Typically, when I talk to security guard company owners about what it takes to grow their companies, very few talk about what I consider a key factor in determining their success: Efficiency.
Generally speaking, efficiency means getting the most possible output for the least possible input. The greater the ratio of output to input, the greater your efficiency and profitability. Many people do not recognize the direct relationship between efficiency and profitability. That relationship exists because revenue is based on output (billable hours), and input requires resources (i.e. cash and human capital). This seems simple enough, but there are numerous ways that efficiency can be achieved and contribute to the success and growth of your security guard company. Achieving greater efficiency means developing processes and implementing tools, including software and other technology, that help employees 1) Perform a task with minimal effort; 2) In the shortest possible amount of time; 3) with the least amount of effort, and; 4) with the fewest possible mistakes.
Why is efficiency important for your security guard company?
Achieving efficiency in security guard operations means that managers and owners must be thinking in the long-term and understanding that efficiency is a matter of investment. Typically there are two types of company owners/managers. The first type thinks that it is wise to invest in setting up systems, infrastructure, processes, and communication protocols for their companies. The second type prefers to just jump right into a project without a lot of preparation. The second type also thinks that spending time on preparation may seem time-consuming and burdensome, so they skip it. Why waste time with a lot of set up? Just get it done and work out the details as they go, right? The reality is that a lack of preparation and implementation of processes, even though it may seem to save time and effort on the front end, creates huge inefficiencies on the back end. Those inefficiencies will ultimately make a task take more time and contribute to increased mistakes.
The biggest advantage of being efficient is time savings. It’s almost always worth it to take some time to set up efficient processes to save time over the long term. How much time that you take may just come as a surprise. This handy chart from the popular webcomic site XKCD illustrates the point.
Let’s say, for example, that your field supervisors do a routine task five times a day, and you want to implement a new technology or process that will reduce the time that task takes by five minutes. But let’s say implementing this process or technology would take an entire 8-hour day of training. You might think that’s not with it. It’s only five minutes per task. That’s twenty-five minutes per day per employee. But look at the chart. If you consider a five-year period, the training program would have to take more than four weeks (4 weeks x 168hrs/week = 672 hours!) to not be worth it. When you calculate aggregate saving on non-billable man-hours over that five-year period, it becomes a no-brainer.
It is ultimately the security guard company owner’s responsibility to help employees get the most productivity out of their labor through adequate processes and planning. The good news is that, unlike some management initiatives that employees may find burdensome and irritating, employees welcome tools that allow them to do their jobs more efficiently. This can range anywhere from tools and processes that reduce the cognitive demand of a task, to the implementation of technology that automates tasks and reduces or eliminates redundancies.
Even your security officers who are paid by the hour get frustrated by redundant and inefficient processes. Redundant and inefficient processes will sap their motivation, induce fatigue, and lead to higher turnover. This is particularly true when it comes to dreaded paperwork (Daily activity report, incident reports, etc.). Writing the same thing onto multiple forms is, well, boring. It’s human nature to feel like we are being productive and that our labor is not wasted. Employees are more willing to be productive when provided with efficient tools and processes that save them time and effort. There’s something satisfying about a nice efficient process that motivates productivity.
Efficient systems also reduce inaccuracies. Inaccuracy in certain record-keeping processes could result in billing or payroll errors, which can both be big problems. Obviously, you don’t want to be undercharging customers or overpaying employees, which impacts profits directly, but you also don’t want disgruntled customers or employees and risk lawsuits because of overcharging customers or underpaying employees. Good time tracking tools and technology ensure both accurate record keeping and the ability to quickly and easily generate reports that back up the numbers. Another benefit of efficient processes is better communication. This often stems from standardization that allows everyone to speak a common language and understand the processes of other employees’ jobs.
The ultimate outcome of efficiency is profitability. Obviously, security guard company owners, who are already dealing with slim margins have a big stake in profitability. If a security company is more profitable, it can afford to pay employees more and can invest in additional resources to improve the overall quality of service. Higher salaries can mean happier, more productive employees, as well as higher employee retention rates. And that, in turn, leads to greater efficiency.
So how can you easily increase efficiency for your security guard company?
So how can security guard company owners create efficiency in their companies? This isn’t always immediately obvious. Currently, many security guard companies are looking to implement security guard management software like OfficerReports.com to become more efficient. Using security guard management software allows your security guard company to bring several important operational functions under one umbrella, hence eliminating overlapping systems that do not integrate across platforms. In fact, by taking the time to implement security guard management software at your company, you will be using a system that saves resources while creating a better experience for you, your employees, and your customers.
What other processes or technologies have you implemented to increase efficiency in your company? Do you think that efficiency is important for your company? I’d love to hear from you, so please leave your comments below.
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By Courtney Sparkman
OfficerReports.com is a software company that provides security guard companies with an easy way to monitor their officers, better manage their operations, and win new business. Take a tour of our software to see how we combine Electronic Reporting, Real-Time GPS based Tour Tracking, and GPS based Clock In and Out into one easy to use platform.
