Rila- Supporting Loss Prevention Leaders
Within the recent months, we have found ourselves “having to do more with less.” This phrase has generally been overused in the past; however, we find it more applicable now than ever! As we enter into the fourth quarter of the year, most of us find ourselves plagued with bank failures, credit crunches, and volatile markets on the home front and abroad. We have witnessed a federal bailout with the rest of the country, and this has understandably produced low confidence with our consumers. All of these combined factors indicate that there will be difficult times ahead for the retail industry.
As Loss Prevention practitioners, how are we to make sense of it all? How do we continue to add value in an environment of limited and reduced spending? It has been said, “A good economy hides bad business practices, but a bad economy reveals them.” Left with this dilemma, what options are available to us to pursue?
Option #1: Stick our heads in the sand and hope that it all blows over.
Option #2: Revisit all current programs and practices to ensure we are still striving towards the best possible results.
Option #3: Loss Prevention as a competitive advantage
Option #1: You will have a difficult time finding any successful Loss Prevention professionals who undertake this option. Therefore, we will discard this option up front. Putting yourself in neutral will get you nowhere… fast. If Loss Prevention jobs were easy, anyone could do it, and we all know that that is not the case.
Option #2: With the financial tightening, this option may not be the best time to begin rolling out new programs. Rather than turning to this additional spending, you should review the programs that you already have implemented. If they are producing the intended results, then that is great, but ask yourself can they produce more. If they are not efficient, then they need to be reworked.
It is much easier to see opportunities and evaluate programs when you are walking into a new situation. You are a different set of eyes with a fresh perspective. However, this becomes increasingly more difficult to observe when looking at your own programs. Comparably, it can be as daunting as someone asking you to choose your favorite child. It cannot be done easily the longer your programs have been in place. You should honestly evaluate your programs. Ask yourself and your team the following questions:
· How long have the programs been in place?
· What was the primary objective of them?
· Have the intentions been met?
· Have the business priorities shifted?
· What has changed since the program was implemented?
· Is the return or the investment still present?
· Can these funds be better utilized somewhere else?
· If we execute them more effectively, will we return more dollars to the bottom line?
· What should we stop doing? This is sometimes the hardest decision but necessary.
· Do you have the right talent to meet these goals?
· Is your talent engaged and proactive?
· What criteria are we using to measure success?
· Would more support equal better execution?
· Have we used our exception management program from a proactive standpoint?
· Is your Loss Prevention team passionate and actively pursuing the goals?
With the retail landscape as it is, you may want to review your refund management and EAS programs. Are both of these programs being utilized to ensure the maximum return, as well as maximum deterrence?
Option #3:Loss Prevention as a competitive advantage
We do not often discuss utilizing Loss Prevention and their deliverables as a competitive advantage. In the coming months retailers will be competing for customers with the passion we have not seen in a decade. It is during times like these that the deliverables of Loss Prevention, shrink, fraud , safeness costs, return rates, cash if managed to the optimal level will be critical in reducing expenses thus ensuring more dollars flow to the bottom line.
Executing your Loss Prevention program with precision and ensuring your teams are all focused on the critical few things that matter the most will make a significant difference in these turbulent times. It will ensure that you deliver great financial results.
Reevaluate your priorities and be realistic about what is working and what is not. You will be able to best support your team if you are creative and think outside of the box. By collaborating with people outside of the Loss Prevention world, you will gain a new perspective on your own obstacles. Now is also a good time to participate in benchmarking and networking with your peers to gain insight from their successes. Enlist the assistance of your solution providers to share in their insights and expertise.
This is certainly not a time for the weak-kneed or the faint of heart. Clearly, it is time for the leaders to lead and step up to the plate. Inspire your teams! Share the Loss Prevention vision! Measure and track all aspects of your Loss Prevention program to make certain that there is incremental improvement week after week. This is the time to see true Loss Prevention leaders demonstrate their value more than ever! By doing so, you will see operational excellence and will have guaranteed results.
Often times our Leadership role in Organized Retail Crime is talked about, but it is a small part of our comprehensive offerings for the Loss Prevention community. As your RILA partner, we are happy to help you work through this difficult and challenging period. We are very proud of our ability to support you with your thought leadership and benchmarking. By invoking the use of our subcommittees, you will gain beneficial knowledge to make a meaningful difference. We have the following subcommittees to accomplish these goals: Operational Audit, Work Place Safety, Crimes Against Business, Horizons, and Disaster Recovery and Preparedness. To learn more about them or take part in their membership, please email me at paul.jones@rila.org or visit our website at www.rila.org.
Tags: loss prevention, orc.organized retail crime, paul jones, profit, retail, retail industry leaders association, safeness, safety, shrink
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