Metrics improve vendor efficiency and can reduce your costs even without implementing financial penalties.  For example, if your vendor is required to keep turnover low, then initial training costs are reduced and the savings can be passed on to you or applied to potential future rate increases.

It's best to establish a clear set of realistic, measurable standards with the security vendor at the beginning of a contract; however, it's never too late to communicate your expectations.  Do this, and you will send a clear message to your vendor that you expect specific levels of service - reducing the likelihood of miscommunication and critical service breakdowns that could result in liability for your organization.

Metrics are also an opportunity for your vendor to demonstrate value.  Security guard services are tricky line items to manage because the return on investment is sometimes difficult to measure.  In fact, the job of the security department is to make sure that nothing happens.  By consistently meeting pre-established service goals, your vendor gets the opportunity to show you and your company the value they add to the security program.

Tips

Here are some tips to get you on your way to developing a metrics system:

1. Carefully review the vendors' presentations during a bid process - Note the vendor's service guarantees and use them to establish measurable standards.  For example, if your vendor states that supervisors inspect guards every day, incorporate that into your contract to make the vendor legally, and possibly financially, responsible to fulfill that claim. 
   
2. Review your contract - There are many clauses in standard contracts that can be used to create metrics.  Sometimes, all you need to do is flesh them out.
3. Meet with your vendor - Talk to your vendor about performance standards and work with them to develop metrics.  This will give your vendor a vested interest in the program and will limit the chance of miscommunication.
   

Metrics should not only be realistic and measurable, but they should also be enforceable.  In future issues, we will discuss ways to hold your vendor accountable for maintaining service levels.