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 Corporate Security Leaders Face New Leadership Challenges

ASIS logoSecurity has become an important priority for government and business leaders. The risks facing companies are broader, more complex, and interdependent. In addition to global terrorism and war in Iraq, there are risks to the business such as intellectual property theft, emotionally charged employee dismissals, and new technologies that create vulnerabilities. Yet a survey by the Conference Board of more than 300 security directors at major companies in July 2003 found that the median corporate investments in security crept up just 4 percent since September 2001. The study also didn't find much evidence of shifts in how security is organized. Less than a quarter of companies had centralized their security leadership under a Chief Security Officer.

Security professionals in organizations are asked to do more with limited resources at the same time they play a more central and strategic role within the organization. This creates two pressing needs: effective communication with C-suite executives on strategy and strong management skills. "If security is not going to be seen as just another cost center to be cut, we need to be able to communicate effectively with leaders in the C-suite to make a business case for security," said Michael J. Stack, Executive Director, ASIS International. ASIS, the leading organization for security professionals with more than 33,000 members worldwide, has worked with Wharton to develop a new program for security executives that will be offered for the first time later this year.

Becoming a Business Partner

"Security executives need to become business partners," said Steve Chupa, Director of Security of Johnson & Johnson's Worldwide Security Group and a member of the ASIS International board. "We sometimes are viewed as the people you call if you have a problem. We need to be seen as partners to make sure we contribute to the business. For example, we are working on issues such as counterfeiting, grey markets, and employment terminations, all of which address key security and business issues. We need to understand the directives and strategic objectives of the corporation and look out for the best interests of the company."

In more than two decades at Johnson & Johnson, Chupa had worked hard to understand the strategic implications of security for the corporation. For example, in different locations of the world, grey market distribution channels, counterfeit products, and trademark infringements are significant security and strategic risks. If a counterfeiter creates a non-sterile product, for example, using the company's packaging and branding, there are tremendous risks to the company's reputation and the product's financial viability. These issues involve the complexities of working with governments and law enforcement in developing relationships to crack down on counterfeiting and intellectual property theft.

Other security risks come from plant closings or employee terminations. Chupa works with other business leaders to plan for these transitions to minimize risks of violence or litigation. The way the announcement is made and designed, such as making senior executives available to field employee questions, can help the ease these difficult transitions. "You have to be proactive in this business or risk financial or legal problems," Chupa said. "People must be treated with respect or you are going to lose, and your hard earned reputation is going to go down the drain."

Instead of responding to emergencies or dealing with problems after the fact, this strategic approach to security means anticipating potential risks and addressing them before there is a crisis. "We need to understand the directives and strategic objectives of the corporation and work to develop policies and procedures that look out for the best interests of the company," Chupa said.

A New Generation of Security Leaders

Security executives also need to be able to speak in a language that top executives can hear. "Security executives have their own security speak that few people outside the industry understand," Chupa said. "We have very smart people in our industry, and yet they do not have nor understand what is required to break through the C-suite glass barrier to get their point across. In many instances, you are competing for the same pool of dollars that people in marketing, sales, finance, or information management are pitching for. You have to have a good business plan and know how to present it."

While some security leaders now have MBAs or other formal business training, many come from government or military backgrounds. As they move up in the organization, they face the challenge that many managers with specialized knowledge must address, making the transition from functional management to general management. The new Wharton/ASIS Program for Security Executives provides a core foundation in business knowledge, drawn from the course material of Wharton's top-ranked MBA program and using many of the same faculty members.

"The program gets you quickly up to speed on the language of business," said Academic Director Mario Moussa. "If you want to exercise influence with the C-suite, you have to be conversant in areas such as strategy, marketing, and negotiations. By end of this program, participants will be better able to frame their specialized expertise in business terms."

ASIS International (ASIS) is the foremost organization for security management professionals, with more than 33,000 members worldwide. ASIS is dedicated to increasing the effectiveness and productivity of security professionals by developing educational programs and materials that address broad security interests, as well as specific security topics.

Wharton Executive Education also offers a number of industry-specific programs.

    

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