星空传媒

At least in part, the solutions provider blue chip clients know to be OCS Resolution Security first saw the light of day as a direct result of Security Industry Authority (SIA) regulation. 鈥淟icensing was a huge financial challenge for us,鈥� suggests Dai Prichard, now chairman of the company but, pre-merger, the founder and majority stakeholder in the firm he created 鈥� Resolution Security.

鈥淲e had built our company on sound operational ability rather than its buying power. At the time, we were operating pretty much at the edge of our financial envelope, and the regulation costs being mentioned by SIA chief executive John Saunders appeared daunting. Consolidation within the industry was always going to happen anyway.鈥�

Licensing and regulation would subsequently dominate our conversation for the next three hours, Prichard working in tandem with his colleague 鈥� OCS Resolution Security managing director Richard Fenton-Jones 鈥� on airing their views concerning (among other things) in-house licensing, enforcement of the Private Security Industry Act 2001, the Approved Contractor Scheme (ACS) and multiple licences.

Although fully supportive of the Government鈥檚 praiseworthy desire to 鈥榗lean up鈥� the guarding sector, both Prichard and Fenton-Jones are seemingly at odds with the Regulator in respect of several issues.

鈥淥n a personal level, I would love to see widescale enforcement happen now, but it鈥檚 probably too early,鈥� states Fenton-Jones, an MBA Graduate of Bath University who readily admits to being 鈥渁 very different animal鈥� to his chairman. 鈥淭he Regulator is still playing catch-up with the licensing process. We discovered only last week that all of the personal documents belonging to one of our regional managers had been lost in the system post-application. We only discovered this when he contacted the SIA direct requesting his passport. The point is that we thought this application was part of the backlog. The $64,000 question is: How many of our remaining applications aren鈥檛 being processed when we think they are? There鈥檚 no feedback mechanism to inform us.鈥�

Prichard then winces when the subject of multiple licences rears its head. 鈥淭his really indicates how inflexible a big bureaucracy like the SIA can be,鈥� he comments with weary resignation. 鈥淭here is an agreement with the Regulator that a second licence for an operative already registered for the security officer licence, and who wants or needs a second licence covering, say, CCTV monitoring is attainable. The additional licence should cost 拢95. However, there鈥檚 no system in place that allows you to pay that sum directly to the SIA. They have to charge you the standard 拢190 and then refund the difference. They don鈥檛 say when that reimbursement will be forthcoming, and exactly who鈥檚 going to receive it. Frankly, this is an imposition on our good nature.鈥�

Auditing for the ACS

The temperature at OCS鈥� London offices rose even further as Prichard 鈥� a self-professed 鈥淎rmy lad鈥� who attended The Royal Military College at Sandhurst during the early 1970s before joining the Welsh Guards 鈥� brought up the subject of auditing for the ACS.

鈥淭o obtain ISO 9000 certification,鈥� asserts Prichard, 鈥渢he National Security Inspectorate would audit against a quality system. It takes four days at a cost of roughly 拢600 per day. Inspection for the ACS entails a nine-day check and two days for ISO. That鈥檚 a total of 11 days, but at a cost of 拢720 per day. Very nearly three times the price. To be honest this is outrageous. Surely there has to be a more cost-effective way of doing things?鈥�

Fenton-Jones is quick to add weight to these sentiments. 鈥淯nfortunately, this is not an industry wherein improvements are genuinely being realised as a result of regulation. What we have at the moment,鈥� explains this highly analytical former relocation manager, 鈥渋s exactly what John Saunders said we wouldn鈥檛 see. In other words, the existing industry with licensing just slapped on top. There are a number of well-known contractors who genuinely wanted to see change, differentiation and the creation of a security guarding profession. Sadly, there is little or no evidence that this is happening.鈥�

According to Fenton-Jones, OCS Resolution Security has recently bid as part of the tendering process for the security contract covering a major retailer鈥檚 offices and distribution centres. The client asked OCS to 鈥渇ill in the blanks鈥� on a letter that would then be sent to the SIA such that the end user in question could 鈥渃heck out the security supplier鈥�. They demanded proof, and understandably so, that OCS Resolution Security is exactly what it says it is 鈥� an SIA Approved Contractor. The actions of a switched-on customer that wants to know how many officers are on the books (currently over 3,500 in OCS Resolution鈥檚 case) and how many of them hold full licences.

鈥淭his is a typical corporate concern鈥檚 expectation of what the Regulator should be able to tell them, but we know that the SIA cannot deliver on this. The only information the SIA holds is the detail we have provided to ACS assistant director Andrew Shepherd. They do not record the employer details of each officer applying for a licence. That鈥檚 not part of the process. It never was, and was never intended to be as individuals are prone to move from one contractor to the next. It remains the case that we are not meeting the needs of clients who want to verify what they are being told by their suppliers as part of the selection procedure.鈥�

For his part, Prichard used to sit on the SIA鈥檚 Stakeholder Committee along with other industry luminaries including Nigel Churton of Control Risks Group. 鈥淚t was great,鈥� opines 54-year-old Prichard with perfect diction, 鈥渂ut when we were all dismissed by a letter from one of the [then] chairman鈥檚 assistants I was left speechless. What an extraordinary way to alienate so many senior figures in the industry? The impression was that the SIA felt proud of the fact it didn鈥檛 have any security industry practitioners on its Board, or within the senior management team. It still doesn鈥檛. That鈥檚 a serious mistake.鈥�

Traditional 鈥榬oute to market鈥�

When Dai Prichard speaks people invariably pay attention, and with good reason. The former Major鈥檚 affable demeanour masks a sharp business brain. Having resigned from the Armed Forces in 1984 to join Blackwell Green Services 鈥� part of a Lloyds of London brokerage established to advise foreign Governments on matters of national security (including the instruction of Special Forces, no less) 鈥� he started Resolution Security from scratch in 1988.

鈥淥riginally, I didn鈥檛 have any capital and so the business really started up as a specialist security consultancy and training company. As the lone employee,鈥� he continues, 鈥渋t was difficult for me to establish credibility because there were other consultancies who鈥檇 been operational for much longer and had built a recognisable client base. It鈥檚 a hard grind. You are either out of the office desperately trying to win the next bit of business, immersed in your current project or chasing clients for payments that will hopefully balance the books. Then the whole cycle begins again.鈥�

The impression was that the SIA felt proud of the fact it didn鈥檛 have any security industry practitioners on its Board, or within the senior management team. It still doesn鈥檛. That鈥檚 a serious mistake

Dai Prichard, honorary chairman, OCS resoloution security

To ease the burden somewhat, Prichard 鈥� who read naval architecture, or 鈥渟hip science鈥� as he puts it, at Southampton University in the early 1970s 鈥� joined forces with an old friend, Andrew Prendergast, who owned a Scottish-based guarding business by the name of Profile Security. They soon launched a London office and pitched the company鈥檚 services to top end corporate clients (a precursor, it turned out, to the hugely-respected Resolution model that would follow in its footsteps).

Three years or so later, though, the two friends鈥� interests diverged. 鈥淥nly owning a third of the business made it difficult for me to fulfil my ambitions,鈥� recalls Prichard, 鈥渟o I negotiated to take out my one-third share of the company, which was then turning over about 拢4 million. I ploughed this into Resolution.鈥� Together with Dougie Blackford 鈥� his trusted friend and business partner, and a former Sergeant Major in the Grenadiers 鈥� and former Burns Security managing director Martin Rackstraw, Prichard created a hugely efficient 拢24 million turnover guarding and specialist security business serving prominent clients including BP, JP Morgan, Rolls Royce and Lord Rothschild. The company also worked for the historic Royal Palaces and the National Trust, in turn building a superb reputation.

With licensing on the horizon, though, the three partners realised they would have to bite the financial bullet and look towards a bigger company willing to act as a parent for their business. Prichard knew many of the players at OCS... The deal was struck and OCS Resolution Security opened for business in January 2004.

For Prichard, the ensuing two-and-a-half years have been 鈥渉ighly enjoyable鈥� as he no longer has to run the show, but instead is able to concentrate on 鈥渁 lot of other things in my life鈥�. Just as well, in many ways, because Dai Prichard CPP is a man in much demand.

Prichard is a director of the Board of the London Chamber of Commerce and Industry (in addition to serving as chairman of the Chamber鈥檚 Security Section). 鈥淲e run seminars on topics like business resilience.鈥� The Marlborough College-educated professional is also a member of the Board of Management of the National Security Inspectorate, and chairman of its Manned Services Section.

He鈥檚 a Fellow and Board Director of The Security Institute, and sits on the British Standards Institution鈥檚 GW3 Committee.

That鈥檚 not all. Prichard is an active member of ASIS International鈥檚 UK Chapter 208, a member of The Company of Security Professionals and a member of the Steering Committee of the Foreign and Commonwealth Office鈥檚 Security Information Service for Business Overseas.

Topping it all off rather neatly, he鈥檚 currently chairing the Risk and Security Management Forum as well. 鈥淥ne cannot say too much about the Forum, though. Our meetings are conducted under Chatham House Rules.鈥�

Relocation, relocation, relocation

It emerges that Richard Fenton-Jones never attended University because he 鈥渄idn鈥檛 fancy it鈥�. It was 1977. Already 鈥渢oo much in love鈥� with the girl who would become his wife to be apart from her for any length of time, Fenton-Jones decided on a two-year stint 鈥渁t the wrong end of a tape measure鈥� training to become a chartered surveyor. He later 鈥渄rifted鈥� into the pressure cooker world of the estate agent before being approached to join a relocation company that was part of the PHH Group. At the time, this was a fledgling business sector.

By 1987, Fenton-Jones was at Hamptons Relocation and, little more than a year later, found himself sitting in the managing director鈥檚 leather chair. 鈥淲e were tasked with helping people who had moved jobs to move with their jobs,鈥� he states. 鈥淏ack then, many organisations like the Bank of England and BT were shifting their staff from central London to out-of-town locations. It was an exciting time. We sold our service to the corporates, who then offered it to the individuals moving on.鈥�

1994 witnessed a management buy-in. The company became Rowan Relocation. It was the fifth largest relocation company in the UK, branching out to complete international moves, review cost differentials and provide culture and language training pre-departure.

Fenton-Jones left the business in 1996 to complete the aforementioned MBA. 鈥淚 desperately needed to prove that I had transferable business skills,鈥� he explains. 鈥淚t turned out to be a really enjoyable experience.鈥�

He enrolled on a two-year fixed course with regular attendance every second weekend, and completed some 鈥渙dd bits of consultancy work鈥� to keep the wolf from the door.

By a strange quirk of fate, one of the chaps on Fenton-Jones鈥� course was running a small security guarding business in Bath, and he ended up helping out for three days every week. In the end, however, Fenton-Jones did more than just assist. He oversaw an acquisition that realised a 拢1.6 million turnover business. He knew then his job there was done.

鈥淪oon afterwards I spotted an advertisement in The Daily Telegraph for a senior management position. The unnamed company was looking for a 鈥榞eneralist鈥�. The employer turned out to be Securicor Security. They were widening the net of who they employed, and wanted to find out if there were people in the business world without benefit of a security, police service or Armed Forces background who could nonetheless do the job.鈥� Fenton-Jones is living proof that such individuals do exist. Perhaps clients and contractors should be employing more of his ilk?

What we have at the moment is exactly what John Saunders said we wouldn鈥檛 see. In other words, the existing industry with licensing just slapped on top

Richard fenton-Jones, managing director, OCS resolution security

Fenton-Jones spent a couple of years with Securicor as regional director, initially looking after major accounts and then latterly serving as regional director for London and the South East. He eventually became managing director of OCS Security in February 2002 following the departure of Bill Philps.

鈥淭he business enjoyed a turnover of around 拢42 million,鈥� states Fenton-Jones. 鈥淭his year, we should be able to post a figure in excess of 拢85 million,鈥� he comments with obvious pride.

Part of that sum is thanks to the Resolution acquisition, and part to the buy-out of Dartford-based Access Communication Services (a CCTV and access control arm that brings in 拢10 million of business and, at the same time, allows OCS Resolution Security to provide a well-rounded security offering to its impressive list of blue chip clients).

Clients and the buying process

One of the major issues for Prichard and Fenton-Jones is how clients are buying security services these days. 鈥淲hat we are trying to do as a company is identify risk at our first sales call,鈥� outlines Fenton-Jones. 鈥淲e don鈥檛 just go in and ask what the client wants to buy, and how many hours of guarding they need. We sit down with the end user and ask them why they buy security in the first place. What risks are they trying to ameliorate? The contractor should identify the business鈥� risks, and then try and wrap a bespoke solution around it. We require our sales force to think like risk managers.鈥� It鈥檚 a sound philosophy.

OCS Resolution Security is a supportive partner and sponsor 鈥� as indeed are CMP Information and Security Management Today (SMT) 鈥� of the current Security Research Initiative being undertaken by Professor Martin Gill and the team at Perpetuity Research and Consultancy International. 鈥淥ne of the early findings that鈥檚 starting to emerge from Martin鈥檚 questioning of procurement specialists who aren鈥檛 security experts,鈥� adds Fenton-Jones, 鈥渋s that when they look at the 鈥楤eauty Parade鈥� of contractors, they don鈥檛 see any significant differences in their service offering. They have little else to go on, they claim, except for price. They will pay more, they say, if the industry can give them added value that meets their corporate needs.鈥�

Fenton-Jones is adamant there are now four types of client. First, there鈥檚 the smaller, local client who, anecdotally, buys due to insurer diktat. 鈥淭he kind of company that buys security for 鈥榩resence鈥�. The person doing the buying will be a generalist. They may not even be a facilities manager,鈥� explains Fenton-Jones. 鈥淭hey could be a general building manager. This is the market that will not go away, despite what the SIA might believe. It will exist for many years to come. I鈥檓 certain of that.鈥�

The second type of client is at the other end of the spectrum. It鈥檚 the global procurement specialist. 鈥淭here are few contractors who can tackle that market,鈥� suggests Fenton-Jones. 鈥淪ecuritas Security Services and Group 4 Securicor would be among them.鈥�

He 鈥渟truggles to understand the value鈥� of global purchasing. 鈥淓ven within UK regions there are different forms of management and several opposing perceptions of how security operations should be run, so how can a 鈥極ne-Size-Fits-All鈥� scenario be possible?鈥�

Then there鈥檚 the 鈥渁morphous mix of clients in the middle鈥�. This would include the dedicated in-house security manager with an influence on 鈥� and an ability to 鈥� purchase security services. There鈥檚 also the facilities manager selected by the corporate to procure security on its behalf. 鈥淭he facilities management companies are also looking to self-deliver these days. Some of them are acquiring security businesses to do just that.鈥�

Middle management is the key

Both practitioners believe that a prominent guarding industry weakness lies in the quality of its middle management (ie operational and regional managers). Fenton-Jones feels that the guarding sector has something to answer for here, because the industry hasn鈥檛 been brave enough to tackle clients on this issue.

When he introduces a new operations or regional manager to a customer, that customer will invariably ask about their background and what they know about security. 鈥淚f our employee says they鈥檝e just joined, the fear is that we will lose credibility in the client鈥檚 mind,鈥� he explains. 鈥淚 wouldn鈥檛 want our business to be solely made up by people with no experience. You need a mix.鈥�

Before we close our stimulating discussion, attentions inevitably turn once again towards regulation. Dai Prichard swiftly focuses his mind on the question of in-house licensing.

鈥淚 have a personal view on this,鈥� he states, before pausing for a moment鈥檚 thought. 鈥淎ny decent in-house operation that allows itself to work below the minimum standard exhibited by the 鈥榳orst鈥� of the 240 companies now listed on the ACS Register is fooling itself. It will attract 鈥榯he great unwashed鈥� in terms of unlicensed officers and, when something goes horribly awry, the security manager will lose their job. In truth, in-house licensing should really be a self-fulfilling prophecy.鈥� n