MANAGING SECURITY AT THE TOP

Dec 1, 2001 12:00 PM, By LARRY ANDERSON

To be among the Fortune 1000, a company must be at the top of its game.

The same is true of the Fortune 1000's security departments, whose job it is to protect the people, facilities and assets of these behemoths of capitalistic success.

America's biggest companies are also its best known, with all the commensurate benefits and consequences. From General Motors to AT&T, from Wal-Mart to Procter & Gamble, the companies in the Fortune 1000 epitomize American success at a time when such success is at risk of being targeted by terrorists or others. In times like these, threats to the Fortune 1000 can grow even faster than the companies themselves.

Access Control & Security Systems surveyed security professionals at Fortune 1000 companies in the weeks after the terrorist attacks in New York and Washington. Survey results point to tangible effects Sept. 11 is having on how much big companies will spend on security during the coming year. Among Fortune 1000 respondents, some 23 percent of security professionals expect their spending to increase in 2002 because of the attacks. Another 36 percent were unsure of the effect of the terrorist attacks, while almost 32 percent expect their spending not to change.

Overall, the spending outlook for 2002 (compared to 2001) among Fortune 1000 companies is as follows:

• 18 percent expect their spending to increase in 2002;

• 27 percent expect their spending to decrease in 2002;

• 49 percent expect their spending to remain the same.

Spending is perhaps lower among these companies because of the economic slowdown, which can translate into a corporate climate that broadly discourages spending. Among the Fortune 1000, a total of 63 percent of respondents say they have cut their spending in reaction to the economic slowdown (of them, 17 percent say they have cut their spending “drastically”). Some 26 percent have not changed their buying decisions despite the economic slowdown.

TOUGH CUSTOMERS

The country's biggest companies have the clout to get what they want in the marketplace, so the question becomes: “What do they want?” The survey asked security professionals at the Fortune 1000 which criteria are most important to them in choosing a supplier. Service after the sale was rated the most important factor (average rating of 5.6 on a 6-point scale), followed by availability of parts (5.36), availability of training (4.93) and ease of upgrading (4.93). Almost as important is representation by a dependable dealer (4.92).

Fortune 1000 security professionals were also asked to rate how well the industry is meeting their needs in various product categories. Rating highest were alarm systems (4.59 on a 6-point scale), followed by CCTV (4.38) and computer/network security (4.34 percent). Asked which systems or components are the most valuable, 21.6 percent of respondents named access control, 18.1 percent named alarm systems, and 18.1 percent named people. CCTV rated lower at 10.3 percent.

MOVING TOWARD INTEGRATION

Although 35.3 percent of Fortune 1000 survey participants indicated that their systems are not yet integrated, another 26 percent indicate they are moving toward full integration. Some 14.7 percent of respondents say their systems are fully integrated, and another 18.1 percent have decided not to integrate their systems at this time. The top technologies targeted for integration include CCTV/surveillance (14.7 percent), electronic access control, parking control systems, photo ID/badging, and time and attendance (8.8 percent each). Technologies listed as easiest to integrate are electronic access control (11.2 percent) and CCTV/surveillance (10.3 percent). The same two also offer the fastest ROI.

Compared to other companies, security buying decisions at the Fortune 1000 companies tend to be made more at the corporate level (53.4 percent versus 40.4 percent for non-Fortune 1000 respondents to the same survey).

ISSUES TO PONDER

Fortune 1000 end-users were asked to rate the various equipment issues facing the industry according to their importance. Top-ranked issues were reliability of equipment (rated 5.49 on a 6-point scale), followed by vulneratility of information systems to security breaches (5.06), and training employees in the use of equipment (4.99).

On the issue of training, Fortune 1000 respondents listed advanced security procedures (42.2 percent) and basic security procedures (38.8 percent) as the type of training that would benefit employees most, followed by dealing with customers (37.9 percent) and use of equipment (24.1 percent).

SECURING THE FORTUNE 1000

CITICORP

“We have increased our staff and security and we are doing more with X-ray machines and monitoring the mail (in the wake of the terrorist attacks). Since everyone is working so closely with security now, most people really respect it. Re-evaluating our security measures was definitely necessary [after Sept. 11]. We ended up deciding to increase our staff and take on some X-ray machines. Since Sept. 11, security has been much more respected. The people in high places realize its necessary.”
RICHARD McFADDEN
Assistant Vice President of Security, Citicorp

SECURING THE FORTUNE 1000

HOME DEPOT

“We have tightened all security, but we have always run it very tightly. Awareness and concern for safety and security have increased dramatically (since Sept. 11). The most important thing we deal with is traffic access, but we considered it when we built the facilities. From that viewpoint, we set up our security with terrorism in mind from day one. We were able to work with the architects to build vehicle barricades. Since we were proactive in our approach, all we have to do is monitor exits and entrances and close some of them. We already have the card readers, and we would have had metal detectors, but that is more of an employee issue.

I would say we are protected from terrorism, explosions, attacks by vehicles and airplanes. But what we had to increase was mail room security. It's almost a rolling scenario — today it's anthrax, tomorrow it may be poisoned food. That's the biggest challenge, adjusting. First it was airplanes, now it's anthrax, tomorrow it may be an Oklahoma City-style bombing. The biggest challenge is responding to and anticipating the next incident.”
JIM POSEY
Director of Corporate Security
Home Depot

SECURING THE FORTUNE 1000

HASBRO

“Nothing is really different since Sept. 11, although we have issues with mail room security. We have done risk assessment and have been very proactive in our security. But I'm not saying there isn't room for improvement. We have done major upgrading recently, short of adding things just for the sake of adding. When something like [Sept. 11] happens, it reinforces to us that we've been doing the right thing [about security]. It's still an ongoing process, but security has definitely been enhanced as viewed by employees. Now, we aren't as scrutinized about what we ask for — nobody wants to question security. Our biggest issue now is mail room security. We are confident our physical security is reasonably secure, but we have heightened security in the mail room. But you have to measure the risk involved — the mail threats have been targeted at the media and the government — so would it pay for us to have a lab perform screening services for a toy company? Instead, we increased the training for the people who handle the mail. It all comes down to risk and reward for us. We want to establish reasonable security and make every reasonable effort to increase it.”
ROB FANCINI
Director of Security, Hasbro

SECURING THE FORTUNE 1000

COOPER TIRE & RUBBER

“Since Sept. 11, everybody is paying a little more attention to the things I've been telling them all along. Generally, our [security] procedures were already in place, but we have added increased training and a lot more awareness. At our headquarters, we use access control prox cards and we maintain proper access to our facility. Visitors are expected to sign in and are given a temporary visitor badge, and are escorted by their host. We've put out communication for our employees, with a basic, general security focus. We have approximately 42 locations across the U.S. Some general review has been done, and some security issues have been identified, but overall, procedures were basically already in place.”
ROBERT CLIFFORD
Corporate Director of Safety, Health and Security
Cooper Tire & Rubber

FOR THE RECORD

ABOUT THE SURVEY

On September 29, 2001, Primedia Business Magazines & Media mailed 1,772 survey kits to Fortune 1000 subscribers. The 116 usable surveys returned represented a response rate of 7 percent.

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