Sunday, July 4, 2010

ROI---Return on Investment

Security is a 'cost center'. We produce no useable tangible products. We are a service industry. The client is not a security company. We are 'overhead.' We cost them! They are not in business to provide us a job, they are in business to make a profit...except the government of course.

Therefore we cannot really show an ROI. Sorry, that is just the facts, Ma'am...despite some folks attempt to sell ROI products to security departments.

Loss Prevention Departments of stores like Wal-Mart and Target can measure recoveries of property stolen, but that rarely comes close to the department's weekly budget.

However, this does not mean we have no value. How can one judge the value of prevention? What is the value of things that DO NOT HAPPEN? The building did not burn down--we can stay in business. The CEO was not shot in the parking lot and company trade secrets were not posted on the net...Wall Street doesn't freak and the company stock is not devalued to 1/2 of  yesterday's closing price. Employees are willing to come to work for this company because they do not feel they will be attacked in their office...because there are guards.

Our mere presence deters many crimes and losses.

We document what we do, so management can see we do act and if they are perceptive enough, might see the correlation between our actions and the fact that little or nothing has happened. Otherwise we are a tool in the Risk Management Department toolbox.

Our ROI is seen in the business staying open, viable and safe.

A dollar amount cannot be placed on security, IMNSHO.

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