WWE’s Jeff Hardy Arrested, Jailed on Drug Charges

With the holidays quickly approaching, executing strategies and managing the day-to-day issues can become overwhelming. The holiday season is the most important time of the year for retailers, and this importance is only emphasized by the current economic state. Therefore, now is an imperative time to be properly executing loss prevention strategies.

Over the next few weeks, you will close out what will be one of the most complex shopping seasons in history. In speaking with many of you, I have learned that you and your teams are focused, engaged and working to be complete business partners. You have been assisting your companies with balancing the collection of risks that face them. These risks and uncertain times require us to review, plan and respond to shrinkage, fraud, burglaries, safeness, robberies, non-traditional selling or store closings. It is reasonable to consider changing methods of operation to adapt quickly to this new, tumultuous environment. Changes might prove to be essential for loss prevention departments to stay relevant.

Loss prevention professionals and our solution provider partners have always shown a dedication, commitment, resolve and ability to deliver results. Adapting and correcting courses as needed to meet the needs of our business is what we have always been able to accomplish. Our success will be directly linked to our teams’ abilities to manage through uncertain times, challenge the status quo and deliver results. Talk is cheap. Many people can talk about concepts, theories and what they did in the past, but loss prevention leaders need to be able to talk specifically. We must respond to the programs and strategies that will reduce the collection of risks that retailers are currently facing. More important, we will need to build solutions and programs that deliver those results.

In an effort to understand the connection between retail crime and the downturn of our economy, the RILA Crimes Against Business subcommittee completed an in-depth survey. This survey produces some concerns relative to an increase in crime.

To see highlights of this survey, visit http://www.retail-leaders.org/latest/resources/RILA Current Crime Trends Survey.pdf.

It has become clear to me that we are entering into a new frontier for loss prevention which will require us to be faster, better and more effective than ever before. As many of you realize, RILA has a comprehensive list of committees to compliment and address the ever-changing portfolio of risks that you face. Will we address ORC? Yes. Not only will we address it, but we co-lead the Coalition against Organized Retail Crime. We will also work with you to address the hosts of crimes against businesses, safeness, workplace safety, disaster and recovery planning, merchandise protection and audit processes. We will continue to work with you to monitor and lead the future of retail loss prevention through our Horizons subcommittee. These committees provide an opportunity for members of the retail industry – loss prevention practitioners, manufacturers and solution providers – all working together for better solutions.

Have a safe and happy holiday season. We look forward to serving you in 2009.

Paul Jones
Vice President, Asset Protection

The “Trust” in Prevention

By King Rogers, Principal, King Rogers Group, LLC.,

When I think of all of the assets with which we are entrusted and which we are expected to protect for our companies, I find myself thrilled by the challenge. And, maybe just a bit intimidated by the responsibility. Not only do we have the challenge of reducing the negative line items in the profit and loss statements of our employer, but we also have the assignment of protecting our company’s human capital and the image or brand of the company. These responsibilities can be daunting and, if we try to accomplish these all by ourselves, we will probably fail. It takes a whole team to succeed.

This does not mean we need a cast of thousands in the loss prevention department. It means we need to recruit and enlist the efforts of partners throughout the company. Retailers consist of some primary vertical functional areas such as buying and merchandising and store operations. Loss prevention, like IT and human resources are horizontal functional areas that cross through all of the company’s vertical functional responsibilities. We need to have partners in our efforts to protect and reduce loss from every other functional area within the company. Generally, we strive to cultivate those partners as champions for our cause.

How do we identify those champions and begin to educate them on our mission and win them over as partners? It begins with trust. Trust is something that does not just happen. It is earned. And it is so important to the success of not only the loss prevention department, but also the company the department serves. When you have earned trust in your company, you are rewarded with “trust dividends” and if you do not earn that trust then “trust taxes” are imposed upon you, sapping your energy and your effectiveness. And, earning trust is not always easy for us because there are some employees in our companies who believe we are engaged in a mission of catching people doing something wrong. That is the worse stereotype that can happen to loss prevention and, unfortunately, during all of the years I have been in this business, I have seen some fellow practitioners capitalize on this image. I urge you not to fall into that trap. If you do, not only will you not gain the partnership you need, but frankly, you will utterly fail in your mission within your company.

In his book, The Speed of Trust, Stephen M. R. Covey tells the reader to thoroughly embrace and believe in Four Cores of Credibility and then begin to “walk the talk” to earn the trust necessary to create alignment in the functional areas of the organization. Those Four Cores of Credibility are:

• Integrity: This is what most people think about when they think of trust. To many, integrity basically means honesty but it is really much more. It is integratedness, walking the talk. It is being congruent, inside and out. It is having the courage to act in accordance with your values and beliefs. Most massive violations of trust are violations of integrity.
• Intent: This is about our motives, our agendas and our resulting behavior. Trust grows when our motives are straightforward and based on mutual benefit. When we suspect a hidden agenda from someone or do not believe they are acting in our mutual best interest, we are suspicious about everything they say or do.
• Capabilities: These are the abilities we have that inspire confidence: our talents, skills, attitudes, knowledge and style. They are the means we use to produce results. Capabilities also include our ability to reach out, establish, grow and extend trust.
• Results: This is our track record, our performance, our getting the right things done. If we do not accomplish what we are expected to do, it diminishes our credibility. Yet, when our deliverables meet or exceed those expectations we establish a positive performance record and our reputations precede us.

Covey goes on to list 13 behaviors necessary for cultivating trust. The following five behaviors flow initially from character:

• Talk straight
• Demonstrate respect
• Create transparency
• Right wrongs
• Show loyalty

The next five flow from competence:

• Deliver results
• Get better
• Confront reality
• Clarify expectations
• Practice accountability

And, the last three from an almost equal mix of character and competence:

• Listen first
• Keep commitments
• Extend trust

I believe that a key sub-tactic under the first major tactic of successful loss prevention is to earn, gain and establish trust. For the most part, human nature tells us we do not want to violate trust and let someone down. And the major tactic of loss prevention is where all of us should be spending most of our time and effort.

King Rogers can be reached at (612) 840-2201 or king@kingrogers.com.

Coach’s Corner
By Steve Lundeen, CPCC, Executive Coach And Consultant, Dream Engineering

I have been feeling anxious lately.

It has been creeping up on me, but I really noticed it when the economic crisis came into full bloom. I am sure it has been exacerbated by the incredible amount of negative political advertising that we have all been bombarded with over the last couple of months. What does this anxiousness mean for business? The pressures of the holidays are upon us. Family expectations. Job expectations. Et cetera, et cetera.

You face extraordinary demands that require endurance, discipline and focus. You want to bring your ‘A’ game everyday and be able to sustain your high performance. High performance depends as much on how you react to anxiety, and how you renew and recover energy as it does on how you expend it. When you feel strong and resilient, you will perform better – with more passion, for longer.

If you are ever hit with what feels like a tsunami of issues, worries, anxiety, read on. Here are some of the things I try to notice and then address.

Pay attention to where and how this anxiety hits you physically.

Where

For me, anxiety shows up as tension in my neck and shoulders. Occasionally I get the knot in the stomach too. As I have said in earlier columns, the first step is to consciously notice something is going on. When you become aware – stop and breathe, deeply breathe, into the tense parts of your body. Take some quiet time for yourself and meditate. A real key to calming the anxiety is to learn to take quick personal breaks in your hectic day. I know: I sound like I have no idea what your day is like. Trust me, I do. Having spent 30+ years in corporate America, I get the rat race. It will serve you well to slow down, do a one-minute, self focused quiet time. Build into your day quiet time that’s free from appointments, emails and phone calls.

Next, at the risk of sounding contradictory, move your body! Exercise. Just move around. Go up and down a flight of stairs or walk briskly. This exercise will help get the oxygen back in your system and get you reinvigorated. You should also build into your routine a 30 minute workout every other day. This workout will help both your endurance and your mental acuity.

How

“How” shows up for me as perpetual eating. When I get uptight I really start grazing. What happens with you? Do you become a bear to work with? Do you “hide” and become unavailable? How do your behaviors change? Once again, I am coming back to the importance of noticing – being conscious. For me, when I find myself in the grazing mode I become more focused on being disciplined about my diet. Get the junk food out of my reach; drink more water; cut out the simple sugars and just get more balanced in the proper foods.

Pay attention to how you are reacting. Break bad habits. When anxiety hits you, what is your usual reaction? What is your strategy for avoiding anxiety? Personally, I either pretend it is not there or I become busy but without focus (working harder not necessarily smarter). Or, I wait for something to react to (rather than being pro-active). Take a risk, break the old routine and establish a new reaction. What is positive about what is going on? How can you take this feeling of being overwhelmed and make it work for you?

You can choose from myriad exercises and behaviors to combat anxiety. Find the ones that work for you and be conscious about building them into your routine.

As always, if you would like to talk more contact me at 763-521-003 or steve@dreamengineering.com.

Playing Nice in the Sandbox: Relationship Credibility
By Walter E. Palmer, CEO/President, PCG Solutions, Inc.

In last month’s column, we discussed the first of two prerequisites for persuasion and influence as identified by Jay Conger in his 1998 article, ”The Necessary Art of Persuasion,” which was published in the Harvard Business Review. The first prerequisite that we covered was expertise credibility – the necessity that others view you as having the knowledge, skills and experience to know about your subject matter.

However, Conger argues that expertise credibility is wasted if it is not coupled with relationship credibility. But, why are relationships important? Don’t we sometimes think that as long as we “do the job we are paid to do” that nothing else matters? Have you ever said, “They don’t pay me to be popular”? It seems that we often equate “building relationships” with smoozing, kissing up or being manipulative. This could not be further from the truth.

Having relationship credibility does not necessarily mean that you are popular or have lots of friends at work. The first aspect of relationship credibility is that others in the organization trust you to listen and to work in the best interest of others. Instead of simply foisting your plans or priorities on others, you meet with them one-on-one, get their views on initiatives you are pursuing, listen to their concerns and priorities and find a way to help them with their top issues and projects.

The second aspect of relationship credibility is that others view you as having “consistently shown strong emotional character and integrity.” This aspect means that you are consistent and not prone to emotional outbursts and mood swings. In the past, when I have asked groups whether they would prefer to work for someone who is a jerk everyday without fail versus a boss where you can never tell “which side of the bed they woke up on,” the group has chosen the consistent jerk every time. Inconsistency in a relationship is a sure predictor of failure.

When you can establish yourself as trustworthy, consistent and working in the best interest of the group, you have an edge in any negotiation, meeting or persuasion situation. Others in the group will want to help you achieve your goals and will give you the benefit of the doubt. However, if people do not trust you on a relationship level, your expertise is wasted and you will lose the ability to bring influence to your organization.

Remember, relationship credibility must go hand-in-hand with expertise credibility. Have you ever worked with someone about whom the common comment was, “He’s a nice guy, but he doesn’t have a clue what he’s doing?” That is not a recipe for success. Like so many things in life and work, you cannot depend on one “magic bullet” to make you successful.

Do you and your department have “relationship credibility” in your organization? Do you have it with certain functions or people but not others? For instance, do you have a strong relationship with the chief financial officer, but not your head merchant or human resource executive? Do you have some examples of successes you have had in establishing solid relationship credibility within your organization? If so, please share them and we can generate further dialogue.

In next month’s column, we will start to look at the issue of alignment and how misalignment derails the ability to build the case for the value loss prevention brings to the retail enterprise. As always, I welcome your views, thoughts, and insights into these issues. You can email me at wpalmer@PCGsolutions.com.

Investigator’s Corner: Set Yourself Apart in Difficult Economic Times

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

First of all, we wish you all a Happy Thanksgiving and wonderful holiday season.

That being said, difficult times are ahead for all of us, both professionally and personally. Many of you are already facing the difficult challenges of budget cuts and reductions in force. Financial analysts are offering inconsistent and contradictory predictions about the near and long-term health of the economy, which only bolsters our uncertainty of what the future may hold.

A number of years ago, we attended a CEO presentation at a loss prevention convention. It was a speech that touched a nerve, although the presenter’s identity has been lost to us over time. Some old notes reflected the presentation’s main points, but not necessarily the exact words.

Three lousy employees = 1 average employee

Three average employees = 1 good employee

Three good employees = 1 great employee

Thus, one great employee = 9 employees

Reflect on employees with whom you have worked, and we suspect it confirms the truth of the equation.

Jack Welch, former CEO of General Electric, strove to push his managers to become more productive, eliminate inefficiencies and avoid bureaucracy to have GE become a leader of its industry. He selected great employees by eliminating the lousy and average associates. His successful management style was copied by other CEOs attempting to perform the same kind of turnaround for their organizations. One controversial method he employed was to cull the bottom 10 percent of managers within his organization.

This brutal method of attrition left only the best, most dedicated performers. The coin had another side however, and that was the manner with which he rewarded top performers. He rewarded them with bonuses and stock options, which were ultimately extended to almost a third of the employees at GE.

Part of managing in difficult economic times is to clearly assess the strengths and weaknesses of an organization’s personnel. Putting aside friendship and bias, managers must go into survival mode selecting those people most likely to help the organization succeed.

Identifying the top performers in an organization and creating a hierarchy begins easily, but becomes more difficult as the differences between individuals become smaller or nonexistent. Then it becomes time to consider the location or blend of skills necessary to keep the ship afloat during the roughest of seas.

Sometimes an organization makes this decision simply as a function of tenure. The individual has been loyal to the organization for X years so he should stay. Certainly this is an easiest way for management to make the decision: last in, first out, but it is not always the right one to make. A reward for loyalty, but is it the correct decision for the company and remaining employees?

To succeed in business one should always be educating oneself for the next job or internal promotion. Now is also a time when an employee has to separate himself from the herd; stand out and be noticed. Get those flags ready to wave and fine tune the old resume. What special skills, personality attributes, drive to succeed and dedication does the individual possess that sets him apart from those he works beside? He should be asking, “What about my background sets me apart from the rest of the people applying for that position? Is it a special skill, certification, education or technical expertise that gives me an edge to either maintain my position or be hired?”

In our grandparent’s day, it was the high school education; for the boomers, it was a college degree; today, it is a master’s degree or certification employers look for in an applicant. With all the online education available, attending classes is available to everyone; no one has the excuse for not having access to higher education. Those employees with a goal of becoming a senior executive within the next 20 years should pursue a college degree if he/she does not already have one. Ask any recruiter. Times are changing, and the great employee plans for change.

Colleges are beginning to develop loss prevention programs to groom tomorrow’s professionals to enter the work force. Companies are supporting certification to further continuing education and reduce liability. Employees should consider certification programs, such as Loss Prevention Qualified (LPQ), Loss Prevention Certified (LPC), Certified Protection Professional (CPP), Certified Fraud Examiner (CFE) or Certified Forensic Interviewer (CFI). Managers should encourage them to do so. Each establishes knowledge, by examination, and is a credential setting employees apart. The great employee plans for the future, both for his own and the needs of the industry.

The rubber band of the industry contracts and expands over and over in a person’s career. Good times are when everyone is fat and happy, and then come the lean times of change. All employees should prepare themselves to stand out, either within your organization or when it comes time to search for a new job.

In the next column, we will consider how to select those great employees.

The Spirit of Partnership

By David Johnston, Director of Business Development, LP Innovations

This month, I am deviating from the topics of technology and analytics to touch upon a topic that relates to the obstacles we face for the foreseeable future.

The turbulent retail market continues to be a challenge for consumers, retailers and solution providers alike. Together, we have watched companies close their doors while others are liquidating, and we can expect to lose even more before the economy turns around. Unfortunately, with these closures we have also seen our peers, partners and friends displaced in the workforce.

The expectations are that budgets for both retailers and solution providers will be scrutinized more than ever before facing the same challenges in 2009: cut costs and expenses and reduce resources deep enough to potentially affect programs and solutions development and support.

So how will we, as retailers and solution providers, get through this difficult economy? I believe it will be through the development of stronger partnerships and working together to come up with new ideas.

Partnership can be defined as a relationship between individuals or groups that is characterized by mutual cooperation and responsibility toward the achievement of a common goal. Signing a contract does not make a partnership; rather, it is the commitment by both parties to communicate, brainstorm, and create joint solutions that lays the foundation for a strong partnership.

Our industry has many great partnerships between retailer and solution provider. We also have some that could not be considered a loose definition of a partnership. With what lies ahead, it would best serve us all to take a look at our relationships and see how we can bring a stronger partnership during these difficult times.

New Challenges…New Opportunities

Recently, I have been hearing several people use the phrase “the playbook is out the window” as they speak about how they are handling the economy and working through their strategies. We are seeing more daily obstacles than ever before as we all try to build a solid strategy on remaining stable yet profitable.

Challenge brings opportunity. Opportunities breed new ideas. As partners, we need to first understand that both retailer and solution provider are in similar positions with the economy and are looking for the same goal – a successful program.

• Understand both positions. Talk with each other to learn and understand the issues facing both retailer and solution provider. Retailers may need to take the lead and be open in discussing the challenges they have with their decision makers. Solution providers should understand that the retailer may be faced with deeper financial cuts, more strict resource reductions and is trying not to see the loss of a specific program, technology or resource but has no alternative in its current state. With open communication, both parties set the foundation to discuss new ideas.

• Plan frequent communication. Communicate regularly to keep all parties in touch with recent changes and events. Nobody wants to be surprised with the turmoil of today, and without communication, there can be no partnership. The more communication that occurs between parties, the more discussion and the greater chance for new solutions. It is as simple as being able to talk through the concerns, discuss new ideas and not leave the other party out of touch.

• Utilize each other’s strengths. Solution providers can bring great value in support of a retailer’s needs. Providing case studies, statistics and other client’s success or use of their solution can assist a retailer in need of showing value. As a solution provider, I can tell you that I have been more than willing to assist a retail partner in developing a presentation, ROI analysis and even co-presenting with a retail partner to support their efforts in front of their company’s decision makers.

Retail partners provide good sounding boards, new ideas and an understanding of the “now” to solution providers. Using their experience and expertise helps a solution provider understand what they need to do to support the industry and where they may need to alter their focus or solution to support the current needs. First hand knowledge will be vital to support today’s retail industry.

• Search for New Ideas. Henry Ford once stated, “Coming together is a beginning. Keeping together is progress. Working together is success.” It is times like these that as partners we need to take what we have come together to build, keep together to make progress and work together to continue our success. What has worked previously in an environment may not be possible today. Programs may require alterations and deviations from existing solutions may need to occur. We all need to keep in mind that both parties want success and to accomplish our goal it may take new ideas and fresh approaches.

A Holiday Wish

To everyone out there, I wish you and yours an enjoyable holiday season. May we all be thankful for our families and friends, and remember those who are serving our country and those who have left us but remain in our hearts. Until next year, Best Wishes.

David can be reached at djohnston@lpinnovations.com.

Improve Your Current Job Security – Increase your Marketability – Invest In Your Career

By Gene Smith, President, LP Foundation

During these times of uncertainty, how can you increase the likelihood that you will not be the person downsized, should your company decide to do so? What can you do to find employment during difficult economic times? How will you stay at the top of your peer class? These are topics that we will discuss below.

Why Should You Get Certified Now?

• Increase your marketability in difficult economic times.
• Put yourself above your competition.
• Add LPQ designation to your name and resume.
• Improve your potential for promotion.
• Put yourself above your competition.
• Demonstrate your desire to learn.
• Enhance your performance by gaining knowledge.
• Invest in your education.

During tough economic times, there is always the potential for downsizings within many retail departments, including loss prevention departments. As the candidate pool grows larger, employers can afford to be very selective in their decision making. The market will become more competitive than ever for the few job openings that do occur. It is during times like these that the best recognize the importance of investing in their careers! It is the time to show your current employer that you have the right attitude for learning and personal development, so you will be the one they choose to keep. Or, it may be the time to show a potential new employer that you are the candidate who has the greatest drive and initiative by demonstrating some or all of the suggestions discussed below.

In previous articles, I have stressed the importance of education and certification; however, now more than ever, it is the time to seek industry certifications. In a struggling economy, retailers are forced to make tough decisions every day. The number of positions will be downsized, and this trend will continue during these challenging times. With few exceptions, it is true that most companies will typically try to eliminate what they perceive as their weakest links first when eliminating positions. If you are among the fortunate individuals who are retained, what steps will you take to maintain your status and your position? If you are among the unfortunate who are caught up in a downsizing, what steps will you take to improve your chances of regaining employment?

Retailers who are hiring can afford to be very selective. Look at your resume. How long has it been since you took a certification course, college class or industry seminar? Have you shown a willingness to invest in your own career? If you have not shown this initiative, what does that say to both your current and prospective employers? When companies have to make tough choices between employees, what do you think they use to make their decisions? Sometimes it is purely based upon performance. Sometimes it is geography or demographics. Sometimes it is attitude and who shows long-term potential. Given the employers’ ability to be selective, we have to ask ourselves, “What am I doing to make myself better than my competition?”

Seeking certification or enrolling in a college class sends so many positive messages to current and perspective employers. Here are just a few:

•  It demonstrates to both current and prospective employers your desire to learn and further develop industry knowledge. You are not set in your ways and think you know it all simply because of your industry tenure.

• It designates a level of knowledge and understanding of the core competencies that our industry leaders have identified and acknowledged as critical to excel as a loss prevention professional.

• Certification is designed as a means to validate the knowledge level of LP professionals. It helps to promote industry professionalism by demonstrating your level of competency.

• It serves as a valuable resume builder, endorsing your knowledge base and promoting your commitment as a retail professional as well as a qualified loss prevention professional.

• Most important, certification is a means to enhance performance. It expands our knowledge and expertise, confirms our understanding, challenges our perspective and reinforces industry goals and objectives. It can help you survive in your current position!

• Companies have been adding certification as a preferred requirement to their job descriptions.

Strong companies are always trying to upgrade their teams. While there may be plenty of opportunities, the competition will remain fierce. Anything you can do to get a leg up on your competition, DO IT! Get creative! Don’t just “throw” together a resume – build one and revise, revise, revise! A resume should not just highlight your experience, it should show your capabilities! Make it the best it can be. Read books, network and practice interviewing.

If you are still employed at the time you read this article, then make sure you adjust your attitude. This is not the time to complain. Be grateful that you are employed and think of how you can make yourself more valuable to your employer. Consider using certification as a refresher course. Sharpen up your knowledge and become an LPQualified professional now!

Promotions & Career Moves- Please continue to send your promotions and career moves for anyone you hear of to the foundation, so we can display them on our website. We also automatically forward them to the LossPrevention magazine for printing in their “On the Move” section. Since the foundation started this service, the magazine listings are much larger than ever before. That increase is due to the fantastic support that the foundation has received from our career advisors (Loss Prevention Recruiters, Jennings Executive Recruiting, Beckwith & Associates and Retail Placement Solutions), who help by submitting information. Our site has become “the” most current and comprehensive listing of industry moves. Please check out the latest industry moves: http://www.losspreventionfoundation.org/promotions_career_moves.asp

Also, check out our list of career advisors who have demonstrated their support for the foundation: http://www.losspreventionfoundation.org/recruiters.html

LPF Website- Check out the updated listing of all of the companies that have been represented in developing loss prevention certification. It is more than you might think. If you want your company involved, please contact us.

http://www.losspreventionfoundation.org/Companies_developing.html

Running a Successful “Target” Store Program

By Vince Briguglio, Regional Manager, Loss Prevention Department, J. Crew

Ah, inventory day at last! Our final exam is here to show how well we have performed as a department! Are we worried? No, of course not. All of those late nights studying trends, vendor issues, charge-backs, transfers, turnover, payroll, etc. and etc… Everything looks good and we are ready! Inventory comes in, and we are pleased with the numbers. However, as always a couple of problem stores have been flagged. Addressing these stores is crucial if we are to continue our great inventory trend in the future.

These stores now have the honor of being named a “target” shrink store! As exciting as that sounds, no one is really honored to receive this title. Many companies have ideas about how to approach shrink reduction in the high loss stores. J. Crew has seen some great success in the reduction of inventory shrink in these locations. The key to our success has been looking at ourselves first as the leaders in shrink reduction and then educating the store with a very basic program.

First, we look at our field loss prevention staff. Do we have the right person to get the job done? As an LP professional you cannot be an individual who is a “teller.” Successful shrink reduction starts with being an “educator.” LP not only has to review the store’s opportunities but also educate the store team on the “why’s” and “what ifs” behind the policy or best practice. Knowing we have the right educator to get the job done, we then conduct an LP audit to identify any operational opportunities. The LP audit we have created focuses on everything from face saving statements and company policy knowledge to front- and back-end operations. Always remember: normally the store team wants to do the right thing, but just may not know how. Getting the buy in and support from the store team as well as other business partners will ensure a strong foundation is laid.

Second, look at the store from an outsider perspective. We have found many times that high shrink stores have a very low morale. Morale can be quickly assessed by making an unannounced visit, stepping back and seeing the interaction with our customers as well as each other. Take a walk to the associates’ break area and quickly look at how we treat our associates’ space. As they come to take a break/lunch, is the microwave clean? Is the table clean and open to sit down and have lunch? These areas may sound like simple things to look at, but having these areas well maintained shows our associate that we care about them, thus increasing morale.

Third, do a complete investigational look into the store. High shrink stores normally indicate internal theft. We always have conversations with at least 20 percent of the staff. The conversations are kept very general. These conversations many times have led to an admission of a theft, which plays a huge impact in shrink reduction. These conversations also have identified the answers we are looking for simply because we asked the right questions. We have found that store associates for the most part have a pretty good idea about what is wrong in their location. These conversations have led us to delivery theft cases where a driver delivering our merchandise was taking items, as well as to instances where the store team completely lacked understanding of our company’s policy and procedures. We also use this time to get to know the staff, developing relationships with them, so they will feel comfortable picking up the phone and letting us know if something is not right.

Follow up and testing for understanding

Once we have completed this three-prong approach, all that is left is to ensure we continue educating our store management team and testing for understanding. We do this through target store conference calls (one a quarter) and store visits. We audit our stores once a quarter as well. By auditing the store this frequently we are testing to ensure their understanding – thus ensuring success!

Consumer Shoplifters and the Holiday Shoplifting Season

By the National Association for Shoplifting Prevention

Considering the increasing popularity and convenience of online shopping and the continuing downturn in the economy, retailers will likely see fewer customers in their stores this holiday season. But for loss prevention it is important to remember that, of the customers who do enter your stores, a much larger percentage will be shoplifters. The reason is simple: people who shoplift must come in contact with the merchandise – they cannot do that online. They can only do that inside a store. So beware – while you will have fewer customers overall, a greater percentage of them are likely to be consumer shoplifters.

If you have an upside to fewer customers in your stores, it is that you will have a better opportunity to observe and provide customer service, which is exactly what the shoplifters say gives retailers the best chance for reducing the number of consumer shoplifting incidents during the holiday season. You have numerous opportunities to intervene while a consumer is making the decision to steal from your store.

We asked consumer shoplifters who attended a self-help group held in our New York offices, “What tips would you give a store owner to help reduce shoplifting especially during the holiday season?” Here is what they had to say:

• ”Be more of a presence, so I don’t feel safe to steal in your store.”

• ”Pay attention to the alarms at the door, so we think you care.”

• ”Don’t let the stores get all messy. It gives me the impression you don’t care about your merchandise.”

• ”Just because I hide the item doesn’t mean I’m definitely going through with it.”

• ”Don’t crowd the aisles with so much stuff because then I can hide easily.”

• ”Look at me, talk to me, show me you know I’m there.”

• ”Even after I have hidden an item, chances are I am still debating whether or not to actually take it.”

• ”Part of me hopes someone will say say something to make me decide to put it back. I know what I am doing is wrong.”

Attentive employees and security can go a long way towards reducing the number of consumers who shoplift in your stores. The group’s statements are echoed in a 2008 survey conducted by NASP (Identifying the Impact of Customer Service on Consumer Shoplifter Behavior) and sponsored by Punch Integrated Communications.

Question posed: What would you have done if you were still in a store after hiding something that you wanted to steal (in your coat or in a bag for example) but then you noticed that an employee might have seen you?

Response: Nearly 94 percent of adults and more than 90 percent of juveniles indicated that if they had noticed that an employee might have seen them conceal merchandise they would not have stolen that item. Just 2 percent of adults and 3 percent of juveniles indicated that being seen would not have reversed or even interrupted their decision to steal.

Therefore, paying attention to consumers is the key – greet customers and offer assistance. For more than 90 percent of consumer shoplifters, all you have to do is make them believe that someone is aware of their presence and might have seen them act.

Cybersecurity on the Go

By the U.S. Department of Homeland Security

Are you and your employees always working on laptops and sending e-mails on personal digital assistants (PDAs)? Have you ever thought of what would happen if you lost those mobile devices?

Many of us rely on laptops and PDAs to help keep up with our busy schedules. These devices hold our calendars, customer information, employee personnel information, and even sensitive corporate documents. If this vital business information was lost, think of the repercussions to your bottom line. Even worse, if someone with malicious intent obtained the information, how could they use the information against you, your customers and even your employees?

The U.S. Department of Homeland Security (DHS) celebrates National Cyber Security Awareness Month. In honor of this celebration, the Commercial Facilities Sector would like to remind you to keep your information secure on the go. The DHS U.S. Computer Emergency Readiness Team (US-CERT) provides the following tips for protecting portable devices:

• Password protect your computer: Make sure that you have to enter a password to log in to your computer.

• Keep your laptop or PDA with you at all times: When traveling, keep your laptop with you. Meal times are optimum times for thieves to check hotel rooms for unattended laptops. If you are attending a conference or trade show, be especially wary — these venues offer thieves a wider selection of devices that are likely to contain sensitive information, and the conference sessions offer more opportunities for thieves to access guest rooms.

• Downplay your laptop or PDA: There is no need to advertise to thieves that you have a laptop or PDA. Avoid using your portable device in public areas and consider non-traditional bags for carrying your laptop.

• Consider an alarm or lock: Many companies sell alarms or locks that you can use to protect or secure your laptop. If you travel often or will be in a heavily populated area, you may want to consider investing in an alarm for your laptop bag or a lock to secure your laptop to a piece of furniture.

• Back up your files: If your portable device is stolen, it is bad enough that someone else may be able to access your information. To avoid losing all of the information, make backups of important information and store the backups in a separate location. Not only will you still be able to access the information, but you will be able to identify and report exactly what information is at risk.

What can you do if your laptop or PDA is lost or stolen?

Report the loss or theft to the appropriate authorities. These parties may include representatives from law enforcement agencies, as well as hotel or conference staff. If your device contained sensitive corporate or customer account information, immediately report the loss or theft to your organization so that they can act quickly.

For more information on cyber security please visit the following Web site: http://www.us-cert.gov/

For additional cyber security resources, the Commercial Facilities Sector also suggests the following free educational opportunities through ACT Online:

• Information Security for Everyone: This course is designed to teach the principles and practices that all computer users need to keep themselves safe, both at work and at home. By presenting best practices along with a small amount of theory, trainees are taught both what to do and why to do it. Topics covered include how to secure both clean and corrupted systems, protecting your personal data, securing simple computer networks and safe Internet usage. The course can be accessed at the following Web site: https://www.act’online.net/index.php?option=com_matrix

• Information Security Basics: This course is a specialized 8-hour, online training program designed to provide state and local law enforcement officers with a working knowledge of the intelligence process and their important role in the collection, recording and reporting of terrorist activities. A prerequisite for the course is some previous experience in information technology (IT) administration. The course can be accessed at the following Web site: https://www.act’online.net/index.php?option=com_matrix
  

RILA Update

Loss Prevention Magazine Article – “Leadership in a Bad Economy”
Our friends from Loss Prevention Magazine have authorized us to include this article for your review. “Leadership in a Bad Economy” was in December’s edition and focuses on how to tackle the challenges that face retailes in the down economy. We hope that it provides you with some insight and actions to take. http://www.retail-leaders.org/latest/resources/LPMagazine12.08.pdf

Notes from the RILA Workplace Safety Subcommittee
Best Buy’s Doug Sitzman, chairman of the Workplace Safety Subcommittee, and Autozone’s Doug Gage, vice chairman of the subcommitee, hosted a very productive conference call on December 2, 2008. There were three guest speakers on the call: John Leyenberger of Wal-Mart, Ron Taylor of Venable, and Marc Freedman of the US Chamber of Commerce, all of whom provided valuable information and education regarding OSHA personal protection equipment compliances and government actions. If you are a RILA member and would like to participate with this group, please contact Liz Benson at liz.benson@rila.org or (703) 600-2030. This group is also planning an in-person meeting in Charlotte, N.C., for the first quarter of 2009. This educational event will provide opportunities for the group to network and discuss key issues facing retailers.

New Solution Provider Session Slated
At the 2009 Loss Prevention, Auditing & Safety Conference, RILA will release a national survey on what loss prevention leaders are looking for from their service suppliers and insight on what makes them buy. This survey will be distributed at a NEW, pre-conference session exclusively for solution providers. During this session, participants will also have the ability to ask candid questions to a panel of leading loss prevention leaders, led by Dennis Klein of Abercrombie & Fitch and Libby Rabun of Autozone. If you would like more information on attending the conference as a solution provider, please contact Kim Sackett at ksackett@strategicconventions.com.

- Letter from Paul

- Executive Profile
   with Jason Jones

- The “Trust” in
   Prevention

- Coach’s Corner

- Playing Nice in the
   Sandbox: Relationship 
   Credibility

- Investigator’s Corner

- The Spirit of Partnership

- Improve Your Job
   Security

- Running a Successful
  “Target” Store Program

- Consumer Shoplifters and
   the Holiday Shoplifting
   Season

- Cybersecurity on the Go

- RILA Update

 RILA Calendar

January 25-29
Leadership Forum
Naples, Florida
Invitation-only event for CEOs

February 8-11
Logistics Conference
Dallas, Texas

May 3-6
Loss Prevention, Auditing & Safety Conference
Orlando, Florida