Revenue generation

[FireEMSPolice]

I work in-house security for a mall. We had a meeting a few weeks back and management told us that our division was created to make money. Basically now all we do is extra duty details to the tenants to make money for our department. I was thinking of possibly getting our leasing people to fine the tenants for setting off burglar alarms by opening doors after hours or a fine for any after hours false alarm response, kind of like our city does. Can anyone else think of a way for us to make money that I can present to management? Thanks!

[HotelSecurity]

I work in-house security for a mall. We had a meeting a few weeks back and management told us that our division was created to make money. Basically now all we do is extra duty details to the tenants to make money for our department. I was thinking of possibly getting our leasing people to fine the tenants for setting off burglar alarms by opening doors after hours or a fine for any after hours false alarm response, kind of like our city does. Can anyone else think of a way for us to make money that I can present to management? Thanks!

Would management go for fining the tenants? The person who owns the hotels I work for used to own a shopping mall. When he let it go we keep his Chief of Security from the mall & put him at one of the hotels. He told me that in malls management is always kissing the tenants bottoms in order to keep them. I can not see them fining tenants.

[Curtis Baillie]

I’m always amazed when I see a post like this - “management told us that our division was created to make money". Your “management” needs a large dose of reality check, and a swift kick in the pants.

Your division should have been created to perform security duties related to patron safety – security issues and property protection. I can see it now – on the witness stand. We were told in a meeting that our division was created to be a profit center. At the time the female customer was being raped in section D, we were operating our lemonade stand, in section A, trying to meet our monthly profit goals.

Your mall management’s lack of knowledge regarding security/safety/premise liability issues should be a major concern for the property owners. Attitudes like theirs are why people in my profession exist.

I'm sorry, I'm not going to be much help in your management's quest to make a profit center out of you - I just had to respond.

[SecTrainer]

I’m always amazed when I see a post like this - “management told us that our division was created to make money.” Your “management” needs a large dose of reality check, and a swift kick in the pants.

Your division should have been created to perform security duties related to patron safety – security issues and property protection. I can see it now – on the witness stand. We were told in a meeting that our division was created to be a profit center. At the time the female customer was being raped in section D, we were operating our lemonade stand, in section A, trying to meet our monthly profit goals.

Your mall management’s lack of knowledge regarding security/safety/premise liability issues should be a major concern for the property owners. Attitudes like theirs are why people in my profession exist.

I'm sorry, I'm not going to be much help in your management's quest to make a profit center" out of you - I just had to respond.

You beat me to it, sir, except I was going to suggest a bake sale instead of a lemonade stand.

I wonder if someone in management heard or read that the security function should contribute to the organization's bottom line (which is true), and ignorantly misunderstood this to mean that security should be "making money". There is a vast difference between the two ideas.

[Curtis Baillie]

You're right - I would be more inclined to buy an apple pie before a glass of lemonade.

[FireEMSPolice]

Security Consultant, the property owners are in the same bed. They created this security division. Sure, we provide safety/security services but on the bottom line, we were created to make the company money. Thats why they kicked IPC International out and took Security in-house.

HotelSecurity, yes, they fine the tenants already for lease violations.

[SecTrainer]

Security Consultant, the property owners are in the same bed. They created this security division. Sure, we provide safety/security services but on the bottom line, we were created to make the company money. Thats why they kicked IPC International out and took Security in-house.

HotelSecurity, yes, they fine the tenants already for lease violations.

Could you bring me up to speed on what venue we're talking about? There are some situations in which security administers (key word) a related (another key word) function that involves collecting (last key word) revenue.

For instance, on many college campuses the security or campus police department issues student parking permits, collecting the fees for the permits.

However, this is not properly viewed in a business sense as "making money" or "generating revenue" any more than a court clerk can be said to be "making money" when she collects the fines assessed by a judge.

There have been very misguided city officials who believed that the role of the police department, or the building inspection department, or the trash collection department, was to "make money" for the city. Observing that fines, fees, etc. were associated with some legitimate activities of these agencies (such as enforcing traffic laws, ensuring proper construction practices, etc.), they corrupted these legitimate functions of government.

So...you would see "ticket quotas" and an emphasis on "up-ticketing" traffic offenses to higher fine categories. You would see building departments issuing permits whether plans were proper or not.

As I see it, there are three ways a security department can "make money" in the real business sense of that word:

1. The security department could contract with nearby facilities to offer security services. This is the only legitimate possibility that comes to mind.

2. The security department could corrupt its "enforcement" activities in order to generate revenues.

3. The security department could undertake revenue-generating activities or absorb other "cost-centers" having nothing to do with security (i.e. janitorial/maintenance) and thereby dilute its security responsibilities.

[Curtis Baillie]

Security Consultant, the property owners are in the same bed. They created this security division. Sure, we provide safety/security services but on the bottom line, we were created to make the company money. Thats why they kicked IPC International out and took Security in-house.
HotelSecurity, yes, they fine the tenants already for lease violations.

If that ever comes out in a litigation case - your management will quickly change their thinking - that is if they aren't forced into bankruptcy.

[John H. Christman]

The very idea of a security department existing to make money is disgusting!

[Curtis Baillie]

The very idea of a security department existing to make money is disgusting!

John - It's hard for me to believe that mall property owners/management team can be so ignorant.

[Bill Warnock]

John - It's hard for me to believe that mall property owners/management team can be so ignorant.

Curtis, John is right on this account. You are also correct in you viewing this as incredulous.
Some stone aged managers are not true "leaders," they are glorified bean counters. These folks do not understand the protection of assets and loss prevention or avoidance is a function of senior management. The security function is not recognized as a viable contributor to the company's bottom line. Time with employees is not just spent ... it is invested.
For their part, security has failed to take the lead in not marketing the value security gives to the company. Security has failed to demonstrate a convincing return on investment. A suggested analogy would be replacing a laptop would cost "X" amount. Replacing the data could be incalculable. I might be so bold as to suggest security managers use the latest edition of Dennis Dalton' book, The Art of Successful Security Management.
Should company management be brought to a court in an action that in the end would clearly demonstrate they did not exercise good judgment or "apply the reasonable prudent man concept." The judgment against that company could as clearly written above, drive them into bankruptcy.
Nice job you two!
Enjoy the day,
Bill

[John H. Christman]

Curt: Nothing surprises me anymore, some things just more than others!

[SIW Editor]

SIW is moving this thread to the Security Operations & Management forum because this is a topic affecting more than just LP -- the "profitability" of the security department is a challenge that CSOs wrestle with on a daily basis. Great thread and I, for one, am enjoying the commentary and hope that more forum members can weigh in on how they deal with this kind of request.

FWIW, I had an interview appear on the site yesterday related to this topic. The Security Executive Council shared some thoughts about how you go about proving security's value to the C-level. It's worth your time: http://www.securityinfowatch.com/art...n=310&id=12137

[Curtis Baillie]

FireEMSPolice - Please understand I'm not directing my responses directly at you. I re-read my posts and didn't want it construed that I was addressing you personally.

[Minneapolis Security]

As I see it, there are three ways a security department can "make money" in the real business sense of that word:

1. The security department could contract with nearby facilities to offer security services. This is the only legitimate possibility that comes to mind.

2. The security department could corrupt its "enforcement" activities in order to generate revenues.

3. The security department could undertake revenue-generating activities or absorb other "cost-centers" having nothing to do with security (i.e. janitorial/maintenance) and thereby dilute its security responsibilities.

That is illegal in a lot of states. If a license is required, you cannot contract out to other facilities.