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New Business Development, By Richard Garrity- 2013

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New Business Development, By Richard Garrity- 2013

  1. 1. A comprehensive guide to New Business Development Methods and strategies to winning the customer for life By, Richard Garrity
  2. 2. This presentation is proprietary information and can’t be copied or reproduced in any fashion without consent from the publisher owner, Richard Garrity
  3. 3. This comprehensive guide to New Business Development has been developed and geared toward the contract corporate security bidding process as well as methods & strategies to winning the customer for life and insuring long term client retention.
  4. 4. 4 Business Quote of the day:Business Quote of the day:
  5. 5. Business Quote of the day:Business Quote of the day: ““A business absolutelyA business absolutely devoteddevoted to supreme service and superiorto supreme service and superior customer service will only havecustomer service will only have one worry aboutone worry about profits.profits. TheyThey will be embarrassingly large”…will be embarrassingly large”… Henry FordHenry Ford
  6. 6. 6 A growing demand for Service:A growing demand for Service:
  7. 7. A growing demand for ServiceA growing demand for Service Private securityPrivate security officers have outnumberedofficers have outnumbered police officers since thepolice officers since the 1980’s,1980’s, predating thepredating the heightened concern about security brought onheightened concern about security brought on by the September 11, 2001, attacks. The moreby the September 11, 2001, attacks. The more than 1 million contract security officers, andthan 1 million contract security officers, and an equal number of security staff estimated toan equal number of security staff estimated to work directly for U.S. corporations, is muchwork directly for U.S. corporations, is much greater than the nearly 700,000 sworn lawgreater than the nearly 700,000 sworn law enforcement officers in the United States.enforcement officers in the United States.
  8. 8. A growing demand for ServiceA growing demand for Service The trend and increased demand for privateThe trend and increased demand for private protection officers began in the mid to lateprotection officers began in the mid to late 1970’s1970’s and grew exponentially well into theand grew exponentially well into the 1980’s.1980’s. This growth in asset protection was inThis growth in asset protection was in large part due to the explosion of mid & highlarge part due to the explosion of mid & high rise office towers across the nation thatrise office towers across the nation that necessitated the need for more corporatenecessitated the need for more corporate security personnel. Obviously aftersecurity personnel. Obviously after 9-11,9-11, thethe demand for security services sky rocketed.demand for security services sky rocketed.
  9. 9. A growing demand for ServiceA growing demand for Service FromFrom 19801980 toto 20102010 for both totalfor both total employment and employment withinemployment and employment within contract firms, there was an increasecontract firms, there was an increase of aboutof about 80%80% in the number ofin the number of employees. However, most of thisemployees. However, most of this growth occurred during thegrowth occurred during the 1980s1980s andand 1990s,1990s, with limited to no growthwith limited to no growth over the past 5-10 years.over the past 5-10 years.
  10. 10. A growing demand for ServiceA growing demand for Service Moreover, sinceMoreover, since 19971997 aboutabout 60%60% ofof private security officers have beenprivate security officers have been employed by a contract security firm.employed by a contract security firm. This implies that the remainingThis implies that the remaining 40%40% are proprietary security officers. Ofare proprietary security officers. Of this remaining 40%, a large portionthis remaining 40%, a large portion of that is proprietary retail.of that is proprietary retail.
  11. 11. Size, scope, and status of the U.S. Contract Security Industry
  12. 12. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry TheThe contract security industrycontract security industry has beenhas been striving for many years to elevate howstriving for many years to elevate how it’sit’s perceived in theperceived in the public opinionpublic opinion marketplace and it has made greatmarketplace and it has made great progress in this endeavor, in spite ofprogress in this endeavor, in spite of Hollywood making movies like “PaulHollywood making movies like “Paul Blart: Mall Cop” and “Night at theBlart: Mall Cop” and “Night at the Museum” that painted unflattering,Museum” that painted unflattering, demeaning pictures of security officers.demeaning pictures of security officers.
  13. 13. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry The contract security officer of todayThe contract security officer of today tends to betends to be better educated,better educated, betterbetter trained,trained, and in several areas, moreand in several areas, more qualified to handle the security functionsqualified to handle the security functions demanded by the company’s customers.demanded by the company’s customers. This didn’t happen overnight – it’s theThis didn’t happen overnight – it’s the resultresult of efforts on the part of the ownersof efforts on the part of the owners that want their company to be a trulythat want their company to be a truly professional security organization.professional security organization.
  14. 14. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry National security organizations such asNational security organizations such as NASCO andNASCO and ASIS InternationalASIS International as well as theas well as the many state agencies and organizations aremany state agencies and organizations are working together to create legislation andworking together to create legislation and best practices procedures for the industry.best practices procedures for the industry. The general public also demanded thisThe general public also demanded this change, but there are still seriouschange, but there are still serious improvements that need to be, and areimprovements that need to be, and are being, made in the security industry.being, made in the security industry.
  15. 15. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry There are approximatelyThere are approximately 6,0006,000 individualindividual companies that employ more than 100companies that employ more than 100 contract security personnel and anothercontract security personnel and another approximatelyapproximately 20002000 companies thatcompanies that employ less than 100 contract securityemploy less than 100 contract security personnel in the United States. Thispersonnel in the United States. This according toaccording to Robert H. Perry & AssociatesRobert H. Perry & Associates who has been compiling data on contractwho has been compiling data on contract security agencies for almost 25 years.security agencies for almost 25 years.
  16. 16. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry TheThe Freedonia GroupFreedonia Group- in October- in October of 2008, indicates that the U.S.of 2008, indicates that the U.S. Contract Security Guard marketContract Security Guard market waswas $22.150 Billion$22.150 Billion in 2007 andin 2007 and was expected to grow towas expected to grow to $28.9$28.9 BillionBillion by 2013 – aby 2013 – a 5.5%5.5% annualannual growth rate.growth rate.
  17. 17. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry This same report puts theThis same report puts the worldwide security guard/worldwide security guard/ officer market in 2008 asofficer market in 2008 as approximatelyapproximately $38-40 Billion,$38-40 Billion, which means the US marketwhich means the US market alone is overalone is over halfhalf the size ofthe size of the world market.the world market.
  18. 18. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry Most industry experts are saying thatMost industry experts are saying that today’s contract security market, to includetoday’s contract security market, to include only traditional standing security officeronly traditional standing security officer services, is in theservices, is in the $20 Billion$20 Billion range and isrange and is growing aroundgrowing around 5% per year.5% per year. Much of thisMuch of this growth is coming from an increase in billinggrowth is coming from an increase in billing rates to companies with existing securityrates to companies with existing security services (services (unionizationunionization-- cost of livingcost of living) and) and the sharp rise in new commercialthe sharp rise in new commercial development, both urban and suburban.development, both urban and suburban.
  19. 19. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry Companies looking to cut costs areCompanies looking to cut costs are increasinglyincreasingly eliminatingeliminating theirtheir in-in- househouse security program and usingsecurity program and using contract securitycontract security companies.companies. Typically, in-house securityTypically, in-house security employees will have a higher payemployees will have a higher pay scale due to long term tenure withscale due to long term tenure with the company and expensivethe company and expensive retirement benefits.retirement benefits.
  20. 20. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry ByBy contracting outcontracting out the securitythe security function by these in-house proprietaryfunction by these in-house proprietary programs, companies are getting betterprograms, companies are getting better trained security personnel (and accountable)trained security personnel (and accountable) in many cases, for less total outlay. Althoughin many cases, for less total outlay. Although the company is probably paying more for thethe company is probably paying more for the contracted officer in terms ofcontracted officer in terms of hourly billing,hourly billing, they arethey are devoiddevoid of paying payroll taxes,of paying payroll taxes, healthcare, retirement, and other incentives.healthcare, retirement, and other incentives. Not to mention the burden of liability is nowNot to mention the burden of liability is now exponentially diminished.exponentially diminished.
  21. 21. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry A prime examples of this trend fromA prime examples of this trend from proprietary to contract service was theproprietary to contract service was the massive transition to contract securitymassive transition to contract security services by defense systems giantservices by defense systems giant RaytheonRaytheon Network Centric Systems in 2011, the currentNetwork Centric Systems in 2011, the current transition to contract security operations bytransition to contract security operations by Fidelity InvestmentsFidelity Investments in the Boston region,in the Boston region, and the transfer of manyand the transfer of many federal prisonfederal prison correction officer duties in the 1980’s.correction officer duties in the 1980’s.
  22. 22. Size of the U.S. Contract Security IndustrySize of the U.S. Contract Security Industry It is believed that the in-house securityIt is believed that the in-house security market is presently in themarket is presently in the $16 Billion$16 Billion range,range, with a large chunk of this being retail. As morewith a large chunk of this being retail. As more companies presently utilizing in-house securitycompanies presently utilizing in-house security programs are faced with rising employmentprograms are faced with rising employment taxes and the challenges of thetaxes and the challenges of the AffordableAffordable Care Act,Care Act, it’s expected that the moveit’s expected that the move from in-house to contract security mayfrom in-house to contract security may dramatically increase. That is a huge newdramatically increase. That is a huge new business bonanza waiting to bebusiness bonanza waiting to be tapped!tapped!
  23. 23. Total Number of Private Security Officers andTotal Number of Private Security Officers and Contract Security Officers in the United StatesContract Security Officers in the United States by Data Source,by Data Source, 1980–20091980–2009
  24. 24. Defining new business development:
  25. 25. Purpose and definition: Business development plans provide guidance to organizations in purpose, including mission, vision and values, as well as product or service, target audience and the strategies they will use to achieve long term success.
  26. 26. Defining new business development:
  27. 27. Pillars of Customer Service: If you can prevent 5% of your customers from leaving, you can increase your bottom line profit by 25-95%. This research by Harvard Business Review, is indisputable-
  28. 28. Pillars of Customer Service:  The average American business loses 15% of it’s customer base each year.  68% of customers who stop buying from one business and go to another will do so due to poor, inferior, or indifferent service.  82% will go somewhere else because of a specific customer service issue. - U.S. News & World Report
  29. 29. Develop a Customer Service Mission Statement:
  30. 30. Pillars of Customer Service:  Clearly convey your company’s specific objectives as they relate to customer service.  Your mission statement in theory, should be dedicated to building an organizational perspective of what WOWING the customer is truly about.  Communicate your mission statement with customers and employees. All to keep the mission alive as well as communicate it’s successes.
  31. 31. Defining new business development:
  32. 32. Goals, Objectives, Strategies, Tactics
  33. 33. Goals, Objectives, Strategies, Tactics Goals are high level and indicate what the business development plan is designed to accomplish in a broad, general sense. Objectives are more specific and include clear, measurable outcomes and timelines.
  34. 34. Goals, Objectives, Strategies, Tactics Strategies indicate how the company will accomplish its objectives by leveraging its strengths and opportunities, and overcoming its weaknesses and threats. Tactics are operational and indicate exactly what the company will do to achieve its strategies.
  35. 35. Purpose and definition: The purpose of this presentation is to give a general but detailed plan on how to properly present proposal bids to new business clients within the security industry and effective measures on long term client retention in that said industry. More often than not, securing new business contracts can be quite the challenge as sometimes the only opportunities for new business are when a company has put their services out to bid.
  36. 36. Purpose and definition: A comprehensive analysis of proper liability insurance selection shall also be reviewed. This particular aspect of this presentation is vital in your new services contract as improper insurance limits and claims for damages, especially after the contract or policy has expired could be financially devastating to the long term business viability of the company.
  37. 37. Purpose and definition: This power point presentation will examine many aspects of the new business security services proposal, but can’t possibly outline all of them. It has been created as a guide to new business development managers, branch mgt., and even to some degree, security account managers and or directors. It is not meant to directly alter, replace, or revise any segment of your new business development programs, but merely to give a “fresh perspective” of various sections of the process that could contribute in the desired outcome.
  38. 38. The new business process: When a security services company does have the opportunity to bid on new service contracts, there are usually two critical & primary factors that determine weather they win the bidding process. One crucial factor they control and one they do not control. Generally, the awarding of new business is based on the bid itself, the lowest bid. That is the nature of the process and it can’t be controlled or foreseen.
  39. 39. The new business process: The second factor is the presentation or the written proposal itself. That you control. If you have found yourself in front of a potential new client and are giving a presentation of security services and products that you want that client to purchase, what makes you stand out from the rest of your competitors? Why should they choose you, over the others?
  40. 40. The new business process: “Why should we choose you”. Clearly define in your proposal and or presentation why you’re the company to be chosen over the others? What makes you the best selection?
  41. 41. The new business process: The five most important principles to security industry business clients that contract guard services are the following:  Cost of doing business  Quality of personnel  Reducing costly liability  Reducing staff turnover  Safety Prevention That for the most part is their primary concerns when contracting services.
  42. 42. Liability Insurance Guidance:
  43. 43. For the most part, in this industry, the productFor the most part, in this industry, the product we are selling to our clients, are realwe are selling to our clients, are real people.people. That in itself, can be quite costly toThat in itself, can be quite costly to insure…insure…
  44. 44. Proper insurance premiums and coverageProper insurance premiums and coverage selections are vital company survivalselections are vital company survival choices.choices.
  45. 45. Liability Insurance Guidance Security service providers can be sued long after the work or contract is completed, and can be found liable even though they may no longer be providing services to that client, even if they sold their business or retired. If a covered incident occurs during the time period when your insurance is in effect, do you want to be sure that it will be covered regardless of when the claim is filed?
  46. 46. Liability Insurance Guidance If you purchase the right kind of liability policy, you will have the comfort of knowing that your risk will be covered long after your policy expires.
  47. 47. Liability Insurance Guidance Although all security officers perform many of the same duties & procedures, their specific duties vary with whether the guard works in a ‘static’ security position or on a mobile patrol. Officers assigned to static security positions usually serve the client at one location for a specified length of time. These officers must become closely acquainted with the property and people associated with it and must often monitor alarms and closed-circuit TV cameras.
  48. 48. Liability Insurance Guidance In contrast, guards or security officers assigned to mobile patrol duty drive or walk from location to location and conduct security checks within an assigned geographical zone. They may, in extreme circumstances, detain or arrest criminal violators, answer service calls concerning criminal activity, solve site problems, and issue traffic violation warnings.
  49. 49. Liability Insurance Guidance The difference between static posts and mobile patrols can have a substantial pricing difference in your liability insurance premiums.
  50. 50. Liability Insurance Guidance Private security is essential to ensuring the security and safety of persons and property, as well as intellectual property and sensitive corporate information. Private security officers are responsible for protecting many of the nation‘s institutions and critical infrastructure systems. Security personnel are frequently faced with dangerous and potentially deadly situations as well as confrontations with no firearm.
  51. 51. Liability Insurance Guidance Security officers work in many different diverse and challenging environments. Assignments range from: Office buildings, retail & mall shopping centers, museums, factories, laboratories, government buildings, data processing centers, universities,
  52. 52. Liability Insurance Guidance sports stadiums crowd control, residential communities, air, sea, and rail terminals, banks, and hospitals to name just a few. Security personnel have also been utilized by local municipalities like Seattle, San Diego, and Miami Metro Dade County to conduct armed “policing” duties on their light rail commuter transportation networks.
  53. 53. Occurrence Forms vs. Claims-Made Policies
  54. 54. Occurrence Forms vs. Claims-Made Policies First, make sure your policy is written on Occurrence Forms and not a Claims- Made policy. This is critical. Business insurance policies are often offered in two forms. One is the Claims- Made policy and the other is the Occurrence Forms policy. Before agreeing to purchase business insurance, you should understand the differences between the two types of policies.
  55. 55. Occurrence Forms vs. Claims-Made Policies Claims-Made policies provide coverage for claims made in the period the policy is in force. Claims-Made policies provide coverage only so long as the insured continues to pay premiums for the initial policy and any subsequent renewals. Once premiums stop the coverage stops for any claims not yet known or made to the insurance company during the coverage period.
  56. 56. Occurrence Forms vs. Claims-Made Policies What this means to the business owner is that there is a risk of an unknown or unreported claim being made long after the contract period is over, and it not being covered because the claim was made outside of the coverage period.
  57. 57. Occurrence Forms vs. Claims-Made Policies To continue coverage after the coverage period has ceased, the business owner must purchase a "tail". Tail coverage (or an Extended Reporting Endorsement) is an endorsement that extends the claims reporting period after the contract service has ended. Tail coverage must be purchased to continue any risk protection afforded under the policy. Tail coverage can be expensive and can prove to be an unaffordable expense when winding down.
  58. 58. Occurrence Forms vs. Claims-Made Policies An Occurrence policy protects you against incidents that occur while the policy is in force, regardless of when the claim is reported. • Here is an example: Let's say that you purchased an Occurrence policy in 2000, and discontinued the policy in 2007. A Claimant you were following (on surveillance) in 2005 files an Invasion of Privacy claim against you now. Because the claim occurred while the policy was in force, you're able to report the claim now for that 2005 incident.
  59. 59. Occurrence Forms vs. Claims-Made Policies An Occurrence policy automatically protects you both now and in the future for any incidents that occurred while you were a policyholder. This means that you can report claims: • During the current policy year, and • After your policy has ended.
  60. 60. Occurrence Forms vs. Claims-Made Policies The premium cost: Claims-Made policies are much cheaper than Occurrence policies. The premium difference can be as much as 35- 50%. The coverage amount: Under an Occurrence policy, coverage is the amount of coverage under the policy in the year of the occurrence. This means that, while you have coverage, it will probably be lower than your current limits.
  61. 61. Occurrence Forms vs. Claims-Made Policies Coverage limits carried in the past are usually lower than current coverage limits because they do not take into account inflation, claims costs, and the growth of your business. A Claims-Made insurance policy covers you at the level of insurance you have when the claim is made.
  62. 62. Occurrence Forms vs. Claims-Made Policies An Individual Policy covers only one person or one company (and its employees). The person or company purchases the policy themselves from an insurance broker. With a Master Policy, a number of individuals or employees with at least one shared characteristic band together and collectively purchase a single policy. To obtain the insurance, you may be required to belong to an association and pay a fee.
  63. 63. Occurrence Forms vs. Claims-Made Policies The association retains the Master Insurance Policy, which covers the people who belong to the association. The Master Policy General Liability Insurance serves as the model for the policy covering each member of the association. Generally, the insurance company charges fees based on the demographic composition of the group, rather than each individual's characteristics.
  64. 64. Master Policies?
  65. 65. Master policies: In some cases the cost of insurance under a Master Policy plan is lower than for individual policies due to lower acquisition and administrative expenses. However, certain conditions can cause nasty surprises. Drawbacks of Master Policies:
  66. 66. Master policies: • The association can cancel the Master Policy at any renewal time, leaving the group association members uninsured. • Should a large claim be submitted to the association holding the Master Policy, the insurance company could cancel the Master Policy, leaving the members without insurance coverage.
  67. 67. Master policies: • Although some Master policies do offer per- member limits endorsements, other Master policies have a cap on the liability limits they will pay out on claims for the entire association. In some cases we have seen the total liability capped at as little as $5,000,000 for the association and its members. Just think, if five members each file a claim for $1,000,000, then the entire association would have no more coverage.
  68. 68. Commercial General Liability • The Commercial General Liability (CGL) policy is a modular policy that can simultaneously provide several types of coverage: bodily injury and property damage liability; personal injury and advertising injury liability; medical payments; and (as applicable) products / completed operations coverage. Coverage is provided for most of the premises, products, completed operations, personal injury, advertising, and contractual liability exposures of an organization. The CGL offers very broad coverage that can be narrowed by endorsement when necessary.
  69. 69. Errors and Omissions • Errors and Omissions (E&O) insurance provides coverage for damages arising out of the insured's negligence, mistakes, or failure to take appropriate action in the performance of business or professional duties. The coverage frequently carries a high deductible ($1,000 or more) and usually does not require the insured's consent to settle claims (unlike professional liability insurance - a term sometimes used interchangeably with errors and omissions).
  70. 70. Errors and Omissions • There are a wide variety of errors and omissions coverage forms including those designed specifically for Private investigators, Security providers and Low Profile Executive Protection.
  71. 71. Excess Liability Excess Liability insurance coverage is written in "excess" of primary insurance. It is intended to increase the total limits of liability, providing a form of catastrophe coverage. Excess liability coverage does not respond to a loss until the amount of the loss exhausts or exceeds the policy limits of any existing primary policies.
  72. 72. Excess Liability For example, consider if a primary liability policy with a limit of $1 million is written, and excess insurance is written for $3 million excess of the primary. The primary policy would pay all losses within $1 million and the excess policy would pay losses in excess of the primary coverage, up to the excess policy limit of $3 million.
  73. 73. Premises Liability Claims:
  74. 74. Premises Liability Claims: A premises liability claim involves an injury to a person who is on the property of another. Premises claims include slip & falls, random injuries, criminal attacks, false arrest & unlawful detention, and other similar actions. A property owner is not liable simply by virtue of the incident occurring on it’s premises. When is there liability for the claimant’s injuries?
  75. 75. Premises Liability Claims: Liability is determined by the laws and procedures of the state in which the injury occurred. In some states, the court will focus on the status of the injured visitor in determining liability. In other states, the focus will be on the condition of the property and the activities of both the owner and visitor. However if injuries were sustained due to say, the person was heavily intoxicated or was trespassing, then their claim for damages is very weak at best.
  76. 76. Premises Liability Claims: The security services provider would be very limited in any such claims for premise liability damages. The building owner and or property mgt. company has the burden of liability in these legal matters. One of the few exceptions to this would be the false arrest or unlawful detention of an individual who clearly should not have been held against their own free will. Equally, the building owners would not have premise liability for such incidents & actions.
  77. 77. “Safety is our priority”
  78. 78. The new business process: Potential new business clients and current clients “love” to hear about safety prevention programs. Of all the topics you can address during the new business proposal, safety is one of the best areas to focus on during the bidding process. All clients, potential and current, worry about accidents at their business because of the costly liability and loss of productivity associated with workplace accidents. Your commitment to creating the safest environment possible must be stressed in the written proposal and or during the presentation.
  79. 79. Safety Prevention sells clients
  80. 80. “Field Site Inspections”
  81. 81. “Field Site Inspections” Some security services contracts in order to secure new business will offer what we call “value adds”. These are little perks to the new or existing clients that demonstrate your appreciation of the business relationship. Value adds can range from the occasional lunch treat to no charge site safety assessments. An example would be like a complete CCTV camera audit of the facility to determine if additional units should be installed in vital areas lacking adequate monitoring.
  82. 82. “Field Site Inspections” Another important “value add” is the off- hours “field inspection”. In many cases this is a big selling point to potential new business clients. Some contracts even require field inspections of the site and security personnel. If you introduce the notion of field inspections to your business plan, try at all costs to not write in stone definitive daily or weekly inspections.
  83. 83. “Field Site Inspections” The reason being, sometimes it is impossible to stick by a firm schedule. This could be due to the field officer responding to other site needs or emergencies, call outs, and other unforeseen factors that may prevent them from abiding by a set schedule of any one particular site inspection. So in spirit, if financially feasible to your district operation, always insert some type of language that field inspections will be made, perhaps on a weekly basis.
  84. 84. The new business process: When making an in-person presentation to a potential new client or in written proposal form, do not make the following claim: “We only recruit and hire the best people”.
  85. 85. The new business process: That is a fatal mistake and any seasoned potential client is going to know the difference. The bottom line is, no matter how great your company is, no matter how well managed it is, you simply can’t control who walks in your front door to fill out an application. The people walking thru your front door are the same ones walking thru your competitor’s front door. It is a fact of the industry we work in.
  86. 86. The new business process: Because we the security providers are at the mercy of the client billing rate, it is a challenge of epic proportions to say the least to find the best and most qualified personnel for the clients we serve. But it is not impossible, time consuming maybe, but not impossible. A security organization totally committed to quality, service, and client satisfaction will develop methods to cultivate the best personnel required.
  87. 87. The new business process: When making your sales pitch to a new potential client, certainly stress that your committed to recruiting only the best personnel possible, but do not make the assertion that you unequivocally only hire the best qualified people because that will come back someday to haunt you. Like I stated previously, they know the difference.
  88. 88. The new business process: Some of the most effective sales strategy and new business action plan you can deploy when presenting your proposal for security services are several key factors that property managers and new business clients want to be sold on. They are:
  89. 89. The new business process: 1. The competent mgt. personnel who will be managing front line officers. 2. The initial training & safety program 3. Direct supervision, development, and site documentation verification. 4. Reducing personnel turnover 5. Enhanced training- refresher training.
  90. 90. What is outlined in your proposal to reduce turnover rates?
  91. 91. What is the general strategy to improve service over the existing one?
  92. 92. The new business process: Those are some of the key components that sells to a new client. New & existing clients are rather simple in their thinking, most of them want inexpensive service rates but superior performance from personnel assigned to their building facilities.
  93. 93. It can be done. It is all about- training+ supervision+ development. You can’t fail if you stick to that formula.
  94. 94. “Devise a successful formula that works and stick by it”
  95. 95. “Training is knowledge”
  96. 96. “Training defines your image”
  97. 97. The new business process: Yes. Training is knowledge and what we teach them is what leaves with them when they are ready to for their new site assignment.
  98. 98. “The uniform defines your company”
  99. 99. “The uniform is your company” When providing security services for your new or current client base, uniforms is an integral part of the new business equation. For many new client property managers, the uniform is almost as important as the person filling that uniform.
  100. 100. “The uniform is your company” The uniform is the person and the person is the uniform. They must compliment each other. Clients are not only hiring real people, they are hiring uniforms as well.
  101. 101. “The uniform is your company” Well dressed security personnel can make a client’s building or facility truly stand out. Weather it be the hard police style uniform or the corporate security style, the uniform makes a statement and speaks volumes about the officer filling it and the company that he or she represents, and that is key, “represents”. That uniform represents the client and the contract company.
  102. 102. “The uniform is your company” When making your presentation bid and your in front of the client, bring perhaps an assistant who will be dressed in one of your uniform styles selected for that site, or simply bring a brand new example of the uniform so the potential client can have an idea of just how sharp they will look on their site. If your only submitting a written bid, make sure color illustrations of your uniform are part of the proposal.
  103. 103. “The uniform is your company”
  104. 104. The “RFP”- Request for Proposal
  105. 105. Prove you’re the only choice
  106. 106. The “RFP”- Request for Proposal The RFP is a type of bidding solicitation in which a company or organization announces that funding is available for a particular project or contract service, and companies can place bids for the business service. The Request For Proposal outlines the bidding process and contract terms, and provides guidance on how the bid should be formatted and presented. A RFP is typically open to a wide range of bidders, creating open competition between companies looking for work.
  107. 107. The “RFP”- Request for Proposal The contract proposal should contain, at a minimum, the following key points: 1. The contract cover page 2. The introduction page 3. The company history 4. The executive summary- objective The objective of the security coverage needs and additional staffing as need.
  108. 108. The “RFP”- Request for Proposal The Opportunity: Contracting with our company to provide security services will meet the following goals of the new client’s facility: 1. State a pivotal goal 2. State a pivotal goal 3. State a pivotal goal 4. State a pivotal goal
  109. 109. The “RFP”- Request for Proposal The Solution: Our security services company is one of the leading suppliers of security services within our region. We have a well established training program for security officers that can be customized to meet the needs of your facility. Our company consistently maintains a large pool of qualified security officers, and so we possess the capability of scheduling standard base building security personnel as needed, and to handle a variety of unforeseen situations and events.
  110. 110. The “RFP”- Request for Proposal Recommendation #1: The new client management should meet with the security services provider to discuss site needs, direct solutions, and address any special personnel requirements the client management may have.
  111. 111. The “RFP”- Request for Proposal Recommendation #2: Client management should finalize a one to three year contract with the security services provider, with options to renew for future years.
  112. 112. The “RFP”- Request for Proposal Recommendation #3: After signing the contract, the security services provider will immediately review available candidates, develop training materials as needed, train, and place guards in new assignments at the client site.
  113. 113. The “RFP”- Request for Proposal Recommendation #4: Side Note: There should be clear contract language stating the time frame when new security personnel should be placed. Generally, 30 days notice to comply with new personnel to be deployed at the client site is the industry standard. However, sometimes a new client has extreme needs to have immediate coverage, say in 2 weeks.
  114. 114. Cost Summary: This section will detail billing rates for all security personnel and special rates: 1. Billing rate- standard security officer 2. Billable O/T rate- security officer 3. Billing rate- shift supervisor 4. Billable O/T rate- shift supervisor 5. Billing rate- site supervisor or manager 6. Billing rate- agreeable holiday schedule based on time and a half calculations
  115. 115. Cost Summary: Standard Disclaimer: The prices shown above are valid for one year (or three) from the time of contract agreement. New costs will be determined each year and a new contract must be signed each year. The security services provider pays for all training, supervision, employee benefits, and insurance costs for its workforce
  116. 116. Training Plan:
  117. 117. Site training: Your security services contract should detail the following training site objectives: • On-Site Training All security personnel will be thoroughly oriented on-site as to the specific locations and building layouts and potential security issues of the different areas of the site. • Off-Site Training All security personnel will be trained in proper procedures and expected behavior standards during the training course.
  118. 118. Site training: • Printed Manuals The security services provider will develop a training manual (SOP) for all security personnel assigned to the client site. • Fast Track Training Experienced security personnel will receive concentrated training and orientation so that they may assume their responsibilities at the client site as soon as possible.
  119. 119. >Training Plans REDUCE Liability<
  120. 120. Coordination efforts: Unarmed security officers cannot handle every situation on their own. The security services provider will put in place procedures with other law enforcement and associated agencies and train all personnel to coordinate with those agencies on how to deal with certain extreme situations beyond their scope of authority or control.
  121. 121. Supervision of staff: • Random checks by the security services provider’s supervisors of the client site to ensure that all staff members on duty, are performing as expected, and uniformed. • Availability and willingness of security management to take comments and complaints on our service and follow up on them.
  122. 122. Supervision of staff: • A surprise drop-in inspection by our supervisory staff can happen at any time and during the course of any shift or special event. During a check like this, all security personnel will be observed, evaluated, and daily reports inspected.
  123. 123. Supervision of staff:  Immediate correction of all service related problems and viable solutions.  Availability of the security services provider management to handle scheduling issues, including emergency situations.
  124. 124. Supervision of staff:  If an issue is determined to be a lack of training or a misunderstanding, guards will be instructed in correct behavior and put on probation. A repetition of problem behavior will result in immediate replacement of that security officer or supervisor.
  125. 125. Supervision of staff: • A supervisor or manager from the service provider is on call 24 hours a day, seven days a week, to coordinate with client management and handle any situation as it arises. The security services provider is dedicated to training and supervising our staff to provide superior service to our clients.
  126. 126. “Keeping valued customers”
  127. 127. “Keeping valued customers” There are usually three primary factors why a security services contract is lost or put out to bid. They are: 1. The current client is looking for a cheaper billing rate. There are many reasons for this, which is generally linked to budget constraints and not linked to the performance of the current services provider in any way shape or form. Sometimes, regardless of great service, it is all about the numbers for some.
  128. 128. “Keeping valued customers” 2. Client dissatisfaction or they have simply grown bored or uninterested in current security services provider. 3. Turnover rate of personnel. Nothing can be more of a “contract killer” than consistently high turnover of staff personnel. Constant turnover is a business problem for both parties.
  129. 129. Focusing on the turnover rate: 4. Clients and or property managers do not like to see a different person at any given post change weekly or monthly. High turnover rates alarm clients because if you have new personnel constantly changing hands, then that can lower the standard of quality and put your security program at risk.
  130. 130. Focusing on the turnover rate: When the site is lacking in seasoned long term officers who know the site and it’s procedures all too well, but instead stacked with new hires all the time, that can be more than detrimental to the entire security program and the operational objectives. Clients really do want reasonable longevity from their site assigned personnel.
  131. 131. Focusing on the turnover rate: It is of course quintessentially and economically viable for the security services provider to have a low turnover rate of it’s staff personnel. The cost benefits of lower turnover for the security services provider can for some pretty much “make” or “break” the district’s profit margin and it’s business viability. Profit margins in this industry can be thin and marginal to begin with, so high turnover rates can substantially reduce those thin profit margins even more.
  132. 132. Focusing on the turnover rate: The financial impact of high turnover rates can be damaging. Factors to consider: 1. Simply preserving & protecting your business reputation. People do talk. 2. Uniform allotment. Can become costly in terms of replacing or constantly cleaning. 3. The cost of training new personnel. 4. The cost of running background checks.
  133. 133. Focusing on the turnover rate: 5. The cost of non-billable 8, 16, or 24 hour standard OJT new site training. 6. The indirect cost of the branch mgt. personnel who are processing new hires. 7. The direct or indirect financial impact of constant advertising for new staff. 8. Recruiting costs. High turnover means higher recruiting costs.
  134. 134. Focusing on the turnover rate: It of course should be noted that high or relatively high turnover rates at any given service account is not always the fault of the security services provider. Sometimes there are external & internal factors that play a larger role in the turnover problem. That can be attributed to the site itself like the “location” , “personality conflicts” or challenges in relation to the client or certain client team members. Factors that can’t really be controlled.
  135. 135. “Site Security Equipment”
  136. 136. Just who is responsible for what equipment?
  137. 137. “Site Security Equipment” It is standard practice in the security services contract to, at your direct expense, provide full uniforms and training of staff personnel. This will usually consist of summer & winter uniforms. In rare instances, the client will provide partial or full reimbursement for all uniforms. Some clients (very rare) will have on site uniforms that they provide and are distributed and maintained by the security services provider.
  138. 138. “Site Security Equipment” Except for uniforms and standard office supplies, your contract should reflect items that they are not responsible for. This is a crucial segment of your proposal as if site equipment does fail or needs replacement, it is vital that standard and professional contract language is inserted that makes it clear what the services provider is responsible for and what they are not.
  139. 139. “Site Security Equipment” 1. Full uniforms, badges, and accessories 2. General office supplies- maybe site cell phones 3. Rain gear & cold weather gear 4. Flashlights and safety reflective vests 5. Standard Operations Procedures manual 6. Portable space heaters if warranted 7. Company identification cards The following items that generally the service provider is responsible for:
  140. 140. Items the contract service provider is not responsible for:
  141. 141. “Site Security Equipment” 1. Purchasing or repairs of electronic touring systems. (GCS, Guard 1, Detex) 2. Purchase or repair of site access control systems. ( C-Cure 800, Spectrum, etc.) 3. Purchase or repair of site CCTV cameras 4. Purchase or repair of site Motorola radios. 5. Purchase or repair of site computers The following items that generally the service provider is not responsible for:
  142. 142. “Site Security Equipment” 6. Purchase of any office furniture- chairs 7. Purchase or repair of computer printers 8. Purchase or replacement of HID access control type cards or FOBS. 9. Purchase or repair of site fire extinguishers 10. Purchase of metal keys or key-boxes The following items that generally the service provider is not responsible for:
  143. 143. “Site Security Equipment” Not every security services contract is the same. They are all different and unique in their own right, almost like a fingerprint. Although the previous items listed that routinely the provider is not responsible for, is not set in stone. To make things more efficient some of these items listed may well be the responsibility of the service provider but is “billable” to the client with proper invoicing & documentation attached.
  144. 144. “We want to avoid this”
  145. 145. “Client Relations. Client Retention”
  146. 146. Client Relations- Client Retention: In the grand scheme of things, clients, client relationships, and client retention are three of your most critical business success keys to maintaining your current business portfolio. The very foundation, “growth”, and expansion of your business operation is dependent upon how your present day operations are managed as well as your client relations. New business development is linked directly to your current business practices.
  147. 147. Client Relations- Client Retention: No client or client site is too “small” or too big. Every client in the portfolio is as important as the other. It does not matter if it is a 128, 336, or even a 1200 hour a week account. Every account has the same equal importance and should be treated as such.
  148. 148. Client Relations- Client Retention: Do larger accounts like a 1200 hour a week account be given more attention and scrutiny? Of course they should, just by the shear size of such an account more attention would be warranted. Large accounts can be high maintenance and servicing the security force can be time consuming on all operational levels.
  149. 149. Client Relations- Client Retention: But that does not mean the 1200 hour a week account is more important than say the 128 a week K-Mart detail. Every client no matter the size, has given you the opportunity to conduct business with them and hopefully earn some healthy profit margins along the way.
  150. 150. Client Relations- Client Retention: You will never have “healthy” profits if you do not have “happy” customers!!
  151. 151. “Forging new partnerships”
  152. 152. 152 The Quarterly Business Review:The Quarterly Business Review:
  153. 153. Quarterly Business Review: Introducing theIntroducing the Quarterly BusinessQuarterly Business ReviewReview into your new businessinto your new business proposals or presentations is anproposals or presentations is an another dynamic aspect of your overallanother dynamic aspect of your overall sales pitch to land that tough client. Thesales pitch to land that tough client. The QBR is another useful tool that conveysQBR is another useful tool that conveys to the potential or existing client thatto the potential or existing client that you are totally involved with theiryou are totally involved with their security services program and want tosecurity services program and want to bring it to abring it to a higher level.higher level.
  154. 154. Quarterly Business Review: TheThe quarterly business reviewquarterly business review is ais a comprehensive and lengthycomprehensive and lengthy financialfinancial review of your security program. Thereview of your security program. The primary focus of this meeting is to bringprimary focus of this meeting is to bring the client up to date on monthly billing,the client up to date on monthly billing, billable overtime, added coverage, andbillable overtime, added coverage, and current staffing needs. Othercurrent staffing needs. Other aspectsaspects ofof your weekly and monthly reports can beyour weekly and monthly reports can be integrated into the quarterly meeting.integrated into the quarterly meeting.
  155. 155. Quarterly Business Review: The quarterly business review should beThe quarterly business review should be conducted and created by committee.conducted and created by committee. TheThe committeecommittee usually consists of youusually consists of you the manager, the assistant securitythe manager, the assistant security manager, the district manager, themanager, the district manager, the senior property manager, and the juniorsenior property manager, and the junior property manager. All final drafts on theproperty manager. All final drafts on the quarterly review should bequarterly review should be approvedapproved byby your district manager, first.your district manager, first.
  156. 156. Quarterly Business Review: Your financial report shouldYour financial report should contain the following:contain the following: 1.1. Weekly standard billable hoursWeekly standard billable hours 2.2. Weekly billable overtimeWeekly billable overtime 3.3. Weekly non-billable overtimeWeekly non-billable overtime 4.4. Weekly added coverage- you mustWeekly added coverage- you must differentiatedifferentiate between client and tenantbetween client and tenant requests for additional coveragerequests for additional coverage 5.5. Training hours- billableTraining hours- billable 6.6. Training hours- non-billableTraining hours- non-billable
  157. 157. Quarterly Business Review: Your financial report should contain:Your financial report should contain: 7. Monthly price sheets to verify officer7. Monthly price sheets to verify officer wage rates (if applicable)wage rates (if applicable) 8.8. Invoice Aging Report-Invoice Aging Report- for receivablesfor receivables overover 60 days60 days 9. Potential over billing9. Potential over billing 10. Resolution to client complaints10. Resolution to client complaints concerning disputed billable OTconcerning disputed billable OT 11. Monthly & quarterly totals of11. Monthly & quarterly totals of your weekly calculationsyour weekly calculations
  158. 158. 1.1. Security staffing concernsSecurity staffing concerns 2.2. Poor performance by somePoor performance by some 3.3. Equipment failures on the property,Equipment failures on the property, like broken cameras or the need forlike broken cameras or the need for more of them.more of them. 4.4. Discussion of serious incidentsDiscussion of serious incidents 5.5. Ways to reward personnel who areWays to reward personnel who are doing andoing an outstandingoutstanding jobjob 6.6. Site equipment/ repairSite equipment/ repair invoicinginvoicing The quarterly business review is also a good time to address and discuss the following operational topics:
  159. 159. 159 The Quarterly Business Review:The Quarterly Business Review:
  160. 160. 160 During your QBR, the client will haveDuring your QBR, the client will have questions.questions. Make sure you haveMake sure you have answers.answers. The right ones.The right ones.
  161. 161. Are your current clients, all of them, raving fans? Are they?
  162. 162. Or this? If your getting body language like this, your program is in big trouble~
  163. 163. The new business process: I have found that one of the most common and business ending practices a security contract company can make is, neglecting the client. Not maintaining communication. Not properly following up to serious incidents. Not updating them. Nothing agitates a property manager more, than poor communication lines from the very service providers they are paying for.
  164. 164. The new business process: In some instances, where maybe the account is running smooth with no complaints, regional and or district managers can get complacent and lose touch with their client account customers. This is a bad habit. No matter how smooth any given account maybe running, no matter how efficient any given account manager maybe, branch mgt. should always maintain regular contact with client managers.
  165. 165. The new business process: Clients have a need to feel important and appreciated. They thrive on constant feedback and attention to their property. When they feel they are not getting the attention they deserve, they simply contract with someone else who can fulfill their needs. In your new business proposal, there should be a clause that you will meet, maybe once a month to discuss site security operations.
  166. 166. The new business process: If you do not see the need to insert specific language to include a weekly or monthly operations meeting with the new potential client, then certainly suggest verbally during your presentation or contract negotiations if you win the service bid. Some clients actually prefer limited contact if all is going well in their site program. But always, at least reach out to them so they know they are important.
  167. 167. The new business presentation tip: Keep your points short, yet thorough; be concise, yet engaging. If you crowd your presentation with too much verbiage, your potential clients are bound to lose interest and forget your proposal's selling points. Let the printed proposal cover the details, while you state the general and important factors of your plan, such as how it will be an asset to your audience and how it is better than your competitors‘.
  168. 168. The new business process: Deliver what you're say you're going to do. If the business can't deliver on basics, then any other steps will be wasted effort. It may seem ludicrous, but far too many businesses focus on ways to keep customers, only to lose sight of the fact that their product or service simply isn't what it should be. Make certain that the core of what you do is deserving of long-term customer loyalty, and then look for ways to nurture it.
  169. 169. The new business process: Client retention and client longevity is probably one of your best selling & marketing tools you have at your disposal. A superior product or service always sells itself, always.
  170. 170. What is a Quality Assurance Plan?
  171. 171. What is a Quality Assurance Plan? The Quality Assurance Plan describes the strategy & methods the project or program will deploy to ensure 2 things: 1. That the project is being managed, developed, and deployed in a sound, reasonable way. 2. That the project's deliverables are of acceptable quality before they are delivered to the project's clients. (This would be say, a new officer, post orders, etc)
  172. 172. “Do you have what it takes to be my client”
  173. 173. “Yes we do…and more!”
  174. 174. The ultimate goal is winningThe ultimate goal is winning thethe “customer for life”.“customer for life”.
  175. 175. A pretty simple formulaA pretty simple formula
  176. 176. The opportunities are endlessThe opportunities are endless
  177. 177. Thank you for attendingThank you for attending today’s presentation~today’s presentation~

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