we MARCH–APRIL 2019

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EDITOR: What does a typical Meijer store look like? JAECKLE: Meijer stores are supercenters. Our average store is between 160,000 and 200,000 square feet. We pride ourselves as being a top-tier grocery store first, with the convenience of a supercenter that also allows our customers to buy high-quality general merchandise goods at a great price. Being a tier-one grocery retailer means we’re cutting all our own meat, sourcing to the highest grades of produce, and making sure that we have quality products and a great service model for our customers. EDITOR: Tell us about the history of the company. JAECKLE: The company will be eighty-five years old this year, being founded in 1934 in Greenville, Michigan. It is family-owned with the Meijer family still active in the business today. It was founded by Hendrik Meijer as an effort to meet the needs of a small town with a small grocery store and fair prices and by 1962 had pioneered itself into the supercenter concept we operate today. His son, Fred, had been involved with the business from an early age and active in the company up until his passing in 2011. Fred and his wife, Lena, have three sons. Their oldest son, Hank, is our executive chairman and still in the office every day, while the other two are active on the board. One of the things that makes Meijer such a great organization is how involved we are in the communities that we serve. That commitment is not just on the high quality of food and products we provide in our stores; rather, it

INTERVIEW also means our involvement with the community where our customers shop and our team members live. We are highly engaged with supporting activities and organizations, whether it be with local sports, law enforcement, or hunger relief efforts. One of the joyous things about working for a private company that is family-owned is that it has strong beliefs in giving back to its community. Meijer continues to handle its business based on the simple philosophy that led Hendrik to start this business in the first place: “...take care of your customers, team members, and community...and all of those will take care of you, just like a family.” Having been family-owned for eighty-five years, Meijer is as much about family as it is about business. EDITOR: Because I grew up in a small town, Marion, Indiana, that had a Meijer store, I witnessed that community involvement first hand. Small

and midsize cities are your typical markets, correct, instead of urban areas? JAECKLE: We do have some stores in larger cities, such as Detroit, Louisville, Columbus, Indianapolis, and Cincinnati. But you’re right. We go where we have the opportunity to provide a service and where our customers live. Fred Meijer always said, “Customers don’t need us; we need them.” At Meijer, we focus on our customers and thrive by meeting their needs and exceeding their expectations. For a company that’s eighty-five years old, we are still actively growing even in today’s retail environment and remain extremely healthy. We opened six new stores last year. We’re opening three stores in the Cleveland market this summer. We continue to build out in the Wisconsin market, and we’re now filling in the gaps inside some of the Michigan communities where the company grew its roots. We are also working on a small-format store concept that is really a neighborhood grocery store. Our

first small format, called Bridge Street Market, opened in Grand Rapids’ west side last year. EDITOR: With your arrival at Meijer, what have been your objectives from an asset protection point of view? JAECKLE: When I first arrived, we put a major focus on shrink and loss rates, so we embraced the mechanism of the total retail loss approach, consistent with what we see now quite frequently in the industry. It’s given us the ability to understand how loss happens and that it’s not just the responsibility of asset protection to solve, but that there’s skin in the game whether you are a merchant, an operator, or you’re in supply chain. We’ve taken this approach to ensure that everybody understands that they have some responsibility to be able to manage and solve for our loss. At the same time, we’ve also adopted a better balance on prevention with recovery in regard to malicious activity.

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INTERVIEW The idea of playing cops and robbers and seeing people get hurt is just not a winning strategy. We’ve spent a lot of time reengaging how we go about doing that in terms of—I’ll use the term “hardening the target”—to make it understood that, one, it’s not acceptable behavior within a Meijer store and, two, we’re not going to rely on you getting caught to get you to understand it’s not acceptable behavior. We’ll get your attention ahead of time. We’ve also repositioned ourselves to focus on operational opportunities and core retail fundamentals within our business that are self-inflicted. As an example, we’re a grocery store first, and while we may have theft that happens in our fresh produce or meat sections, how we source, how we order product in, how we rotate product—all that dictates what our throwaway and loss is related to those products. This is a really important step for us to engage the organization to not think about it as loss, but to think about it more as waste. EDITOR: How have you organized your AP team? JAECKLE: Our corporate AP organization is responsible for protective security, which includes executive protection, campus security, and security at our specialty operations, including some of our off-shore locations in Bangladesh and Hong Kong. We also have responsibility for our supply chain asset protection functions. We have a centralized investigative unit that we lead out of our Grand Rapids office, which we refer to it as “ROC,” our Remote Operations Center [see photo page 30]. And we also have a corporate analytics and project management team for our AP operations and continuous improvement work based in our corporate office. In the field, we have regional managers who oversee about 100 stores each and market AP managers who oversee about ten stores each. In every store, we have an asset protection team lead.

You can’t boil the ocean, so we’ve spent a lot of time on letting the data guide our decisions and streamlining it to make useful data points for the teams to act against. That has been a real blessing in disguise to get the teams centered around the things that matter the most. EDITOR: Why do you have AP in every store? JAECKLE: It was important because, with implementing the total retail loss strategy, we felt we needed to have somebody who understood the operation of the store from a total asset protection lens and was able to help drive process execution and conduct the necessary audits to validate execution that they are working the way that we intended. This also allowed for us to continue to execute in the traditional space of asset protection to make sure we have the right controls in place, as well as a focus related to investigative work, whether it be internally or externally. We also have store detectives, which vary from store to store based on the risk of theft in each building. One of the first things that happened when I arrived was we absorbed the people greeter position into asset protection. This is part of what I mentioned earlier about hardening the target and making sure that the teams understood that employees engaging customers, including the dishonest MARCH–APRIL 2019

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ones, supports this idea of deterrence. So making that good first impression was one of the first things that we did, and we invested in training for our teams. EDITOR: Given the type of organization you have described, I imagine that you have a strong commitment to developing and promoting people internally. Is that right? JAECKLE: We do. We’ve been able to promote a few of our market leaders to regional positions and have had quite a bit of movement in the structure of our corporate teams and how to further position us to be a proactive asset protection team. In the stores, the asset protection team lead position was a brand-new position that also happened shortly after I got here in 2017. That was 100 percent a ground-up position, and I think we promoted about 85 to 90 percent of that population from within Meijer, mainly our store detectives and continued on page 38

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INTERVIEW out, if you’re not careful, where to start. You can’t boil the ocean, so we’ve spent a lot of time on letting the data guide our decisions and streamlining it to make useful data points for the teams to act against. That has been a real blessing in disguise to get the teams centered around the things that matter the most.

continued from page 36

some highly functioning team leaders from the operations side. This transition has really been able to give them a platform to be more engaged as a leader in their individual stores. It’s been a good transition and journey over the last few years. EDITOR: Are there any special initiatives that you have implemented either from technology or from programs that you want to highlight? JAECKLE: Right now, we’re spending a significant amount of time on mobile shopping and mobile payment. It’s no surprise that Meijer had a commitment to mobile shopping inside our stores as we announced in 2018. With new shopping patterns comes the opportunity for risk, and so we are spending a significant amount of time working through analytics on how to best offset that. In fact, you can hear more about that at the upcoming RILA conference during my breakout presentation I mentioned earlier. We’ve also spent a significant amount of time on working our big data to help the organization understand exactly what problems to go after. When you’re selling hundreds of thousands of different items in a building, it becomes difficult to figure

EDITOR: Earlier you mentioned Mike Lamb. Are there other people in your background who have been important in your career? JAECKLE: I had the good fortune to work with Mike for about three-and-a-half years while he and I were both at Walmart. He is probably one of the most influential people for me, especially preparing me for my current role. Mike helped me understand what executive-type leadership really means—being able to manage upstream, the willingness to take a risk when appropriate, and having the confidence to be able to stand behind your decisions. I learned an awful lot of that from Mike, and he and I stay connected today even though we’re at different companies. It may be easier to talk through this by thinking about the core competencies that I have learned from my mentors and what it means to me today. While I haven’t worked for all these great leaders, they are all people I have admired along the way as I have interacted with them and have tried to glean something from them. For each of them, I am extremely fortunate and grateful to have crossed paths and learned from them. Let me start with dignity and respect. One of the things that makes Meijer great is its commitment to winning with your team. My current supervisor, Todd Weer, has been at Meijer for over thirty years and models every day that how you show up to work—your attitude—and how you treat those around you, will define how successful you and your team will be. Self-discipline and drive. I had probably the toughest supervisor, still to this day, and she was absolutely the best thing for me at that time in my career. Renee Norton was one of my divisional directors, and I had the highest appreciation of her lessons on MARCH–APRIL 2019

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self-accountability and one’s commitment to seeing things through. Attention to detail. Craig Ledbetter was my regional at Walmart when I was first promoted to a manager. The first district that I took over was his former district. If you really want to learn something, follow in the shoes of your predecessor and boss because they already know all the skeletons. You’ve got to be on your toes in that situation. Persistence and passion. Paul Jones would be one of those individuals that I have a lot of respect for showing me what’s out there in the industry, different ways of thinking about how to view the world of asset protection and knowing when to put a foot on the ground on something that you believe in with all your heart. Continuous growth and learning. Gene Smith is someone who embodied the idea to never stop learning and willingness to invest in yourself. Those who know what Gene has done for this industry know the passion he carries. EDITOR: You certainly can hear the enthusiasm as you describe the work you are doing here at Meijer and your connections in the industry. But outside of the workplace, tell us about your family. JAECKLE: I’ve been married over sixteen years to my college sweetheart. We met at Western Illinois, and she has been gracious enough to move around with me as I’ve worked up the ranks at Walmart and now to Grand Rapids with Meijer. We’re both from Illinois and still have family there, so being back in the Midwest was important to us. She is nearing the end of her doctorate work with the University of Arkansas, and I am so proud of her and our relationship of supporting each other as we pursue our goals in our professional lives. We were also blessed about five-and-a-half years ago to become parents to our son. What a blessing that has been. He is a ball of fire and has the same passion and drive in life as my wife and I have. EDITOR: Thank you, Paul. We look forward to seeing you at RILA in May.

RISK: MILLIONS PAID OUT IN LAWSUITS. LINK: Make mistakes in a risk-free environment.

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RISK: INCONSISTENT GUIDANCE ACROSS THE ORGANIZATION LINK: Obtain timely responses and reliable coaching.

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EVIDENCE-BASED LP by Read Hayes, PhD, CPP

Crime-Place Networks

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. © 2019 Loss Prevention Research Council

rime doesn’t just happen; it happens at a place. And as we’ve discussed, that place, and surrounding places, help explain why the crime occurred. Criminologists have long demonstrated the incredible link between place and crime. David Weisburd, PhD, and others even refer to the “law of crime concentration” since address clusters or crime hot spots can stably account for a large percentage of crime and disorder problems in a given city. Our job is not only to identify these hot places but also to understand what is going on there, and close by there, that explains persistent problems. These dynamics are creating and facilitating more problem people and activities at this place than most others. And these identified dynamics should be addressed. Further, crime and place dynamics can enable better public-private enforcement and prevention partnerships since they provide definable locations and root causes for protective action. Many law enforcement agencies use crime mapping to locate calls for service clusters. Crime analysis maps display specific crime event addresses, but Tamara Herold, PhD, and John Eck, PhD, describe the reality of crime-place networks. Crime places aren’t usually just one spot. They’re connected places that facilitate criminal activity. These interrelated places include critical criminal infrastructure that needs to be discovered and linked via further investigation. And this framework should help organized retail crime investigators and local and store-level LP investigators better define and address problems. Crime-place networks can include four types of places: 1. Crime sites—specific places where crime occurs (think theft, fraud, violence) 2. Convergent settings—public places where offenders routinely meet (house, bar, and so forth) 3. Comfort spaces—private meeting, staging, and supplying locations 4. Corrupting spots—places that encourage criminal activity in other locations (bar, drug spot) An example of a crime-place network might be a retail strip center that facilitates public gathering in a nearby bar and next to a large apartment complex. Each of these sites provides a higher-risk area by providing desirable human and goods targets, meeting and storage spots, as well as a corrupting influence like the tavern that helped criminals meet each other, get drunk, and help launder money.

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Organization of Violent Place Networks Crime Places (Madenson & Eck, 2013)

Proprietary Places (single address)

Proximal Places (places that influence each other through close spatial proximity)

Pooled Places (large aggregate areas, e.g., neighborhoods)

Proprietary—micro-places where crime occurs

Convergent Settings—routine public meeting places (Felson 2003)

Comfort Spaces—offender created private staging and lounging locations (Hammer 2011)

Meeting Supplying Staging

Corrupting Spaces — crime places that create crime at other places (Madenson & Eck, 2013)

Risk-Terrain Modeling

We know landscape features of a specific place and close-by places and spaces can influence and enable behavior. An example might be a store across from a dimly lighted convenience store, a check-cashing business, and a laundromat that all draw people and provide loitering spots. These environmental features can generate potential people and place-crime victims, draw predatory offenders, and provide them ways to congregate, blend in, and victimize place users and our store. Leslie Kennedy, Joel Caplan, Eric Piza, Grant Drawve, and others from the Rutgers Center on Public Security (RCPS) have developed a risk-terrain modeling (RTM) framework and even special mapping software to study and affect crime-generating places. This process helps identify the matrix of risky places for situational understanding. |

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means the group aligns solutions with specific criminal offender steps (crime scripts) to maximize protective effects while reducing negative side effects. We strongly encourage you to look into getting involved in this process with us. Shoppers and employees expect and deserve to be relatively safe while on property. There are no silver bullets, and place protection is a work in progress like curing the common cold. But only through collective, framework-guided, rigorous research and development will we better keep vulnerable people safer.

Crime and Place Kaleidoscope, Caplan Hotels

Banks

Halls

Arenas

Repair

Fast Food

Foreclose

Clubs

Pawn

Bus

Drugs

Gas

Conv. Store

Parking

Liquor

Grocery

Parking

Gangs

Drugs

Gas

Gyms

Movies

Grocery

Schools

Variety

Halls

Vacant

Bars

Clinic

Transit

ATMs

Schools

Liquor

Laundry

Rec Centers

Laundry

Drugs

Fast Food

Theaters

Engage

Gyms

Parks

Hot spots tell you where crime is clustering but may not help us understand why that’s the case. The RCPS explains hot spots are merely signs and symptoms of places that are highly suitable for crime. RTM advances this by providing some spatial diagnosis. The process helps identify how and how much risk goes up the closer your place is to risk-generating places and other spatial features. It is now up to public-private teams to use this information to devise, test, and deploy focused crime reduction and suppression efforts. The Loss Prevention Research Council’s (LPRC) Violent Crime Working Group and its Anti-Violence Innovation Team are using these tools and others to work out cost-effective anti-violence solution sets for enhancement and evaluation. The iChain concept

As I write this, we’ve just finished holding LPRC’s annual board of advisors (BOA) winter planning meeting branded IGNITE. It was a fantastic gathering of over forty loss prevention and asset protection leaders, solution partners, and some innovation partners and prospects to plan upcoming crime and loss control research and development. The group dug into some of the over eighty current research projects, identified more priorities, and toured and advised on the brand new LPRC Innovate Next Retail Center (NRC) facility. The NRC’s Ideation and Simulation Lab (ISL) is in University of Florida’s Innovate Hub, an amazing creative space across from LPRC’s existing research lab. The ISL features a state-of-the-art ideation space that members will use to brainstorm new concepts and solve current and upcoming challenges. Right next to it is the simulation space where groups will be immersed in 180 degree, realistic, high-resolution or rendered video to more quickly and cheaply explore interior and exterior options. The space also has virtual and augmented reality capability. The group was extremely excited to start using the NRC resources for their teams, for working with their business partners like store operations, IT, supply chain, merchants, and others and for training scenarios. The NRC will enable faster action than normally available in traditional settings. Sensormatic provided the NRC’s seed money, with more innovation partners beginning to invest to expand the center and its capabilities. Again, please consider setting up a visit to Gainesville to tour and help us shape and use all these LP problem-solving resources.

Members of LPRC’s board of advisors at the IGNITE winter planning meeting at the University of Florida. LP MAGAZINE

MARCH–APRIL 2019

FUTURE OF LP

Cyber Security Starts with Physical Security

By Tom Meehan, CFI Meehan is retail technology editor for LP Magazine as well as chief strategy officer and chief information security officer for CONTROLTEK. Previously he was director of technology and investigations with Bloomingdale’s, where he was responsible for physical security, investigations, systems, and data analytics. He currently serves as the chair of the Loss Prevention Research Council’s innovations working group. Meehan can be reached at TomM@LPportal.com.

hen you think of cyber security, what comes to mind? For most it’s software, hackers, and computers in general. According to the FBI, “A cyber incident is a past, ongoing, or threatened intrusion, disruption, or other event that impairs or is likely to impair the confidentiality, integrity, or availability of electronic information, information systems, services, or networks.” However, a largely neglected part of cyber security is the human component. A significant majority of cyber incidents originate from within the companies themselves, with 80 percent of cyber incidents coming from human interaction. Forty percent of threats, whether they were inadvertent or malicious, come from employees alone. Therefore, it is important to not ignore the physical security practices we know protect brick-and-mortar stores from human theft and instead apply these concepts to cyber security.

Physical Security

It is well known that education and awareness are the first line of defense in physical security—and it’s the same for cyber security. For example, you control and audit keys in a brick-and-mortar store; the same must be done for passwords. You have policy and procedure to prevent people from sharing keys; the same is done for passwords. This also applies to access, opportunity, and supervision (or the lack thereof). In a brick-and-mortar store, this could be locking the doors, setting the alarm, and storing cash in a safe. For cyber security, it means ensuring ports are blocked, using endpoint software, and locking the server room. You may read or hear about the “death” of traditional security methods for cyber security. Most of those articles are followed by marketing messages from companies trying to sell their software. In reality, cyber security techniques and traditional security methods are very closely related. These are the top five cyber security practices and their physical security counterparts: 1. Use a firewall = ensure your alarm is on 2. Document your cyber security policies = document your loss prevention policies 3. Plan for mobile devices = plan how to protect your mobile devices 4. Enforce safe password practices = enforce key controls and access standards 5. Back up all data on a regular schedule = retain and backup surveillance video according to policy Many retailers are combining physical security functions with cyber security. Almost all big box retail organizations have a loss prevention professional who is directly responsible for asset protection technology and ensures everyone’s security priorities align with the company’s best interest. Today we have more Internet-connected devices, cameras, speakers,

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emergency-management systems, and video-management systems than ever before. Loss prevention has a ton of connected devices in the store, and it all must kept safe from hackers, just as a company’s computer network should be. According to a 2018 report from the Dow Jones, cyber security firm Darktrace Ltd. reported that in 2017 a North American casino suffered a cyber attack via a digitally controlled fish tank. Webcams were instrumental in the massive denial of service attack that brought down Internet hosting giant Dyn Inc. in 2016. In January 2018, the US Department of Defense removed surveillance cameras manufactured by a Chinese company because of their concerns about security. The 2013 breach of Target Corp. was executed through an insecure air-conditioning system.

ORC and Cyber Crime

There is also a great deal of crossover in organized retail crime (ORC) and cyber crime. Today a shoplifter turns booster, then moves to fraud, then easily jumps right into cyber crime. The dark web and the Internet in general have a host of tutorials and manuals on how to commit cyber crime. For example, the darknet has groups like The Shadow Brokers (TSB), which allows people with little to no computer skills to purchase malicious software and instructions on how to deploy it. TSB even offers a subscription-like service to its members for access to new releases of the latest and greatest tools to commit the nefarious actions via computer. Put simply: anyone can search the web to learn how to become a hacker, or they can pay a subscription fee and have someone provide them all the tools. Cyber crime is a global issue, certainly much larger than any individual retailer. If it hasn’t already, your company will have a cyber incident. Training and awareness are the keys to prevention. As loss prevention professionals, we must remain vigilant and take a balanced approach that focuses on prevention and response to a cyber incident. When an event occurs, you may be called to the table to do the criminal investigation. Forging those partnerships early will help when and if this occurs, and as an expert in physical security, you have a great deal of value to add to the investigation. All the technology in the world won’t solve human behavior elements in cyber security or physical security. You are already a physical-security expert. You have valuable insight to help your information technology teams better protect the company. Using these examples of the similarities between cyber security and physical security, we can better learn how to use our existing skillsets in an increasingly digital security landscape.

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FEATURE

THE IMPROBABLE

HISTORY OF THE INK TAG By Bob DiLonardo

LP MAGAZINE

MARCH–APRIL 2019

THE IMPROBABLE HISTORY OF THE INK TAG AUTHOR’S NOTE: The year 2019 represents the thirty-fifth birthday of the first “ink tag.” I have had the good fortune to have been immersed in retail and the EAS industry for over four decades. Since I participated in the early days of the benefit-denial phenomenon, I thought it important to chronicle some of the original history. The whole story would be book length—everyone has an ink tag anecdote. Many thanks to the people who contributed, including Jacques Hendrikx, Tom Nicolette, Link Charlot, Jim Wyatt, Natalie Friend, Janet Dennis, Rob Noeth, and Read Hayes. Bravo to all those brave retailers who took the initial risk.

et me get this straight. You’re asking us to spend over $3.00 on a tag with a scary warning label and glass vials filled with indelible dye. How will my customers react? You’re telling me that if a shoplifter tries to remove it without the right detacher, the vials will explode, and the dye will ruin the garment. And don’t worry because nobody will try to steal anything with this type of tag on it. You’ve got to be kidding!”

The radical idea behind the ink tag is “benefit denial”—a term coined in 1992 by Read Hayes, PhD, the well-known retail security consultant. Benefit-denial devices provide physical protection that would damage or destroy an item instead of allowing thieves to obtain any utility or economic benefit from it. The time was around 1990. The preceding passage is a paraphrase of comments made by dozens of US-based retail loss prevention executives after they had been shown an ink tag for the first time. Flash forward to the present day. Ink tags and their derivatives can be seen in almost all stores in which electronic article surveillance (EAS) protects apparel and in many stores without any EAS at all.

Why Did This Happen?

By the mid 1980s, first-generation EAS products had matured and were losing potency. Shoplifting losses began to rise precipitously. Retailers were realizing that the deterrent qualities of EAS were diminishing to the point where only the rankest of amateur thieves were being stopped. Why? Two main reasons. First, the original microwave, electromagnetic, and radio frequency EAS technologies were old, tired, and easy to defeat. The next-generation acoustomagnetic technology appeared promising, but its reusable tag—pre SuperTag—was easy to defeat, and its disposable label could be emasculated with a “squeeze.” Second, and more importantly, MARCH–APRIL 2019

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an EAS alarm was no longer a “call to action” to store sales associates, so shoplifters faced little risk of being approached at the door, much less apprehended. The rewards of successful theft had begun to exceed the consequences from the EAS alarm. Loss prevention executives began clamoring for better item-level solutions. They were willing to try something radical. The ink tag was “it.” Decades of experience teltls us that thieves routinely steal personal property or retail merchandise either for personal use or to sell for cash. The radical idea behind the ink tag is “benefit denial”—a term coined in 1992 by Read Hayes, PhD, the well-known retail security consultant. Benefit-denial devices provide physical protection that would damage or destroy an item instead of allowing thieves to obtain any utility or economic benefit from it. The certainty that no benefit will be gained by a theft actually creates a better, more lasting form of theft deterrent than with conventional EAS. There are a few noteworthy examples of benefit-denial devices

THE IMPROBABLE HISTORY OF THE INK TAG

in society at large that explain the concept and that acted as catalysts for the products developed for use in retail: ■■ Exploding dye packs used by banks to identify stolen currency. Cash involved in bank robberies can be readily identified and is less likely to be accepted as a medium of exchange. ■■ “Breakaway” electronic switch connectors that disable car radio/CD players if they are removed from the dashboard of the vehicle. ■■ Security systems that disable a vehicle’s electronic fuel pump a few seconds after a theft attempt.

When Did It Start?

The Color Tag® (circa 1984). Spawned by the bank dye packs, the first ink-based product

designed to protect apparel was introduced in Europe in March 1984 by a Swedish company—Fargklamman AB (also known as Color Tag). The original version had two four-inch long plastic “straps” connected at one end by a hinge. One side housed two pharmaceutical grade vials containing nontoxic but foul-smelling dye, along with two needles to puncture the fabric. The other side housed the receptacles for the needles, along with the lock and the small plastic piston required to open it. They were heavy and expensive (about $6.00 each). Color Tags were rugged and were able to withstand the rigors of repeated use within retail stores. They were difficult to force open with tools without incident, but LP MAGAZINE

MARCH–APRIL 2019

the vials didn’t just break, they exploded. When that happened the garment was, indeed, ruined. As with conventional EAS tags, Color Tags were to be removed at the point of sale. A blast of compressed air was needed to push the piston to unlatch the bolt and hook keeping two sides of the tag together. The compressor was not user-friendly. It usurped precious space at the checkout stand, required a dedicated electrical outlet, and cost $800. Notwithstanding the safety, liability, and operational issues surrounding the product, and the general lack of understanding of the deterrence concept behind the idea, Color Tag successfully marketed the products in several European countries. It took a while, but a few visionary

THE IMPROBABLE HISTORY OF THE INK TAG

1. The Inktag™ 2. Inkmate™ 3. The Color Tag®

American retailers, such as Dave Whitney of Ross Stores, Inc., conducted small-scale trials starting around 1986. But the product remained an “oddity.” Kno-Glo™ (circa 1988). Knogo Corporation was the original manufacturer of EAS products. For many years, it was the second-largest EAS company behind Sensormatic Electronics Corporation. Knogo had a large presence in Europe, and management was familiar with the initial success of Color Tag. They decided to design an “ink pin” that could be affixed directly into Knogo’s EAS tags. Their idea was to pour red dye directly into a membrane that was housed in a saucer-shaped plastic cup and then ultrasonically weld on a plastic cover that held the pin for the EAS tag. George Luciano of Clothestime was among the first US users. Converting the idea into a workable product was a challenge.

“We had a difficult time welding the two pieces together because of the vibrations,” said Tom Nicolette, Knogo’s former CEO. “The assembly line had sixteen workers, and by the time they finished the shift, they were covered in red dye. It looked as though people were being murdered. We had to install a shower room adjacent to the factory floor.” Even though it was difficult to manufacture, Knogo sold many millions of the Kno-Glo in Europe and then in the US. The Inktag™ and Inkmate™ (circa 1989–93). Security Tag Systems, Inc. (for whom I worked at the time) was a small but visionary manufacturer of EAS and access control products. Among its hallmark products were the world’s first single-pedestal EAS transceiver system and an early RFID system. In the summer of 1989, Brig. Gen. Carter Clarke, Jr., US Army (Retired), the company’s cofounder and president, returned from a MARCH–APRIL 2019

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European trade show with samples of the Color Tag and ordered our product development people to come up with a rival design as quickly as possible. The Color Tag was virtually unknown in the US at the time. We were skeptical of the idea, but the concept was appealing, so we set to work. In order to succeed, we set several important goals. Based upon our analysis, we believed that the Color Tag system was unsuitable for the American retail market place and had to be redesigned to be: ■■ Easy to affix and remove ■■ Smaller and lighter weight ■■ Nontoxic and odorless but with effective permanent dye that stained a wide range of fabrics ■■ Able to withstand rigors of apparel retailing without incidental breakage but still able to damage the apparel as a result of tampering ■■ Cost effective We came up with a design for the first version, named Inktag, in the fall of 1989. It was round and about three inches in diameter. The half with the pin held three vials containing gentian violet stain. On the bottom was a warning label. The other half contained a heavy-duty clutch that captivated the pin but did not include an EAS circuit. Unlocking the clutch required a significantly higher-quality rare-earth magnet than had been used up to that time. Our sales force was given handmade working samples to see if they could entice any retailers into a test. The first two early adopters were Pete Schmidt of Bloomingdale’s and Mike Myers of Women’s Specialty Retail. Bloomingdale’s ordered 10,000. I was tasked with testing the initial batch of tags to see if they would “work” properly. I opened the first box and discovered that a few of the tags had leaked in transit. We had sourced the vials from a Chinese

THE IMPROBABLE HISTORY OF THE INK TAG manufacturer of Christmas lights. So each unpressurized vial had a round end and a pointed end— where the molten glass had been twisted into a tip. To identify the leaks in subsequent shipments, we placed cotton fabric swatches over the pin to absorb any leakage and identify damaged tags. To minimize breakage, the boxes were rigged with cardboard lattices, so each tag had its own little nest—likes eggs in a carton. We promised customers that we would replace any tags that broke in transit. After a rash of complaints about broken tags, we modified the design by switching to pharmaceutical vials with two rounded ends. A much more significant issue was identified with that first batch of tags. The vials wouldn’t break when I tried to pry apart the tags with a screwdriver. If the tags could be defeated without the ruination of the garment, then there would be no lasting

Over the next three years, Security Tag introduced second- and third-generation Inktag and the Inkmate products designed to integrate with any brand of EAS tags. Each new model incorporated changes based on customer feedback. deterrent. We were afraid that this fault would be deadly to the entire program, so we convened an emergency meeting to see if we could come up with a solution. The next morning, I arrived at my office to be met by an anxious Dennis Hogan, a mechanical engineer on my staff who had attended the meeting.

After spending all night in his home workshop, Dennis offered a solution—a plastic cradle attached to the pin shaft with three stainless steel ball bearings mounted directly touching the vials. Any tampering with the tag would result in the crushing of the vials against the ball bearings along with the releasing of the dye against the garment. Further

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MARCH–APRIL 2019

THE IMPROBABLE HISTORY OF THE INK TAG testing confirmed that the cradle worked. We incorporated the change ASAP. From then on, those bearings were called “Hogan’s balls.” He had developed the first ink tag “breakage mechanism” for which he received a patent. This was our eureka moment. A built-in breakage mechanism was going to be crucial to the success of the deterrent. We never manufactured an Inktag or Inkmate without one. In addition to designing and building high-quality, user-friendly

and educate the public, so they understood the product’s purpose and the reasons why retailers were resorting to such drastic measures. We put out a press release, and an enterprising Associated Press reporter published a small story about the Ink Tag that was picked up by over 400 US newspapers. As a result, we received requests to appear on a number of radio and TV shows. Armed with goggles, an apron, and a screwdriver, I unsuccessfully tampered with Ink Tags and ruined garments on a number of broadcasts,

Benefit-denial products had penetrated more department store locations in nineteen years than EAS has penetrated in forty years. products, we tasked our marketing organization to develop a working definition of the deterrent qualities of the products and a compelling sales pitch that would overcome any objections that we encountered. Since the theory behind the deterrent was brand new and evolving, we decided that publicity would be an important means in creating awareness. We wanted to stimulate demand for the products

including the Joan Rivers Show. Joan autographed the ruined tee shirt for me, and it hung in my office for years. In order to warn shoppers, we offered plastic hangtags, window stickers, trifold rack toppers, and bag stuffers with bilingual warning messages and a picture of a large green ink blot surrounded by MARCH–APRIL 2019

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the international sign for “don’t do it”—a red circle with a slash through it. Over the next three years, Security Tag introduced second- and third-generation Inktag and the Inkmate products designed to integrate with any brand of EAS tags. Each new model incorporated changes based on customer feedback. “Blue dye doesn’t show up well on jeans,” recalled Link Charlot, Security Tag’s senior vice president of engineering. “So we developed a yellow, air-activated polymer that hardened on fabrics. The contrast worked very well.” “If you turn the tag with the vial side parallel to the floor, you can tamper with the tag, crack the vials, and the ink will simply fall into the bottom,” groused a few customers. So we placed a piece of compressed rubber under the vials. When the vials cracked open, the stress was released on the rubber, and ink was forced onto the garment, no matter which orientation the tag was held. We called that feature a “diffusion pad” and included one with every subsequent ink product. In the first couple of years, we received very large orders from JCPenney and The May Company Department Stores, among many others. After years of obscurity, we were finally on the map. Buoyed by our success, we applied the benefit-denial deterrent concept with locks, rather than ink, to protect other merchandise such as leather goods, jewelry, neckties, eyewear, and swimsuits. The program became so successful that we had almost tripled our business by the time Security Tag was acquired by Sensormatic in 1993. At that time Security Tag was the world’s largest producer and seller of benefit-denial devices. During this time, several other security equipment providers, including

THE IMPROBABLE HISTORY OF THE INK TAG ADT/Sensormatic, CombiClip, Checkpoint Systems, Inc., EAS SensorSense (WG), Unisen, and Universal Surveillance Systems got into the benefit-denial business. Through the collective efforts, the terms “ink tag,” “ink pin,” and “benefit-denial device” eventually became part of the retail loss prevention lexicon. According to a 2004 study conducted regularly by a well-known security equipment manufacturer of EAS market penetration among the top twenty-five department store chains in North America, over 68 percentof the branch stores used benefit-denial devices in some form. Only 48 percent of the stores employed EAS (all technologies). By this measure, benefit-denial products had penetrated more department store locations in nineteen years than EAS has penetrated in forty years.

What Made the Ink Tag So Important? The phenomenon of the ink tag introduced a transformational type of theft deterrence—benefit denial. As long as the security devices cannot be defeated before the protected merchandise is damaged or disabled, then benefit denial is a more powerful and permanent “capable guardian” of merchandise than anything else available. Secondarily, the original introduction of ink pins like Kno-Glo, CombiClip®, and Inkmate allowed EAS users to add the power of benefit denial to reinforce the deterrent. Loss prevention executives realized that the combination of EAS and benefit denial forced the thief to “do something” with the tag inside the store or run the risk, however insignificant, that the alarm would cause a problem as they left the store.

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My ringside seat provided an opportunity to witness a few transformational security initiatives, such as EAS, dome-oriented video monitoring, and benefit-denial devices. The ink tag saga is my all-time favorite.

ROBERT “BOB” DiLONARDO is a well-known authority and consultant on the electronic article surveillance business, the cost justification of security products and services, and retail accounting. DiLonardo started a successful consulting practice after several years in sales and marketing for Sensormatic, Security Tag Systems, and Decision Point Data. Prior to that he held various accounting, shortage control, internal audit, and loss prevention positions with Macy’s and Carter Hawley Hale Stores. DiLonardo was a long-time contributor to LP Magazine from 2001 until he retired in 2015. He can be reached at rdilonar@tampabay.rr.com.

col

ASK THE EXPERT Interview with Steve Sell

Alexa Needs You

Sell leads the global sales and marketing strategy at CONTROLTEK. He has over twenty years of retail experience and has held strategic roles with Accenture, Deloitte, Checkpoint, and Tyco. Sell is an enthusiastic influencer, contributor, and advisor to the Retail Industry Leaders Association, National Retail Federation, Loss Prevention Research Council, and LP Magazine.

he theme of this issue is emerging technologies. But we might also think of this subject as being more about emerging learning. New tech means a new promise, which also means that old trends will be broken. Technology is the super oxygen of global human progress, making it undeniably necessary. Ignore it, and it’s said it will leave us behind. Yet can the technology be the one we leave behind, gathering dust, unrealized?

What’s your take on how the speed of technology impacts our business and teams? It’s been said that technology changes exponentially and people change incrementally. Technology moves at light speed compared to humans. Moore’s law says the speed of processing doubles every eighteen months. We spend four years earning a degree. In other words, people are not processors. We process in a slower, human way. To offset this we must create “people readiness” in our business to achieve intended outcomes of technology.

Why is people readiness critical? Pockets and pants—what good is one without the other? Unless people understand why the tech helps solve a problem and the technology proves it can help a human solve the problem, there is no sustainable adoption. We gain nothing. Just like Alexa, she only proves herself after human interaction, practice, and regular use creates new habits in our lifestyles.

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How do you create teams that are ready for technology? First, create clarity of why technology adoption is important by sharing vision and goals deep in the organization. Like a great sales person, talk about value not gadgets. You’ll create stakeholders rather than users. Second, don’t assume that teams can or will instantly change behavior. Give them a clear reason and sufficient time to learn. Think about the new high-tech car you bought at home, or the last analytics package you invested in at work; are you really harnessing and using all of the primary new features and advanced features and tools? Compliance and adoption—how do you ensure consistency across an enterprise? In the chaos of retail, this is a tough one. Make training about more than on-off switches. Let’s again look at Alexa. We can all talk, so training is not paramount. Help teams feel the new experience and derived value to the business and to them. Now, teams can be excited and motivated for adoption. Make the user guide personal and relevant to your teams and users.

Unless people understand why the tech helps solve a problem and the technology proves it can help a human solve the problem, there is no sustainable adoption. We gain nothing. Just like Alexa, she only proves herself after human interaction, practice, and regular use creates new habits in our lifestyles. 50

Think about the new high-tech car you bought at home, or the last analytics package you invested in at work; are you really harnessing and using all of the primary new features and advanced features and tools?

How can leaders shape adoption? First, it is critical to understand that while many things are based on technology, it’s much more about the people using it in the right way. So remember that investing in your team with energy and emotion early in the technology-adoption process is central to success. Technology needs engaged people. So talk to Alexa, or we risk leaving technology behind. |

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SUPPLY CHAIN

Modern-Day Pirates Pillage Different Seas

By Maurizio P. Scrofani, CCSP, LPC Scrofani is an LPM contributing writer and well-known supply chain asset protection professional with over twenty-five years of experience in retail and manufacturing, including leadership roles with Macy’s, Bloomingdale’s, Delonghi, and Toys“R”Us. He was cofounder and president of CargoNet, a supply chain theft prevention and recovery network solution of Verisk Analytics. Currently, Scrofani is a consultant to retail, transportation, and manufacturing companies. He can be reached at maurizio@mpsconsultants.com..

The Closer You Look at Cargo Crime, the More Complicated the Problem Becomes

single fragment of cargo crime reflects just how big supply chain issues are becoming for retailers. The battle with cargo thieves is as long as human history. The theft of yesteryear involved pirates attacking merchant routes, and it’s no different now. Trucks have simply replaced wooden ships and horse-drawn stagecoaches. International crime syndicates are today’s marauders. Indeed, if you contemplate everything that shipments of retail goods go through—the threats they must avoid, the obstacles to overcome, the roadblocks to navigate—it can seem downright miraculous that packages ever get to where they’re supposed to. Risk is a cargo shipment’s constant companion, whether it’s sailing on seas, flying in the sky, or traversing the roads and rails. Previously, we peeked behind the curtain of supply chain risk management, taking an overview of the myriad activities related to sourcing, procurement, conversion, and logistics—and the risks inherent in all of them. Here, we undertake a similar look-see into one extremely small segment of supply chain risk: cargo crimes against domestic ground shipments while in transit.

Just as the supply chain is growing ever more intricate and fragmented, the tentacles of cargo crime continue to spread. A retailer’s risk today, for example, more frequently extends beyond the fifty-three-foot trailer and is now reaching all the way to the doorsteps of customers.

Cargo relates to shipments via rail cars, planes, or trucks from the point of origin to final destination. If any merchandise is stolen in between—at a storage facility, terminal, warehouse, wharf, truck stop, or highway—then it is called cargo theft. Theft related to cargo during ground transport is perhaps the risk we’re all most familiar with, and yet—as with the supply chain more broadly—the closer you look at the risks, the more complicated security seems to be. Data provides useful intelligence, certainly, for example by demonstrating that most cargo theft occurs on weekends. But the risk picture is also a little murky. A complete and accurate understanding of cargo crime is hamstrung by limited reporting by the transport industry, fuzziness over exactly who is the “victim” when shipments are stolen, and by the absence of law enforcement systems to ensure consistency in reporting and tracking. While we know a lot about cargo crime—the when, where, and how—there is much we don’t know, especially exactly how often it occurs and how much value is lost because of it. Cargo crime mirrors the broader supply chain network in another way. Just as the supply chain is growing ever more intricate and fragmented, the tentacles of cargo crime continue to spread. A retailer’s risk today, for example, more frequently extends beyond the fifty-three-foot trailer and is now reaching all the way to the doorsteps of customers.

An Evolving Problem

The danger starts as soon as a load of cargo is loaded on a truck. It’s at risk from curtain slashing, pilferage, hijacking, vehicle theft, theft of full or partial truckloads, and last-mile courier problems. It’s even at risk during loading in the guise of deceptive pick-up. Cargo endures additional risk because carriers often subcontract with multiple other transportation providers, and it’s multiplied because shipments aren’t typically able to be received 24/7. Economic losses include those related to insurance, reorder costs, administrative costs, claims, and most noticeably, top-line sales. While the universe of risk to ground cargo is expansive, the locations of crimes are rather narrow. The bulk occurs within relatively few geographic areas, typically near big ports and in states that are logistic hubs. Data shows a vast majority of cargo thefts occur in a handful of states: continued on page 54

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California, Texas, New Jersey, Florida, Georgia, and Illinois. Most cargo theft takes place within the first 250 miles from the point of origin or destination, and two-thirds of it has traditionally occurred on weekends. The risk of theft is changing, however, along with the evolution of cargo delivery. Less-than-full truckload theft now comprises a larger slice of the theft pie. Trucking is becoming more regional as omni-channel matures the value of more numerous, smaller distribution centers that can get products into customer’s hands more quickly. So shorter transportation runs are taking up a greater share of the time that cargo is on the road, and midweek thefts are creeping up. It’s one reason why a truck driver with a full belly and a full tank of gas are often a cargo load’s best friend.

Have a Winning Strategy

Distance and route planning are only parts of the equation when assessing the risk to cargo in transit. The type of shipment, including its value and exposure (such as whether it’s to be transported on an open flatbed truck), should directly impact carrier selection. Do you need a basic carrier with decent insurance and safety programs? Something more? Will the carrier be using subcontractors? Just how many layers are in the transportation network?

Trucking is becoming more regional as omni-channel matures the value of more numerous, smaller distribution centers that can get products into customer’s hands more quickly. So shorter transportation runs are taking up a greater share of the time that cargo is on the road, and midweek thefts are creeping up. It’s one reason why a truck driver with a full belly and a full tank of gas are often a cargo load’s best friend. Carrier selection is a key component of minimizing risk in ground transportation, which includes asking the right questions and critiquing training programs and hiring standards of transportation partners. Properly assessing vulnerabilities requires identifying not only direct risks but also risks to other entities, as well as those caused by the transportation linkages between them.

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Contracts, too, require review from an LP perspective. Executives can help their companies ensure that carriers don’t just have the right insurance coverage but also the right security protocols, that they aren’t just available and cheaper but are also appropriately risk adverse.

Today, competition more frequently takes place at the level of distribution, rather than at the level of production, and the winners will be companies that can satisfy the demands of legitimate customers without allowing fraudulent ones to eat away the benefits. Of course, domestic ground cargo isn’t only vulnerable in trucks. There are bridges, including a handful in dominant rail spur areas, that are famous for providing easy access to rail shipments. Seals do often provide some level of deterrence at this point, but at this point the volume of shortages in rail shipments is still both massive and frequently uncounted. Ultimately, however, the impact of last-mile issues might dwarf those from security disruptions in trailer and rail shipments. When customer packages are late or stolen, companies can suffer losses and lose customers. Additionally, the potential for loss due to fraudulent claims of nondelivery can have a material impact on a retailer’s business. Today, competition more frequently takes place at the level of distribution, rather than at the level of production, and the winners will be companies that can satisfy the demands of legitimate customers without allowing fraudulent ones to eat away the benefits. Today’s supply chain networks are growing in structural complexity. It’s making transport and logistics operations more vulnerable to many types of risks, including that of theft in ground transportation. The solutions are, naturally, as varied as the modes of transportation themselves, but they are often best derived in pursuit of common goals: collaboration and visibility. In order to keep better control of cargo shipments, companies have started to implement more layered and collaborative strategies across their networks. Shared visibility allows for appropriate mitigation by all parties, measures that can curb theft risk across transportation networks to the benefit of all stakeholders, from enhancing safety and security for those knights of the highway who crisscross the country on our behalf to helping retail transportation and logistics teams sleep at night—with at least one eye closed. LOSSPREVENTIONMEDIA.COM

FEATURE

14 WHY WE’RE ALL MILLENNIALS NOW

MYTHS

ABOUT THE MILLENNIAL GENERATION’S ATTITUDE TOWARD WORK AND CAREER By Bruce Tulgan

WHY WE’RE ALL MILLENNIALS NOW

lobalization and technology have been shaping change since the dawn of time. But during the life span of the millennials, globalization and technology have undergone a qualitative change. After all, there is only one globe, and it is now totally interconnected. Millennials connect with their farthest-flung neighbors in real time regardless of geography through online communities of interest. But as our world shrinks (or flattens), events great and small taking place on the other side of the world (or right next door) can affect our material well-being almost overnight. World institutions—nations, states, cities, neighborhoods, families, corporations,

coming at us from an infinite number of sources all day, every day. Nothing remains cutting edge for very long. What we know today may be obsolete by tomorrow. What is beyond belief today may be conventional wisdom by tomorrow. Meanwhile, the pace of everything continues to accelerate. A year is long term, and five years is just a hallucination. Short term is the key to relevance. In a world defined by constant change, instantaneous response is the only meaningful time frame. Millennials are comfortable in this highly interconnected, rapidly changing web of variables. They’ve never known the world any other way. Uncertainty is their natural habitat. Globalization

Millennials don’t look at a large, established organization and think, “I wonder where I’ll fit in your complex picture.” Rather, they look at an employer and think, “I wonder where you will fit in my life story.” Every step of the way, millennials want to find a work situation they can fit into the kind of life they are building for themselves.

churches, charities, and schools—remain in a state of constant flux just to survive. Authority is questioned routinely. Research is quick and easy. Anyone can get published. We try to filter through the endless tidal wave of information

does not make millennials feel small. Rather, it makes them feel worldly. Technological change does not make them feel as if they are racing to keep up. Rather, it makes them feel connected and powerful. Institutions MARCH–APRIL 2019

may be in a state of constant flux, but that’s no problem. Millennials are just passing through anyway, trying to squeeze out as much experience and as many resources as they can. Authority figures and celebrities may disintegrate for all to see. But this doesn’t make millennials cynical. Rather, it gives them faith in everyday heroes. The information tidal wave may inundate us all with more data in one day than anyone could possibly sort through in a lifetime. But this doesn’t make millennials feel overwhelmed or uninformed. Rather, it makes them would-be experts on everything. The pace of everything may be accelerating to the point where we expect immediacy in all of our doings. But this doesn’t make millennials feel slow. Rather, it makes them impatient. Right now is the only real time. Constant change means you can’t count on anything to stay the same. But the timelessness of the Internet allows millennials to revel in nostalgia from any era. They are liberated to travel to any time at any time, abandon what bores them, embrace new things wholeheartedly, and reinvent themselves constantly. The power of diversity has finally kicked over the melting pot. The millennials are the most diverse generation in history in terms of ethnic heritage, geographical origins, ability/disability, age, language, lifestyle preference, sexual orientation, color, size, and every other way of categorizing people. But this doesn’t make millennials feel alienated and threatened. Rather, they take the concept of diversity to a whole new level. (I call it infinite or total diversity.) To millennials, every single person, with his or her own combination of background, traits, and characteristics, is his or her own unique diversity story. Millennials feel little need to conform for the purpose of gaining entry to institutions. For millennials, difference is cool. Uniqueness is the centerpiece of identity. Customization of the self is sought after with great zest and originality, through constant

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WHY WE’RE ALL MILLENNIALS NOW of rewards, and control of work conditions. Because they look to their immediate supervisors to meet their basic needs and expectations, they freely make demands of them.

From the Mouth of Millennials These are some of the things that millennials tell us in our interviews: “My boss keeps telling me, ‘This is where you are going to be in five years.’ I’m dying to tell him, ‘I hate to tell you, pal, but you don’t know where you’re going to be in five years.’”

They have very high expectations, first for themselves, but also for their employers. And they have the highest expectations for their immediate bosses. experimentation. In the world of the millennials, the menu of selfhood options is extraordinary and the range of possible combinations infinite. For the millennials, customization is the holy grail, and it has always been right there within their grasp. From the first day they arrive in the workplace, they are scrambling to keep their options open, leverage their uniqueness for all its potential value, and wrap a customized career around the customized life they are trying to build. Millennials don’t look at a large, established organization and think, “I wonder where I’ll fit in your complex picture.” Rather, they look at an employer and think, “I wonder where you will fit in my life story.” Every step of the way, millennials want to find a work situation they can fit into the kind of life they are building for themselves. Because they grew up overly supervised, coached, and constantly rewarded by their parents, millennials will never be content to labor quietly and obediently in a sink-or-swim environment. They are less likely to trust the “system” or

the organization to take care of them over time and thus less likely to make immediate sacrifices in exchange for promises of long-term rewards. In fact, the millennials’ career path will be a long series of short-term and transactional employment relationships: “What do you want from me? What do you have to offer in return now and for the foreseeable future? I’ll stay here as long as it’s working out for both of us.” They have very high expectations, first for themselves, but also for their employers. And they have the highest expectations for their immediate bosses. And yet they are more likely to disagree openly with employers’ missions, policies, and decisions and challenge employment conditions and established reward systems. They are less obedient to employers’ rules and supervisors’ instructions. They are less likely to heed organizational chart authority. After all, they had incredibly close relationships with their previous authoritative role models, their parents, who treated them as equals. Instead, millennials respect transactional authority: control of resources, control LP MAGAZINE

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“I know they think they are masters of the universe, but, gee, the Soviet Union disappeared overnight. So could they.”

“My boss thinks I have a bad attitude. I don’t know why he thinks I have a bad attitude! I told him I’ll work alongside him on any project until he drops from exhaustion.”

“They keep telling me, ‘This is what you get in five years, ten years, twenty years.’ I feel like— what’s that expression—they are trying to sell me a bridge.” Precisely because millennials seem to both disregard authority figures and at the same time demand a great deal of them, leaders and managers often find millennials maddening and difficult to manage. Meanwhile, the truth, of course, is more complicated. You see, the millennials have been much analyzed but, I believe, largely misunderstood. Though in recent years many so-called experts have jumped on the bandwagon of tackling the challenge of “managing millennials,” nearly everyone I know of is simply reinforcing prevailing misconceptions about millennials.

WHY WE’RE ALL MILLENNIALS NOW

Common Myths about Millennials

Here are the fourteen most common myths about the millennial generation’s attitude toward work and career.

Myth #1: Millennials are disloyal and unwilling to make real commitments to their employers. Reality: They can be very loyal. But they don’t exhibit the kind of loyalty you find in a kingdom: blind loyalty to hierarchy, tight observance of rites of passage, patience for recognition and rewards. Instead, they offer the kind of loyalty you get in a free market—that is, transactional loyalty (whatever you can negotiate). This is the same kind of loyalty you extend to your customers and clients. We call it “just-in-time loyalty.”

Myth #2: They won’t do the grunt work.

They may not have the same shared knowledge base that people with a certain level of education used to take for granted, but they walk in the door with more information in their heads and more information available at their fingertips than anyone ever has before. in their heads and more information available at their fingertips than anyone ever has before. They think, learn, and communicate in sync with today’s information environment.

Reality: They are so eager to prove themselves—to you and to themselves—that they will do anything you want them to do. But they won’t do the grunt work, or anything else, if they start to fear that nobody is keeping track of what they are doing and giving them credit. They are not about to do the grunt work in exchange for vague, long-term promises of rewards that vest in the deep distant future.

Myth #3: They don’t know very much and have short attention spans.

Myth #4: They want the top job on day one. Reality: They have no interest in taking their time to “get a feel for the place.” They want to hit the ground running on day one. They want to identify problems that nobody else has identified, solve problems that nobody else has solved, make existing things better, invent new things. They want to make an impact.

Myth #5: They need work to be fun.

Reality: They may not have the same shared knowledge base that people with a certain level of education used to take for granted, but they walk in the door with more information

Reality: Millennials don’t want to be humored; they want to be taken seriously. But they do want work to be engaging. They want MARCH–APRIL 2019

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to learn, to be challenged, and to understand the relationship between their work and the overall mission of the organization. They want to work with good people and have some flexibility in where, when, and how they work.

Myth #6: They want to be left alone. Reality: If they actually care one bit about the job, they want managers who know who they are, know what they are doing, are highly engaged with them, provide guidance, help them solve problems, and keep close track of their successes.

Myth #7: They want their managers to do their work for them. Reality: They want managers who will spend time teaching them how to do their work very well and very fast.

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Myth #8: They don’t care about climbing the proverbial career ladder. Reality: Millennials’ career paths will be erratic and eclectic, but that doesn’t mean they won’t be progressive and developmental. Theirs will be what I call a self-building path made up of learning, relationships, proof of their ability to add value, and lifestyle flexibility. Instead of climbing a ladder, they are making a tapestry.

Myth #9: Money and traditional benefits don’t matter to them. Reality: Of course, money and benefits matter to them. They want to get the best deal they can get. In fact, they are usually quite savvy about comparing what each employer offers. But money and benefits are only a threshold issue. If you offer money and benefits that are competitive with other comparable employers, then you can keep the conversation going.

Myth #10: Money is the only thing that matters to them (the opposite of the previous myth but also widely held by managers who can’t believe how brazenly millennials demand money).

Reality: Again, money is a threshold issue. If they are asking for more, what they are really asking is, “What do I need to do to earn more?” Once you meet the threshold of competitive money and benefits, millennials care about five other things: schedule, relationships, task choice, learning opportunities, and location.

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Myth #11: They don’t respect their elders. Reality: They do respect their elders. They are closer to their parents than any other generation has ever been. But they want respect too. Their parents, teachers, and counselors have always treated them with respect, so they feel they deserve respect from their managers too. Bottom line: they respect what you bring to the table, and they want you to respect what they bring to the table.

Myth #12: They want to learn only from computers.

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WHY WE’RE ALL MILLENNIALS NOW continued from page 59

computers. But they absolutely need the human element to do their best learning. They learn best from a combination of the human element—coaching, direction, guidance, support, shared wisdom—and the powerful capacity of menu-driven information systems to guide them through the tidal wave of information available at their fingertips.

Myth #13: It’s impossible to turn them into long-term employees. Reality: You can turn them into long-term employees. You’ll just have to do it one day at a time. Myth #14: They will never make good managers because they are so self-focused. Reality: Of course, they can be good managers. They just have to learn the basics and then practice, practice, practice.

Workers of All Ages Have Changed

The millennial mindset isn’t just for millennials, however. The forces that have impacted the millennial generation have also changed the nature of work for everyone of all ages. Workers of all ages today rely every day on their immediate managers for help meeting their basic needs and expectations and dealing with a whole range of day-to-day issues that arise at work. Workers of all ages today are more likely to disagree—often privately and sometimes openly—with their employers’ stated missions, policies, and decisions. Workers of all ages are more likely to question or challenge employers’ rules, managers’ instructions, employment conditions, and established rewards structures.

If they are asking for more, what they are really asking is, “What do I need to do to earn more?” Once you meet the threshold of competitive money and benefits, millennials care about five other things: schedule, relationships, task choice, learning opportunities, and location. The free-agent mindset is now the prevailing workforce mindset. Employees of all ages today are much less likely to believe employers’ promises about long-term rewards. While many employees may doubt the sincerity of long-term promises, that is not the biggest problem. Many more employees worry that their prospects for receiving long-term rewards are vulnerable to a whole range of external and internal forces that might shorten the natural life of the organization employing them. Workers worry openly about events or circumstances that have little or MARCH–APRIL 2019

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nothing to do with business, such as politics, diplomacy, war, terrorism, and natural disasters. They worry about broad business-climate factors, including monetary policy, global market shifts, changes in particular industries, and organizational changes. As well, they are acutely aware that the organization employing them might simply lose out in the fiercely competitive marketplace. Workers also worry about the continued employment of their immediate supervisors and other leaders who know them best. Without credible long-term promises from employers, employees of all

WHY WE’RE ALL MILLENNIALS NOW generations no longer labor quietly and obediently. Rather, most employees work anxiously to take care of themselves and their families and try to get what they can from their employers—one day at a time. People of all ages and at all levels realize nowadays that they are “free agents” because they have no other choice. Workers of all ages today know that job security is dead. Most workers today—regardless of generation— assume that most employment relationships will be relatively short term and transactional. In relative terms, older workers tend to lose, and younger workers tend to gain—at least in the short term—from the diminishing importance of seniority and longevity of employment. Workers of all ages today are under more pressure than ever as work becomes more demanding for everyone. In every industry, in nearly every organization, individuals are working harder and facing increasing pressure to work longer, smarter,

faster, and better. Meanwhile, workers must routinely learn and utilize new technologies, processes, practices, skills, and knowledge, all the while adjusting to ongoing organizational changes that cause growing fear of imminent job loss. While younger workers may have certain advantages in this environment, they tend to suffer more than older workers when they receive less management guidance and support. Workers of all ages today want, expect, and often request greater flexibility in work conditions. As the pressure increases, so does the need for some relief from the pressure. That’s why “work-life balance” is such a powerful counter-trend. What work-life balance means most of the time is “more control over my own schedule.” The rest of the time it means “flexible location” or “flexible dress” or “flexible something.” Sometimes it means an employee can bring his dog to work. People of all ages want greater flexibility in their work conditions. The biggest difference with millennials is that they are more

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comfortable making specific requests for immediate (rather than long-term) increases in pay, benefits, and work conditions, and they are more likely to make those requests earlier in their tenure of employment than workers of previous generations would have. BRUCE TULGAN is an adviser to business leaders all over the world and a sought-after keynote speaker and seminar leader. He is the founder and CEO of RainmakerThinking, Inc., a management research and training firm, as well as RainmakerThinking.Training, an online training company. Tulgan is the best-selling author of numerous books including Not Everyone Gets a Trophy (revised and updated, 2016), Bridging the Soft Skills Gap (2015), The 27 Challenges Managers Face (2014), and It’s Okay to be the Boss (revised and updated, 2014). He has written for the New York Times, the Harvard Business Review, HR Magazine, Training Magazine, the Huffington Post, and LP Magazine. Tulgan can be reached at brucet@rainmakerthinking.com. You can follow him on Twitter @BruceTulgan or visit his website at rainmakerthinking.com.

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PERSPECTIVES

Solution Provider Sales Strategies What Sets One Solution Provider Apart from the Rest?

inding a solution provider that best fits our loss prevention needs in an ever-evolving retail market is something that must reach well beyond the latest gadget or technology being offered. In a world where change and innovation are driving the success of the business—one where the status quo only exists in the moment—decision makers must venture beyond those that simply sell a particular product or service and are capable of serving as true solutions partners that work hand-in-hand with our loss prevention teams to tackle the latest industry challenges. But what does it take to be a true solutions partner? How do they go about approaching their business partners and establishing the foundation for real and lasting solutions—and relationships—with their loss prevention customers? For perspective and input, we turned to executive leadership from three leading solution providers to discuss some common themes.

David Ewton Business Development Manager, Bosch Security and Safety Systems

Mike Isch Vice President of Sales, STANLEY Security

Robb Northrup Director of Marketing Communications and Support, siffron

What would you consider to be the most important factor that separates one solution provider from the next?

EWTON: One of the leading factors that elevates a solution provider is their level of service and support. In other words, the ease of doing business with the provider. This includes

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By Jacque Brittain, LPC

Brittain is editorial director for LP Magazine. Prior to joining the magazine, he was director of learning design and certification for Learn It Solutions, where he helped coordinate and write the online coursework for the Loss Prevention Foundation’s LPC and LPQ certifications. Earlier in his career, Brittain was vice president of operations for one of the largest executive recruiting firms in the LP industry. He can be reached at JacB@LPportal.com.

all aspects of a symbiotic relationship: conceptualizing a potential solution, evaluating a system pilot, creating system specifications, pricing continuity, deployment logistics, system commissioning, ongoing training, product warranty, and technical support. It also includes the solution provider’s agility to prioritize the customer’s needs and ability to understand that the customer’s urgency is often based on fluid requirements. ISCH: Innovation is still one of the most crucial factors. The opportunity to find new ways to streamline efficiencies and reduce shrink is always critical to our retail customers, especially those that can bring operational value across the organization. It’s scalable performance—do you have the right team to see the needs of your customers and create solutions that may not exist yet to fix problems?

“Honesty, integrity, understanding, and reliability are the most important qualities that every solution provider should exude.” – David Ewton NORTHRUP: Loss prevention innovation is a vital component that separates solution providers. As traditional anti-theft devices become more vulnerable, loss prevention suppliers must adapt and develop more advanced security solutions that reduce or eliminate the significant causes of shrink. Implementing innovative and effective loss prevention solutions that mitigate losses and safeguard profitability is critical.

What are the most important questions that decision makers should ask before choosing a product or a solution provider?

NORTHRUP: Does your LP solution help increase sales as well as reduce shrink? Many solutions just lock up product, which does protect it but can also diminish potential sales. Does your LP solution improve category management while reducing labor costs? The more time employees need to work at securing product, the less time they are spending with customers. Does your LP solution integrate with your current LP environment? Retailers should be looking to reduce complexity as much as possible, while still providing multiple layers of theft protection. continued on page 64 LOSSPREVENTIONMEDIA.COM

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Having disparate systems and solutions means higher maintenance costs and less integration. EWTON: We’ve witnessed other solution providers spend a tremendous amount of resources getting the installation “sign-off,” without any—or very few—resources available for system life-cycle management. This can leave the customer feeling like they’re stranded without any system support. There are questions that will help ensure the solution provider is taking a holistic approach to the solution, such as: ■■ What is your methodology to help ensure the deployed solution will meet project expectations? ■■ What is your view of this solution’s life-cycle management? ■■ How will I use today’s solution and infrastructure to support future needs? ■■ What is the warranty support for the next five to seven years? ■■ How may I participate in new product development? ■■ How easy would it be for me to pick up the phone and speak with the president of your company? ISCH: Security itself doesn’t have a shelf life, so a customer should ask questions from a growth perspective. How will you bring solutions to my business that are both valuable today and provide ROI justification for investment in the future? Any solution provider can bring product today. Do they maximize your security infrastructure and help you achieve the most return for your security spend?

“While cost plays a significant role in every business transaction, choosing a loss prevention solution provider is much more complex than simply taking the lowest bid.” – Robb Northrup What do you feel is the most common mistake that solution providers make when dealing with their customers?

ISCH: Making sure to ask enough questions—and the right questions. This can be overlooked in our industry and is a mistake that often hurts everyone involved. We can’t properly take care of our customer if we can’t visualize the problem holistically. Bringing the right loss prevention experts to the table and examining the scenarios from an outside-in, 360-degree perspective will help drive successful outcomes. NORTHRUP: While cost plays a significant role in every business transaction, choosing a loss prevention solution provider is much more complex than simply taking the lowest bid. When evaluating costs, companies need to consider the cost of the product, cost savings to the bottom line, time savings, and labor savings, while also considering the sales lift of the implemented solution. EWTON: The most common mistake is presenting a message that one size fits all. Each customer has a unique set

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“The opportunity to find new ways to streamline efficiencies and reduce shrink is always critical to our retail customers, especially those that can bring operational value across the organization.” – Mike Isch of challenges and constraints. A responsible provider must be conscientious, open, and flexible in order to collaboratively design customized system requirements. Providers should also understand when to facilitate leveraging partner resources to fully support the customers’ challenges. Today’s providers should introduce trusted integration partners early on when conceptualizing how to address customer needs. In addition, not all solution providers include customers in the beginning stages of product development. This is the only way to ensure the products fully meet the user’s challenges and helps to solve their pain points.

What personal qualities or character assets do you think are most important for solution providers to possess?

EWTON: Honesty, integrity, understanding, and reliability are the most important qualities that every solution provider should exude. The customer needs to be able to trust that the solution provider will maintain open channels of communication and full transparency for collaborative problem solving. With any large, long-term deployment, issues are going to surface whether it is product availability/development, logistics, or simply meeting established deadlines. Agreeing on common goals and regularly communicating mutual performance expectations only proves to strengthen any professional relationship. ISCH: Solution providers need to be excellent listeners. Sales people usually want to talk, talk, and talk. It should never be about, “Here’s what we have,” but more about working hand in hand in a strategic partnership. That’s how world-class companies formulate a strategy. You’re not burning empty calories. Rather, you’re finding the right solution based on as many perspectives as possible. Go wide and deep into the organization to see who is impacted and how their daily role changes based on security. NORTHRUP: As mentioned, innovation in product solutions is key. Creativity is also a must, along with adaptability, preparedness, and the ability to deliver. It’s also beneficial to work with a solution provider that can provide a wide range of solutions for every area of the retail environment, has a history of building strong partnerships, understands retail and the impact of loss prevention solutions on the overall store environment, and factors all of those assets into the solutions they provide. LOSSPREVENTIONMEDIA.COM

SOLUTIONS SHOWCASE INSTAKEY

Wi-Fi Smart Lock Solves Challenges to Lost Keys While Improving PCI Compliance override key, you can rekey the lock with just the cost of a new set of keys—no locksmith or tools necessary. RemoteLock’s OpenEdge CG Wi-Fi Smart Lock is linked to their EdgeState cloud-based SaaS software, making it incredibly easy to keep track of who’s coming and going within your business. Grant or deny access with a few taps or clicks from your laptop, tablet, or smart phone—without having to be there in person. Now key holders can trade in brass keys for a pin number, and you don’t need to worry about getting keys back from those employees when they leave their jobs. When they leave, you can simply delete their codes immediately and remotely. Expecting a vendor to stop by? Issue a temporary code that will only be valid for the time period the vendor is expected. You’ll know exactly who came and went and opt to get messages every time the lock opens. There will always be a complete record for all activity, safeguarded in the cloud. What are the best applications for this technology? This commercial product’s indoor/outdoor versatility allows for many uses on higher traffic doors. But if PCI compliance is a concern, installing the RemoteLock OpenEdge CG on IT closets, cash offices, delivery doors, and other similarly sensitive areas is a great place to start. Lucky’s Market, a Boulder, Colorado, based national grocery store chain, has elected to utilize the RemoteLock OpenEdge CG access control in a handful of corporate and store location doors. Chris De Tray, CFE, CFI, Director of Asset Protection, identified this technology as a simple and cost-effective way to improve their remote IT room access control needs. “This smart lock eliminated our need for keys to our sensitive access points, required no wiring or power to the door, and we can manage our access from anywhere. We are able to use InstaKey on the majority of our doors and still have a secured back up override for this device. InstaKey’s innovative approach and partnership consistently helps our business identify better ways to simply manage our key control,” explained De Tray. InstaKey will have a demo of the RemoteLock OpenEdge CG on display at most of the Wi-Fi Enabled Smart Lock trade shows where they with SFIC Manual Override exhibit this year, including the upcoming RILA Asset Protection Conference to be held in Denver, near InstaKey’s headquarters. If you would like to check out the new hardware and see if it could work for your business, stop by booth 1017.

eys go missing all the time. Millions of keys are lost every year in the United States. It’s human nature to lose things, especially when those things are small, like keys. Unfortunately, when keys are lost, it forces businesses to spend time and money rekeying locks and distributing new keys, not to mention the assets that become vulnerable during the time it takes to rekey a business or multiple business locations when a master key goes missing. InstaKey® has spent over thirty years on a mission to ease the pain felt by businesses that have key holders who lose keys. They have transformed locks into user-rekeyable, interchangeable cylinders that can be rekeyed up to twelve times without changing out cores or calling a locksmith. On top of that, they have restricted key blanks (making it so they can’t be copied), so they don’t end up in the wrong hands. They’ve even stamped unique serial numbers on keys to make it easy to link them to their cloud-based software, to keep track of who has what keys and what those keys access—without making keys ridiculously expensive. All this innovation goes toward helping people save time and money and makes mechanical key systems more secure. InstaKey’s next evolution of their mission is a partnership with leading smart lock manufacturer RemoteLock™, allowing InstaKey to offer commercial-grade smart lock technology that can be managed and controlled from your smart phone, tablet, or computer. When necessary, InstaKey’s user-rekeyable lock cylinder and restricted keys are used as a back-up, mechanical override. When someone loses an LP MAGAZINE

MARCH–APRIL 2019

LPM DIGITAL Kelsey Seidler Seidler is managing editor, digital. She manages the magazine’s digital channels that includes multiple daily e-newsletters featuring original content and breaking news as well as pushing content to various social media platforms. Seidler recently earned her master’s degree in technology and communications through the University of North Carolina’s School of Media and Journalism. She can be reached at KelseyS@LPportal.com.

Heralding a New Era F

ollowing are a few article summaries that can provide you with a small taste of the original content available to you every day through our daily digital offerings, which are offered free through LossPreventionMedia.com. In addition to our daily newsletter, a comprehensive library of original content is available to our digital subscribers at no cost to you. Visit our website to gain access to all of our content. You can also follow us on Facebook (search LP Voices), Twitter (@LPMag), and LinkedIn.

Going, Going, Gone. This Time, It’s Payless By Bill Turner, LPC

Payless announced on Sunday, February 17, that it will close all of its 2,100 US stores, shut down its e-commerce operations, and liquidate. It may be preparing for another bankruptcy filing, having first done so in 2017. It is said that the liquidation will not affect franchised or Latin America stores. Founded in 1956, Payless at one time had 2,700 stores and was, arguably, the largest specialty shoe retailer in the country. But it has faced major competition from much healthier brands such as T.J. Maxx and DSW. Outdated inventory management systems and logistics difficulties didn’t help. And, of course, there was Amazon.

Then there’s the saga of Sears. After Sears filed bankruptcy in October 2018, most industry observers thought that would be the end of what once was the largest retailer in the United States. Nobody believed anyone could save it, except maybe the company’s chairman, Eddie Lampert. The bankruptcy court rejected Lampert’s initial $4.4 billion offer to buy Sears. Lampert protested, and a bankruptcy judge gave him more time. Lampert launched a new $5.4 billion bid, and in mid-January 2019, he won. OK, so now what? Lampert claims his winning bid will save 50,000 jobs and keep 425 Sears and Kmart stores open in the United States. The plan calls for smaller stores and a focus on traditional strengths, such as appliances. But concerns remain. Will consumers want to buy a big-ticket appliance from a company that may not be around when it breaks? Meanwhile, Sears is searching for a new CEO with a proven track record of success in effective management and large-scale turnarounds. It will be interesting to see who will be willing to take that job. Will Sears make it? As I often say, time will tell. Payless and Sears are dramatic examples of the difficulties of some iconic retail brands, but they’re not alone. Recently, David Simon, chairman and CEO of the Simon Property Group, admitted he’s nervous. Simon Property Group is the biggest mall owner in the United States. Not that he could necessarily predict what happened to Payless, but less than a month ago he said, “We are concerned about a few [retail bankruptcies] that could shake out in the first quarter.” Last fall, Simon said he had already put Sears “in the rearview mirror.” Some newer, smaller retailers are coming online, but major anchor stores, the lifeblood of any major mall, are waning. Mall owners are seeing tough times ahead and are looking for new and non-traditional tenants to fill space and generate excitement. Simon says the future of the mall is all about “live, work, play.” Given stiff competition, rising rents, and the need for enormous amounts of operating capital, many familiar retailers are facing strong headwinds in today’s economy. As early as mid-2018, Clark.com, a consumer action group, predicted at least eight possible retail bankruptcies in 2019. Among those were J. Crew, Neiman Marcus, JC Penney, and Office Depot. It’s interesting to note continued on page 68

MARCH–APRIL 2019

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continued from page 66

that Payless was not on their list in either 2018 or 2019 given that they had declared bankruptcy for the first time in 2017. The simple answer is that nobody can predict exactly what will happen in the world of retail bankruptcies. But times are tough. Be careful where you buy your major appliances.

Mark Stinde Named SVP of AP at JC Penney Mark Stinde, MBA, LPC, has been named senior vice president of asset protection at JCPenney. Stinde was most recently vice president of asset protection at Dallas-based 7-Eleven. He started his loss prevention career as a key store investigator with Mervyn’s in 1988 before moving to Lamont’s Apparel as a regional loss prevention manager in 1991 and then to Toys“R”Us as a regional loss prevention manager in 1995. From there, Stinde has held leadership positions with The Home Depot, Circuit City, and Protiviti in business development before joining 7-Eleven as senior director of asset protection in 2010. He was then promoted to vice president of asset protection in 2012. Stinde is active across the loss prevention community, serving as an asset protection leadership council member with the Retail Industry Leaders Association (RILA), a member of the board of directors with the Loss Prevention Foundation, and as an editorial board member with LP Magazine. He holds a bachelor’s degree in business management from DePaul University and recently earned a master of business administration (MBA) in business administration and management from Southern Methodist University’s Cox School of Business. He also serves as an associate board mentor providing support and insight to MBA candidates for the SMU Cox School of Business.

2019 Retail Predictions: From the Rebirth of Brick and Mortar to the Death of Iconic Brands By Tom Meehan, CFI

The retail industry had a phenomenal year. Retail has an exciting future. The doom-and-gloom reporting of the “death of retail” has subsided. The retail apocalypse is officially over. The evolution of retail is not. In 2017, over 7,000 retail locations closed. Less than half that number occurred in 2018. In 2018, retailers focused more on customer experience and innovation—and won. Here are some of my 2019 retail predictions. 1. The rebirth and rebuilding of brands. We will see some retailers resurrect. Brands that closed or filed for bankruptcy several years ago will resurface with a focus on smaller footprint stores and customer experience. Additionally, we

MARCH–APRIL 2019

will see the rebuilding of brands with new store layouts and new offerings. We may also see the demise of some other giants and hope one day they are reborn as well. Look for the new and improved Toys“R”Us and Circuit City in 2019. There may be some big things coming for Lowe’s in 2019 as they tackle the professional construction market. 2. Brick and mortar is back. What some would call the biggest comeback ever is more of looking at it from a different perspective. People are shopping in stores again. Retailers need to adopt the unified commerce approach: if a customer is buying from the business, the channel doesn’t matter. Smaller footprint stores are abuzz. Grocery and c-stores now move toward more self-service with pay and go, self-checkout 2.0, and cashierless stores. Some online brands will open brick-and-mortar stores (The RealReal and UNTUCKit). Destination-based shopping will see more shared or combined spaces. Restaurants, coffee shops, and lounges will be peppered into traditional retail establishments (such as Target concept stores, Starbucks, and Nordstrom’s small footprint). As customers look for different experiences, this will continue to be the key to success for most businesses. 3. The elephant in the room. Amazon continues to grow and gain market share. Retailers will need to build their 2019 strategies around a competitive advantage. Amazon’s Alexa AI will move to more third-party applications supporting retail in 2019. Retailers need to avoid becoming distracted by Amazon and focus on the customer experience. Location and easy returns are a real problem for Amazon. Also, scalability related to service plagues Amazon. It is discouraged to force innovation. Instead, one should use innovation to help support one’s customers experience. 4. Social media and retail get married. Social selling will be a real thing in 2019. Social commerce will potentially be the most disruptive thing in retail in 2019. Facebook will hit retail big in 2019 with its reach and data. As some leave Amazon, Facebook and Instagram will fill in the void. 5. Some big Amazon acquisitions are coming. We may see the company buy a large retailer with a network of stores. Amazon will also partner or acquire a social network to battle Facebook and Instagram on the social commerce wave. 6. The Internet of things will grow. Technology interaction in the stores will drive customer experience. Think of a more immersive shopping experience, with augmented reality and more interactive smartphone apps. The retailers themselves will also adopt at a higher rate as well as more wearables for in-store associates, drones, and wider adoption of virtual reality. 2018 was the death of the retail apocalypse. Be ready for the social commerce’s disruptive wave. Retail will continue to evolve. Technology is not here to eliminate us; it’s here to make our jobs and lives easier. Focus all your programs on the customer experience and customers will shop. 2019 will be a great year for retail. Happy New Year.

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LP MAGAZINE

MARCH–APRIL 2019

PEOPLE ON THE MOVE Art Lazo was promoted to

VP of AP at 7-Eleven.

Larry Carroll is now VP of

AP, inventory analytics, and compliance at 99 Cents Only Stores. Rick Marine is now a

district AP manager at Abercrombie & Fitch. Keely Brown was promoted

to LP market manager at Academy Sports.

David Smail has been named

executive VP and chief legal officer, and Erik Klockemann was promoted to regional senior commercial security consultant at ADT. Matthew H. Dawson, CFI

was promoted to program manager, global security operations, Brent Cohen, CFI was promoted to global investigations manager,

David Marsh, PgDip, MSyI, CPP

was promoted to regional LP manager – EMEA retail and global logistics (UK), Bob Saxon, CPP, MSyI is now a regional logistics LP manager (UK), and Tara Balkcom, LPQ is now an LP specialist at Amazon. Anthony Paserchia was

promoted to director of AP and risk management at Areas, United States. Albert Metuge, CFE, CFI was

promoted to director of fraud management and analytics at Ascena Retail Group.

Kristofer Mikelson, MA is now

Isaac Whitaker has been

promoted to business development executive at Fire King Security Products.

have been named to the board of directors at the International Supply Chain Protection Organization (ISCPO).

Chip Bentzel was promoted

Mark Stinde, MBA, LPC has

a regional LP manager, and Blake Charles is now a market investigator at Family Dollar. Rosemary Leonard was

promoted to VP of AP and field audit, William Peters was promoted to senior director of safety and AP operations, and Jason Alexander was promoted to director of field AP at BJ’s Wholesale Club.

to regional director of LP at Gabe’s.

has been named director of AP investigations at Bloomingdale’s. now corporate asset and profit protection manager at Burberry. Chris Boling is now VP

of store operations at Casey’s General Stores. Ian Dill is now VP of

store operations and AP at Centric Brands.

Nicholas Paczkowski LPQ

Jason Van Niekerk is now

named director of LP, inventory control, and fraud at Conn’s HomePlus.

director of risk management, LP, and safety at Goodwill Industries of Central Florida.

Tim Hickey is now senior

Lauren Linsenbach is now a

regional LP manager at Guess. Christian Ibbott was

Jason Biggs is now a

regional security manager at Cox Enterprises.

Mike Soberal, CPP is now

Andrew Kirkendall and Daren Adams are now zone LP

Brian Farrar is now a regional AP manager, and Sean Johnson is now an area

managers at Beall’s.

AP manager at DTLR.

Michael Ruhl Jr. is now

David Homolka was promoted

director at Dollar General.

manager of AP operations, and Thomas Thweatt, LPC was promoted to security engineer at Belk.

to VP of human resources, store operations, and AP at Duluth Trading Company.

George Schweitzer, CFI was

now manager of the global investigations center at Facebook.

Dennis Dixon, LPC is

MARCH–APRIL 2019

corporate manager of LP, security, and investigations at JW Logistics. Andrea Buckles was promoted

to division AP assistant manager at The Kroger Co. Bruce Blackman was

John McBride is now an area

Garrett Petraia was named

VP of global security at Levi Strauss.

promoted to district LP manager at Home Goods.

Greg Purwin was promoted to

Trish Boehm was promoted to director of operations, Dylan Evans was promoted to central investigator, and Alexis Hurley

Mike Giblin was promoted

was promoted to district manager at The Home Depot. Gregory Keeley is now

an area LP manager at HS Brands Global. Vy Hoang is now chief

customer officer at i3 International.

Katie Walker, CFI is now director

of safety and security at iHerb. Pete Bacol has been named

VP of strategic growth at Industrial Security Solutions. Cita Doyle, LPQ has been

promoted to VP of sales and marketing at InstaKey.

Andrew Crosby, CFI is now

promoted to senior fraud data analyst at LexisNexis Risk Solutions.

Keith Thalacker was

Ken Peschier was promoted to VP of AP, and Dave Antel is now divisional LP

leader at CVS Health.

group LP manager at JPL Group (Australia).

promoted to regional investigator at H&M. LP manager at HMS Host.

Lee Gamble is now director

Stephen Valentine was

promoted to group investigations manager UK and international at JD Sports Fashion (UK).

Rick Mitchell has been

manager of strategic accounts and asset tracking solutions at ControlTek.

operations manager at J. Crew.

regional AP manager at Global Partners LP.

Lawrence Hartman, CFI, LPC was recently named senior

Bobby Haskins was

promoted to regional AP leader, Dave Alves was

Leigh Kohlhaas is now LP

is now director of safety and LP at Goodwill of Greater Washington.

Carlos Diaz Herrera and Zachery Erb are now multidistrict AP leaders, and Janie Sexton is now a district AP

senior manager corporate security at Aurora Cannabis.

Keith White, LPC has been

Mike Scafidi is now a

of security and LP Europe at Cromwell/Grainger (UK).

named director of market development for North America and retail AP at Auror.

leaders at GameStop.

promoted to executive VP of LP and global sustainability at Gap Inc.

Johanna Agudelo is

Byron Smith, CFI, LPC has been named chairman, Wes Bank, LPC has been named vice chairman, and Wayne Hoover, Brian Flannery, and Liz D’Aloia

been named senior VP of AP, Vanessa Aviles was promoted to area AP manager, and Austin Langenfelder was promoted to market investigator at JCPenney.

Jenna Fread and Jonathan Riehle are now regional LP

Gary Novello Jr, LPC, CFI

Michael Sayegh is now

manager of business development at Asset Control Technology.

promoted to market AP leader, and Carl Johnson, LPC, CFI is now a market human resources leader at Big Lots Stores.

LOSSPREVENTIONMEDIA.COM

corporate manager of investigations at Lord & Taylor. to director of research, and Jordan Burchell was promoted to innovation specialist at the LP Research Council.

Kate Early, LPC was promoted

to director of AP process and strategy, Todd Isenhour, LPC, Ryan Arensberg, LPC, and Laura Westfall were promoted to divisional directors of AP, operations, and safety, Amanda Vickers was promoted to online fraud investigator, Leo Cabral, CFI is now director of supply chain safety and AP, Sam Charles, LPC was promoted to regional AP, operations, and safety director, Matthew Skalisky, Aaron

McAloon, Jesse Putnam, Brian Thumm, LPC, and Tony Caldwell

were promoted to regional investigations managers, and Jeff Bucher, LPC, Ronda Fields, Nathan Andreesen, Jeff Maksimowicz, MBA, LPQ, and Brad Byers, LPC were promoted to district AP, operations, and safety managers at Lowe’s. Todd D’Angelis was promoted

to manager of investigations and organized retail crime for Ontario & Atlantic, Martin Desroches was promoted to acting regional director AP and safety for Quebec, and Derek Coburn was promoted to business lead of systems and operations for AP and safety at Lowe’s Canada. Ana Zavala is now AP

manager at Louis Vuitton. Liz Cody was promoted to

executive director of LP at Luby’s Fuddruckers Restaurants.

Mark Hund was promoted to

regional training manager, and Oliver Niworowski was promoted to district manager of investigations at Macy’s. Jeremy Harrington is now

a district LP manager, and Emmanuel Suarez was promoted to LP training specialist at Marshalls Convenience Stores (Puerto Rico).

Jason Prince was promoted

to shrink analyst POS/ mobile at Meijer.

Kurt Glasman was promoted

to director of LP, safety, distribution centers, and artistree at Michael’s. Brian Franzyshen is now

a district LP manager at Michael Kors.

Hector Erazo, LPC, CFI was

Andrew Perry is now

senior director of retail operations at Peet’s Coffee.

Casey Jones is now a division

Matt Noriega-Saito is now

Brian Wildman CFI is now

Richard Mathers, CFI is

Candice Caldwell is now

Raymond Desrochers was

Mark Mellor, CFCI is now senior

a regional LP manager at SSP America.

now interim head of LP at Post Office Ltd. (UK).

a district AP manager at Stage Stores.

promoted to director of security and LP at Purolator.

LP manager at Staples. Michael Wolfson is now

Danny Whaley is now

director of AP at Regal.

director of LP at Surf Style Retail Management.

Michael Page was promoted

Anthony Gabino, CFE, CFI is

to area AP specialist at REI.

now a regional LP manager at Tailored Brands.

Dikaios Mihalitsis was

promoted to director of inventory at Rent The Runway. Kelly Scott was promoted to district leader, Edward King is

now a multidistrict AP leader, and Jake Harris, CFI is now an AP district leader at Rite Aid.

Lisa Hurst was promoted

to operations consultant, legal affairs, Jacob Oney was promoted to operations director, Matthew Arnsdorff was promoted to information security analyst, and Rizwan Mohammed was promoted to market investigator at Target.

and safety at UNFI. Axel Reyes was promoted

to AP district manager at Vallarta Supermarkets. Cheryl Blake has been

promoted to division president at Verisk Retail. Carisma Michel and Elena Mencos, CFI, CFE are now

regional AP managers at Victoria’s Secret.

Kyle Loftus is now director of

compliance investigations, and Kristen Bass was promoted to business analyst, AP solutions implementation at Walgreens. Deltrinae Hodges, CCEP, CFE,

was promoted to director, US ethics and compliance, Gina Callahan and Tyler Mason were promoted to regional AP directors, Travis Shipley was promoted to market health and wellness director, John Danahy was promoted to manager of antifraud field support, northeast region, Grady Hunt, CDS was promoted to regional safety manager, CDS at Walmart Distribution Center, and Tony Tomassi, CFI , LPC and Saundra Smith are now market AP managers at Walmart.

area LP manager, and Patrick Turner was promoted to area LP manager in training at Ross Stores.

Keith Johnson is now a

Martin Culshaw, LPC, EMT-B was promoted to

regional AP manager at TBC Corporation.

AP division manager at Wegmans Food Markets.

Randy Hamilton is now director

Chad McIntosh is now VP of

Jay Hawkins CFE, CFI, LPC is now a regional

innovative product solutions at WG Security Products.

LP manager at rue21.

of LP and compliance, and Jesse Young is now a regional LP manager at Tilly’s.

James C. Schroeder is now AP

Omar Reyes, CFI is now

AP and safety manager at Whole Foods Market.

Robert Saylor is now an

manager of investigations at Saks Fifth Avenue.

Stephen Stroud was promoted

to senior manager of safety and compliance at Sam’s Club.

senior investigations report analyst, and William Thwaits, CFI, CFE, ILO is now an ORC/ national task force investigator at TJX Companies. Amy Mahon was promoted

Toby Holliday is now a

Brian Peacock, CCIP was

security investigator at Ontario Cannabis Store.

LP specialist at Speedway.

program manager of trust and safety at PlayStation.

Randy Vickers, LPC is now

Greg Long is now corporate

promoted to AP analyst at Shoprite Supermarkets.

security supervisor at PetSmart.

to national field investigations manager at Nordstrom. a district LP manager Ocean State Job Lot.

William Bing II was

KC Watts is now corporate

market asset and profit protection leader at Sears Holdings Corporation.

Robyn Romyn was promoted

compliance, and Edwin Rodriguez, CFI is now director of LP southwestern division at Sherwin-Williams.

named senior manager, retail security at Oportun.

to LP investigations manager at TJX Canada.

Reco Caston, MBA, CFE, SA

was promoted to senior field LP manager/TPR at T-Mobile.

promoted to VP of sales, marketing, and innovation at Sennco Solutions, Inc.

Jake Welch, CFI was

promoted to LP project manager at Ulta Beauty.

Michael Hagenbush, CFI, CFE

was promoted to director of international LP and

Michael Volin was promoted

Tony Brunetto is now a regional

Tony Paixão, CFE, CFI

is now an instructor/ consultant with WicklanderZulawski & Associates. Gordon McLardy has been

named head of profit protection at Wilko (UK).

Scott Kamlet is now a regional

LP manager of supply chain at Williams-Sonoma. Christopher Magana is now

senior manager of risk management and AP at WKS Restaurant Group.

to senior director of risk

To stay up-to-date on the latest career moves as they happen, sign up for LP Insider, the magazine’s daily e-newsletter, or visit the Professional Development page on the magazine’s website, LossPreventionMedia.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.

LP MAGAZINE

MARCH–APRIL 2019

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1. What is your company’s primary business? (Check one only) Retail ❍ (A) Department store/mass merchandiser ❍ (B) Discount/wholesale club/outlet/

2. What is the primary focus of your job? (Check one only) Retail Loss Prevention/Security ❍ (10) Corporate/regional/district manager ❍ (11) Store LP manger/investigator/

NRF PROTECT........................................ 51 nrfprotect.com

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Protos Security........................................ 3 protossecurity.com

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siffron...................................................... 35 siffron.com

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Securitech.............................................. 49 securitech.com/trident

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Security Resources.............................. 75 securityresources.net

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Swing for Certification......................... 53 swingforcertification.org Sensormatic........................................... 76 sensormaticsolutions.com/infuzionlp ThinkLP................................................... 69 thinklp.com Wicklander-Zulawski........................... 39 w-z.com/thelink

LOSS PREVENTION MAGAZINE

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MARCH–APRIL 2019

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VENDOR SPONSORS

OUTSMART CRIME

VENDOR ADVISORY BOARD 3SI Security Systems Dan Reynolds Vice President, Retail Sales ADT/Protection 1 Rex Gillette Vice President of Sales ALTO Karl Langhorst, CPP, CFI Executive Vice President Appriss Retail Tom Rittman Vice President, Marketing

Axis Communications Hedgie Bartol, LPQ Business Development Manager, Retail

ControlTek Steve Sell Vice President, Global Sales & Marketing

CAP Index Stephen B. Longo Vice President, Strategic Initiatives

Detex Ken Kuehler General Manager

Checkpoint Stuart Rosenthal Vice President Sales

DTiQ Steven May President/CEO, LPI (retired)

ClickIt Inc. Jim Paul Director of Sales

InstaKey Security Systems Cita Doyle, LPQ Director of Sales & Marketing

LP MAGAZINE

MARCH–APRIL 2019

Protos Security Kris Vece, LPQ Vice President of Client Relations Security Resources Britney Ryan Director of Client Relations Sensormatic Solutions Joan Sparks Director of Marketing, Vertical Leader for Americas Siffron Robb Northrup Director of Marketing Communications & Support

PARTING WORDS

Potpourri: A Miscellaneous Collection of Thoughts Daydreaming. You have to love daydreaming. It doesn’t require hard work, commitment, or sacrifice. You just lean back, close your eyes, and you can become whatever you want. However, we all know that when reality sets in, you realize it is not that easy. A lot of work goes into getting to the next level. Most of us know that the grass is not always greener. Daydreaming may help you visualize your goal, but it takes a great deal of hard work and continuous learning to get there. I was with a bunch of daydreamers this week. I attended a Learning Day with the Loss Prevention Foundation (LPF) with over 150 practitioners, vendors, LPF board members, and students of the University of Indianapolis (the host school). If you want a shot in the arm, go to a Learning Day or career day or speak to a criminal justice class at any school. It will make your day. Trying Harder. That is the answer to a question by a young person on how to get ahead. If you want to succeed in loss prevention, you need to outwork most others. This applies to your self-education as much as your work product, thus the values of certifications like LPC, LPQ, and CFI. You cannot view what you do as a job, but as what you want to do more than anything else. If you see it as your calling, then it is not a work sacrifice but a positive experience that makes you feel good. Associating with the Right People. It is true that your whole career will be shaped your surroundings, by the character of the people with whom you come in contact every day. But how do you know you are with the “right people?” I use a very simple rule—they make me feel good, positive, up beat, and I have no fear of what they might do in our relationship. I trust them. Ask yourself: do you believe that if you give of yourself with no expectation of return, the more will come back to you from the most unexpected sources? Do you seek to be trusted, admired, and respected as a person and a professional? Do you invest the time and emotion necessary to maintain a high-quality home life? Do you treat others with kindness, courtesy, and compassion? Do you really? If so, then you are the right person trying to associate with the right people. Things Are Seldom as They Seem. Did you ever hear or see a professional wrestler named Dusty Rhodes, known

MARCH–APRIL 2019

Jim Lee, LPC Executive Editor

as “The American Dream?” You might think he was a low life, uneducated thug who made a living in a phony sport. Well, there was nothing phony about The Dream. He was a bright and caring person who regarded his profession as entertainment. He spoke on several occasions to groups of LP professionals. He offered the groups straight talk and a message that all of us in LP can use. Dusty would say, “First you must be appreciative, be sensitive, and go out of your way to understand the diversity of others. The real value of diversity is in the collection of diverse ideas and applying them to the team strategy. Each little idea, diverse thought, and personal contribution by others makes for a committed team of doers and success stories.” Second, Dusty spoke of managing others and how important it is to reach down to the lowest level in your organization to get to know your people. Talk with them about personal things that show them you care about them as a person. Tell them, “Happy Birthday.” Ask, “How’s your family?” or “Is there anything I can do to help?” Lastly, Dusty spoke of family. Early in his career he admitted that he had not done a good job of being a father and supporting his family. Being so selfishly driven in your career can cause you to miss the importance of balancing the personal and business aspects of life. My, my. A professional wrestler said these things, and they make sense. Things are seldom as they seem. Dusty makes me think that all of us can be “The American Dream.” Fear Is Natural. Regardless of how tough or good you are, fear is natural. If you are not feeling a little fear, you are probably playing it too safe, and that should be enough right there to scare you. When you are feeling depressed or full of outright fear of failure, step back and think of your past successes. I believe we all must adhere to a core belief to guide us both professionally and personally. Audacity, audacity, always audacity. You can never be fearful to act promptly and decisively on reasoned, calculated risks.

LOSSPREVENTIONMEDIA.COM

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The revolutionary Sensormatic InFuzion tag speeds POS activity with up to a 54% decrease in detach time*. This patented, one-piece, defeat-resistant tag, features an integrated pin and speeds POS activity with quick tag removal. A simple button push makes attaching just as easy. The integrated pin design helps eliminate the cost of replacing lost or broken pins, and there is no need to sort or store separate pins and tags. In addition, the new, thinner pin makes InFuzion tags safer for fine garments, such as baby clothes and delicate women’s apparel. It’s even available in AM or RF technology, so it’s compatible with many different loss prevention systems. Visit SensormaticSolutions.com/InfuzionLP for more information. INFUZ IO N MAG NETIC TAG

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*Tag application and removal times are based on a usability study conducted by a third party (US ergo, 2018) using Sensormatic 2-piece tags and Sensormatic InFuzion series tags. Actual labor and cost savings may vary. © 2019 Johnson Controls. All Rights Reserved. Tyco Retail Solutions, Sensormatic, TrueVue and ShopperTrak are marks and/or registered trademarks. Unauthorized use is strictly prohibited. All other marks are the property of their respective owners.

March - April 2019

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