Letter From Paul

Volume 3, Issue 1 - 2/24/2009

Our New Reality
The last six months seem like an episode from The Twilight Zone. So much has happened in such a quick period of time and it adds complexities to our personal lives, our profession, our country and the entire retail sector. I have had far too many conversations with good LP people who are now unemployed through no fault of their own.

It is clear to me that the increased complexity that has been thrust upon us is here to stay for the forseeable future. I have not heard any news of a retail bailout or, more specifically, a loss prevention bailout on the horizon, so we must take responsibility for this complexity ourselves.

Part of our new reality seems to involve doing the “best with less.” It is clear that our risks are rising as a result of this economy, and our staff and budgets are reducing. We need to review our game plan and formulate a plan to do the “best with less.” This plan will include distorting the focus, expenses and energy we give to key areas and maximizing our current investments. I would recommend reviewing your energy and expenses to ensure that every person on the payroll is engaged at a higher level than ever before in supporting the loss prevention program. The requirement for such a high level of engagement suggests to me that we need to enhance our training and awareness programs and ensure they are driving action and helping us to fill the gaps created through downsizing and expense reductions. If you do not have an awareness program that is exciting and educational with rigor built into the process then it is time to distort your dollars and upgrade your current program. The same old program will not cut it in our new reality.

I also recommend that we conduct a full analysis of the technology that we currently deploy and ensure that we are absolutely maximizing it and gaining our full benefits. I am a fan of inviting our solution providers to participate in a review like this and be part of the driving force, ensuring we gain every benefit from the technology they provide us. Three technologies that come to mind and are often underutilized are electronic article surveillance, exception reporting and refund management.

Now is also a time to review our operating practices to determine if a new procedure could drive improved controls.

Finally, during this time, we need to remember our responsibilities to communicate the complexities and risk that are real and growing so our senior leaders are not surprised when the risks manifest themselves in financial results. In a few conversations with LP leaders, I have suggested a monthly report card to roll up the aggregated data and potential risks in a format that ensures our senior leaders understand the current risks and our strategies to mitigate them.

In our recent crime trend survey, it was clear that crimes of all types are increasing and appear to be a result of our distressed economy. If we do not study and adjust our approach to these new sets of challenges, then we will not successfully support our companies by delivering positive results.

If leadership were easy, anyone could do it. It takes a special person to be able to lead during these tough times. The loss prevention leaders today have proven over the last decade that they are ready, willing and able to step up to the challenges presented and design their programs in a way that ensures continued results. I have no doubt that we will embrace our new reality of doing the “best with less” and lead our companies through these turbulent times.

Paul Jones
Vice President, Asset Protection