The Financial Consequences of Inadequate Security (Part 1 of 3)

The financial consequences of inadequate security (Part 1 of 3)

In many industries, non-revenue generating positions sometimes tumble to the bottom of the priority list and when layoffs occur, these positions are the first to be filleted on the chopping block.

Unfortunately, we see parallel trends as it relates to security being low on the priority list, specifically in the entertainment sector (nightclubs, bars, entertainment-based venues, etc).

Ineffective security can cost you money, in both hard and soft costs.  In addition, it only takes one occurrence of a security guard mismanaging the separation of an altercation, causing injury to a patron, to expose your business to considerable liability.

Customer Revenue Averages

According to the National Restaurant Association, the average nightclub in Chicago is open 10:00 P.M. to 4:00 A.M., within this span of six hours; a venue can achieve gross revenues of $10,800 to $45,300 nightly.

According to the NRA, here are some averages on consumer spending:

• The average costs of a drink is $9.25, the average customer consumes at least 3 drinks, totaling $27.75
• The average customer will be accompanied with 2 other guests in their party  (group of 3)
• The average cover charge for nightclub entry is $5.00

Based on the preceding statistics, a 700-person capacity nightclub may accommodate 1,160 people in the six-hour span of operation. An average $5.00 door charge, $ 27.75 per customer in alcohol sales, equates to $32.75 per person.  Based on these medians a venue could generate $37,990 in nightly revenues.

The Hard Costs of Altercations

When an altercation occurs, a customer is extricated from the establishment.  Based on the averages, when one person is removed, 2 others in his or her party will follow.  Additionally, the other customer involved in the altercation may be removed (and their two quests) which could total up to six (6) patrons.

Six lost customers equates to approximately $166.50 in lost revenues (patrons who are altercation-prone spend 2-3 times more than the average customer, but we’ll keep the averages on the conservative side).

The “Buzz Kill” Effect

More importantly, there is another variable to consider, such as the “rubber necking” or “buzz-kill” effect which occurs during and after an altercation.  During this span of 5-15 minutes, these pauses will equate to lower alcohol and food sales.  If your establishment is averaging $37,990 per night in revenue and activity decreases during these windows by 30% this could increase your losses by an additional $474.88.

So, one altercation could potentially cost you $641.38.    Like many establishments with an ineffectual security staff, you may be facing an average of 2-3 altercations each night, which can translate into substantial revenue losses.

~ Don Gee, CEO of SafeGuard Resources

The Bouncer vs. Security Professional

In the security profession, there is a substantial difference between a “bouncer,” and a “security professional.”

On one side you have the cream of the crop; generally experienced ex-military, ex-LEO or security professionals, who have chosen security as their tradecraft.  On the other side is your prototypical “bouncer”; a type-A personality, alpha male with a short fuse and yearning for causing more problems then solving.

 Here is an excerpt from Wikipedia on the bouncing profession;

“In the United States, civil liability and court costs related to the use of force by bouncers are “the highest preventable losses found within the [bar] industry…” Studies suggest that one of the reasons that some bouncers emphasize physical force is their self image as a strongly masculine group, which requires them to respond to aggression in violent ways.”

The problem is finding that balance as a business owner for a security solution that is budget-friendly and is an asset to your business, not a hindrance. A good security specialist will be levelheaded, able to think on their feet and have a calm and professional demeanor in any circumstance.

A “bouncer” will be emotionally and physically impulsive, solves problems with a foot and a fist, versus their mind and mouth, in addition to a poor work ethic can introduce many unnecessary issues for you.   A “bouncer” will be a cheaper solution, however with the high costs of altercations (not to mention the increased prospect of liability) and patron intimidation this will have negative impacts on your new and existing customer base.  Additionally, with the advent of social media and review-based sites, negative word of mouth nowadays can travel in real-time.

The key is to find security professionals that are even-tempered, have a keen and intuitive eye, and embrace a customer-service centric approach when interacting with your customers.  In difficult economic times it may seem like a good idea to cut back on security costs to help your bottom line, but if your security is causing more problems than solving, this will have detrimental impacts on your bottom line and will cost significantly more in the long run, and possibly lead to unwanted liability.

If executed properly, security can be a revenue-based position instead of a cost-based position.

~ Mike Haack, Lead Security Specialist – SafeGuard Resources

“Choose your weapon!” (Wisely)

“Choose your weapon!” (Wisely)

Security details differ in terms of responsibility and objectives.

The weapons one carries on each job should be a direct reflection of the environment and risk factors involved. Over the years, I have witnessed many security personnel, carrying with them tools and weapons that have no functional use towards their present position.

To make it very simple, remember this rule of thumb. “The length of the weapon dictates the range of usage.” (With the exception to the rule being projectile weapons, such as a gun)

Following this rule we can begin to get a better grasp of what works for when.

• A gun, for example, is a long-range weapon. That is to say that you are at your lowest risk of usage beyond 20 feet.
• An ASP is usually 26′ inches in length. making it a long range tool.
• A knife is a short-range tool.

What constitutes long range vs. short range?

Stick your leg straight out. If your weapon reaches that distance or further it is long range. (Sword, staff, ASP etc)

Short range is everything inside that range. (Short stick, knife, palm stick, taser etc)

Now if you find yourself in a nightclub environment, most long-range weapons will become ineffective, due to the qualities and characteristics of that weapon.  Conversely, a knife would be accurate weapon in terms of range, however, in the larger scope of things becomes more of a liability, even for the advanced weapons student.

With all of the factors of liability and injuries to be considered, your numbers (personnel and team members) are the most proficient weapons in your arsenal.

Try and resist the overwhelming urge to use decorations of force. They really serve no purpose except to act as a placebo for the person wearing them.

~ Mike VanBeek,  Lead Security Specialist – SafeGuard Resources

Maintain Your Awareness

As security specialist, our skills can be called into service in a variety of scenarios and environments. I want to touch on one in particular today. Restaurants (which can include grills, sports bars, etc) are favorite meeting places for people the world over but, from a security perspective, can provide some challenges.

1. Because of the constant movement of servers and patrons and the existence of sometimes loud or live music, these venues automatically lower the average persons sense of awareness. Where a person within your circle of comfort might not be a red flag to you, in a restaurant, you might expect to have service staff buzzing around you and have other patrons passing nearby with no feeling of distress.

2. Food, friends and family are comfort, and unfortunately, comfort can foster a lack of awareness. Eating and drinking with friends and family has a tendency to make a person feel at home. The problem being, you are not at home. As security specialists, being able to create this feeling is key for the business of the establishment but also has the downside of making people more likely to be victims of crime. Add to this equation the use of alcohol, and longer time in one place in the establishment can provide a stationary target for a pro.

3. Another matter to take into consideration which can create vulnerabilities are TV’s, conversations, noise levels can all make a person filter out and have an inadvertent tunnel vision in order to engage their particular party. Also, and especially in larger parties, group dynamics can compound vulnerabilities.

If you see a customer whose not as aware as they should be (purse hanging on back of chair, smart phone in the open) you may want to notify them, without creating concern about the location they are in. Ensure your security teammates maintain awareness of potential theft, and immediately communicate any suspicious behavior or patrons that may exhibit any red flags.

Expectations in these environments vary but hopefully with a little knowledge and a vigilant awareness, your coverage will produce results and limit (hopefully eliminate) instances of theft.

~ Phil Aguet, Lead Security Specialist – SafeGuard Resources

The Value of Good Reporting (Part 2 of 2)

As mentioned in my previous posts, (The Value of Good Reporting; Part 1), http://safeguardresources.wordpress.com/2011/09/14/the-value-of-good-reporting-part-1-of-2/ the worse case scenarios can usually be avoided by strictly documenting any and all incidents. Your Incident Reports should be completed no later than 24 hours after an incident and should include details like; how it happened, where it happened, who was involved, what took place, why it happened, and at what time.

Just as in police reports you should also make sure to keep opinions out of any reports and focus on factual information, as the report could be used in court. It should also be as specific as possible in order to supplement any video or audio evidence acquired.   After the report is completed the report approving authority reviews and approves to ensure all company report standards are met.  Finally the company should retain the report until the case is closed or after the statute of limitations on the type of incident expires. When training a new officer on how to use the correct terminology for reports and the general standards required by the company it is usually best to have a seasoned security officer who may have had a military or law enforcement background assist in training, as they have probably had extensive past experience in report writing.

It is critical to document as quickly as possible, do NOT procrastinate.   Not only does an incident report protect the client but it also protects the security officer and the security company, and without it, its just a matter of time before something happens where you wish you had one to save you in court or protect your business from a frivolous lawsuit. Everyone hates paperwork, but everybody hates getting sued even more.

~ Mike Haack, Lead Security Specialist – SafeGuard Resources

The Value of Good Reporting (Part 1 of 2)

The worst nightmare of any business is a lawsuit. Its worse then slow business, unproductive employees, or even minor theft. A strong lawsuit can crush a businesses finances as well as its reputation. One of the strongest most effective tools against frivolous lawsuits in a business is its safety and security reporting procedures. A business may have the best security team in the world but if they can’t seem to write a basic one page incident report when something happens, the business and the security team can lose everything.

One example of this was back in the 1990′s when a woman went through the drive-thru at a McDonald’s restaurant, she ordered a cup of coffee and because the lid wasn’t securely fixed she spilled the coffee in her lap. She ended up suing McDonald’s and winning a multi-million dollar lawsuit all because the cup didn’t say CAUTION: HOT COFFEE!!

This seems like an extreme case but in security work the risk of something happening is significantly higher than a McDonald’s drive-thru and something small as a slip and fall due to not having a Caution wet floor sign, or a bartender over-serving a patron and then the patron crashes their car into another car, people can try and sue your client and at the minimum cause damage to their reputation and at the maximum your client could lose their liquor license or fire your security company due to negligence, not to mention your security company could be held liable and you could lose your insurance, city and state certification, or even in extreme cases of negligence face jail-time.

~ Mike Haack, Lead Security Specialist, SafeGuard Resources

Operational Security (OPSEC)

You may have heard the acronym OPSEC in a news report or in a military or law enforcement setting.   If you haven’t, OPSEC stands for Operational Security, which is how a person ensures the safety and integrity of their operation.

In the any branch of the U.S Military and U.S Government OPSEC is advocated to its employees on a daily basis.   Being OPSEC aware means you are being vigilant in your day to day operations in order to ensure that safety and security are not compromised due to inadequate preparedness.

In executive protection and civilian security, OPSEC is just as important as its governmental role.   By being aware of your proximity and circumstances at all times you can be ready for anything that may compromise the integrity of your operation.   One example is if you were performing executive protection and someone comes up to you and tries to start a conversation, if you are being vigilant with your OPSEC you may pick up on clues that the person may be trying to solicit information about your client or your operation and that would prompt you to take the necessary steps to increase your security and/or modify tactical planning.

By making sure that everyone on your team is OPSEC aware, you will be more aware of possible threats, distractions, problems in planning or personnel issues, which in turn will help in how you make your operational decisions in the field.

- Mike Haack, Lead Security Specialist.  SafeGuard Resources

S.I.C. (Separate, Interrogate and Collaborate)

S.I.C (Separate, Interrogate, Collaborate) Tactic

As a security contractor you can sometimes feel overwhelmed when dealing with an altercation between patrons, especially when you don’t know why this incident began in the first place.

One very effective method that can be used to help in getting the full story when an incident occurred is called the S.I.C (separate, interrogate, collaborate) tactic. One example of how this works is let’s say you notice two individuals in a fist fight, you only have seen them hitting each other and don’t know how or why it started.

1. The first part of the tactic is to Separate. You physically separate the two parties so that the immediate threat is neutralized.
2. The next part of the tactic is to Interrogate. You and another security contractor get the story from both parties while they are separated in order to help you formulate an idea of what really happened, you may also talk to witnesses to fill in any gaps or inconsistencies in either statement.
3. Finally, you must collaborate with your fellow security contractor so that you can analyze the situation with all available data and decide on the best course of action for that particular incident. This will also aid in providing a very thorough and reliable incident report to law enforcement if necessary.

~Mike Haack, Security Specialist, SafeGuard Resources

A Weak Link in Your Security Team?

As cliche’ as it sounds, teamwork is important to effective security management.

In order to make your team successful there are some basic guidelines, like sports team you need to make cuts.  If it seems like a player just cannot mesh well with the team or they’re causing dissension within the team, they gotta go!   Before determining if someone needs to be let go you need to look at the damage factor they create.  If a team member is consistently breaking rules and you have tried to counsel them in changing and adapting but that same damaging behavior remains, it may be time to cut them loose.

….Hire slow, Fire Fast

On the other hand, sometimes all a teammate needs is some motivation and active communication to change for the better, thus helping you retain valued assets.

Next, you need to assign specific functions and responsibilities for each team member and ensure they know what is expected of them, this will help in making your team run more fluidly. Each position should be assigned based on leadership skills, communication and delegation ability, special skills and tactics, and general strengths and weaknesses.

Finally you need to appoint a team captain (your lead) who will be responsible for making the play calls and making sure their teammates are following them, they will also ensure all necessary protocols are in place and being adhered to by everyone.

These core principles can help you assemble and maintain a strong security force, and foster a team-based atmosphere to create a better working environment that focuses on structure and teamwork and in turn will help enhance communication between teammates.

~ Michael Haack, Security Specialist  -  SafeGuard Resources

Staying Calm During Crisis

If you watch the news you have more than likely heard story after story about a fire or gun discharge in nightclub or other venue that causes people to get trampled to death or other tragic deaths caused because of inadequate training of the venue staff.

When tragedy strikes, as a security professional you need to take a deep breath, stay calm and make sure the exits are open and unlocked, also to open all other exits that are available.   In case of a fire make sure you know where the fire alarm is located as well as the fire extinguishers.

As a security professional you need to do your best to maintain order, because chaos can be a killer in these situations.  When working any venue where you may have allot of people with only a few exits, make sure you have an emergency plan in place, and make sure all personnel are familiar with what to do.

Always check the exits for blockage and make sure they are unlocked before your shift starts and check the meter on the fire extinguishers monthly to make sure they are fully charged.   Just by taking these simple but effective steps you can avoid a terrible tragedy.

~ Mike Haack, Sr. Security Specialist – SafeGuard Resources