September - October 2012 by Loss Prevention Magazine

THE VOICE OF LOSS PREVENTION LPportal.com | V11.5 September- October 2012

LOSS PREVENTION

MAGAZINE

ALCOHOL RETAILING

LP ISSUES IN THE WINE AND SPIRITS INDUSTRY THE NEED TO REINVENT LOSS PREVENTION YOU CAN STEAL IT, BUT YOU CAN’T USE IT HOW TO MANAGE GENERATION Y

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CONTENTS

6 PUBLISHER’S LETTER How to Submit an Article By Jack Trlica

Alcohol Retailing

8 10

LP issues in the wine and spirits industry

RETAIL SPONSORS

12 INTERVIEWING Cross-Cultural Interviewing: Part 3 By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

By Adam Paul, Contributing Writer

26 ACADEMIC VIEWPOINT 2011 NRSS Overview By Richard C. Hollinger, Ph.D.

36 ASSOCIATIONS IN ACTION Food-Service Security Annual Conference By Jim Forlenza

The Need to Reinvent Loss Prevention

48 CERTIFICATION “Service to My Country, Not a Sacrifice” By Jacque Brittain

Conversation with Bob Vranek of Belk

By James Lee, LPC, Executive Editor

60 INDUSTRY NEWS - Sell Your Gold Scrap - Vector Security’s David Merrick Passes Away Unexpectedly By Robert L. DiLonardo

You Can Steal It, But You Can’t Use It

62 CALENDAR 63 PEOPLE ON THE MOVE 64 ADVERTISER DIRECTORY

Moving toward benefit-denial technology

65 VENDOR SPONSORS

By Read Hayes, Ph.D., CPP

66 PARTING WORDS A Firm Foundation By Jim Lee, LPC

Not Everyone Gets a Trophy

How to manage Generation Y

By Bruce Tulgan

ON THE WEB

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PUBLISHER’S LETTER MAGAZINE

How to Submit an Article

700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax

e often are asked by both retailers and vendors about the procedure for submitting articles. There are several answers to the question. Because we want articles from a wide range of professionals and organizations, I thought it made sense to review the process here.

You may write the story yourself, use an in-house communications person or ghostwriter to draft the document for your by-line, or we can assign a writer to work with you. Either way, contact me directly with a short summary of your article idea that we can discuss to see if it fits our editorial needs.

Editorial Policy

Articles from Solutions Providers

When we launched the magazine eleven years ago, we wanted to differentiate ourselves with the editorial we published. In discussions with the executives on our editorial board, the decision was made that we wanted in-depth articles written from the retail LP perspective focused on best practices and solutions LP professionals have implemented in their organizations. That strategic direction was preferred versus the practice of most other trade publications that published articles written by advertisers who are promoting their own products and services. That policy has served us well and stood the test of time. Not only has our editorial board continued to bless this approach, but our vendor advisory board, which is made up of our best advertisers, also agrees with this approach because it ensures the greatest editorial credibility. That being said, we have also found ways for product and service providers to contribute white papers, case studies, and other articles for our readers’ consideration…more on that in a minute.

Contributions from Retailers

Over the years, the primary contributors of articles have been working LP practitioners—those of you out in the trenches designing and implementing loss prevention programs for your retail organization. It doesn’t matter that you may not be an accomplished writer. We can guide you and edit your manuscript into a polished article. If you have a story to tell, be it a proven LP strategy that has impacted shrink, a vendor partnership that has implemented a successful technology, or maybe a management philosophy that is developing outstanding professionals, we want to hear from you.

If you are not on the retail LP side of the desk, we want your ideas and writings as well. We have a very dynamic website where we publish white papers, thought-leadership pieces, case studies, product releases, and other articles written by solutions providers who want to contribute to the discussion within our industry. We promote these articles via our weekly e-newsletter, LP Insider, as well as through our social media channels. We also encourage our vendor partners to help us identify interesting retail stories by working with your retail clients to encourage them to tell their success story in the magazine. If you are a vendor with a great relationship with a retailer, please contact me about working with someone in the retail organization on an article.

Suggestions from Readers

We get a great deal of advice, ideas, and direction from our editorial board, which we greatly appreciate. We also visit LP organizations throughout the year to solicit ideas from all levels of the organizations. I recently visited with the LP teams from Talbots, Vitamin Shoppe, Ann Taylor, and Barnes & Noble who were holding a joint training event in conjunction with the ASIS conference in Philadelphia. I have a full page of great suggestions from that meeting. Don’t hesitate to contact me with your suggestions for articles, people we can interview, companies we can profile, or anything you want to see in the magazine. If it makes sense, we’ll do our best to make it happen.

Jack Trlica Editor and Publisher

LossPrevention and LP Magazine 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.

SEPTEMBER - OCTOBER 2012

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EDITOR AND PUBLISHER Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com CONTRIBUTING EDITORS Robert L. DiLonardo Walter E. Palmer, CFI, CPP, CFE Amber Virgillo CONTRIBUTORS William A. Alford, LPC, CFE Read Hayes, Ph.D., CPP Richard C. Hollinger, Ph.D. Mike Marquis, CFI Gene Smith Shane G. Sturman, CFI, CPP Kelby Woodard David E. Zulawski, CFI, CFE NEWSLETTER EDITOR John Selevitch JohnS@LPportal.com ONLINE EDITOR Matt Richardson MattR@LPportal.com CREATIVE DIRECTOR Larry Preslar PROOFREADER Amy Trainor DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com 704-844-6080 ADVERTISING

ADVERTISING MANAGER Bonnie Dodson 828-479-7472 office, 704-943-5797 fax BonnieD@LPportal.com WEST COAST REPRESENTATIVE Ben Skidmore 972-587-9064 office, 972-692-8138 fax BenS@LPportal.com SUBSCRIPTION SERVICES

CIRCULATION MANAGER Matt Richardson MattR@LPportal.com NEW OR CHANGE OF ADDRESS www.myLPmag.com POSTMASTER Send change of address forms to Loss Prevention Magazine P.O. Box 1088 Lowell, MA 01853 LossPrevention aka LP Magazine (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 www.myLPmag.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 www.LPportal.com. For questions about subscriptions, contact circulation@LPportal.com. Periodicals postage paid at Matthews, NC, and additional mailing offices.

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ON THE WEB

EDITORIAL BOARD

Webinars

Ken Amos, LPC Divisional Vice President, Loss Prevention Walgreens

Bob MacLea Senior Vice President, Loss Prevention, TJX

Leo Anguiano Vice President, Chief Risk Officer, Central Parking Corp.

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

Jim Carr, CFI Director, International Loss Prevention, Rent-A-Center

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

Ken Cornish Vice President, Retail Operations, The Kroger Co.

Tom Roan Group Vice President, Loss Prevention, Macy’s

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

Tim Shipman, LPC Director, Corporate Investigations and Crisis Management, Delhaize America

Charles Delgado Vice President, Manager of Asset Protection BJ’s Wholesale Club

Mark Stinde Vice President, Asset Protection 7-Eleven

Patti Felz Vice President, Loss Prevention, Polo Ralph Lauren

Paul Stone, LPC Vice President, Loss Prevention and Risk Management, Best Buy

Two exciting new webcasts are scheduled for September and October. Both webinars will be archived on the magazine website for several months after the live webcast dates. To register to view either the live or archived webinars, visit the Webinars page on the magazine website or scan the QR codes below.

Pep Boys: A Success Story in Shrink Reduction Challenging Conventional Thinking in LP Awareness Live Thursday, September 20, at 1:00 p.m. Eastern

In 2009 Pep Boys overhauled their loss prevention awareness program, applying some innovative new methods as part of a comprehensive, multi-pronged LP strategy that together has resulted in a 58 percent reduction in shrink and millions of dollars in savings a year. This webinar will focus on the awareness program and the technology that has helped deliver both sustainable and measurable results: ■ C reated a cultural shift, where their 19,000-plus employees have internalized the organization’s LP message, ■ S een a significant reduction in employee theft, and ■ A chieved 95 percent voluntary participation in their ongoing awareness initiative.

Speakers

Bryan Hoppe, Vice President of Store Operations, Pep Boys Christine Tutssel, Vice President of Sales, Axonify Sponsored by

Barry Grant Senior Vice President, Operations & Loss Prevention, CPI Corp

RFID in Retail: What LP Leaders Need to Know

Bill Heine Senior Director, Global Security, Brinker International

Live Tuesday, October 2, at 11:00 a.m. Eastern

Sonya Hostetler Vice President, Asset Protection & Safety, Walmart Stores U.S.

It’s well known that RFID is taking hold in retail for inventory management and shelf availability. What are the implications for LP? With RFID integration planned for many new stores and remodels over the next eighteen months, LP considerations need to be part of the overall strategy. This webinar will provide real-world examples with hard data and expert advice, including: ■ T he key factors LP leaders need to know when driving the LP agenda for RFID projects, ■ R eal-world LP RFID case studies and ROI analysis, and ■ R FID deployment considerations for LP. Webinar participants will receive an “RFID for LP” planning guide.

Frank Johns, LPC Chairman, The Loss Prevention Foundation Gary Johnson Vice President, Loss Prevention, Vitamin Shoppe

Speakers

Joe LaRocca, Vice President of Loss Prevention, RetaiLPartners Dr. Bill Hardgrave, Dean, College of Business, Auburn University Tom Racette, Vice President of RFID Solutions, Checkpoint

Paul Jones, LPC Senior Director, Global Asset Protection, eBay

Sponsored by

SEPTEMBER - OCTOBER 2012

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Bill Titus Vice President, Loss Prevention, Sears Holdings Bill Turner Senior Director, Retail Operations, Cole Haan Claude Verville Vice President, Loss Prevention, Safety & Hazmat, Lowe's Stanley E. Welch Vice President, Director of Loss Prevention, jcpenney Keith White Senior Vice President, Loss Prevention and Corporate Admin., Gap Inc.

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INTERVIEWING

Cross-Cultural Interviewing: Part 3 I

n our last two columns we began the discussion of cross-cultural interviewing and its implications relating to changes in normal behavior as a result of cultural differences. As we all know, behavior changes from person to person as a result of gender, upbringing, geographical, psychological, and sociological considerations. Variations in culture and level of assimilation into a new population can also result in a different behavioral norm.

Personal Space One common difference among cultures is the variation and protection of personal space. The idea of personal space was first introduced by Edward T. Hall in his 1966 book, The Hidden Dimension. We each regard the personal space surrounding us as our own. When others invade our personal space, it may cause us anxiety, discomfort, or even anger. According to cultural rules, people enter or withdraw from

Being aware of an individual’s personal space will help the interviewer establish a relationship by positioning himself neither too far, nor to close. But one must also remember that the context of the conversation, the relationship between the parties, and emotions may alter the common cultural norm of personal space. another’s personal space according to subtle subjective rules they may not even be aware of. Often the use of personal space identifies the relationship between two people. The innermost zone, the intimate, is reserved for close family members, small children, or lovers. The next zone is reserved for social activities, such as conversations and less intimate day-to-day activities. The third zone is used with strangers or new acquaintances where

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

Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (www.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. © 2012 Wicklander-Zulawski & Associates, Inc.

no definitive relationship has been established. The final zone extends to the horizon and is used in speeches and public places where no relationship exists with those present. Personal space may change as a result of a relationship between two people, but it may also change as a result of the environment. Those people living in large densely populated cities tend to stand closer together than someone from sparsely settled locations. People living in India tend to stand much closer together than people residing in South Dakota. People generally spread out taking more space for themselves when the space exists. So we would expect culturally anyone coming from a rural area in a particular country to have a larger personal space than those crammed into large urban areas in the same geographic area. Cubans, Italians, and Arabs are used to much closer personal distances that might feel awkward to someone from the United States. The individual status may also affect a person’s use of personal space. Those individuals who are in positions of power or affluence tend to demand and use more space than those less powerful or fortunate. Clearly the cultural rules that exist may be subtle and require significant interpretation to understand them. In many parts of Africa, families group together in communal compounds to support one another and care for their families. When these groups immigrate to the United States, they tend to follow the same pattern living together with extended family and friends. This is a common experience as other groups immigrate to the United States; they also tend to live together in certain neighborhoods because of the common bond of culture, food, and the language they share. Being aware of an individual’s personal space will help the interviewer establish a relationship by positioning himself neither too far, nor to close. But one must also remember that the context of the conversation, the relationship between the parties, and emotions may alter the common cultural norm of personal space.

Posture and Gesture Culturally there may also be significant differences in posture and gesture whose meanings do not necessarily cross cultural lines. One almost universal posture with a single meaning is placing the hands on the hips. This “arms akimbo” posture is almost universally interpreted as authority and an

SEPTEMBER - OCTOBER 2012

continued on page 14 |

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ga pectations of providin ex r ou et m s ha l na io i³ Internat mers (Store and Field sto cu r ou ice rv se to t strong commitmen s Service. oduct and Best In Clas teams) with quality pr mitment that has a strong com or nd ve a es lu va ions ys Pep Bo e customer’s expectat th to am te r ei th g tin r to towards dedica n to our needs in orde te lis ill w at th aff st a and has r Customers! Earning the Trust of Ou of al go r ou ish pl m acco Pep Boys r, Loss Prevention at Jack Legorreta Directo tion at Pep Boys esident, Asset Protec Pr e Vic M AR e, pp Bryan Ho

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unwillingness to change one’s position. This posture is generally meant to distance or intimidate another. Male interviewers should also consider their posture when talking to members of the opposite sex. In other countries the way a male positions himself may be considered to be flirtatious or inappropriate when having a conversation with a female. For example, sitting with the knees apart may be viewed as putting themselves on display for the other person in the conversation. Women are almost universally taught to sit with their knees together or legs crossed when sitting.

The world and our own communities are laboratories for observation of the human creature and the culture in which he lives. If we have an employee population largely made up of a particular group, it would pay the prudent interviewer great dividends to pay attention to how these people stand, converse, and interact with others during day-to-day business. In many cultures showing the bottom of the feet is considered disrespectful. In the Middle East Muslims consider showing the bottom of the feet a rude gesture. In Japan authority is often shown by erect posture and placing the soles of the feet flat on the floor. Culturally there may be “emblems” used by other cultures that differ significantly from those used here in the United States. Desmond Morris, the famous zoologist and behavioral observer, said that humans make at least 3,000 different gestures with their hands and fingers alone. However, he also noted that most people use only a small number of gestures on a regular basis. A number of studies have postulated that the use of gestures also helps people think and remember specific information. Unfortunately, when people speak a second language they often use the gestures from their first language, which may make it difficult to interpret their true meaning. For example, some Hispanic teens when speaking English will shrug their shoulders conveying the meaning of “I don’t know.” In reality they likely mean, “I don’t care” or “I don’t want to talk about it.” Many of these gestures are called emblems since their meanings are well enough known that they can take the place of words. Some examples of emblems are shaking the head “yes” or “no,” the shoulder shrug meaning “I don’t know,” or the wave of acknowledgement or greeting. Again, problems in interpretation can arise since the shake of the head may have the opposite meaning. For example in response to the question, “Did you have a good time on your vacation?,” the subject shakes

his head “no” while saying, “It was absolutely awesome.” Here the head shake means bewilderment or being astounded at the wonderful vacation. However, we may also see someone shake the head “yes” while responding negatively to stealing from the company. This incongruent behavior should appear as a red flag to the interviewer. Desmond Morris researched the cultural and geographic origins of many emblems and their meanings in his book Gestures: Their Origin and Distribution (1979). Many of the gestures he describes were brought with immigrants as they moved to the United States and integrated into the mainstream American culture. There are number of similar emblems across cultures, so sometimes the gestures are the same or delivered with a slight variation to the gesture that changes its meaning entirely. The American “okay” emblem where a circle is made with the thumb and index finger is viewed in some parts of the world as a suggestion to perform a sex act on oneself.

Interpreters A good interpreter can help decipher the complexities of cultural variations and define the subtleties of communication with a culturally different person. It pays to spend time with the interpreter explaining what the interviewer plans on doing and what he is looking for during the interview. Many languages do not translate exactly or may have multiple words with slight differences in meaning, so it will be important for the interpreter to know what the interviewer is looking for in the conversation. For example, during rationalization we would want the interpreter to select the word with the softest meaning, rather than the harshest. In part we also want the interpreter to be a translator giving us the exact language the subject uses, but including the same voice inflection, pauses, and word emphasis. Many people who are thrust into the work as an interpreter speak the language with difficulty or have English as a second language. As a result the interpretation is just paraphrasing the general meaning of the individual’s response. The world and our own communities are laboratories for observation of the human creature and the culture in which he lives. If we have an employee population largely made up of a particular group, it would pay the prudent interviewer great dividends to pay attention to how these people stand, converse, and interact with others during day-to-day business.

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Following are useful reference books to consider: ■ W hen Cultures Collide, Second Edition: Leading Across Cultures by Richard D. Lewis ■ D o’s and Taboos Around the World, Third Edition by Roger E. Axtell ■ A sian Crime and Cultures: Tactics and Mindsets by Douglas D. Daye ■ H andbook of Asian American Psychology by Lee C. Lee and Nolan W. S. Zane ■ U nderstanding Arabs: A Guide for Modern Times, Fourth Edition by Margaret K. Nydell ■ G estures: Their Origin and Distribution by Desmond Morris

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COVER FEATURE

ALCOHOL RETAILING LP ISSUES IN THE WINE AND SPIRITS INDUSTRY By Adam Paul, Contributing Writer

ALCOHOL RETAILING

he wine and spirits segment of retail is unique in the sense that few other goods available in retail stores are so tightly controlled or legislated. Alcohol distributors and retailers have to contend with a multitude of federal, state, and even local laws that restrict or control the sale of their products. It’s no wonder that your average retail liquor store has its share of headaches as it strives to obey the laws regarding the sale of their products, as it simultaneously contends with all the same sorts of loss prevention issues than any other retail store might have. The wine and spirits industry also faces markedly different challenges depending on what corner of the industry that business happens to operate in. For example, retailers will have LP concerns that distributors simply don’t have, even though the controls on the alcohol are the same. Besides tobacco, there really isn’t a more regulated retail product than alcohol, the sales of which are usually mired in a dizzying array of laws and ordinances. While the alcohol industry may evoke mixed feelings in Americans due to the nature of the product that is involved, it is important to note that the American alcohol-beverage industry is responsible for paying $84 billion in wages annually, as well as sustaining 3.8 million jobs. Since approximately 51 percent of the price a consumer pays for an alcohol product is essentially comprised of government taxes and fees, the alcohol-beverage industry represents a cash cow for governments at every level, generating $388 billion in economic activity in 2008 alone. To say alcohol is big business is an understatement. Essentially, the industry exists as a three-tiered system in which the alcohol producers sell to a distributor, who in turn, sells to a

retailer. Generally speaking, besides a few local sales such as a vintner selling a few bottles of wine to people touring its winery, for example, the producers are separated from the consumers in terms of sales by distributors.

Southern Wine & Spirits

One such distributor is a company by the name of Southern Wine & Spirits. If you’ve heard of them, maybe it’s because they are the largest wine and spirits distributor in the world. Operating in over 35 states, SWS, as they are known, is big… really, really big. Try 94 million cases per year. That’s 40 to 50,000 cases per day and 30 to 35,000 cases per night in Northern California only. That’s a lot of alcohol product. SWS’s loss prevention efforts are headed up by John Dummett, director of safety and security. While one would think that theft and pilferage would be high on his list of things to look out for, they’re really not as high on the list as you’d expect. “Our LP efforts are focused on making sure that what comes in the door goes out the door legitimately,” he states. Being big has its advantages, and one of them is dealing in large, heavy objects. It’s hard to steal a pallet of alcohol that weighs several thousand pounds. Breakage, on the other hand, is a different matter. Dummett is quick to point out that SWS’s LP efforts are essentially devoted to logistics and logistical concerns, and to that end, they’ve set up an interesting way of ensuring that

SEPTEMBER - OCTOBER 2012

John Dummett, director of safety and security for Southern Wines & Spirits, uses high-definition camera systems to control inventory in their alcohol distribution operations.

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ALCOHOL RETAILING every last bit of product is accounted for. When you move upwards of 100,000 cases per 24-hour period, it’s essential. In 2004, a couple of years before Dummett’s arrival, SWS operated on a more or less standard system of loading its products onto the trucks for the day’s delivery. A foreman would inspect the loading and sign off on the contents of the truck via a paper form. It was an imperfect system that kept shrink numbers higher than they should have been. Human error and mistakes were the root cause of SWS’s problems, and all they had to fall back on was a sign off sheet. Clearly, a better system needed to be devised. The system that was ultimately implemented went hand in hand with the emergence of more cost-effective high-definition (HD) CCTV cameras and is still in use at SWS today. “When a truck is loaded, the cargo area is filmed in HD from three different angles,” explains Dummett. Besides a network of standard security cameras that are copiously mounted in SWS’s loading facilities, each truck loading bay has three HD cameras that are positioned such that they capture a detailed record of each vehicle being loaded. Additionally, they have the resolution to be able to zoom in and let the people reviewing the footage read the writing on the case and document that it actually went out. This is extremely useful to a company whose livelihood depends on product accountability. “We’ve had situations where a driver calls in and says he’s missing product,” says Dummett. “We have the ability to forensically review the video, and let

Total Wine & More retail stores average 25,000 square feet.

him know not only when the product was loaded, but where it is in the truck.” SWS also puts a consumer HD camera in the foreman’s hand as well for an added layer of accountability. The effect of this video system has been to keep shrink low where it pertains to inventory accountability, since it is now extremely hard, if not impossible, to actually lose something on an SWS truck. The goods are taped on arrival and taped again on departure to make

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ALCOHOL RETAILING Liability is a common theme throughout the liquor industry in general, and even SWS as a distributor is conscious of it. “We regularly monitor our restaurant customers,” says Dummett. This monitoring revolves around ensuring the restaurant keeps up with its licensing and financial obligations, a paramount concern in an industry where inadvertently selling alcohol to an unlicensed establishment could lead to disaster. Few industries have these sorts of problems, as well as having to deal with oversight from big federal agencies like the Alcohol and Tobacco Tax and Trade Bureau (TTB).

Total Wine & More

Front end at a typical Total Wine & More

sure everything is present. Drivers are also trained to check in at each delivery to ensure that SWS knows where its goods are at any given time. Does Dummett lose sleep at night from conventional pilferage, or employees working in a concerted effort to cheat the company? Sometimes, but according to Dummett, “We don’t really see much of that. Southern Wine is a strong union operation with well-compensated employees.” In fact, new employees will start out working nights, and stay in that position for four to five years before being graduated to conventional day shifts, all the while accumulating seniority. The move to day shifts is a serious goal of new employees, and they work diligently to achieve it, which means that SWS’s employees wind up caring just as much about the company’s shrink as Dummett does. SWS’s locations will often contain a bottle room, which is a place where orders are filled for quantities of alcohol less than a full case, and, consequently, the most likely location for pilferage. Southern Wine’s top 750 SKUs are present in this room and orders can be placed in single-bottle quantities. “The bottle room has the highest concentration of cameras in the whole facility,” says Dummett, adding that personnel in the bottle room are subject to bag and loose clothing searches at breaks and lunches…whenever they leave company property. In fact, all Southern employees with access to the warehouse are subject to these searches. Still, pilferage is so low in a typical SWS facility that it’s less of an item of concern. So what keeps Dummett busy if not theft, pilferage, or the previously mentioned inventory control? “Safety,” says Dummett emphatically. “We have on average ninety guys driving forklifts in one of our warehouses.” OSHA compliance, safety, and the mechanics thereof comprise a major component of Southern Wine’s LP efforts. Consider also that SWS’s delivery fleet of 1,500-plus trucks is staggering in size—the nation’s 160th largest commercial fleet, in fact. Delivering 94 million cases of wine and spirits per year takes lots of trucks and drivers, all of whom must be appropriately licensed, and it’s these sorts of LP challenges that Dummett faces on a daily basis.

SEPTEMBER - OCTOBER 2012

Common logic would dictate that if a distributor like Southern Wine & Spirits had certain LP issues peculiar to their business, then the retailers of the same products ought to have the same issues. In fact, that couldn’t be further from the truth. The considerations at the retail level tend to tip the scale in favor of issues like selling alcohol to minors and theft and pilferage as opposed to logistical issues. No one knows more about the sorts of LP issues that a large retail alcohol outfit could have more than John Velke, vice president of loss prevention and safety at Total Wine & More. If Southern Wine is a big distribution outfit, then Total Wine is its big retail counterpart, operating eighty-plus superstores in thirteen states and employing over 2,000 people. On average, Total Wine’s stores are approximately 25,000 square feet in size, boasting 8,000 types of wines, 3,000 types of spirits, and 2,500 types of beers per store, not to mention things like walk-in humidors. To get an idea of how really big these stores are, consider that each store stocks over 100,000 individual bottles. Total Wine & More is a place where the rubber meets the road in alcohol sales—the place where the consumer shops. And Total Wine attracts lots of consumers, considering they do things like wine-tasting events and also that most stores have a meeting room that they offer free to local organizations. As a retail store, Total Wine is quite a bit more cognizant of theft and pilferage than a purely wholesale outfit like Total Wine & More stores stock as much as 100,000 bottles of wine, beer, and spirits.

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ALCOHOL RETAILING Southern Wine has to be, but that’s not their core LP focus. “We are highly focused on not selling alcohol to minors,” states Velke unequivocally. “To me, selling a bottle of something to a minor is a much bigger deal than having a bottle of Grey Goose go missing.” In a twist really only peculiar to the alcohol industry, illegal sales are much more of a consideration than theft. To get an idea of how serious a potential problem this is to Total Wine, consider what awaits liquor stores who sell to minors. On average, the cashier who sells the goods can be cited with a misdemeanor, and the store can face up to a $2000 fine for the first offense. A second offense can run between $5,000 and $25,000 in fines, and the store could be shuttered for three days. A third offense might shut the store for a month all the way up to a year…a thought that no doubt makes Velke’s skin crawl. The lost sales this represents are far, far greater than any theft even an organized retail crime (ORC) team could exact upon a store. No amount of shrink would compare to a store being shut down for any period of time, so that is where Velke puts his LP emphasis. “We don’t even let minors in the store,” says Velke. “If two people walk into the store and one is 22 and one is 19, we will ask the 19-year-old to leave.” It’s that serious of a consideration for Total Wine, and thus far they have done exceptionally well following this methodology. All alcoholic beverage retailers are subject to occasional police stings where police cadets are sent into stores in an attempt to buy alcohol. Velke and Total Wine recognize and

John Velke (right), vice president of loss prevention and safety at Total Wine & More, speaks with Selamawit Tekeste in their McLean, Virginia, store.

support these efforts to keep alcohol out of the hands of minors. Velke says, “It helps to keep us on our toes and reinforces our commitment to be responsible corporate citizens.” As far as conventional retail store LP considerations go, Velke has all of those as well. Employee theft is particularly low, mainly because of the age of the workers. “They have to be over 21, so we just don’t see much internal theft because the maturity level is there,” says Velke. As for customer theft, Total Wine is relatively low in that category as well. Besides the usual tactics such as cameras and

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ALCOHOL RETAILING single entrances, Velke relies on a network of on-the-floor sales associates to keep an eye on things. Total Wine has more sales reps on the floor than your average liquor store. It’s part of the culture to have helpful representatives handy to assist customers with purchases, and their mere presence deters many thefts. Because of the number of sales reps present, Velke also doesn’t overemphasize the use of locking devices. Total Wine does not use security caps or other product-protection devices on the bottles. In fact, Total Wine is one of the few places where you will see high-theft items like Patron tequila sitting unsecured on shelves. While in the past, Total Wine has been the victim of professional thieves, Velke notes that there is one facet of theft in his stores that is peculiar to the alcohol industry—“casual shoplifters are predicable; they steal what they like to drink.” Velke notes that when they do encounter theft, they often see a pattern emerge of a certain type of alcohol that goes missing, essentially being stolen over and over again as the thief runs out of it. They come to steal the same bottle much as a normal person goes to buy it when it runs out. “We have an edge when it comes to stopping shoplifters. We know if we are losing something,” Velke says.

Liquor Barn

In a different segment of the same industry, Kentucky-based Liquor Barn is a rapidly growing regional liquor retailer. Originally founded in the 1980s with just twelve locations all within Kentucky, Liquor Barn only recently started

thinking about loss prevention. The company’s burgeoning LP department really started picking up steam in late 2009 when Brian Rachford, CFI was hired to lead their loss prevention efforts. Liquor Barn’s typical store is 30 to 40,000 square feet and features over 8,000 types of wine, 3,000 types of beers, “the largest selection of Bourbons in the world” according to their Brian Rachford, CFI website, as well as party supplies heads LP for Liquor Barn. and a humidor. Some stores even have full-service delis as well as a “growler wall,” where up to forty beers are on tap and available to customers as paid samples. Started as a small regional store, the need for loss prevention was only recognized when the company was sold to a large international liquor company and Rachford was brought on. It seems that each segment of the liquor industry has its own, odd LP considerations, and Rachford’s stores are no exception. “Consumption is one of the things we really look out for,” he says, in reference to the stores equipped with the growler walls and with dozens of beers on tap.

SEPTEMBER - OCTOBER 2012

continued on page 22

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ALCOHOL RETAILING continued from page 20

Rachford goes on to explain that consumption of alcohol on the premises is just as big of a consideration for the employees as it is for the customers, so he has put detailed procedures in place to measure the amount of beer in the kegs and ensure that it matches up with sales records. “I had large holes I had to plug when I was brought on,” he says. While Rachford doesn’t have the luxury of having teams of store detectives in a company as small as Liquor Barn, he does work closely with his store managers to tighten things up and has started the ball rolling in implementing some industry-standard loss prevention practices, firmly bringing Liquor Barn into the

Rachford’s efforts are having a positive effect on Liquor Barn. The company has recently opened two new stores. The company’s future is showing healthy, strong revenue growth, while at the same time, shrink is heading in a downward direction. The alcohol industry is really unlike any other industry out there, peculiar in its extreme governmental control. Yes, tobacco has some of the same sorts of onerous laws, but when was the last time you saw a chain of 80-plus retail stores of 25,000 square feet selling only cigarettes? Retail and wholesale alcohol outfits put a peculiar slant on traditional loss prevention considerations, and amazingly, they have completely different focuses based on how big they are and the market segment where they focus. If there is one rule within the alcohol industry with respect to LP, it’s that there is no rule. They each have their own areas of concern. From a big distributor who doesn’t much worry about theft, to a small retail chain that keeps theft in its sights, and all the way to a large retail outfit whose main concern is the legality of its sales, the liquor industry is an incredibly diverse LP landscape. The “growler wall” at Liquor Barn offers customers the opportunity to sample up to forty draft beers.

Liquor Barn, a Kentucky-based regional retailer, advertises “the largest selection of Bourbons in the world.”

contemporary LP world. Considering that Liquor Barn had essentially no loss prevention program prior to two years ago, they’ve come a long way in a short time, introducing high-end camera systems, cash controls, and inventory controls to their growing business. Theft is a very real concern for Liquor Barn and is on the forefront of Rachford’s LP efforts. “We’ve caught people from local restaurants with shopping lists of things to steal,” says Rachford. Professional boosters are also a concern, and Liquor Barn has experienced its share of multiple bottle thefts that significantly affect the bottom line, considering how expensive most wines and spirits are. To that end, Rachford has introduced Alpha S3 bottle caps into his stores, recently switching to the clear cap version of these devices on most of his inventory. Rachford believes that the clear caps are less obtrusive and allow most of the bottle to be seen, thus allowing the ever important visual aspect of letting consumers see the whole product. While some professionals may be able to remove the Alpha caps, “the average thief will basically destroy the bottle trying to get the cap off,” states Rachford. Rachford has also experimented with moving certain products to a more secure location. “Some things had to be locked up,” he says. However, that resulted in the age-old loss prevention dilemma, “when I put something behind a counter, sales drop.”

SEPTEMBER - OCTOBER 2012

ADAM PAUL is a business writer based in Los Angeles, California, and an ongoing contributor to LP Magazine. He can be reached at AdamP@LPportal.com.

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“I’m certified. Here’s why.” Sandy Chandler, LPC, CPP Regional Director, Loss Prevention Rite Aid Corporation

With the evolution of our profession, it is imperative that retail LP professionals become true business partners. Whether you are a seasoned LP professional or just starting out, the Foundation certification courses have valuable content to meet that goal.

These courses contain a wide range of subject matter that validates our ever-changing roles, showing how valuable our position is to our retail organizations. The LPC allowed me to become more proficient on some subjects not previously utilized. For example,

“I have a job. Why do I need certification?”

Certification not only prepares you for the future, it helps you when you need it most—in your current job. Certification refreshes and validates your knowledge base while teaching you critical business expertise to roundout your skill set. It not only covers key components of loss prevention, it teaches you solid business skills to prepare you for your next promotion. “Yeah, but…” “It costs a lot.” Certification is very affordable and can even be paid for in installments. It is one of the best investments you can make for yourself and will pay for itself over again as you advance in your career. “I don’t have the time.” Certification was designed by seasoned professionals who understand the demands on your time. The coursework allows you to work at your own pace and at your convenience. Everyone is busy, but those who are committed to advancement will find the time to invest in learning. “I’ve never taken an online course.” The certification coursework is designed with the adult learner in mind. The online courses are built in easy-to-use presentation style enhanced with video illustrations to elevate comprehension and heighten retention. “What if I fail?” Both the LPQ and LPC certifications have been accepted for college credit at highly respected universities, and as such, passing the exam demands commitment and study. However, the coursework includes highly effective study and review tools to fully prepare you for the exam. In the event you fail the exam, you can review the coursework and retest after 30 days. “Okay, how do I get started?” It’s easy to get started. Go online to sign up at www.LossPreventionFoundation.org. If you need help or want more information, contact Gene Smith at Gene.Smith@LossPreventionFoundation.org or call 866-433-5545.

the compliance module enhanced my expertise, giving me an edge in our highly regulated retail environment. In order to promote career knowledge and advancement, the Rite Aid LP department endorses both the LPC and LPQ courses, and selects key personnel every year to receive scholarships. Why?

Because these certifications provide the business skills necessary to maximize our contributions, not only within our department, but to impact the company on multiple levels, substantiating a higher return on investment and further advancing our industry through continued professional development.

ACADEMIC VIEWPOINT by Richard C. Hollinger, Ph.D.

2011 NRSS Overview W

e are now in the process of completing the 2011 National Retail Security Survey (NRSS) Final Report for publication on the web. I presented some of these preliminary results at the National Retail Federation LP conference in New Orleans in June as the data collection was not yet complete. Since then a few more questionnaires have been submitted. As a result I now have final statistics to share with LP practitioners. One hundred and one retail chains responded to this year’s on-line survey with either full or partial information. The average retail shrinkage percentage for this year was 1.42 percent. This shrinkage percentage is the lowest number ever observed in the twenty-year history of the NRSS.

The average retail shrinkage percentage for this year was 1.42 percent. This shrinkage percentage is the lowest number ever observed in the twenty-year history of the NRSS. Based on retail sales in the year 2011, this means that shrinkage losses cost a total of $34.78 billion. Based on retail sales in the year 2011, this means that shrinkage losses cost a total of $34.78 billion. Shrinkage percentages continue to decline, but since total retail sales have increased, the dollar loss does not decrease correspondingly. In other words, even as we get better at controlling retail loss, the dollar impact remains substantial. To the right are listed the above- and below-average 2011 NRSS shrinkage rates for the major market sectors studied. All of these statistics will soon be included in the 2011 National Retail Security Survey Final Report. When the twentieth Final Report is completed, it will be published on-line and made available to all retail LP professionals. The availability of the Final Report will be announced in the magazine’s weekly newsletter and social media channels.

Dr. Hollinger is a professor in the Department of Sociology and Criminology & Law at the University of Florida, Gainesville. He is also director of the Security Research Project, which annually conducts the National Retail Security Survey (soccrim.clas.ufl.edu/criminology/srp/srp.html). Dr. Hollinger can be reached at rhollin@ufl.edu or 352-294-7175. © 2012 Richard C. Hollinger

Above-Average Shrinkage Sectors

S upermarket and Grocery—2.54% ■ Crafts and Hobbies—2.17% ■ Auto Parts, Tires, and Accessories—1.85% ■ Specialty Children’s Apparel—1.71% ■ Optical—1.66% ■ Men’s and Women’s Apparel—1.61% ■ Discount and Mass Merchandise—1.55% ■

Below-Average Sectors

2.54% 2.17% 1.85% 1.71% 1.66% 1.61% 1.55%

■

0.52%

■

0.53%

J ewelry—0.52% Convenience Store and Truck Stop—0.53% ■ Office Supply—0.61% ■ Home Furnishings—0.96% ■ Home Center, Hardware, and Garden Supply—1.00% ■ Sporting Goods—1.02% ■ Shoes and Footwear—1.04% ■ Drug Stores—1.16% ■ Accessories—1.18% ■ Women’s Apparel—1.23% ■ Department Stores—1.35%

Sources of Shrinkage

0.61% 0.96% 1.00% 1.02% 1.04% 1.16% 1.18% 1.23% 1.35%

The various sources of shrinkage by percentage loss remain relatively unchanged from previous years. Following are the final statistics. Note that the percentages do not total 100 percent exactly due to rounding. 43.9% ■ Employee theft—43.9% 35.7% ■ Shoplifting—35.7% ■ Administrative 12.1% error—12.1% 5.0% ■ Vendor fraud—5.0% 5.5% ■ Unknown—5.5%

SEPTEMBER - OCTOBER 2012

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Coming Soon

The 1st Global Organized Retail Crime (ORC) Conference

March 25-26, 2013 | Bellagio Hotel | Las Vegas, NV Sponsored by USS ORC Foundation

Let’s Get Serious About Your ORC Battle Join us at the First Global ORC Conference and be motivated, energized and educated by stimulating in-depth presentations by renowned ORC authorities on: • • •

Trends Theft methods Prevention

• • •

Rudy Giuliani is an American statesman who served as mayor of New York City from 1994 to 2002 and was credited with cracking down on crime in the city and mayor during the September 11th terrorist attacks in 2001, he drew widespread praise for his leadership during the crisis and subsequently ran for president on a national security platform in 2008.

Investigation Legislation Working with law enforcement

And, if that’s not enough, former New York City Mayor Rudolph Giuliani will kick off the conference as our dynamic keynote speaker. Don’t miss the ultimate game-changer in the battle against ORC.

One of The Most In-Depth ORC Events Ever Held

More information to follow.

www.ussorc.org

The site will continually update with conference information as speakers

800.488.9097 | www.ussorc.org

The Global ORC Conference is open only to professionals combating organized retail crime. Preregistration is mandatory.

PARTNERING WITH RETAILERS

The new LERPnet2.0 system was demoed at the NRF loss prevention conference in Dallas in June. For those who are unfamiliar with the concept, LERPnet2.0, which stands for Law Enforcement Retail Partnership Network, is a web-based platform that permits retailers to report, share, and analyze their theft and critical incident data. It is designed to be the national standard for sharing retail crime information in a secure and confidential manner. The premise is that incident details may be shared with law enforcement while retailers take advantage of access to the aggregated data with sophisticated query tools. The retail community has successfully collaborated to meet a common challenge. Specifically, the LERPnet2.0 project launched from the collective commitment, relationships, and efforts of FMI, NRF, RILA, and Verisk Crime Analytics. The LERPnet2.0 project, initiated in October 2011, is ahead of plan in regards to industry adoption and is attracting a number of major and regional retailers as active participants. The data-share houses more than 100,000 logged incidents and is building the groundwork for extraordinarily valuable statistics that will guide retailers in a wide variety of strategic decisions. Following our initial exposure to LERPnet2.0 in Dallas, we sent an invitation to Verisk Crime Analytics to visit with us at our corporate office in Salt Lake City. That invitation resulted in a meeting with the managing director of LERPnet 2.0, Johnny Custer. We walked through a detailed demonstration of the many features available in LERPnet 2.0, learned about functionality and product road maps, and discussed team strategy to increase collaboration between the retail loss prevention network and law enforcement. Custer explained that an advisory board that includes LP leaders from more than twenty unique retailers drives the ongoing project strategy. The creation of a Law Enforcement Council was also recently announced to develop requirements and encourage participation from this valuable affiliation/alliance. The Law Enforcement Council is working to create an interface specifically for law enforcement that will enable officers to gain quick and easy access to the powerful alert and search functions of LERPnet2.0. One compelling feature of the system design centers on each retailer’s ability to work within a peer group, which is a selection of retailers that share similar 28

by Dave DiSilva

merchandise, store structure, or client base. Such a feature permits retailers to focus on issues, vulnerabilities, and opportunities unique to their particular segment. This will help focus analytics on similar data sets to illuminate related patterns in robberies, burglaries, thefts, and organized retail crime (ORC). Active peer groups are currently in place for grocery, do-it-yourself (DIY), specialty, sporting goods/outdoor, pharmacy, and mass merchants. Each retailer can choose to limit or broaden the segment of other retailers that have the ability to share their data, and the system permits the user to control the specific shared data fields.

Dave DiSilva is a member of eBay’s Global Asset Protection team.

If you are looking for a low-cost solution that will help you combat ORC crime, strongly consider LERPnet2.0. The catch…and it is more than reasonable…you cannot participate if you do not share data.

We were impressed and hope to help move this important industry initiative forward. So, on August 28, 2012, eBay proudly announced a strategic alliance with the Verisk Crime Analytics Law Enforcement Retail Partnership Network (LERPnet2.0) to help fight retail crime, including counterfeiting, burglary, robbery, and ORC. Teams from both companies are committed to sharing their expertise to further leverage LERPnet2.0 in the interest of empowering retailers and law enforcement with powerful crime-fighting data and analytics. If you are looking for a low-cost solution that will help you combat ORC crime, strongly consider LERPnet2.0. The catch…and it is more than reasonable…you cannot participate if you do not share data. We encourage you to participate, as the value to all increases with each new member. For more information check it out at lerpnet2.com.

SEPTEMBER - OCTOBER 2012

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INTERVIEW

The Need to

REINVENT LOSS PREVENTION The Success Story of Belk’s Bob Vranek By James Lee, LPC, Executive Editor

INTERVIEW EDITOR’S NOTE: Bob Vranek has been vice president of loss prevention at Belk, Inc. based in Charlotte, North Carolina, since 1992. He began his retail loss prevention career in 1972 as an investigator for Mervyn’s where he worked for ten years. He moved to Maison Blanche in 1982 to serve as director of LP for ten years. Significantly, Vranek earned his bachelor’s degree in business administration in 2000 while running the LP organization at Belk. He has served eighteen years on the LP advisory committee of the National Retail Federation. EDITOR: For those people outside

the Southeast, what is Belk? VRANEK: Belk is a department store chain with 302 stores in sixteen Southern states from Maryland to Florida to Texas. We also have a very robust presence online at belk.com. Our brand is built on our new tagline—Modern. Southern. Style. About half of our stores are very similar to a full-line Macy’s or Dillard’s. The other half are more upscale and similar in size to a jcpenney or Kohl’s. EDITOR: You can’t find Belk on

the New York Stock Exchange. VRANEK: Correct. Belk is the nation’s largest privately owned mainline department store company. That gives us the flexibility to invest in the business, but holds us accountable to the same standards as a public company. The third generation of the Belk family is now running the company. They have done an incredible job of modernizing and bringing the business up to current technology and standards. EDITOR: The history of Belk is

quite fascinating, not only as a retailer, but for the family’s charity and civic contributions. VRANEK: We’re celebrating our 125th anniversary next year and plan a major celebration for that. Over the years the Belk family has contributed much to the growth of Charlotte, North Carolina, and the Southeast in general. It’s very common to see the Belk name attached to buildings and educational programs at major universities throughout our markets. There’s even a freeway named for John Belk, a past chairman of the company who also served several terms as Charlotte mayor. Last year, the company and its associates, customers, and vendors

In those smaller stores, we’ve always had management and store associates who are very interested in protecting their stores. In the past when they saw something suspicious, they might go up and provide customer service to the person, or they might just walk away because they knew we wouldn’t allow them to make a shoplifting stop. Now, with the remotemonitoring team, they’ll call in to alert the RMC to a situation, and the remote camera team will take over. They’ll watch the situation all the way through and then get back to the store to say, “We saw this. We’re ready to make an apprehension.” Or, “we followed them and nothing happened.” In either case the store now feels that they’re being helped, which raises the attitude in the store that they’re able to control shortage. contributed over $18.3 million to local communities, including $5.1 million to over 200 nonprofit organizations with a focus on education, breast cancer research and awareness, and community strengthening. EDITOR: If I’m not mistaken, you have

been vice president of LP at Belk for twenty years, which is a significant accomplishment. There are not many LP executives who have kept their job for that length of time. How have you managed to do that? VRANEK: Belk has changed dramatically over the years, and the LP department has evolved SEPTEMBER - OCTOBER 2012

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dramatically with those changes. We have literally reinvented ourselves three or four different times. So, I’ve not been running the same program for twenty years. The program we run now looks nothing like the program we originally started with. If we hadn’t changed LP as the business changed, I likely wouldn’t still be running the LP organization. EDITOR: How is LP currently

organized to serve the two different types of Belk stores? VRANEK: Our stores range from small boxes of 40,000 to 50,000 square feet up to large four-floor, full-line department

INTERVIEW store boxes of 330,000 square feet. Smaller stores have no LP staff in them. A mid-size store would start off with a single LP associate, and then move to a LP manager. Our larger stores could have an LP manager with five or six LP associates. EDITOR: Who do the stores report to? VRANEK: There are regional LP managers

who are responsible for roughly $200 million on average or about twelve stores. These regions can vary widely based on geography and store size and volume. Next step up we have three division LP managers based in Birmingham, Atlanta, and Raleigh. EDITOR: As an LP manager in a Belk

store, what do I have to deliver to earn an outstanding review? VRANEK: Thirty-five percent of our LP managers’ review is tied to inventory shortage. There’s a broad spectrum of what good performance means there, but we want them to focus on the ideas and issues that drive shortage down. We don’t want to be focused on apprehensions. That certainly is part of the job, but the focus needs to be on the end result, which is profitability

for the company. The key to their success is partnering with store management. EDITOR: Shrinkage at Belk has

been coming down steadily year after year, correct? VRANEK: Yes.

EDITOR: What do you attribute that to? VRANEK: First and foremost, we have a

great loss prevention team with very low turnover. The division LP directors are outstanding. The regional managers are experienced and very strong. We have a mix of both individuals who have been developed internally, as well as others we’ve brought in from the outside. It’s a diverse, focused group of people who have been able to deliver results. Second, we have had management’s support to bring in new technology. Currently we are one of the leaders in remote monitoring. We were certainly one of the leaders in developing exception reporting. And we were one of the first department stores to go chain-wide with EAS. Probably because we don’t have the resources that a company

LP MAGAZINE | SEPTEMBER - OCTOBER 2012

like a Target would have, we’ve been innovators in leveraging the key technologies that drive down shortage. EDITOR: And you are doing that with

a relatively small corporate staff. VRANEK: Because our people are primarily in the field, we push a lot of the program out to the divisions and the regions. Centrally, I have two key leaders. One focuses on technology systems—everything from XBR to background screening to the 800 line. The second person focuses on the equipment, such as cameras and alarms, making sure remodels are done right, that type of thing. Also, we have a logistics team that focuses on e-commerce and the distribution centers. EDITOR: You were one of the first to

get into remote monitoring. Why did you believe remote monitoring would work for Belk, and what results have you generated? VRANEK: When you have a big-box store with camera systems, EAS, an LP manager with several LP associates in it, the shortage focus is there. When you consider the other end of the spectrum, you have a small store

INTERVIEW with no LP team and a store manager who wears fifteen different hats, it’s no wonder you can have high shortage. As we looked at that situation, we started a dialogue of what we could do short of adding LP headcount into the stores. At that point in time there were a few companies in the convenience store segment that were starting to use remote monitoring, primarily for robbery prevention and audit purposes. We thought we could build an LP program on that technology. We started with sixteen stores and have grown to 135 stores this year. We’ve seen a reduction of shortage in the first year of over 30 percent, and we’ve seen a follow up reduction the second year of about 20 percent. So, it clearly pays for itself. EDITOR: Explain how the monitoring

deters external theft. VRANEK: In those smaller stores, we’ve always had management and store associates who are very interested in protecting their stores. Once we gave them a tool with a professional LP person who can assist them, they became empowered to protect their stores. In the past when they saw something suspicious, they might go up and provide customer service to the person, or they might just walk away because they knew we wouldn’t allow them to make a shoplifting stop. Now, with the remote-monitoring team, they’ll call in to alert the RMC to a situation, and the remote camera team will take over. They’ll watch the situation all the way through and then get back to the store to say, “We saw this. We’re ready to make an apprehension.” Or, “we followed them and nothing happened.” In either case the store now feels that they’re being helped, which raises the attitude in the store that they’re able to control shortage. EDITOR: What about on the internal

theft side? VRANEK: When we started remote monitoring, there was nobody in the industry to ask about how to use the technology to impact shrink. The original thought was to leverage the building security team here to focus on shoplifting. In the first three or four months of the program, we were making the calls, touching base with the store, doing all the things we wanted, yet we were not making apprehensions. However, when the January inventory rolled around, inventory shortage in those stores plummeted. We

Belk has changed dramatically over the years, and the LP department has evolved dramatically with those changes. We have literally reinvented ourselves three or four different times. So, I’ve not been running the same program for twenty years. The program we run now looks nothing like the program we originally started with. If we hadn’t changed LP as the business changed, I likely wouldn’t still be running the LP organization. determined it was because of the connection and communication we had with those stores. The RMC was calling a store saying, “Would you check the fitting room? We’re watching your store tonight.” Now, the sales associates in a small store who were used to a store manager going home at 6:00 and running their own ship until closing were now looking at the ceiling saying, “You mean somebody actually watches those cameras?” It had a tremendous impact.

even though there is no LP person in the store. Plus, we randomly focus on stores to keep the message fresh. We talk to about a half dozen stores a day and tell them, “In your morning meeting, would you emphasize the fact that remote’s focusing on your store today?” The focus may be on shoplifting, but, it also gets the message out that we really are watching the store, and it’s not a good idea to steal from us.

EDITOR: So, the mere fact that your

initiatives have you put in place that helps drive down shrinkage? VRANEK: Exception reporting would probably be the second one. Not to dwell on ancient history, but we were really one of the first retailers to take exception reports from a list of associates to adding some analytics behind it.

associates knew you were focusing on their stores made an impact. VRANEK: Absolutely. If you think about these stores that are typically in smaller towns where everybody reads the local weekly newspaper, we run press releases about the remote-monitoring center to let customers know we have a program. We train management and associates through our awareness program to ensure that everyone knows that we’re supporting them SEPTEMBER - OCTOBER 2012

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EDITOR: What other technology

EDITOR: Who did you start working with? VRANEK: We did it internally because back

in the early 90s there were no viable vendors

INTERVIEW to outsource to. Getting back to the fact that we were a collection of both small specialty stores as well as large department stores, we tried to compare stores with 600 associates to a store with fifty. It just didn’t work. We had to use statistical analysis and find ways to really make an exception report more than a list. We couldn’t say, “Give me the top fifty people.” We had to say, “Give me the three people that I really care about.” And, when we did that, it was revolutionary. Now, of course, everybody does it—XBR, Aspect, and Retail Expert—all of the others do it. But back then, probably eighteen years ago, the vendors were sitting in the back of the room jotting notes, coming up afterwards asking us questions. EDITOR: Fred Wilson at Circuit City

is the only other company I know who was doing anything similar. VRANEK: Fred was certainly an innovator in LP and also a friend. There was a subtle rivalry to see who could get there first. Everybody was trying to find that silver bullet with exception reporting, and we

all had to work through our in-house IT people, as they had the programing expertise. We used our own programs for six or seven years until the outside technology providers passed us to the point where we couldn’t keep up. That’s when we made the switch and leveraged our knowledge into their tools. EDITOR: Speaking of solution providers,

in the vendor world Bob Vranek has a reputation for being a challenging, demanding buyer. Having said that, what are the things that you look for from a supplier that would cause you to have discussions with them? VRANEK: The term “solution provider” has become a buzzword, but a lot of vendors don’t live up to that term. I don’t necessarily care if I buy a yellow or a green tag or something with or without a wire. I have a problem I want to solve, whether it is a better way to secure handbags or sunglasses, or getting a remodeled store up and running as quickly as possible. I can buy a widget from 150 people. I

LP MAGAZINE | SEPTEMBER - OCTOBER 2012

need someone who can come to me and solve my shortage problems. The second thing I need is someone who will step up and help shoulder some of the load. We’re not structured to have people check boxes and manage vendors. When a vendor makes a commitment, they need to follow through. If they’re going to install a camera, it needs to be installed on time and done right the first time. If we’re buying a product, it needs to be delivered where and when it’s supposed to be, in the condition it’s supposed to be in. It needs to provide the results that were committed to in the original order. EDITOR: Would you provide examples

of what you are describing? VRANEK: I’ll mention two pretty easy ones. A few years ago we bought three-alarm handbag tags from Alpha. If you cut the wire or try to break the tag or take it out the door, it goes off. They came back to us and said, “We found out in some specific situations that the battery on these tags won’t last as long as we committed to you. In others situations it will, but we’re not

INTERVIEW going to take a chance. We want to replace them all.” And, they did. They replaced every one of them on the off chance that some of the batteries wouldn’t last as long as they had committed to. That’s impressive. And we are very loyal to them because of that.

team, it’s made up of men, women, multiple races, lawyers, business people, and operators. There’s an incredible diversity of experience with a wide range of ideas and thoughts that has been a tremendous benefit to building a modern loss prevention culture.

EDITOR: What’s your other example

EDITOR: Those are certainly positive

of a good vendor partnership? VRANEK: The ADT…now Tyco Integrated Solutions…team has worked with us on the remote monitoring system to get those Intellex boxes, which are networked digital recorders, to do something they really weren’t designed for. Tyco’s American Dynamics division has done a great job on that. They have provided engineers and development support way beyond what is expected when you buy a piece of equipment. That’s what we’re looking for—people who will step up and help us get things done. EDITOR: As a veteran LP executive,

changes. What about the not so positive? VRANEK: Budget pressures. It wasn’t that long ago a 40,000-square-foot store would have two or three LP people in it. Now, that same store is unlikely to have any loss prevention personnel. That’s the negative. The positive is we do a lot of things with technology now that we never could have done before. EDITOR: Let’s switch gears and

what is your view of the evolution of retail loss prevention over the past ten or twenty years? VRANEK: Certainly one of the most noticeable changes in our industry is the pure professionalism of the LP team. Everyone acknowledges that we’ve moved past the focus on catching shoplifters—the old cops-and-robbers mentality. We go through cycles. We’ll focus on shoplifting, then it’s on internal theft, then it’s to ORC. In a year or two, I think we’ll be talking about the omni-channel challenges that will have remade our retail operations and opened up new vulnerabilities for us to manage. The LP team we had twenty years ago couldn’t handle the current challenges today. They couldn’t understand the technology. They wouldn’t be able to master the technology and develop the tools we would need to control losses. Not so with the people we have now. They are very professional. They understand the inventory systems. They understand the technology. I have a great deal of confidence in them dealing with unusual situations and being able to step in and drive shortage down. EDITOR: How about from a more

global standpoint? VRANEK: There is much more diversity throughout the industry. When I started, the senior LP leaders were primarily ex-law enforcement. Now when you look at that

talk a little about how you got started in loss prevention. VRANEK: I graduated from high school and had just started at a local community college when Mervyn’s was opening their ninth store in Alameda, California. I guess you can say my loss prevention career started as a men’s sales associate/fitting-room checker. That was my first exposure to loss prevention. I worked at Mervyn’s for nine years and rose through the ranks to become an investigator for them. Next, I moved to Maison Blanche as the director of LP in Baton Rouge, Louisiana, and eventually became the VP of asset protection for them. EDITOR: What happened to Maison Blanche? VRANEK: Along with many other department

stores over the last few decades, they were hurt by the recession associated with the first Gulf War. They were bought by Mercantile Stores in 1992, which eventually was bought by Dillard’s. EDITOR: Did you find yourself

without a job at that point? VRANEK: I did. I was unemployed for exactly two days. I left Maison Blanche on a Friday and started at Belk on the following Monday. EDITOR: Given so many executives

go months or years without finding a new position, how were you able to accomplish that? VRANEK: From the time we knew that the company was being sold to the point where they were going to close the offices, we had four or five months

SEPTEMBER - OCTOBER 2012

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to start the process. Fortunately for me, the timing just worked out well. EDITOR: What was your attitude

when you started the process? VRANEK: Two things that I realized when I started looking is, one, the fact that the company was going out of business was not a reflection on me personally. The second thing is don’t take rejection personally when you’re applying for jobs. There will be companies that just don’t have a position and companies where you’re not a good fit. Back then you received rejection letters; I saved them and had a stack six inches high. Now companies don’t even send letters anymore. As you go out and approach companies, if you don’t receive any information back or you’re turned down for a job, you can’t take it personally. EDITOR: When you started at Belk on that

Monday, was there an LP organization in place or did you build one? VRANEK: There was a secretary, one assistant, and myself. That was the program. A few stores had security people, but there was no regional or divisional structure. The person who had my position prior to my arriving was the former chief of police for Charlotte, who came in and ran things for almost a year. EDITOR: How did you start the changes? VRANEK: We started by placing a few people

centrally to prove what LP professionals could do. Then we started building a field structure, which was a real challenge because of the company structure twenty years ago. When we started, Belk was not a single corporation, but seventeen operating divisions with many separate corporations. They were truly separate companies with separate stockholders. As the company grew and merged, we built and rebuilt our structure to mirror the changes within Belk. As I mentioned in the beginning, I think the secret here has been reinvention. You can’t build a program in any company and sit back on your laurels. If you aren’t constantly willing to reexamine and reinvent yourself and your organization, the company will pass you by and rightly so. EDITOR’S NOTE: See more of our

interview with Bob Vranek on the magazine website, LPportal.com, along with a video of him in the Belk remote monitoring center.

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ASSOCIATIONS IN ACTION By Jim Forlenza

Food-Service Security Annual Conference T

he National Food Service Security Council (NFSSC) recently completed its 33rd annual conference at the Hyatt Regency Baltimore, August 5 – 8, with more than 250 attendees and 65 vendors exhibiting products and services aimed at keeping restaurant workplaces safe and secure. The event was highlighted by executive keynotes from Charlie Strong, U.S. division president of McOpCo, and Bill Boddie, president and CEO of Boddie Noell Enterprises. Strong spoke to the importance of loss prevention professionals in the quick-service restaurant industry and specifically noted the role of LP in the success of all McDonald’s operations. “Without the efforts of professionals in this room,” stated Strong, “McDonald’s could not continue to move forward with confidence.” Boddie’s remarks focused on the importance of helping employees succeed, and the role that LP plays with this effort. “We empower our people to make decisions and to help others make good choices,” stated Boddie, whose North Carolina-based company runs multiple restaurants, including Hardee’s, Café Carolina & Bakery, Texas Steakhouse, Moe’s Southwest Grill, and others. Industry leaders presented on a number of key topics, including identity theft, credit card and gift card fraud, guns in the workplace, social media and the impact on restaurants, mobile commerce in the restaurant,crime prevention networks, exception-based reporting, and smart safes among other topics. Many of the sessions can be viewed at the association’s website, NFSSC.com. LP and risk management professionals who attended the event expressed appreciation for the quality of the agenda and networking opportunities. “This was my first conference with NFSSC and comparing it to other related conferences, this event offered excellent value with its restaurant-specific educational sessions,” noted Anne Sullivan, director of loss prevention for CKE Restaurants, which owns, operates, and franchises restaurant brands Carl’s Jr., Hardee’s, Green Burrito, and Red Burrito. “It’s important that we provide an opportunity for all our members to make themselves better professionals and better practitioners,” added James Brussow of Dave & Buster’s, and newly installed president of the association. “The NFSSC annual

Forlenza is executive director of the National Food Service Security Council (NFSSC), an association that brings together loss prevention, security, and risk management professionals from the major casual-dining, quick-service restaurant, and food-service chains for educational networking, benchmarking, and professional development opportunities. NFSSC members include most of the twenty largest U.S. quick-serve chain restaurants. Forlenza can be reached at 240-252-5542 or jim.forlenza@nfssc.com.

meeting provides education and networking in a truly unique atmosphere. We have worked hard to create an environment where both members and vendors can engage, exchange, and learn from each other. I believe that is what makes this meeting successful.” “As a person who spent the bulk of my life in the restaurant industry, I found the purpose of the group and interactions to be the most refreshing of any such association,” said Ted Whitaker, executive vice president of Identity Stronghold. As executive director of the association, we are extremely excited about the continued growth of NFSSC and the annual conference. This is the fourth consecutive year of double-digit growth for our meeting, and it really underlies the quality education we offer through a number of exciting speakers. Education is the key to our organization and our community.

Bill Boddie, president and CEO of Boddie Noell Enterprises, spoke to NFSSC conference attendees about helping employees succeed.

Other activities at the conference included the introduction of the 2013 board of directors, led by Brussow. Other board members include Winston Griffin of McDonald’s, Chris Manning from Wendy’s, Ted Polensky of Boddie Noell Enterprises, Joe Verber from Taco Bell, and Vince Vittatoe with Bob Evans Farms. Through the efforts of the NFSSC member and vendor participants at the meeting, a check for more than $3,000 was donated to the Maryland Food Bank, a member of the Feeding America program. Next year’s annual meeting will be held August 4 – 7, 2013, at the new M Resort Spa Casino in Las Vegas, Nevada. For more information about NFSSC membership and activities, visit the association’s website, NFSSC.com.

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FEATURE

YOU CAN STEAL IT, BUT YOU CAN’T USE IT

Moving Toward Benefit-Denial Technology By Read Hayes, Ph.D., CPP

LP MAGAZINE | SEPTEMBER - OCTOBER 2012

BENEFIT DENIAL

egardless of the protective progress retailers and solutions providers are making, thieves are still carrying off billions of dollars’ worth of goods annually. While merchandise loss costs retailers huge amounts of money, theft-driven product out-of-stocks, and sometimes locked up goods, it also deters sales to good customers. Happy, buying customers are the lifeblood of retailing. And tragically, many theft attempts create violence, injuries, and crippling “avoidance behavior” by good customers from the fear of crime. Naturally retail loss prevention executives continue to seek more impactful countermeasures.

Evidence-Based Practice

In the very recent past many loss prevention decision makers based their protective strategies and actions on anecdote, gut feeling, and comparisons with other retail companies. But increasingly LP executives are moving to the evidence-based model favored by medical and other high-risk disciplines. Gut feelings can be accurate, but crime and loss, particularly life safety, is too important to be tackled without using good, focused crime prevention tools supported by extensive and rigorous scientific evidence. Predictive modeling, offender interviewing, and randomized field experiments provide that needed evidence. Sound research-supported theory should support the “how to” for best business practices. Good theory is practical, not guesswork. Theory is simply an explanation about how things work; there really is nothing more practical than a good theory. Crime prevention theory is a work in progress, but basically explains how criminals come into contact with desirable, vulnerable targets, and how they tend to behave in differing situations and environments. Theory provides practitioners with the tools to better prevent, discover, and solve crime events. Theory describes how crime prevention tools actually work to affect offender behavior—in other words their “mechanism of action.” Situational crime prevention is probably the most useful and empirically supported prevention theory or toolkit that crime and loss control executives have.

Rational Choice

Most professional disciplines have research-backed guiding principles. Security and loss prevention professionals require similar

support to help practitioners more accurately diagnose problems, as well as describe and deploy appropriate crime prevention treatments. Criminology’s rational choice perspective or theory provides much of what is needed by spelling out how criminals make semi-rational choices about what, where, and how to offend based on opportunities as well as perceived personal risks and rewards. Each person has differing genetic makeups, self-control levels, and social learning experiences. But regardless of these background factors, foreground factors, such as the built and social environment; movement and travel patterns for work, shopping, and recreation; and socialization, also shape behavior in both positive and negative ways. Pretty much everything an individual does is the result of a choice. We do have free will, and deciding to be deviant or to commit a certain crime is a choice, regardless of different biological and social backgrounds. Rational choice theory describes this process so we can shape our deterrent measures. Consider a potential offender walking into a store to steal something. Their heart rate may be up, they may be in a hurry, they may be high, they may not be the brightest intellect around, and they probably tend to underestimate risk or over value rewards like money or peer praise. All of these factors constrain or negatively affect judgment. But they make rational calculations—thus rational choice. Their decisions may not be totally rational, but their decision process has the elements of a rational calculation. They consider opportunity, personal risk, and, of course, personal rewards when choosing what, why, and how to steal. Situational crime prevention is designed to consider each factor offenders look at, and then precisely shape perceptions and reality. The current array of these deterrent measures is compiled in the Situational Crime Prevention matrix described below.

Situational Crime Prevention

Each type and subtype of crime is subtly different, as is each location, meaning crime prevention efforts should be precisely focused on the situation at hand. This is the basis for Professors Derek Cornish and Ronald Clarkes’ situational crime prevention (SCP) toolkit. SCP spells out how practitioners should use a diagnostic process like criminologists’ John Eck and William Spellman’s SARA

Situational Crime Prevention Matrix Increase the Effort

Increase the Risks

Reduce the Rewards

Reduce Provocations

1. Target harden

6. Extend guardianship

11. Conceal targets

16. Reduce frustrations and stress

21. Set rules

2. C ontrol access to facilities

7. Assist natural surveillance

12. Remove targets

17. Avoid disputes

22. Post instructions

3. Screen exits

8. Reduce anonymity

13. Identify property

18. Reduce emotional arousal

23. Alert conscience

4. Deflect offenders

9. Utilize place managers

14. Disrupt markets

19. Neutralize peer pressure

24. Assist compliance

5. C ontrol tools/ weapons

10. Strengthen formal surveillance

15. Deny benefits

20. Discourage imitation

25. Control drugs and alcohol

Source: Adapted from Cornish and Clarke (2003: 90).

Remove Excuses

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BENEFIT DENIAL (scanning, analysis, response, and assessment) model to precisely define a problem, such as commercial armed robbery of a pharmacy for pain drugs versus robbing departing customers in a parking lot. Both are robberies, but each is very different as far as offender motives as well as the hunting, attack, and commission styles. And like evidence-based medical treatments, cost-efficient crime prevention treatments are made possible by detailing situational crime problems. Once the crime event problem is thoroughly described, executives apply indicated SCP techniques. The primary SCP techniques involve making crime attempts more difficult, more risky, and less rewarding. To be effective, preventive interventions don’t have to perfect, or even for real, they just have to convince would-be criminals that theft attempts are too much work, too risky, or not worth it. After deployment, crime prevention interventions are rigorously evaluated to determine their real-world impact and cost benefits.

Benefit Denial Defined

Much of the University of Florida’s Crime Prevention Research Team and the Loss Prevention Research Council’s research team’s efforts are directed at developing and rigorously field testing highly focused crime prevention interventions using the SARA and SCP process. We’re looking at various ways people, programs, and systems are best deployed to deter offenders by increasing their crime effort, making them feel much more at risk of detection and

KEY_002_Final_Outlines.indd 1

“Benefit-denial technology has the potential to positively impact losses throughout the entire supply chain, making products useless unless legitimately purchased. The technology could dramatically change the way retail thinks about everything from shipping to back stock to display. It could drive benefits in transportation costs, insurance, shrink, and ultimately customer costs.” - Tim Fisher, Director of Asset Protection and Safety, Best Buy response, and by helping them sense their contemplated crime attempt will not be rewarding enough. Our research methods include systematic offender interviews in commercial spaces and places to get their perspectives. We want to understand what interventions they see (see it), if they can explain how they work (get it), and how their behavior has been or might

LP MAGAZINE | SEPTEMBER - OCTOBER 2012

2/24/11 11:26 AM

BENEFIT DENIAL be affected by them (fear it). The see it, get it, and fear it factors are essential to deterence. We then make ongoing innovations and adjustments for real-world field evaluation. Our evaluations are usually randomized controlled trials (RCTs) in order to compare crime event or loss levels before and after in test locations compared to non-test control places. RCTs not only provide rigorous impact measurement, but cost-benefit estimates as well. Our teams also examine how long and why it takes crime prevention treatments to reach “therapeutic” levels, peak, and then to lose steam. Critical questions include: ■ What are the best dosage levels, for example, how many camera domes, and ■ What are the optimum deployment tactics, such as best heights, placement, signage, and other factors? We have to better understand why some crime prevention treatments work better in some spots than others. Like medications, crime prevention treatments have varying effects in different locations and on different people. We want to identify and address those critical risk and protective factors that affect differential impact to make impact improvements. Loss prevention practitioners already deploy protective singular and combined techniques to make crime attempts riskier or more difficult. When it comes to making offenders think their contemplated crime act would be too risky, practitioners use many of the following techniques: ■ Employee awareness campaigns, ■ Guards, ■ Store detectives, ■ Lighting, ■ Reporting hotlines, ■ Transactional approval procedures, ■ Exception reporting, ■ EAS, ■ Burglar alarms, ■ Spider wraps, and ■ Safers or Keepers to name a few. Physical barriers, locks, combinations, passwords, cabling, limiting curb cuts, and numerous other tactics increase crime effort. But since crime levels remain at unacceptable levels, loss prevention managers need more tools. And making crime attempts less rewarding is where benefit denial comes into play.

For example, illicit removal of ink tags results in the spraying of dye on the protected garment, thus reducing self-use or conversion to cash. Similarly, the metal clamps damage the items enough to deny thieves and fences any benefit unless removed as part of a purchase. Retailers and security technology companies adopted the benefit-denial term. Likewise, Professor Clarke placed the benefit-denial concept into the rapidly evolving situational crime prevention matrix so criminologists and practitioners would be able to further develop and test this relatively new crime prevention concept. Other more contemporary benefit-denial techniques include cell phones that don’t work until being activated after purchase, car stereos that don’t function if the faceplate is removed, and…an oft-cited example…special hotel hangers with very small hooks or small ball tops that require special racks. In this low-tech example,

Benefit Denial’s Background

Retailers adopted ink or dye tags from Sweden in the late 1980s to protect apparel merchandise, heralding the first known use of benefit denial devices in the U.S. In 1989 the author created the term “benefit denial” when Bob DiLonardo, then of Security Tag, which was later purchased by Sensormatic/ADT/Tyco, requested a term to describe what and how ink tags, and other newly developed metal clamps for eyewear, wallets, earrings, and other jewelry, functioned to reduce theft. Benefit denial seemed to succinctly describe the protective “mechanism of action” that essentially is defined as: stolen goods protected with benefit denial will not benefit the stealer since the goods will not work unless purchased.

SEPTEMBER - OCTOBER 2012

continued on page 44

Benefit Denial to Be Featured at October Workshop

The 8th Annual Impact Workshop of the Loss Prevention Research Council will be held October 15 – 17 on the University of Florida campus in Gainesville. Over a hundred retail LP and vendor executives will gather to hear results of recent research as well as discuss emerging technologies and future research. Following are some of the highlights of the agenda: ■ Leadership panel on innovation featuring John Voytilla, OfficeMax; Brand Elverston, Walmart; Dr. Richard Hollinger and Dr. Steve Kirn, University of Florida; and Ned McCauley, Tyco Integrated Security. ■ Benefit denial, packaging innovation, predictive analytics, and video analytics working group sessions with Shannon Hunter, OfficeMax; Tim Fisher, Best Buy; Carlos Bacelis, Sears Holdings; and Ahmad Lightfoot, T.J.Maxx. ■ Digital journey presentation and roundtable discussions with Don Burkett, Sears Holdings; Ed Weiser, Motorola; and Katie Freiday, The Home Depot. ■ New challenges in loss prevention roundtable discussions on best practices in talent recruitment and development and customer attitudes toward LP facilitated by Danny Sorrells, Walmart. ■ Recent LPRC research results on predictive analytics, open access, and other field research. ■ StoreLab mock-up environment with offenders discussing perceptions of theftdeterrent solutions and tactics. All retailers are invited to attend this workshop. Visit the magazine website, LPportal.com, or the LPRC website, LPresearch.org, for more information, or call or email Corrie Tallman at 352-222-8202, ctallman@LPresearch.org to register. |

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BENEFIT DENIAL continued from page 42

benefit denial does not make stealing hangers riskier or more difficult; rather they make it less rewarding unless the thief steals the rack as well or sells the hangers to other hotels. Some retailers now combine benefit denial with the threat of detection (increasing the risk) by combining ink and EAS tags on high-loss clothing items. The goal of retail is to profitably sell merchandise. The goal of loss prevention is to support that objective in part by creating the ability to sell more while losing less. Open or self-serve merchandise access means more sales and better shopper-retailer relationships. Increasingly senior retail executives realize theft and the fear of theft by store-level managers drives much of modern retailing. Fearful managers striving for year-end bonuses may tend to lock up, hide, or only put out small quantities of items thereby reducing sales. Benefit-denial technologies hold the promise of much more open selling of even very high-value items.

Going to the Next Level

Recently, leading retail chains have banded together to inspire and facilitate benefit-denial technology development. The Loss Prevention Research Council (LPRC) established a Benefit-Denial Working Group headed by Best Buy’s Tim Fisher and Walmart’s Dain Sutherland. The working group consists of over fifteen retail companies, including Lowe’s, Sterling Jewelers, OfficeMax, CVS/pharmacy, and Sears Holdings; security solution providers such as DiSa and Proteqt; and high-loss product manufacturers Abbott Nutrition and Elizabeth Arden. “Benefit-denial technology has the potential to positively impact losses throughout the entire supply chain, making products useless unless legitimately purchased,” says Fisher, director of asset protection and safety for Best Buy. “The technology could dramatically change the way retail

“Benefit denial is an example of a more advanced theft-deterrent, merchandise protection strategy for Walmart. Our focus remains to rely less on mechanical gadgets and to aggressively transition to more customer-friendly and effective measures. This allows us to keep key, high-theft, high-sales items accessible to customers without the inconvenience of having to unlock a showcase or other more restrictive measure.” - Dain Sutherland, Senior Manager of Asset Protection Shrink and Inventory Research, Walmart 44

thinks about everything from shipping to back stock to display. It could drive benefits in transportation costs, insurance, shrink, and ultimately customer costs.” The group has established a mission statement, objectives, and is setting up small pilots to encourage and adjust benefit-denial solutions for a range of products, including optical disks like Blu-ray DVDs, consumer electronics, printer ink, fragrance bottles, jewelry, power tools, and over-the-counter medications. The LPRC benefit-denial working group is also looking at developing a descriptive term for public consumption that reflects benefit denial in a more favorable light. Likewise, the Entertainment Merchants Association (EMA) is leading a group of retailers and electronic media providers, including gaming software developers, movie studios, and music producers, to conduct technical and efficacy testing of benefit-denial technologies in conjunction with the LPRC. Other benefit-denial development efforts include Elizabeth Arden working with the LPRC and several leading drug and mass retailers, as well as with protective solution providers, to look at including benefit-denial technology into fragrance bottles and/or packaging. Further, the Retail Industry Leaders Association’s (RILA) horizons committee is working to define benefit denial as part of a range of product protection solution concepts for further development.

Current Concepts

Several entrepreneurial companies as well as forward-thinking retailers are working on new benefit-denial approaches to product protection. Benefit-denial technology developer DiSa Digital Safety has produced a system that can work within or separately from a retailer’s point-of-sale computer infrastructure. The current, but evolving, version renders electronic good such as cell phones, TVs, mp3 players, cameras, and laptops unusable until a legitimate purchase generates a unique code to activate the unit. Another benefit-denial innovator, ProTeqt Technologies, has fielded a process that employs chemically bonded locks for DVDs, bottle caps, and many other products that lock the item until the purchase process unlocks the item for normal use. Both organizations are working on benefit-denial products for a wide range of product categories. And no doubt many other developers are working away on other benefit-denial concepts for merchandise and other valuable assets. Likewise, Walmart has been working on a proprietary benefit-denial technology for electronic merchandise as well that provides for unlocking or enabling a device at the point of sale or providing an unlocking code on a customer’s receipt. “Benefit denial is an example of a more advanced theft-deterrent, merchandise protection strategy for Walmart,” explains Sutherland, senior manager of asset protection shrink and inventory research. “Our focus remains to rely less on mechanical gadgets and to aggressively transition to more customer-friendly and effective measures. This allows us to keep key, high-theft, high-sales items accessible to customers without the inconvenience of having to unlock a showcase or other more restrictive measure.”

SEPTEMBER - OCTOBER 2012

continued on page 46 |

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BENEFIT DENIAL continued from page 44

Benefit-denial technologies and other emerging solutions will need to work with existing countermeasures, such as protective packaging, Keepers and wraps, special pegs and display fixtures, electronic surveillance and notification, RFID, smart and open store layout and design, and a myriad of other technologies and tactics. These and future benefit-denial technologies will need laboratory and in-store development and testing to make sure they work as advertised, as well as: ■ Don’t interfere with other technologies or electronic signals, ■ Prove durable in demanding retail environments, ■ Are efficient for already over-tasked store employees, ■ Don’t disturb or hinder busy, selective shoppers, ■ Are easily understood and failsafe for customer activation and use, and ■ Prove cost-effective at scale.

Next Steps

As loss prevention and law enforcement move to the evidence-based model, more crime prevention innovations, including benefit-denial concepts, should emerge, truly creating the conditions for selling more while losing less in a safer environment. Benefit denial is not the total product protection answer for all assets in all places. Many store locations are daily exposed to huge theft risk due to surrounding criminogenic conditions. In other situations managers may be less than competent or not committed to strong, ongoing asset protection efforts. Situations like these will require extra help. Benefit-denial technologies and other emerging solutions will need to work with existing countermeasures, such as protective packaging, Keepers and wraps, special pegs and display fixtures, electronic surveillance and notification, RFID, smart and open store layout and design, and a myriad of other technologies and tactics. But at this point, it is encouraging to see that both growing evidence and crime prevention theory all point to the promise of selling more and losing less by making theft less rewarding with benefit-denial technologies. READ HAYES, Ph.D., CPP is director of the Loss Prevention Research Council and coordinator of the Loss Prevention Research Team at the University of Florida in Gainesville. He can be reached at 321-303-6193 or via email at rhayes@lpresearch.org.

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CERTIFICATION

“Service to My Country, Not a Sacrifice” H

By Jacque Brittain

eartfelt and humbling words offered without regret or even a second thought. But from one of the countless men and women who have served our country with honor and dignity through their military support, how could we possibly expect to hear anything less? Long before Melissa Mitchell became a leader in the loss prevention industry, she served her country as a member of the U.S. Air Force. Following a path forged by others in her family, she was driven to serve. From humble beginnings in the farmlands of western New York, Mitchell soon found herself stationed on an Air Force base in Weisbaden, Germany. In the early 1980s, it wasn’t a common occurrence for women to serve in the military. And in the years immediately following the Iran hostage crisis, it wasn’t exactly a popular time to be a U.S. soldier in Europe. But today Mitchell reflects proudly on that important time in her life and remembers the many life lessons that she learned. Confidence, discipline, and humility were powerful messages, but no less important than finding the strength of adaptability, the expression of character, or the rewards of personal and professional balance. She learned that it was important to execute the high standards that had been set, respect the culture where we live and

Those who do return home often face different challenges. With their lives in transition, the unemployment rate for our veterans returning from Iraq and Afghanistan in 2011 was an astonishing 30 percent. This number does not include the thousands who have reenlisted because they couldn’t find civilian employment. Lives are put on hold, and families are struggling. But there are ways that we can help. 48

SEPTEMBER - OCTOBER 2012

Brittain is director of learning design and certification at Learn it Solutions, a division of Verisk Crime Analytics. He has managed the development of the LPC and LPQ certification programs in collaboration with the Loss Prevention Foundation as well as many other learning initiatives. He was formerly the vice president of operations for the industry’s largest executive search and consulting firm. In his thirty years serving the LP industry, he has helped build and enhance many programs and provide career counseling for thousands of industry professionals nationwide. Brittain can be reached at 330-871-4232 or via email at jac.brittain@verisk.com.

serve, and embrace the responsibility that comes with leadership. Those lessons still serve her today as director of loss prevention and inventory control for LifeWay Christian Stores. But Mitchell is not alone.

The Price of Freedom

When America commits to armed conflict, 99 percent of our nation’s citizens are counting on the one percent who serve us in the armed forces. Currently, our country has been at war longer than at any other time in American history. In the time since the terrorist attacks on the World Trade Center on September 11, 2001, more than two million American military personnel have been deployed to Iraq, Afghanistan, or both. More than $1.4 trillion has been spent to fund these efforts. But these costs are dwarfed by a price that reaches far beyond the dollars. Young men and women from across our great country have left behind their lives, their homes, their jobs, and their loved ones to protect our way of life, our interests abroad, and our allies half a world away. Many bear the terrible scars of war, with nearly 50,000 wounded and tens of thousands more live with the emotional pains that haunt their every day. Many others have given more than anyone could ever ask, with more than 6,500 members of the U.S. military sacrificing their lives in Iraq and Afghanistan since the war began. Those who do return home often face different challenges. With their lives in transition, the unemployment rate for our veterans returning from Iraq and Afghanistan in 2011 was an astonishing 30 percent. This number does not include the thousands who have reenlisted because they couldn’t find civilian employment. Lives are put on hold, and families are struggling. But there are ways that we can help.

Another Turning Point

Following the events of 9/11, Thomas Courtney sat in his living room with his mother and father and watched with the rest of us as our world changed forever. As the horrors of war hit our home soil, he felt the tragedy of those events, and the crushing pain watching those towers fall. “All I could think about was what does this mean? What will the future bring? How will the world change?” But while staring into the smoke and chaos that marred that tragic morning, he also witnessed the same courageous and selfless acts of heroism that brought all of us closer together that day. “I felt the injustice that was committed. I then asked myself a question that effectively changed my life—How could I not do my part?” |

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Courtney took some time for self-reflection and to weigh just how he would respond. “Once I made my decision, I got the blessing of my father. I then remember going to tell my mother, who was working on the sales floor at jcpenney. When I told her of my choice, she said to me, ‘I realize your life can be taken, and God can take you home. But it’s your decision, and I’m at peace with that.’” Thomas then left his home and family behind, and joined the Marine Corps. Similar stories have echoed through living rooms across our country over the past decade. While most served as proud moments, not many of them resulted in fond memories. Courtney was deployed for three tours of duty. “I did two tours in Afghanistan. I stood guard at the U.S. Embassy,” he says. “We were tested by the Taliban and others and had to continuously establish and reestablish control. There were constant engagements, but we were also involved in a lot of humanitarian aid working with the Afghan people. We saw the devastating effects that war had on a country that was already devastated by conflict and poverty. The impact on the people. The look on the faces of families…especially children. They didn’t have anything—no running water, shoes—anything.” His story moves from Afghanistan to Iraq. “I also did a tour in northwestern Iraq, dealing with the insurgencies encroaching from Syria. That was even more intense,” he explains. “Road mines, hand grenades, 500-pound bombs being dropped. There were times when I’m sure that I shouldn’t have come home at all. I was very fortunate. It changes your life, your soul, your testimony, your whole outlook. It made me appreciate who I was and gave me a greater sense of purpose. It was hard and very lonely. For my married friends, I saw both sides of the struggle. There’s the stress

of war, but also the stress of how their lives were impacted back home without them there for every type of support imaginable. It really speaks to the families that stick with it.” Courtney was blessed with coming home safely, and returned to work at LifeWay Christian Stores where he worked in retail store development. It was while he was in this capacity that he was approached by his boss about pursing a position in loss prevention. “He told me that he thought it would be a great opportunity. I didn’t realize that LP had its hands in as much as it did,” he recalls. “Thomas was recommended by his boss, who was the director of retail store development,” says Melissa Mitchell. “I knew Thomas before he left, but he was different when he came back. You could see the growth. It was as if he had matured fifteen years in those four years. “The military trains you to do things that are very unique. You hold a great deal of responsibility,” explains Mitchell. “Considering what many do as part of their service, they’re often significantly under-employed when they return home. Based on my experiences, I immediately understood the compatible skills—the way you learn, the way you execute, the discipline, the leadership. It wasn’t that I was looking for a veteran, but I found it to be a plus. The best fit isn’t always the person with the most experience. You also need to consider potential and those who best fit the culture. Thomas was that fit for us.”

Learning Loss Prevention

To help with his development, Courtney completed and was certified through the Loss Prevention Foundation’s LPQualified (LPQ) course. “LPQ provides a foundation for a breadth of information and competencies that could help Thomas develop

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his talents,” asserts Mitchell. “There were blocks of training that I didn’t have to develop myself, yet I was very confident would put him on the right track. He embraced the opportunity, took the information, and applied it in a positive way. It was a real-life example of watching someone ‘get it,’ and it really paid off.” “LPQ gave me insight into so many areas, some general, some more specific, but all of which helped me learn,” attests Courtney. “The information was tremendous. It brought me up to speed very quickly and was extremely applicable to what I was doing every day as a regional investigator.” Courtney has fully acclimated. “Loss prevention is a great fit for me,” he says. “Every day is different. It keeps you thinking, looking for bigger and better solutions, handling investigations, problem solving, but you also need to keep it all in perspective. People approach you differently, and you have to find the balance. I’m blessed to be here, and I’m excited to come to work every day.” “As mentors, it’s important we provide opportunity, remain patient, and let ideas develop,” contends Mitchell. “My mentors convinced me that I couldn’t fail. They opened doors to conversation, asked questions rather than giving answers, and always approached me with an open mind. I want to do the same for my team.” As we recently experienced another anniversary of that September morning, perhaps all of us can learn a valuable lesson from the brave men and women who have served our country and take Mitchell’s words to heart when reflecting on her decision to hire a vet—“It will be a victory for the people who hire them.”

“LPQ gave me insight into so many areas, some general, some more specific, but all of which helped me learn. The information was tremendous. It brought me up to speed very quickly and was extremely applicable to what I was doing every day as a regional investigator.” -Thomas Courtney, LifeWay Christian Stores

Support the “Hire A Vet” Program

The Loss Prevention Foundation in conjunction with the Military Officers Association of America and retailers across the country are proud to support the “Hire A Vet” Program, which assists honorably discharged veterans, soon-to-be-separated active-duty military personnel, and members of the National Guard or Reserve to gain employment in the loss prevention field. Military candidates carry the potential to make ideal applicants for thousands of unfilled supervisory and management positions throughout the retail loss prevention industry. To learn how the Foundation can help veterans find that job or how it can help retailers find that ideal candidate, please visit the Foundation website at losspreventionfoundation.org/military_team.html.

SEPTEMBER - OCTOBER 2012

Newly Certified

Following are individuals who recently earned their LPC and LPQ certifications.

Recent LPC Recipients

Donald Arnold, LPC, Inventory Management Services Ken Baum, LPC, Dist LP Mgr, jcpenney Jim Bilman, LPC Christopher Boyer, LPC, Dist AP Mgr, Weis Markets Richard Briney, LPC, Reg. LP Mgr, Bayer Investigations Gregory Brumley, LPC, VP LP & Fraud Mgmt, T-Mobile USA Tara Dakin, LPC, LP Mgr, Best Buy Canada Denny Demarcy, LPC, Dist LP Mgr, Dick’s Sporting Goods Everett Dyer, LPC, Dir of LP, Cole Haan Duane Fletcher, LPC, Dist LP Mgr, Walgreens Jack Gehrke, LPC, Lead Investigations and Analytics, Starbucks Michael Grady, LPC, Exec. VP, Vector Security Walt Hall, LPC, Reg. LP Mgr, Office Depot Michael Howard, LPC, Reg. LP Investigator, Bashas Andrew Keith, LPC, AP Mgr, Staples Cathy Langley, LPC, Sr Dir LP, Rite Aid Jim Lee, LPC, Exec. Editor, LP Magazine Thomas McCoy, LPC, Reg. Safety Mgr, Harris Teeter Chad Mcmanus, LPC, Reg. LP Mgr, T-Mobile USA Joe Metro, LPC, Dir of Bus. Dev. Retail, LexisNexis Jonathon Nagel, LPC, Dist LP Mgr, Kroger Ricardo Oritz, LPC, Dist LP Mgr, Walgreens Brandon Presley, LPC, Dist LP Mgr, Kroger Terry Reiland, LPC, Dist LP Mgr, Walgreens Serita Robinson, LPC, Sr Investigative Analyst, Walgreens Joli Schexnayder, LPC, Dist LP Mgr, Walgreens Dennis Smith, LPC, Dist AP Team Leader, Ollies Bargain Outlets Reckey Staggs, LPC, Reg. LP Mgr, T-Mobile USA Wesley Sytsma, LPC, Sr AP Mgr, Cabela’s Mark Townsend, LPC, DC LP Mgr, Office Depot Paul Wurzel, LPC, LP Mgr, Office Depot Chester Young, LPC, Board Member, LP Foundation

Recent LPQ Recipients

Hart Brown, LPQ, Rent-A-Center Ryan Carter, LPQ, InstaKey Scott Crull, LPQ, InstaKey Matthew Davis, LPQ, Dick’s Sporting Goods Cita Doyle, LPQ, InstaKey Navtej Duggal, LPQ, Winners DeeAnna Duncan, LPQ, T-Mobile USA Nick Ekong, LPQ Brian Fadrosh, LPQ, Weis Markets Michael Fried, LPQ, Shiseido Cosmetics Veronica Fuerte, LPQ, Goodwill Ronny Glockzin, LPQ, Office Depot Brian Grady, LPQ, Goodwill Jimmy Guiltner, LPQ Andrew Hines, LPQ, Lowe’s Robert Holmes, LPQ, Sears Holdings David Ianuale, LPQ, Gucci Okon Ifon, LPQ, Kroger David Kinlow, LPQ, Walgreens Jesse Larson, LPQ, InstaKey Robert Marich, LPQ, Weis Markets Sean Miller, LPQ, Penske Jan Myers, LPQ, Rite Aid Colton Neal, LPQ, Student Daniel Reeves, LPQ, Macy’s Andrew Roberts, LPQ, John Bull Ltd. Scottie Snyder, LPQ Ethan Stephens, LPQ, Blain Supply LaSharon Walker, LPQ, Columbia Sportswear George Woodruff, LPQ, InstaKey Judy Xiong, LPQ |

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FEATURE

Not Everyone Gets a Trophy

HOW TO MANAGE GENERATION

Y By Bruce Tulgan

EDITOR’S NOTE: USA TODAY ran an article in their August 21st issue that said “the most common jobs held by Gen Y are merchandise displayer and sales representative” in retail according to a study by research firm Millennial Branding. The results showed that nearly half of the merchandise displayers, or floor clerks, and 83 percent of the sales associates held college degrees, despite the fact that “retail sales associate” is listed as the fifth worst paying job in the survey. The conclusion offered by a spokesperson for the research firm was that many of these millennials, ages 19 to 30, are only in retail while they look for other jobs. The implications of these results are significant to retail loss prevention organizations. Research has shown that young people and temporary employees are often less engaged with the company and therefore less likely to following proper procedures, potentially creating compliance and operational issues. In addition, these associates may be more prone to theft. Because of this, it behooves retailers to reexamine their training and awareness programs, as well as their management process, to address this age group. For that reason we thought it important to rerun the following article on best practices for managing Generation Y from our September-October 2009 edition.

GENERATION Y

’ve been conducting in-depth interviews with young people in the workplace steadily since 1993. That was shortly before the oldest Gen Yers—those on the cusp of Generation X—started arriving in the workplace as teenagers. Since then, we’ve followed Gen Yers as they have become the new young workforce and have been developing a comprehensive picture of who they are, how they became that way, and what motivates them. Demographers often differ on the exact parameters of each generation, so let me make it clear. This article is really about the heart of Generation Y, those born during the Reagan years, who grew up mostly in the 1990s, came of age in the 2000s, and are filling up the youth bubble in today’s workforce.

Meet Generation Y

Here’s the short story with Generation Y. If you liked Generation X, you are going to love Generation Y. Generation Y is like Generation X on-fast-forward-with-self-esteem-on-steroids. Gen Yers’ childhood was defined mostly by the 1990s, and they are reaching their early stage of adulthood amid the profound changes of the 2000s—this era of uncertainty. Gen Yers 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, Gen Yers 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, Gen Yers 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 Gen Yer’s 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. Precisely because Gen Yers seem to both disregard authority figures and at the same time demand a great deal of them, leaders and managers often find Gen Yers maddening and difficult to manage. Every day, leaders and managers in organizations of all shapes and sizes in just about every industry all over the Western world tell me stories about working with GenYers that suggest this might be the most high-maintenance generation in history.

Bringing out the Best in Generation Y

Based on nearly fifteen years of research, I am absolutely convinced that most of the so-called experts on Generation Y have it all wrong. So many “experts” have written articles and books arguing that, since Gen Yers have grown up with self-esteem parenting, teaching, and counseling, the right way to manage them is to praise them and reward them with trophies just for showing up. These “experts” tell managers to create “thank-you” programs, “praise” programs, and “reward” programs. They recommend

turning recruiting into one long sales pitch, transforming the workplace into a veritable playground, rearranging training so it revolves around interactive computer gaming, encouraging young workers to find a “best friend” at work, and teaching managers to soft-pedal their authority. In my view, this approach is out of touch with reality. I tell employers that what Gen Yers need is not always the same as what they want. The problem is that giving them what they need successfully is much harder than simply handing them what they want. The high-maintenance Generation Y workforce calls for strong leadership, not weak. Managers should never undermine their authority, should never pretend that the job is going to be more fun than it is, never suggest that a task is within the discretion of a Gen Yer if it isn’t, never gloss over details, never let problems slide, and should never offer praise and rewards for performance that is not worthy of them. Instead, managers should spell out the rules of their workplace in vivid detail so Gen Yers can play that job like a video game—if you want A, you have to do B. If you want C, you have do D, and so on. In my book Not Everyone Gets a Trophy and in my workshops, I try to help managers and leaders get past the myths about Gen Yers and tackle the issues that make managing them so challenging. I focus on nine proven best practices for managing Gen Yers through every step of the employment cycle.

Best Practice #1—Get Them on Board Fast with the Right Messages

In order to win today’s competition for the most talented young employees, you need to develop a systematic effort to find the right candidates, develop methodical recruiting campaigns anchored in powerful messaging, implement rigorous selection techniques, and then get new staff members in the door on day one excited about the actual experience that awaits them. That is the challenge. What do you do? D iversify your talent sourcing. Make sure you are drawing potential applicants from a wide range of sources. M ake good use of friend referrals. Ask your very best young employees to help you bring in the friends they think would be the best fit with your organization. F ind Gen Yers on-line. Tap into on-line talent databases and, most important, make sure your website has user-friendly job information, job application tools, and a simple screening process. T ap parents, teachers, and counselors. D eliver a killer recruiting message that defines your value proposition in Gen Yers’ language. Make sure you answer the questions: “What do we want from you in the first days, weeks, and months?” and “What do we have to offer you in the first days, weeks, and months?” B e very selective. The first rule of selection is “It is better to leave a position unfilled than to fill it with the wrong person.” O nce you’ve attracted them, try to scare them away. Eliminate the Gen Y job candidates who only think they are serious by telling them all the downsides of the job in clear and honest terms. W hoever is left after you’ve tried to scare them away is worth testing. Devise a fast and penetrating test that goes quickly to

SEPTEMBER - OCTOBER 2012

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GENERATION Y the heart of the basic tasks and responsibilities the person will be expected to do if hired. C onduct behavior-based interviews. Behavioral interviewing simply means asking applicants to tell you a story…and then listening. “Tell me a story about a time you solved a problem at work.” Or, “Tell me a story about a conflict you had with another employee at work. How did you solve it?” O ffer realistic job previews. C lose the deal fast. If you move too slowly, you will lose a lot of great hiring prospects. The two watchwords of your selection process should be rigorous and fast.

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Best Practice #2—Get Them Up to Speed Quickly and Turn Them into Knowledge Workers

Gen Yers want to hit the ground running on day one. But they don’t want to be thrust into sink-or-swim situations. They want to hit the ground running with lots of support and guidance every step of the way. It may be exhausting for managers, but if you don’t plug into their excitement and enthusiasm on their way in the door, you are in serious danger of turning a good hire bad. Gen Yers almost always walk in the door with a spark of excitement. The question is, “Do you pour water or gasoline on that spark?” Here’s how you pour gasoline on the spark. G rab hold of them and don’t let them go. Create intensity, connection to your mission, a feeling of shared experience and belonging to a group, steady learning, and constant challenge. L ow tech—Train them one task at a time. Unbundle complex roles and then rebuild them one tiny piece at a time. You can give Gen Yers meaningful work at early stages in their tenure if you commit to teaching and transferring to them one small task or responsibility at a time. H igh tech—Don’t fight their desire for the latest and greatest information technology. For Gen Yers, the information technology imperatives are simple: - Constant connectivity with whomever they want, - Immediate access to whatever information they want, - Total customization of their information environment, and - The ability to learn from and collaborate with experts in real time. T urn every employee into a knowledge worker. The more you encourage them to learn and leverage information, ideas, and technique while they work, the better they will do their jobs.

Best Practice #3—Practice In Loco Parentis Management

It’s become almost cliché to say that Generation Y is overparented. But they are. You can’t fight the overparenting phenomenon, so run with it. Without strong management in the workplace, there is a void where their parents have always been. Step into the void. Do be careful though. The worst thing you can possibly do with Gen Yers is treat them like children, talk down to them, or make them feel disrespected. Gen Yers are used to being treated as valued members of the family, whose thoughts and feelings are important. Remember, Generation Y has

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gotten more respect from their parents and elders than any other generation in history. What do you do? C are about your Gen Yers. Know who they are at work and what they are doing at any given time. Spend time with them one-on-one on a regular basis helping them succeed. G ive them structure and boundaries. Within a structure with clear boundaries, they can function with some autonomy. That means clear goals and specific deadlines with measurable benchmarks along the way. H elp them keep score. Let them know you are keeping track of their day-to-day performance. This tells them that they are important and their work is important. The process motivates them to perform because they want to get credit, score points, earn more of whatever there is to earn. N egotiate special rewards in very small increments. Let them know exactly how their rewards are tied to concrete actions within their own direct control.

Best Practice #4—Give Them the Gift of Context

Managers often tell us that their Gen Yers suffer from a fundamental lack of context. This is partly a life-stage issue because younger people have less life experience than older people and thus fewer points of reference to compare circumstances, people, and relationships. Context is all about these points of reference. So lack of context goes with the territory when it comes to young employees. Giving Gen Yers the gift of context means explaining that no matter who that Gen Yer may be, what he wants to achieve, or how he wants to behave, his role in any situation is determined in large part by factors that have nothing to do with him. There are preexisting, independent factors that would be present even if he were not, and they determine the context of any situation. T each them to work well with others. Help Gen Yers anticipate possible conflicts and help them prepare for those situations. The most likely areas of conflict include the following: - Balancing demands of multiple bosses, - Chain-of-command issues, - Dealing with older more experienced colleagues, and - Working with those in parallel roles in other departments, vendors, and customers. T each them how to shine in presentations and meetings. T each them how to deal with your boss’s boss’s boss and other big shots. Explain to them exactly who they should be reaching out to (and not to), for what reasons, when, and how.

Best Practice #5—Get Them to Care about Great Customer Service

Gen Yers think like customers. Why? The marketplace has extended its reach beyond malls and into their homes through the Internet. At the same time, because Gen Yers have had more buying power at a younger age than any other young generation in history, marketers have targeted them more aggressively than any new consumer market in history. Playing the customer or consumer role is usually Gen Yers’ primary

experience in the public sphere prior to arriving for their first day of work as employees. Many have little or no experience on the other side of the marketplace transaction, as vendors. T each them, when you are at work, everyone but you is your customer. T each Gen Yers six basics of customer service: 1. Make yourself available. 2. Say as little as possible, at first. 3. When you do talk, choose your words very carefully. (Provide them with prepared materials, and encourage them to learn their lines and rehearse.) 4. Never wing it. Don’t guess, don’t hope, and don’t exaggerate. 5. Request feedback. Ask, “Is that acceptable to you?” 6. Problem-solve. Solve small problems quickly and get help for bigger problems. C onvince Gen Yers to care about customer care. Remind them that customer service is an extremely valuable skill, has a huge impact on their ability to enjoy work, saves every employee a lot of time and energy, and is (by the way) a valuable opportunity to network with customers. M ake it clear that financial and other rewards will be tied directly to your measurement of their customer service delivery.

Best Practice #6—Teach Them How to Manage Themselves

Gen Yers are often amazingly advanced in their knowledge and skills at a very young age, yet they often lack maturity when it comes to the old-fashioned basics of productivity, quality, and behavior. What’s worse, managers often report that Gen Yers tend to be unaware of gaps in these basic skills and are completely unconcerned about it. In response to this gap in skills, some managers just get frustrated. If you manage Gen Yers who lack some of the basics of self-management, then help them. Teach them to fill those gaps, one at a time. Teach them how to manage themselves. T each them to make the most of their time. Help them set priorities and act on those priorities from the top down. Help them eliminate time wasters. And help them learn to live by a schedule. T each them how to make and follow a plan. Show them how to break larger long-term goals into intermediate goals. Show them how to break each intermediate goal into a set of small goals, each with its own clear guidelines and parameters, and to-do lists with step-by-step concrete actions. T each them to take notes and use checklists. T each them the values of good workplace citizenship. Whatever values you want them to practice, you have to do the hard work of making the intangible more tangible. What do discretion, courtesy, honesty, and self-sacrifice actually look like in your workplace? Y ou can’t teach good judgment, but you can teach the habits of critical thinking. Expose them to new experiences. Teach them to be strategic. Teach them to scrutinize their own experiences during and after they actually occur. T each them the art of self-evaluation. Urge them to ask themselves on an ongoing basis the following: Am I getting

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enough work done fast enough? What can I do to get more work done faster? Am I meeting or exceeding guidelines and specifications for my tasks and responsibilities? What can I do to improve my work? What can I do to be a better workplace citizen?

Best Practice #7—Teach Them How to Be Managed by You

Work ethic, habits, and style are often less developed in younger workers. What most leaders and managers are really looking for, whether they realize it or not, is an employee whose own ethic, habits, and style are a good match with theirs. Often when leaders reject new employees, it’s because they perceive a bad match. They act as if these were matters set in stone. You can teach them how to be managed by you. S et clear ground rules up front that really matter. You may need to say, “Whenever you are working with me, on any task, for any period of time, these are my ground rules.” E stablish a regular time and place for one-on-ones. Create a constant feedback loop for ongoing short-term goal setting, performance evaluation, coaching, troubleshooting, and regular course correction. C reate a focused routine for your one-on-ones. Don’t ever let these meetings become long or convoluted. Start each meeting by reviewing the agenda and then follow it. C ustomize one-on-ones for every employee. For each employee, you’ll have to figure out how often to meet, how much time to spend at each meeting, what format to use, and what topics to cover. And you’ll have to make adjustments with each person over time. G ive them “real” power. Spell out what they must do, what they can do, and what they cannot and may not do. T each them how to get things done in your organization. Make it clear that you are a power source in their working life, and lend them some of your power to help them get things done. C reate an upward spiral of continuous improvement. Be systematic, honest, and positive. Keep asking them, exactly what concrete actions—exactly what steps—are you going to take next? What can you do to improve? What do you need to revise and adjust? K eep track of their performance. Monitor performance closely enough to make fair and accurate evaluations and to provide the guidance necessary to facilitate constant improvement. Ask them to keep track of their own work in writing and report to you on a regular basis. H elp them help you help them. Turn Gen Yers’ requests and demands upside down so they become opportunities for Gen Yers to earn performance-based rewards.

Best Practice #8—Retain the Best of Them, One Day at a Time

Turnover is by far the highest among employees with zero to two years’ tenure and next highest among employees with two to five years’ tenure. Is this partly a function of youth and the unsettled nature of early career positions? Yes. Is it also a reflection of overall labor trends toward shorter periods of

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employment? Yes. But there are also generational issues at play here. Gen Yers are coming of age in a labor market that presumes total job mobility. Meanwhile, Gen Yers are more likely than those of earlier generations to see the job as just one piece in their life puzzle. So is it impossible to retain the best of Generation Y? No. You can retain the best people indefinitely…one day at a time…as long as you are willing to keep making it work for them. You can even turn many of the best into long-term employees and some of the very best into new leaders. You have no choice. They are the future of your organization. I nstead of trying to eliminate turnover, take control of it. You want the high performers to stay and the low performers to go. M ake your job the prestige job. How? You have to be extremely demanding, highly competitive, and fiercely merit based. P ush out the low performers. Stubborn low performers hate the bright light of scrutiny and usually will find a way to escape. You rarely have to fire them if you are willing to shine that bright light. D on’t let good people get into downward spirals. When an otherwise good employee is struggling, help the employee see what’s going wrong and how to make things go better. Instead of suffering the pain of failure, the employee will get a chance to bank one tiny success after another. T urn the reasons Gen Yers might leave into reasons they will stay—and work even harder. Help them earn whatever it is they need and want. And that’s the key to retention. F ind out what you can do to keep them. Help them see what needs and wants are realistic, and then help them earn what they need and want. D o whatever it takes to hold on to the best and the brightest. Whatever you are doing to be flexible and generous to retain your good employees, be much more flexible and generous to keep your great employees. G ive the superstars the most time and attention. Surround them with teaching-style managers, advisers, organizational supporters, and maybe even mentors.

Best Practice #9—Build the Next Generation of Leaders

The holy grail of retention is identifying and building new leaders. That is retaining those with the best technical ability who are also willing and able to take on leadership responsibilities and helping them step into those roles successfully. How many people have both the technical ability and the desire and ability to lead? When you ask a young star to step up and make the transition to a leadership role…at any level…you owe it to that new leader and her team to make sure that she is fully prepared to take on additional responsibilities and authority. Teach new leaders how to do the people work, and then support and guide them in this new role every step of the way. E xplain that this new role carries with it real authority that should not be taken lightly. It is not license, of course, to act like a jerk. S pell out for the new leader exactly what her new leadership responsibilities look like. Focus on the basics, like spelling out expectations for every employee who works for them, following continued on page 58 |

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  

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up regularly, tracking performance closely in writing, and holding people accountable. F ormally deputize new leaders. Articulate the nature of this person’s new authority and explain to the team that the new leader is expected to follow the management basics and hold team members accountable. C heck in daily (or every other day) with new leaders. Take every opportunity you can to help them refine and improve their management techniques.

management with discipline. Look for those who spend the most time patiently teaching. Look for those who want to lift people up and make them better. They will likely be your future leaders.

How to Identify Future Leaders

Who will move along the career path and grow into your long-term employees and your high-level leaders? Don’t look for those Gen Yers who are comfortable slapping people down. Don’t look for those who love the power. Don’t look for the biggest egos or the loudest, most confident voices. Don’t be lured by charisma, passion, enthusiasm, and energy. Look for Gen Yers who love the responsibility and the service. Look for those who consistently practice the basics of

Visit the magazine website, LPportal.com, to view a video of Bruce Tulgan discussing the challenges of managing Generation Y.

Everyone Gets

a Trophy

author photo

by rene Genest

his stepJoe’s crab shack. taken place at leaders to revolution has empowered our a management n X and Y have into generatio “thanks to Bruce, and expert insight by-step approach managers.” shack become great ceo, Joe’s crab tte, president and on understanding —Ray Blanche code the crack us tulgan for helping on his mantel!” a trophy it’s Bruce made some room . I hope he’s “If anyone deserves workforce n in the society of cPas massachusetts this new generatio vice president, BRush, executive that is colorful, —MaRianne a superb book ry he has written anyone in a superviso this subject, and is a leader on s.” clear tips provide “Bruce tulgan n Y employee all, useful. his retain Generatio -base, and above develop, and warm, research to Stay need to engage, Getting Good People the data they ‘Em or Lose ‘Em: position with best-selling Love coauthor of the —BeveRly Kaye, leadership team. impact on our powerful a Generation Y, Y has had , and retaining on Generation recruiting, managing “Bruce’s research advantage in strategic real a If you want read this book.” corporation ceo, Invitrogen

e chairman and n Y in the workplac GReG lucieR, analysis of Generatio to those s will find Bruce’s that makes sense across all industrie interpretation and retain “Professionals provides a fresh to engage, train, the myths and l approaches spot-on. he dispels the more traditiona already tried of us who have e tool!” & co. book is a must-hav Kaufman, rossin these folks. this Kaufman rossin

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Leaders

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snydeR, director, in a with our workforce communicating importance of s provide regular many of us the sh this of them and manager “Bruce has taught what is expected helps us accompli workers know met. this book manner where ons are being well those expectati feedback on how n Y.” health system th Georgia Va y with Generatio north Florida/sou more effectivel center director, cappello, medical —thoMas a.

—saMantha

NOT EVERyONE GETS A TROPHy

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or the auth recognized is internationally Bruce Tulgan people in the expert on young as the leading to business leaders is an advisor workplace. he sixteen books, or coauthor of and the author Generation X classic Managing including the Boss. Okay to Be the It’s er and the best-sell ent training firm the managem since founding a sought-after g, he has been rainmakerthinkin leader. tulgan’s and seminar keynote speaker thousands of the subject of work has been for dozens and he has written news stories, New York Times, the including , and the of publications, Resources Magazine USA Today, Human holds a Review. he also Harvard Business and is black belt in karate fourth-degree of the applegate, winner married to debby y. Prize for Biograph 2007 Pulitzer

S A TROPHy NOT EVERyONE GET

Praise for Not

BRUCE TULGAN is a leading expert on young people in the workplace. He is an advisor to business leaders all over the world, the author or coauthor of numerous books including the classic Managing Generation X (1995), the recent bestseller It’s Okay to Be the Boss (2007), and his latest Not Everyone Gets a Trophy: How to Manage Generation Y (2009). Since founding the management training firm RainmakerThinking in 1993, he has been a sought-after keynote speaker and seminar leader. Tulgan’s weekly v-log (video newsletter) is available for free at www.rainmakerthinking.com. He can be reached at brucet@rainmakerthinking.com.

NOT EVERyONE GETS A TROPHy

of research, than a decade n Based on more reframes Generatio Gets a Trophy time Not Everyone and 1990) at a between 1978 Y (those born g to engage, s are strugglin when many employer tulgan declares retain them. Bruce ntenance develop, and is the most high-mai Y n that Generatio that they but he argues highworkforce in history, to be the most potential the also have in history. performing workforce Bruce presents his seminars, as he does in and those who from Gen Yers in poignant quotes perspectives putting the two manage them, book. Not Everyone throughout the conversation other study of does what no Gets a Trophy has done: Generation Y common myths fourteen most the e. · Debunks on Y in the workplac about Generati

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to Gen Yers’ s how to tune-in · Shows manager onal” mindset. and transacti “short-term is not trying to the key to success the key is · Argues that e “fun.” Rather, make the workplac ip. He devotes engaged leadersh strong, highly “in loco to what he calls an entire chapter ent.” parentis managem best practices step-by-step · Provides proven, up-toand Yers onboard for getting Gen they lack, them the context speed—giving themselves and how to manage teaching them the very best , and turning how to be managed into new leaders.

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is the essential Gets a Trophy Not Everyone and the talent wars guide for winning n Y. managing Generatio

INDUSTRY NEWS by Robert L. DiLonardo DiLonardo is a well-known authority on the electronic article surveillance business, the cost justification of security products and services, and retail accounting. He is the principal of Retail Consulting Partners, LLC (www.retailconsultingllc.com), a firm that provides strategic and tactical guidance in retail security equipment procurement. DiLonardo can be reached at 727-709-6961 or by email at rdilonar@tampabay.rr.com.

Sell Your Gold Scrap

et’s start out with a quiz—Name a type of retail store in which the sales associates are the buyers, rather than the sellers? That’s right, “cash for gold scrap” stores. The spot price of gold has risen from $277 per ounce in January 2002 to about $1,770 per ounce as of this writing. In a monument to the meteoric price rise, the world’s largest gold coin, weighing more than one ton, was handcrafted at the famous Perth Mint in Australia. The largest gold bar, weighing one-quarter ton was minted in Japan.

key control, burglar/fire alarms, video surveillance, and background and drug screenings on prospective employees. There are a few critical safety protocols that require a higher level of attention similar to that of a conventional jewelry store, such as cash/scrap control and storage, safe and secure shipping methods to send the scrap to refiners, and, above all, continuous safety for the employees during business hours.

Retailers in the cash-forscrap-gold business need strong loss prevention programs. Let’s hope they are taking advantage of the expertise LP professionals can offer.

The Retail Gold Rush

In the past several years, we have been bombarded with radio, print, television, and Internet advertising cajoling us to part with our unwanted gold, silver, and platinum jewelry and coins for some easy cash. Alternatively, another bevy of advertisements extol the virtues of owning gold and silver coins and bullion (bars or ingots). Did you know that there are even gold dispensing ATMs in places like Macau, Las Vegas, and Germany, among other places? In the past conventional jewelry stores and coin hobby shops operated on both the buying and selling side of the business. Recently, cash-for-scrap-gold stores have popped up in every town, even in major national malls. There are also thousands of these stores throughout India and Pakistan because of the strong cultural bias for saving gold. There are a few good-sized retail chains here in the U.S. Gold Max, headquartered in Atlanta, boasts of over 200 locations in five states, including over 90 stores in the Chicago metropolitan area. Gold Rush Stores has opened about 200 locations, predominantly in California. Most of these locations are franchised. When customers bring their unwanted gold into these stores, the sales associate sorts the scrap by metal type and carat weight, and tests some or all of the pieces for authenticity. Aside from a visual inspection, an “acid test” can be used (the kits are available on the Internet for under $20). The evaluation leads to a price estimate, which is routinely paid in cash. After the sale, the scrap is placed in a vault.

LP and Security Issues

The cash-for-scrap-gold business ebbs and flows with the spot prices of precious metals. In the spring of 2012, spot prices for silver and gold soared to extremely high levels, and the waiting lines tended to be long. With gold selling for close to $2,000 per ounce, the cash requirements are significant. Store owners routinely boasted about daily sales in excess of $25,000 for several days in succession. Virtually all of these transactions involved cold, hard cash. If a store runs out, they are essentially out of business. The collected scrap must be shipped directly to a refiner or to a middle man. Returning to our example of $25,000 in sales, a day’s “receipts” of scrap might weigh quite a bit, especially if the bulk is silver, which is valued at approximately $40 per ounce. Scrap dealers try to make shipments look as nondescript as possible. I doubt that you would see a bright gold and green Gold Max logo on the carton. That would be a recipe for a diverted shipment.

Employee Safety

Not all of these stores are located in modern, brightly lighted, major indoor malls with plenty of common-area security. Therefore, the safety and well being of employees can be an even tougher challenge. As one

Store owners encounter the typical security issues faced by most other retailers, including locks and

SEPTEMBER - OCTOBER 2012

continued on page 62 |

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CALENDAR continued from page 60

September 10 – 13, 2012 ASIS International 58th Annual Seminar and Exhibits Philadelphia (PA) Convention Center www.asisonline.org September 12, 2012 Retail Council of Canada Loss Prevention Conference International Centre, Toronto, ON www.rcclpconference.ca September 17 – 20, 2012 Coalition of Law Enforcement and Retail (CLEAR) 2012 Annual Training Conference Hyatt Regency, Dallas, TX www.clearusa.org October 7 – 9, 2012 Sponsored by Sony, Envysion, Axis, and Bright Hat Solutions 3rd Annual MVaaS Summit—Unleash Video The St. Julien Hotel, Boulder, CO www.envysion.com/mvaas-summit October 8 – 10, 2012 Sponsored by Tyco Integrated Security RETECH Westin Fort Lauderdale Beach, FL www.mysecurityevents.com/ReTech2012 October 15 – 17, 2012 Loss Prevention Research Council 8th Annual Impact Workshop University of Florida, Gainesville, FL www.lpresearch.org October 30 – 31, 2012 ISC East 2012 Jacob Javits Convention Center New York, NY www.isceast.com February 21, 2013 LAAORCA 4th Annual ORC Conference Los Angeles (CA) Convention Center www.laaorca.org March 6 – 8, 2013 Jeweler’s Security Alliance 35th Annual Security Seminar and Expo Flamingo Hotel, Las Vegas, NV www.jewelerssecurity.org March 10 – 13, 2013 Food Marketing Institute 2013 Asset Protection Conference Pointe Hilton Tapatio Cliffs, Phoenix, AZ www.fmi.org March 25 – 26, 2013 USS ORC Foundation 1st Global ORC Conference Bellagio Hotel, Las Vegas, NV www.ussorc.org April 28 – May 1, 2013 Retail Industry Leaders Association 2013 LP, Audit, & Safety Conference Gaylord Palms Resort, Orlando, FL www.rila.org

might expect, the reported robbery incidents for these stores tend to include armed assailants, often acting late in the day. Since many of these locations have sprung up in normal store fronts, the security measures might not be visible from the outside, so they may appear to be easy targets. In July two gunmen were convicted of attempted robbery and murder in a Virginia case where an employee was killed. At least two states, Arizona and Florida, allow store owners to display side arms. A Phoenix store owner recently opened fire on two armed suspects who tried to rob him. With all these vulnerabilities, retailers in the cash-for-scrap-gold business need strong loss prevention programs. Let’s hope they are taking advantage of the expertise LP professionals can offer.

Vector Security’s David Merrick Passes Away Unexpectedly Many in the LP industry were shocked by the unexpected passing of David Merrick, 60, marketing director for Vector Security, on July 31st. In the weeks prior to David Merrick his death, Merrick had been working with the magazine on a story about Vector’s new business strategy and rebranding efforts that appeared in this column in the July-August issue. Merrick was an early supporter of LP Magazine as well as other industry initiatives such as certification that have contributed to the professional advancement of loss prevention. “Dave was one of the genuine leaders who sincerely believed in helping to elevate our profession through education,” says Gene Smith, president of the Loss SEPTEMBER - OCTOBER 2012

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Prevention Foundation. “He was very passionate about giving back to the LP community as evidenced by his efforts in leading the Vector Security LPQ-LPC scholarship program.” Merrick was not only known as a true professional and diligent marketing executive, he was also a personable, considerate individual. “I considered Dave a friend as well as a client,” says Bonnie Dodson, LP Magazine’s advertising manager. “Before we discussed Vector’s advertising plans, he never failed to ask me about life in the mountains. I will truly miss him and the pleasant conversations we shared.” Merrick began his career in the electronic security industry in 1979. Since that time he held various sales and marketing management positions, first with Automatic Detection Systems and then Triple A Protection, a Pennsylvania-based regional supplier of residential and commercial electronic security and uniformed guard services. In 1999 he became part of Vector Security, holding the position of director of marketing for Vector Security’s National Accounts Division. Active in the security industry, Merrick served as a board member of the Pennsylvania Burglar & Fire Alarm Association and was the recipient of the NBFAA 2002 President’s Award. He authored a variety of sales and marketing-related articles in a number of industry magazines and was an editorial board member of Security Systems News. Merrick’s work has been featured in various industry magazine articles, merited three SAMMY nominations, and captured the honor twice. He was also the author of the National Burglar & Fire Alarm Association’s (NBFAA) Reassuring America Program. “Dave was an extremely creative and talented professional,” says Michael Grady, LPC, executive vice president of Vector Security. “His many positive contributions to the security and loss prevention industry will be felt for years to come. Dave will be greatly missed.”

PEOPLE ON THE MOVE Casey Cox was appointed Regional LP Investigator at 24 Hour Fitness. Braden Diaz was named Zone AP Specialist at 7-Eleven. Jonathan Grogan was promoted to Regional LP Manager at Abercrombie & Fitch. Rudy Bravo was appointed Regional LP Manager at Anna’s Linens. Rob Skavery was named Director of LP, Risk Management, and Safety for Ashley Furniture. Brian Broadus was appointed Corporate Director of LP Operations for Bed Bath & Beyond. Dom Zuccala was promoted to Director of LP Operations for Big Lots. Bloomingdale’s has appointed Michael Oren Regional Manager of Investigations, East Coast, and Justin Wade LP Manager. Darnell Pharr was appointed Regional LP Investigator at The Children’s Place. Troy Schmechel was appointed Sales Manager at ClearCom. Paul Smith was named Country LP Manager, USA for Cotton On. Joseph Flynn, CFI was promoted to Director of LP for David’s Bridal. Dick’s Sporting Goods has named Layton Davenport District LP Manager and Matt Strope Manager of Analytics LP. Dollar General promoted Susan Baker to Senior Director of LP and Patrick Kernell, CFI to Division Director of LP. John Troxel was appointed Director of Risk Management for Eickhoff Shop Rite. Peter Warren was named LP Manager of Investigations at Francesca’s. David Zwernemann, CFI was promoted to Regional LP Manager at Gap Inc. Genetec has announced the following appointments: Andrew Elvish to VP of Worldwide Marketing, Stephan Kaiser to Head of License Plate Recognition, Auto-Vu Product Line, and Jill Ram to VP of Human Resources. Goodwill Industries of the Chesapeake has named Scott Lucas LP Specialist and Harriett Moore LP Director. David Brightly was appointed Director of LP and Risk Management for Gordmans.

The Home Depot has announced the following changes: Steve Knott to VP of AP; Anthony Aloisio, CFI to Corporate Manager of AP Resources; Sheri Dindal to Corporate Investigator, Central Investigations; Bryan Gittings, CFI and Jeff Rodda to Senior District Investigators; John Mitchell to District Investigator; and Adrian Nowalk, CFI to Senior District Investigator (Regional). Chris Woodroffe was appointed Director of LP for International Group of Companies Canada. J.Crew has appointed Leigh Kohlhaas Corporate Manager of LP Operations and Pat Smith District LP Manager. Kimberly Eriksen was named Regional LP Manager at Jo-Ann Fabric and Craft Stores. Eric Smith, CFI was appointed District LP Manager at Kmart. Johanna Agudelo has been appointed LP Manager at Louis Vuitton. Kevin Trimble, CFE was appointed East Coast Director of Security and LP for McDonald’s. Macy’s has announced the following promotions: Khris Hamlin, Brett Marksberry, and Mark Wynsma to District Directors of LP; and Miriam Nasiri and Jim Rieber to District Managers of Investigations.

Robert Figueroa, CFI was appointed Regional LP Manager at Rent-A-Center. Efran Ali and John Zieman were appointed Area LP Managers at Ross. Glen Deleo was appointed District AP Manager at Saks Fifth Avenue. Sears has announced the following changes: Matt Dowling and James Stewart to District LP Managers; Courtney Record to Regional Director of LP; and David Rozhon to Corporate Safety Manager. Derek Davis was promoted to Director of LP, SW Division for Sherwin Williams. Jack Gehrke, LPC, CFI was appointed Lead Investigations and Analytics for Starbucks. Elizabeth Harms was appointed Associate Relations Representative at SUPERVALU. Gabriel Levit, CFI was promoted to Manager of Major Investigations at T-Mobile. TAGSYS RFID has appointed Tony Dublino Director of U.S. Sales, Retail and Apparel, and Chad Tripp Director of Field Applications Engineering. Robert Niewenhous was appointed Executive Team Lead, AP for Target. Jason Cody was named Regional LP Manager at Tilly’s.

Doug Marker was promoted to VP of Field Human Resources for Michaels Stores.

Toys“R”Us has promoted Chris Gillen to VP of AP and Dustin Jackman to Regional AP Manager.

David Smith was appointed Regional AP Manager at Microsoft.

Lee Foley, CFI was appointed Regional LP Manager at Variety Wholesalers.

Leonardo Huthinson was promoted to District LP Manager at Monument Security.

Walmart has named Shawn McCullum, CFI Market Director, Health and Wellness, and Debra Martin Senior Director of Global Security Operations.

Bob Walsh was appointed Regional LP and Investigations Manager at Newgistics. Joshua Rea was appointed District LP Manager at Nike. Larry Dance was appointed National and International LP Manager at The North West Company. Bryan Hoppe was promoted to VP of Store Operations for Pep Boys. Jorge Juria was appointed Regional LP Manager at Pet Supermarket. Mauro Dri was appointed Divisional Manager, Security and LP at Purolator.

LP MAGAZINE | SEPTEMBER - OCTOBER 2012

Kevin Keyser was appointed District AP Manager at Weis Markets. Ben Lockhart, CFI was appointed Director of LP for Wireless Vision.

To stay up-to-date on the latest career moves as they happen, sign up for LP Insider, the magazine’s weekly e-newsletter, or visit the People on the Move page on the magazine’s website, LPportal.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.

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PARTING WORDS

A Firm Foundation Like many others, I have been associated with the Loss Prevention Foundation since its inception. I have seen the growth of the Foundation, the development of the course work, the hard work that the staff and board of directors have completed, but most of all the success of so many in the industry who have obtained either LPQ or LPC certification. There are many significant accomplishments, but rather than my going through them here, please take five minutes to visit losspreventionfoundation.org and read just the home page. It’s pretty impressive. In the beginning I wondered if I would go through the LPC coursework and take the exam. I finally came to the conclusion that I should. I was blown away by the quality of the information, the many things that I had forgotten, and the many that I had managed to miss learning. It was all a good read. Upon completion, the only thing I thought was missing were some fun questions on the quizzes. So believing that every day you can laugh is a good day, here are some questions I would add to the coursework, just for the fun of it. As a store detective or investigator the best way to get promoted is?  Catch a lot of shoplifters  Kiss up to the store manager  Tell your boss about all the theft you have prevented As a district LP manager, the most important person in reducing shrink in your district is?  You  Your store managers  Not a person, but your EAS system As a regional LP manager, you spend the most time on?  Traveling from store to store  Trying to fill LP openings  Looking for jobs with other companies As a director or VP of LP, your blood pressure rises dangerously when?  The annual shrinkage results are about to be announced  Your cell phone rings at midnight on Saturday  The CEO of your company wants to see you first thing Monday morning. You have had a great day when you have a message from?  A recruiter saying he has something very confidential to discuss with you  Your spouse gets a big promotion and is making enough money for you to quit  Legal saying your bad-stop law suit has been settled with a gift certificate

Jim Lee, LPC Executive Editor

As a professional LP executive, I can contribute the most to the bottom line by?  Getting vendors to pay for my dinner  Buying low-grade gasoline for the company car  Helping customers find more merchandise to purchase In order to maximize your attendance at a conference or convention you must?  Dance, eat, and be merry  Be able to check your email and text during sessions that are boring  Talk to as many colleagues as you can about yourself What are the tell-tale signs that you are getting the “business” from a vendor?  They have their fingers, arms, and legs crossed when speaking to you  They tell you the perfect solution for your company is in research and development  They want to hire you If you are unhappy and thinking about looking for a job, where do you turn?  Only those people who can keep a secret and help you  Those who can’t keep a secret and the word will get back to your boss that you are unhappy  The only person who can help you is in the mirror If you want to get ahead, what additional training or education will help?  On-line newsletters, print offerings, and non-LP training programs  Certifications of any type  Any kind of higher level learning Okay, so these questions are not likely ever to appear on any certification exam, but after you spend hours and hours going through content and preparing yourself for a professional exam, it is a good thing to step back, relax, and poke a little fun with the work. Good luck to anyone and everyone who makes the commitment to better themselves through education.

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Managed Video is an innovative way to get more out of your video investment. Using video and remote monitoring, Tyco Integrated Security can help you keep an eye on your operational efficiencies. • Video Guard Tours can enhance your audit programs, improve safety compliance, and reduce

guard expenses • Video Alarm Verification helps reduce false alarms and costly fines • Video Escort helps improve employee safety during open, close and large cash transactions • Unattended Delivery allows for deliveries before or after hours without employees present • Video Assist uses two-way audio and video contact when and where you need it

Tyco Integrated Security’s UL- Certified monitoring centers watch over retail stores all across North America. Let our special operations team help you improve your operations. We can help manage your video monitoring, so you can focus on the bigger picture. To learn more, call 1.877.258.6424 or visit www.tycois.com.

VIDEO ALARM VERIFICATION

VIDEO ESCORT

UNATTENDED DELIVERY

VIDEO ASSIST