Management's attitude affects shrink prevention
It goes without saying, "management's attitude is a key element in creating an immediate, deep impact on a company's loss prevention culture," says Kirsten Halcrow, Director of The EMPS Loss Prevention Training Academy.
"No condition has a more of a significant impact on store shrinkage as the visible and credible attitude that senior management displays with regard to the importance and urgency surrounding shrinkage awareness and loss prevention."
"Management's attitude toward and prioritisation of loss prevention is the vital and essential catalyst for the achievement of a company's loss prevention goals. Senior management at companies that achieve excellence in loss-control understand their role in the prevention process and declare shrinkage prevention a corporate imperative to increase profit," Halcrow continues.
"Top-performing companies accept shrinkage prevention as a corporate responsibility first, and a store responsibility second. In doing so, senior management accepts first line accountability to the 'pro-active mechanism of change'. It is this pro-activity that drives shrink down and profit up. When proper operational practices are in place to assure these characteristics, a 'compounding' effect occurs whereby shrinkage can be proactively reduced by as much as 50%," adds Ros Neilson, training manager of the Academy.
There are five traits common to successful loss prevention leaders. These are:
They recognise and acknowledge that shrinkage does exist in their company and they do an exceptional job of identifying where it exists.
They become excellent students of the loss prevention industry endeavoring to learn what comprehensive methods have proven to reduce shrink most effectively.
They refuse to accept shrinkage that is above "best-in-class" levels.
They understand the potentially dramatic ROI from shrinkage reduction.
They commit the resources to implement and maintain these methods to achieve their short and long-term shrinkage-control goals and objectives.Retailers in general, and top-level corporate managers in particular, are encouraged to embrace these principles, and declare shrinkage the number one profit enemy to their industry. Shrinkage control is an in-store manifestation of the leadership and discipline of corporate management.
