Tuesday, April 28, 2009

Legendary management sage Peter Drucker once said, "Management is doing things right; leadership is doing the right things".

In the operation of any business, management decisions have a direct affect on profitability. In 1996, the SERAPH executive team decided to design a new approach to security management. Using the organizational concepts of Peter Drucker and the human behavior models of forensic psychology, we designed a new form of security management.

Twelve years later, our Business Shield program has consistently increased profitability in our client's organizations in several ways:

1. Liability Reduction = Insurance Cost Decrease – With improvements in the prevention of internal theft, financial misconduct, accidents and other crimes, companies can track their results and use this data to negotiate a reduction in their liability insurance premiums.

2. Reduction of Legal Costs – Proper security management also reduces the outlay of funds for legal representation and costly lawsuits.

3. Retention of Good Employees – Good employees and managers have options. They will not stay in a dysfunctional company. Conflicts, theft and other issues create dysfunction. The loss of these valuable people will hurt the bottom line of any business.

4. Prevention of Public Scandal = Retention of Customers – Security related issues cause scandal that either becomes public or begins rumors. The end result is that customers will leave.

5. Improved Productivity = Increased Profit – "A well managed company is a safe company." Security management improves overall management since it has a direct affect on money management, employee management and supply management.

6. Reduction Of Employee Turnover = Cost Savings – The hiring, discipline and firing of an employee costs money. For small business, the outlay in unrecoverable funds is on average $1,500 and for larger firms the cost can reach as high as $10,000 to $15,000.

As Peter Drucker once said, "You don't hire good employees; you hire good people and train them to be good employees".

7. Reduction of Worker Compensation Claims – Personality profiles designed over the years by forensic researchers has shown that employees who steal, are habitually late and have conflicts with workers also file worker compensation claims at alarming rates. This is part of a narcissistic personality which includes the ability to "sell" themselves to human resources staff or managers during employment interviews.

Simply preventing these types of people from being hired saves money.

Dale Yeager is a Criminal Analyst and CEO of the SERAPH Corporation. He can be reached at dale@seraph.net or

866-468-7962