In Depth

Metrics for Corporate and Physical Security Programs

CSOs count on physical security metrics to evaluate their organizations' performance and to communicate security's value to other business executives

By Tom Wailgum

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For John Hedley, head of group security for Nestlé in Vevy, Switzerland, this scenario played out in November 2004 at Nestlé's operations on the Ivory Coast. The West African nation has experienced constant turmoil between the government and rebel forces for the past three years. Hedley's security staff, led by a regional security manager based in Abidjan, the commercial capital, set in motion an evacuation plan for the international Nestlé employees when it was clear that the violence was escalating to a dangerous level. The Ivory Coast produces 40 percent of the world's cocoa, and Nestlé is one of the biggest purchasers. The evacuation of Nestlé's expatriate staff was accomplished "with a minimum of hardship," Hedley says. "While such an unplanned departure is distressing for all, at least we were able to set in motion some pre-evacuation plans." Hedley's group had reviewed those plans just three weeks before the evacuation happened.

For a global company such as Nestlé, with 115 production facilities in 86 countries, Hedley says operations such as the Ivory Coast evacuation are a necessary and expensive undertaking. Metrics enter afterward, in judging how well the operation went, what went into the preparation involved and the resultssuch as whether there were injuries or deaths.

"We have not done a cost-benefit analysis of how much money we have saved because of the security plan in place," Hedley says, adding he was not sure of the evacuation's cost. "We had more important things on our mind," he says. "Having a plan in place and revisiting it once a quarter or year may be the most important metric of all.

"However, the costs can be reduced by effective contingency planningthe emotional cost for the staff concerned as well as the financial cost," he adds. "Getting everyone out safe and sound means that there are no staff replacement issues. Keeping the factories and other buildings properly protected ensures continuity or early restart of production. These benefits could be measured if required."

Hedley says he can't apply blanket security and preparedness metrics around the world. "The ability to equate performance in one country, in one region, with another is difficult," he says. "For example, our security officers in New Guinea are armed (but with bows and arrows), whereas in most places they are unarmed."

Even with those impediments, Hedley does employ physical security measurements wherever he can. The areas most important to him are Nestlé employees, distributors and consumers; company property; and the strength of Nestlé's reputation and brand.