SECURITY AS A PROFIT CENTER

7 Ways Security Management Can Put Money Into Your Bottom Line

By Dale Yeager

Legendary management sage Peter Drucker once said, “Management is doing things right; leadership is doing the right things.”

In the operation of any business, management decisions have a direct effect on profitability. In 1996, the SERAPH executive team design an innovative approach to security management. Using the organizational concepts of Peter Drucker and the human behavior models of forensic psychology, we designed a new form of security management.

Twenty-seven years later, our Business Shield program has consistently increased profitability in our client’s organizations.

1.    Liability Reduction = Insurance Cost Decrease – With improvements in the prevention of internal theft, financial misconduct, accidents and other crimes, companies can negotiate a reduction in their liability insurance premiums.

2.    Reduction of Legal Costs – Proper security management also reduces the outlay of funds for legal representation and costly lawsuits.

3.    Retention of Good Employees – Good employees and managers have options. They will not stay in a dysfunctional company. Conflicts, theft, and other issues create chaos. The loss of these valuable people will hurt the bottom line of any business.

4.    Prevention of Public Scandal = Retention of Customers – Security related issues cause scandal. The end result is that customers will not patronize and degraded facility.

5.    Improved Productivity = Increased Profit – “A well-managed company is a safe company.” Security management improves overall management. Management has a direct effect on costs.

6.    Reduction Of Employee Turnover = Cost Savings – The hiring, discipline and firing of an employee costs money. For business, the outlay in unrecoverable funds is on averaging $10,000 to $15,000. As Peter Drucker once said, “You don’t hire good employees; you hire good people and train them to be good employees”.

7.    Reduction of Worker Compensation Claims – Mitigate bad and illegal behaviors and reduce workers comp claims.