Leading by example

That was how The Sunday Times' Business Section first revealed the news that Danish security and prisoner escort outfit Group 4 Falck had been locked in discussions aimed at merging its business with that of British rival Securicor (News, p7).

Securicor chief executive Nick Buckles and Lars Norby Johansen – his counterpart at Group 4 – have talked long and hard for the past 12 weeks to agree the deal, with the merged security business (named Group 4 Securicor) creating a global entity boasting an annual turnover of £3.8 billion.

The past three years have not been easy for Buckles, with the company forced to take a substantial 'hit' following subsidiary Argenbright Security being sued in the wake of 9/11 (the Argenbright division having been responsible for security screening on two of the flights involved).

Of late, Buckles reassured the City that Securicor has negotiated upwards of £1 billion in insurance cover. Share prices in the Sutton-based concern have risen once again, with non-core businesses jettisoned – realising £75 million-plus profits for shareholders. Pretty good going. Enough about financing, though. Now that the merger has been ratified, what could it mean for the UK guarding sector?

Inevitably, such a huge company will set the operational benchmarks for others to follow. There would be a key onus on this newly-formed concern to back Security Industry Authority (SIA) licensing to the full, and – more importantly – be seen to do so in the real world. The company will also have to walk away from all end user contracts where lowest price wins the job, and adhere – as closely as possible – to the edicts laid down by the Working Time Directive.

Without question, we are talking about a massively dominant force. One with an innate ability to influence the UK marketplace. That influence must be used on an unimpeachably professional basis. If the firm were to cut prices, the market could be ruined forever. That cannot be allowed to happen, irrespective of any shareholder demands.

Ultimately, this merger provides an excellent opportunity to show true leadership by the implementation of Best Practice services to the benefit of all stakeholders. The officers. The end users. And the shareholders. It's an opportunity that mustn't be missed. For all our sakes.