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Making Cents of Security
Sears Tower Director of Security Keith Kambic and his Integrator, Mark Eggerding, Explore Three Apporaches to ROI
By Keith Kambic and Mark Eggerding
Value is the watchword of 21st century business. We challenge business leaders to contribute value to the top and bottom lines. We expect them to set goals and measure success.
Security and life safety programs are no exception. Organizations demand that security serve the broader business strategy. CSOs can only compete for budget resources if they deliver demonstrable value. Ask CSOs what keeps them up at night, and many will say return on investment (ROI).
This is never truer than when upgrading technology. Security technology reduces risks to life, safety, tangible assets and intellectual property. It streamlines operations and creates efficiencies. It can even help maximize revenue. The CSO’s challenge is to prove it.
Proving ROI begins with sound plans. Security plans drive value when they speak to the goals of the organization’s overarching strategic plan. They emerge from a process that considers the organization’s values, infrastructure, key assets, strengths, weaknesses, opportunities and threats.
Then the CSO faces a choice. There are three approaches to ROI. The first, the risk management approach, considers the actuarial risk of undesirable outcomes. Consider a retail setting — a store, for example, may calculate the probability that inventory will be stolen and then multiply that probability by the inventory’s value. It can then use the likely dollar value of its annual loss as a benchmark against which to gauge its loss prevention program.
Another approach is through measuring cost savings. For example, security technology can help hospitals comply with privacy regulations by auditing who accesses medical records. Technology yields positive ROI if the high-tech solution costs less than the hospital’s previous, manual compliance program.
The third method, which we term the “value added approach,” considers the long-term benefits of a best-in class, comprehensive, holistic security and life safety program. This is the approach adopted by the Sears Tower in Chicago.
