Contract Management for Security Providers

One of the biggest challenges that the majority of the security companies will have to deal with is not so much being able to obtain a contract, but to be able to properly maintain that contract once it’s signed and done. We are all quite aware of how many times the intricate contracts for various clients have changed hands over the years. While some might think it is hard to land a good contract, maintaining it professionally and properly while providing what you are being paid for may be very difficult for some companies. According to numerous studies, the average company loses nearly 10% of their clients due to their poor contract management. Why is that? Well, managing contracts (and the corresponding projects) is an overlooked form of corporate leadership and a large part of a company’s operational function and market viability. Project and contract managers must be able to interact frequently with their agents in the field, subcontractors, vendors, stakeholders, family offices and, more often as not, the client himself/herself.

‘’The International Association for Contract & Commercial Management (IACCM) identifies 7 major areas of contract management weakness:

  • Disagreement regarding contract scope
  • Weaknesses in contract change management/retention
  • Performance failures due to over-commitment
  • Performance issues related to a disagreement/misunderstanding over what was committed or requested
  • Inappropriate contract structures
  • Disputes over pricing
  • Issues with subcontractors’’

Now let’s discuss some of the most common causes that may cost a security provider one of their contracts:

  1. You are charging significantly more than is proper (Faulty Pricing)

At some point we have to admit that quite a number of companies will overcharge a client merely because of who the client is and not particularly what their security needs or threat level may be. You cannot begin to expect one client/contract to change your own wealth status or single handedly build your company’s gross revenue and/or profit. It is neither ethical nor professional for your corporation to make 2 to 3 times more profit than the agents working the detail on the ground. We all have our levels of operational expenses, but don’t pass that bill on to the client or your protective agents. Make a profit, but make one within logical expectations.

2. You are ‘’suffocating’’ your  client

Either: A) You have placed more agents than are needed (Again, this comes back around to profit: The more agents  on the ground, the more you can charge), B) Your agents are not exercising proper situational awareness and how to be flexible with protection levels versus the client’s perception of asphyxiation, or C) The company holding the contract has not done a proper Risk/Threat/Vulnerability Assessment and/or are not trained, experienced or knowledgeable enough to ascertain proper staffing and logistics. Some companies will ‘’overreact’’ on the threat level to make their services appear quite necessary to the client, while in reality, achieving the opposite result.

3. Not being able to provide services as promised

A protective detail is comprised of many elements and sometimes you have to be able to provide additional services as you go. You must be the one who can foresee what is or will be needed and provide it before the client even asks for it. We have heard of many companies who fail to render even the basics of what they agreed to provide. We have seen details operating with less manpower than what was requested or changing the personnel so often because they fail to keep the professional agents or cannot staff it properly. Have in mind, clients need stability and familiarity and will become unsettled when they see or must become accustomed to new faces.

4. Failure to accommodate clients needs and solve operational issues (Lack of Customer Insight)

We’ve all heard the phrase, “The client is always right”, correct? Well, from the moment you signed that contract, you alone are the one who must do whatever it takes to construct a smooth protective detail and provide peace of mind to the person who hired you. You alone are the one who must be stressed, work long hours and find a way to solve any issue with the security team or the client’s needs, not the client. It must appear as though all is under control and operational.

5. You are not providing services to a level or standard that is expected and required

We can all agree that our prospective clients will want 3 things: A) To be protected, B) To have the best close protection agents, staff and logistics that their finances can obtain (they fully believe they are paying for the best either way) and C) To have peace of mind. If your corporation is hiring unqualified, unprofessional or unethical agents, or utilizing contractors of the same substandard quality because you refuse to pay for the ‘’good ones’’, the client will soon start looking for another company.

6. Your Project or Contract Manager has no vested interest in the contract (Neglected Contracts)

This occurs so many times when the person who is working for an ‘A’ list company, as a Project or Contract manager, simply doesn’t care to deal with the issues, stay intricately involved or maintain the contract for his company. Most fail to have good communication skills, which is one of the key elements when dealing with clients, vendors, staff, stakeholders or agents in the field. How you communicate during common, day to day interactions with people or personalities will be just as valuable, or more in some cases, as to how you react during a crisis situation and the solutions you are expected to provide. Merely having a project or contract manager on your staff isn’t nearly enough. You must have an individual who can be extremely flexible, can develop a strategy out of thin air and be able to solve complex issues, without raising undue alarm, if they arise.

      While these are just a few of the common pitfalls that a contract manager may find themselves encumbered with, each client and contract are unique and every company needs their respective contract managers to be creative, innovative, and highly observational so as to catch any of these issues far before they become problematic and present solutions to overcome them. Our task is not just to sell the client on our services and then walk away, but we are expected to, and should without failure, continue to provide the highest level of service and commitment to our clients that they have come to expect. The sale is the easy part…How we treat and care for the client and their contract once we sign on  the dotted line will either build our reputation and lead to more success or it will cause a loss of trust and failure that cannot be easily repaired or regained resulting in the loss of the contract.

Chris Grow

AUS Global Special Services Travel Team

Managing Partner LeMareschal LLC

Denida Zinxhiria Grow

Founder & CEO

Athena Worldwide & Nannyguards

Managing Partner LeMareschal LLC

Marketing tips for Executive Protection Agents

Perception is everything, protect yourself and build your reputation on solid ground.

*These are part of a panel of personal opinions formulated from my experience in the industry as an EP agent, business owner and recruiter for other corporations. Keep in mind that just because I preach it, doesn’t mean I haven’t made the mistakes. It’s actually the fact I have made some of these and it’s caused me to learn what can work and what doesn’t. You may not agree with me or follow up with the suggestions but experience is an amazing teacher…”Let he who has ears…”*

1) Know what you know and know your value. (Know what you are willing to sacrifice as well, working more hours, night shifts, holidays, for how much, or how little.)

2) Know what you don’t know and either leave it to someone else or study it (There is nothing worse than someone who is trying to operate in many different fields, and yet, have quite limited knowledge on each field and act as though they’re the authority on it.) Focus on what you are most interested in and master it. Only move on to something else when you have a solid foundation on a topic and you are prepared to expand to something else.

3) “Listen more and talk less” Comment or post on social media only if you have something constructive to say, always stay on point and use professional language

4) Post or comment only on subjects you know well, subjects you have studied and subjects you know from real-life experience. There is no need to post daily or non-related posts.

5) It takes specific work and quite simply, boots on the ground to consider yourself experienced. Having worked EP two or three days a month doesn’t make you qualified enough to disagree or raise your voice with people who have been doing this for 10+ years. Neither are you an expert after one or two years in the industry (You can always see who is who and what they know and don’t know by what they post on social media). Stay humble, lay low and learn your trade well…Your day will come)

6) Maintain a professional image on all business-related social media sites. A suit and tie picture will always be better than a tank top or a duckface selfie.

7) Build a professional LinkedIn Profile, highlight your skills and post all your professional and educational achievements.

8) Stop posting sensitive information, IDs and license numbers on social media (You are a security professional! If you fail to protect even your own personal information, what does that tell me about how you handle your clients’ information??)

9) Always maintain OPSEC in every post you make. Always think, “How could this be used to harm my client or my team?

10) Protect your data! We have seen more and more security professionals warning their connections that they have been hacked! If your ex gf can hack your Facebook or LinkedIn profile, then you are probably not very good at keeping your clients or your detail’s information safe.

11) Keep high school drama out of social media.

12) Control your emotions, remain professional at all times…You are your client’s close protection, NOT his/her “Buddyguard”. Friendly at all times, not Friends.

13) Be careful of your connections and the people that you recommend or work with. Have you heard death by association? Make no mistake, it is a very real factor in our business!

14) Build a professional-looking CV, keep it simple and to the point. There is no need to hire a CV writer, you know what you have done, trained for and accomplished.

15) Invest time in building connections. Spend time talking to others or helping them with their projects. I have gained many contracts after the interviews I did with others.

16) Offer pro bono services to companies you respect and want to be involved with.

17) If you are single and have no family commitments, perhaps you work that shift on Christmas or other holidays so someone else can spend the day with his children. You have no idea how being understanding can help you in the long term.

18) Study your clientele and any potential clients. The industry has changed significantly and the new wave of clients are IT gurus, app developers, cryptocurrency investor, reality stars etc. Always be knowledgeable on current trends and topics.

19) Be informed on local and international news, threats and events that affect the industry and the needs or operational aspects of your clients.

20) Don’t be arrogant, there is a fine line between being confident and arrogant. Never cross it…There usually is no way back once the damage is done.

Denida Zinxhiria Grow

Founder & CEO

Athena Worldwide

Athena Academy

Nannyguards

Managing Partner

LeMareschal LLC