CHAPTER 1: BECOMING AN ENTREPRENEUR IN THE SECURITY BUSINESS
1.1 Context
āYou miss 100% of the shots you donāt take.ā ā Wayne Gretzky, NHL Hall of Fame.
Whether as an employee, senior manager, or self-employed consultant, we are all expected to be entrepreneurs. Growing a successful business, your own enterprise or somebody elseās, is one of the most satisfying experiences during anybodyās working life. Winning new contracts is a thrilling endorsement of conceptual plans, existing skills, prior investment and experiences. On paper, becoming a successful entrepreneur within the security sector can be viewed as relatively straightforward by those on the outside of our profession. There is a popular perception that the private security market is awash with money. Especially around high-value assets where niche specialisms and uber-exciting professional backgrounds may well be required by clients. Two recent conversations that Iāve had spring to mind. The first, with a young law undergraduate at my boxing gym. After sparring me out of the ring, my pal wanted to chat about how he could ādiversifyā into security. (Doesnāt being a barrister pay enough?) Secondly, a talk with Jason Towse, a managing director at one of the UKās biggest security operators. He told me that margins from manned-guarding had all but evaporated. Success was hard-earned and cumulatively accrued, he said, āfrom building long-standing strategic relationshipsā. Longer-term relationships enabled the client and vendor to develop a trusted synergy based upon an intuitive understanding of one another. There had to be a ācross-cultural fitā between both organisations, Towse reflected (1).
The truth is, of course, that security markets are, in essence, volatile. Furthermore they remain vulnerable to changing commercial market conditions, like any other private enterprise. Security markets mirror wider global market conditions, unless specific local incidents or security cultures emerge. That is, if they are lucky! Some three or four years after the noughties banking crisis, major financial institutions in London were still laying-off dozens of security staff, despite the international terrorism threat level either being designated āsevereā or āsubstantialā (2). Yet elsewhere, often in fragile spheres of instability and conflict, the private security market has boomed beyond the wildest imagination of most practitioners. For example, after almost a decade of military intervention in Afghanistan, by 2010, the US Department of Defense employed around 20,000 private contractors and licensed 37 companies in Afghanistan. Circumstances again changed rapidly that year. Afghanistanās President, Hamid Karzai, issued a decree prohibiting private security companies and established an Afghan Public Protection Force (APPF). The APPF was tasked to replace all non-diplomatic private security management functions (3). Yet four years later, following significant security lapses, and consideration for wider national security concerns, the outgoing President revoked his 2010 force nationalisation decree. Thus, market continuity planning, to militate against inconsistent customers and uncertain markets, will be a recurring theme for entrepreneurs as we travel through this book.
Taking on the role of business planner, when the sands of politics and economics are permanently shifting, can absorb and expend a lot of energy and enthusiasm. It may even sap individual and team morale after a while. Chronic uncertainty causes fatigue. Yet, there is a positive side for security practitioners because surrounding instability, even adversity, should really play to our strengths. Uncertainty and adversity are the very reasons why our clients look for our services. After all, if a security consultant does not survive and thrive on instability, then why on earth should an external client ever need to have confidence in you?
As we will see in this chapter, and subsequent sections of the Handbook, information is a critical success factor to any enterprise. Knowledge is, de facto, commercial power ā a mix of leverage, authority and trust in us to do the right thing, at the right time. Those who take time to properly research, analyse and make sense of surrounding business environments, will reap longer-term dividends. Not least, because a greater sense of authority and resilience will emerge about your enterprise in the eyes of your putative clients and market peers. By positively embracing uncertainty, and shining a torch of leadership in difficult and unpredictable environments, the modern day security practitioner is ideally equipped to add real value to most organisations, including their own. Security practitioners and successful entrepreneurs have many shared characteristics: adaptability, a preference for back-up plans, and, above all, psychological resilience and stamina. āThereās no such thing as a setbackā, said self-help guru business mogul, Tony Robins, who declared this enjoyable truism after his latest TV series was cancelled by producers (4). Just a nudge in another direction, perhaps.
1.2 Competitive intelligence
āCompetitive Intelligence is not an invention of the 20th Century.ā ā (Leonard Fuld, 2013)
Enterprises thrive due to many factors; desirable products, effective marketing, blindly optimistic and wealthy investors, dynamic working cultures and, of course, good leadership and motivated employees. Nevertheless, in all likelihood, a business can only survive and prosper in the longer-term by remaining actively aware and adaptive to its operating environment. Such alertness includes keeping a careful and most respectful eye upon similar organisations fishing in the same waters.
Security sector job roles are more fragile than others. Services and consultancies are in many cases contracted out, licensed and regulated by government departments and public authorities. This extra political dimension ā sometimes influenced by a swift change in public opinion, or a new ministerial appointment ā means that projects or administrative regimes can be uprooted or radically changed with very little notice. Commercial security and risk services are often tasked around delivery into higher-risk domains, where the approach by government agencies could be more volatile and uncertain. The only consistent feature of many higher risk environments is their inherent inconsistency. Governments will often seek to take direct control of a crisis situation or contagion of negative events. Authorities may wish to extend their reach over a perceived, troublesome sector, such as security, by issuing a raft of measures that may be impracticable and toxic to continued business. Security risk management thus attracts a high degree of interest from media and NGOs which makes public authorities even more susceptible to intervening within this sector. Sudden alterations to the operating environment imposed by governments and public authorities, can lead to damaging losses if the new conditions are not quickly anticipated. On the positive side, riskier security or operating environments provide fantastic opportunities for security enterprises to shine and excel. Companies that know their operating environments well, and also uphold professional practices around individual and organisational resilience (those that we delve into across this bookās eight chapters), will gain competitive advantage over their commercial peers.
Case studies: Four overnight game-changers to a private security operating environment
1. The introduction of British troops into Northern Ireland in 1969 to separate warring factions, and provide protection for civilians. This UK Government move followed the escalation of widespread sectarian and terrorist violence in Northern Ireland, and concerns in relation to the neutrality of some public services including domestic police functions.
2. The shooting and killing of several citizens in Baghdad by a small handful of employees working for the US security company, Blackwater, during 2007. The company was immediately ejected from Iraq by the domestic government. A national and international clamp-down on overseas-based private security contractors followed. This tragic event contributed, somewhat, as a catalyst for āMontreux Documentā: also known as the International Code of Conduct for Private Security Service Providers (ICoC), a Swiss Government initiative. ICoC was codified into sector guidance by security trade association, ASIS, who later published the widely practiced Management System for the Quality of Private Security Company Operations (ANSI/ASIS PSC 2012).
3. Establishment of the Afghan Public Protection Force (APPF) by President Hamid Karzaiās administration, following his declaration in 2010 that all Private Security Contractors (PSCs) will be disbanded and services provided direct by the APPF. Karzai repealed his decision four years later.
4. A last-minute decision by UK Government ministers and officials to deploy several thousand Armed Forces personnel to guard the London 2012 Olympics sites, following an admission by the central security contractor, G4S, that there was a significant service delivery shortfall in required security guards. The British Security Industry Authority had warned about significant potential shortfalls more than two years beforehand. Those well-mobilised private companies that anticipated the shortfall were able to pick up the slack and win last-minute contracts, including for specialised services, such as close protection.
What is competitive intel...