Tony Byerly, president of Stanley CSS — North America, and the entire Stanley CSS North American leadership team waiting behind the glass doors of the company’s conference room are committed to being a customer-focused, transparent company.“Our drive to be the best in class in everything we do and our willingness to not just say it, but to do it and to show it through transparency is second to none,” says Byerly. “We call it our ‘say-do’ ratio.”
(From left) Regional vice presidents, Jeff Davis (northeast), Mike Bishop (west) and Ken Teifer (south) review Stanley CSS’s “Best Fit” go-to-market approach with Beth Tarnoff, director of marketing. Ed Pedersen, regional vice president (central) is not pictured.
Any company can tell you it had a great year, but Stanley Convergent Security Solutions, Inc (Stanley CSS), Naperville, Ill., had the numbers and the accomplishments to prove it in a big way in 2009. What kind of numbers and accomplishments? Try in the past two years a 73 percent increase in recurring monthly revenue (RMR), a $65 million increase in yearly revenue, ten successful acquisitions, one new North American field headquarters, multiple new products and initiatives and more. Put numbers like that along with strong community involvement, a custom “Best Fit” approach for customers and a commitment to excellence, and it is no surprise that Stanley CSS is SDM’s 2009 Dealer of the Year.
At Stanley CSS, all the numbers and accomplishments start with just one number — the number one — or more specifically, the concept of one. The Stanley CSS business strategy is simple. The success of the business lies in being a single unified company operating as one.
“Success comes from collectively harnessing the individual contributions of every associate and every department within our organization,” says Tony Byerly, president — North America, Stanley CSS. “These collective resources share a common vision and goal so that the entire organization is moving in the same direction — to make every single customer’s experience a positive one in each of the customer touchpoints (account management, installation, service, monitoring and billing). This collective approach of pulling all the individual pieces of the business together for our common vision is the essence of one.”
Byerly became president of Stanley CSS on a big move that embodied the concept of one — Stanley CSS United States and Stanley CSS Canada were merged to create a common North American platform.
“The alignment allows for us to share the best of the best with one another and to create the concept of one across North America,” Byerly explains. “We are very excited to demonstrate our combined capabilities and expertise to both the Canadian and U.S. markets. Additionally, we are extremely fortunate to leverage the strengths of each organization and to bring us together on one platform.”
Bringing different organizations together as one is nothing new at Stanley CSS. The company was built on acquisitions (including the major acquisition of HSM Electronic Protection Services (HSM) that combined Stanley Systems Integration (SI) and HSM to form Stanley CSS) — and it continues to make them in a big way, completing ten acquisitions in the last 24 months, including six in 2009. (See “Growth through Acquisitions” on page 50 for a complete list.)
Steve Walker (left), vice president of ProtectionNet customer service centers and Tim Champ, director of IT, the team behind Stanley CSS’s transparency, discuss the company’s transparency backbone through the PNC monitoring centers and single IT platform infrastructure with president Tony Byerly (right) in the company’s 50s-diner-themed break room adorned with checkered tile flooring, booths with red vinyl upholstery and authentic memorabilia.
BETTER TOGETHER
It is the attitude Stanley CSS has about acquisitions that make each of them so successful.
“Acquisitions are really about bringing the best together. Evaluating and bringing the strengths from each company we acquire, whether it is employees, processes, technology, solutions, etc.,” says Jim Kopplin, vice president field operations.
During the integration, Stanley CSS uses a “formal and systematic approach” to ensure every aspect of the business is reviewed and the integration is thorough and complete, Kopplin explains. “The integration team consists of representation from every single functional department in the company, including finance, human resources, monitoring, service, installation, IT, marketing, sales, etc. so that no business detail or individual is overlooked,” Kopplin adds.
“It is the culture of Stanley CSS that makes us so unique in our ability to successfully and seamlessly integrate acquired companies,” says Byerly. “We instill the importance of being the ‘best of the best’ in everything we do. This allows us a common cause and identity across the entire company. The diverse backgrounds and expertise found within the company truly lend to a uniquely qualified, yet solidified Stanley CSS family. We have truly become one.”
Acquisitions test a company’s ability to come together as one as not many other things do. None of Stanley CSS’s required such an intensive effort to blend two companies as did Stanley CSS’s 2008 acquisition of Sonitrol Corp., Berwyn, Pa., for $275 million cash from an ownership group comprised of Carlyle Venture Partners, Wachovia Capital Partners and Spire Capital Partners, as well as selected members of Sonitrol management.
Despite the fact that Sonitrol, a commercial security company featuring a unique verified audio detection technology, was a third the size of Stanley CSS, the integration of the two companies was virtually complete in 90 days.
“Every acquisition and subsequent integration has issues to resolve, but really even though the Stanley CSS acquisition of Sonitrol Corporation included 55,000-plus customers, more than 680 employees, 35 locations, two central stations, a distribution center and the Sonitrol corporate headquarters, it went very smoothly and on plan,” says Kopplin, the integration leader for the Sonitrol acquisition.
What made the transition so successful? “The answer is simple, but the task was monumental,” says Byerly. “The integration was well planned, well executed and well balanced.”
In addition to the employees and physical assets, the Sonitrol acquisition made a huge impact on Stanley CSS’s financial standing.
“Major acquisitions like Sonitrol Corporation in 2008 have a significant impact on your company simply due to their size and scale,” says Byerly. “The Sonitrol acquisition played a major role in our $6.5 million overall growth in RMR in 2008. The exciting part of that amount of RMR growth is the level of infrastructure and experience you can bring into the organization overnight.”
“You can’t underestimate the value of the customer base you acquire as part of an acquisition the size of Sonitrol either,” adds Bill Fitzhenry, vice president of field sales, North America. “An account base with that level of existing RMR is also a great source of new sales leads and additional add-on and upgrade sales opportunities.”
Stanley CSS capitalizes on those new sales opportunities, growing through more than just acquisitions. In 2008, Stanley CSS’s sales in the commercial market sector grew by five percent and sales in the national account space grew by 12 percent. The company also expanded its sales force for both field and national accounts by approximately 15 percent in 2009. Why? To get ready for the future.
“As is the case in all unique times, opportunities exist for companies with the fortitude, resources, strategy and talent to seize opportunities as they present themselves. We expanded our sales force to capitalize on those opportunities,” explains Fitzhenry. “This better positions us to capitalize on opportunities when the economy starts improving. This is also a time when there is real talent out there and available — they’re just looking for the right home, which gives us more qualified sales professionals.”
CAPITALIZING ON COMMUNICATION
No matter how large Stanley CSS’s staff grows, it is tied together through a company-wide focus on communication.
“We believe that communication is the thread that holds an organization together,” says Byerly. “To that end, we utilize a compressive approach to communication throughout our organization. From quarterly employee newsletters with updates from each department that is distributed electronically via email to weekly leadership teleconferences, communication is part of our daily business model.”
Byerly also points out two unique examples of regular communication pieces. There’s a ‘Tool of the Week’ email communication that comes from the marketing team to highlight marketing tools available to the sales team, and there’s also the utilization of Web-based meetings and training that allow hundreds of Stanley CSS associates to be pulled together in a virtual meeting for the exchange of information, ideas and data.
The communication is enhanced by internal transparency using the Daily Facility Summary Report (FSR) on Stanley CSS’s IT platform. “Leaders at all levels of the company can use the FSR to see their respective areas’ daily, weekly, monthly and year-to-date performance on the five customer touchpoints, such as their service delivery performance or on-time completion of fire tests and inspections. This daily discipline allows us to keep internal transparency to ensure we deliver exceptional external results,” says Kopplin.
“Stanley CSS associates understand and support the concept that there is really no such thing as “back office” support, as everyone is the face of the company and contributes in some way to the customer’s experience,” Kopplin explains.
TOTAL TRANSPARENCY
In addition to internal transparency, Stanley CSS also pursues external transparency.
“Transparency is core to our business operations — enabled by our single IT platform and driven by our business culture. For example, a customer can see an operator’s alarm dispatch comments and actions, see the resolution on a service repair including the dispatcher’s notes, see the current status of an installation including the project manager’s notes, see billed and credited invoices, watch the recorded video used by our operator to verify an alarm incident while reading the operator’s notes, see all the active sites and current spend with Stanley CSS and much, much more. All this information and more are provided by us online, real-time and unfiltered via our Stanley eServices to our customers. In the national account space, add to the power of eServices our National Account Performance Scorecard where we quarterly meet with our national account customers and proactively provide our performance against key metrics in the five customer touchpoints and you have a very customer-focused transparent organization,” says Kopplin.
As Stanley CSS pursues total transparency with its customers, it is continuously updating those tools. Stanley CSS rolled out an enhanced version of its eServices this year. In addition to a new look and increased functionality, it launched eSubscribe, which lets customers select and schedule their favorite eServices reports to be sent to them via e-mail on a daily, weekly or monthly basis. (See “Stanley CSS’s eServices” on facing page.) Stanley CSS also upgraded its National Account Performance Scorecard that adds a new section allowing customers full visibility to Stanley CSS’s performance on all its accounts, not just their own.
The transparency those services provide is reflected in Stanley CSS’s marketing. “You can find our transparency messaging across virtually all our marketing pieces since “exceptional service delivery” is core to our value proposition. Bringing this real element of our business alive in direct and indirect ways throughout our sales and marketing is something we can’t afford to miss, because it is such a powerful differentiator for Stanley CSS,” says Beth Tarnoff, director of marketing.
THE “BEST FIT†APPROACH
Another differentiator for Stanley CSS is its approach to service. This year the company launched a “Best Fit” approach to highlight its commitment to listen to customers’ needs and create packages that truly are the “best fit” for them.
“Stanley CSS is the only national provider in the security industry that can offer customers a choice of traditional, Sonitrol audio and video verified intrusion protection. In addition to intrusion, the “Best Fit” approach spans the entire line of the Stanley CSS offerings to include: access, video, fire and integrated solutions. We believe that by delivering a “Best Fit” solution for our customers, we are ensuring their total satisfaction in our products and services by providing them what they truly need and want,” says Byerly.
Stanley CSS follows the same philosophy in its investment options.
“Our customers can choose the investment option that best fits their budgeting and financing needs,” says Fitzhenry. “We offer SecurityDirect (customer purchases the system), three SecurityPlus options (customer leases the system) and third party financing (lease with a buy-out).”
Stanley CSS’s customers span many markets, as Stanley CSS targets a diverse set of industries including healthcare, government, education, retail, hospitals, petrochemical, technology, logistics, restaurants, telecommunications, manufacturing, hospitality, property management, construction, distribution, non-profits, pharmaceuticals, consumer goods, automotive, business to business, entertainment, and services. No one industry or customer contributes to a significant percentage of its overall total company revenue. This has greatly benefited the company during the current recession.
“By having a broad portfolio of vertical markets served across both sales channels (national accounts and field sales) we can ride the natural ebb and flow of individual industries providing a steady business portfolio,” says Chris BenVau, vice president, national accounts, North America.
Stanley CSS provides its sales staff with formal vertical market kits for more than 12 major markets and has significant business and expertise in more than 12 additional vertical markets.
“Through our vertical marketing kits we give our associates the tools necessary to be knowledgeable in each of our key verticals and for customers to clearly see and appreciate our security expertise in their specific industry,” says Tarnoff.
In addition to the education it provides for its vertical markets, Stanley CSS has launched several other initiatives aimed at education. IT Matters was launched to foster a culture of information technology (IT) awareness at all levels of the Stanley CSS team. The six-week course utilizes case studies, assigned readings, online live instruction and Web-based certification exams. Associates in the top percentile on the final exam are nominated to continue their IT training and pursue CompTIA Network+ certification — paid for by the company.
Stanley CSS also launched the ON FIRE training and certification initiative to further the company’s expertise in fire alarms and fire codes. Available to all employees, the initiative included Web-based seminars, regional in-classroom training provided by the Automatic Fire Alarm Association (AFAA), self-study of fire codes and completion of the NICET Fire Alarm Examination.
“The ON FIRE initiative is a program that demonstrates Stanley CSS’s commitment to being a full service security and safety provider,” says Byerly.
Stanley CSS’s growth led to another major change for the company — a new Stanley CSS North American field headquarters. The company relocated from Lisle, Ill. to the famed Helmut Jahn “N Building” in Naperville, Ill.
“The decision to make this move in such a busy and successful year was easy because we needed the additional space as the business expanded and there was an opportunity in our lease agreement to make the move. The move has really panned out, as it has provided a productive and enjoyable workplace for our associates. We firmly believe that your work place environment contributes to your associates’ satisfaction and productivity,” says Byerly.
“The work environment goes right along with our message of transparency,” adds Byerly. “The building is all glass on the outside and we have created the same elements on the inside of our space. It is a clean, crisp and professional atmosphere to work in. Plus, as we grow the facility can accommodate us.”
STANLEY CSS GIVES BACK
In addition to the new headquarters, Stanley CSS operates more than 75 offices across North America.
As an organization that large, Stanley CSS has the size and scope to impact many communities. The company uses a four dimensional approach to unify and continuously energize its community service program, Stanley Gives Back.
- Nationwide Promotions and Campaigns: Service project ideas and events are suggested to each office nationwide quarterly throughout the year that are executed and coordinated on a local level (The United Way campaign and Toys for Tots are two of the largest company-wide events).
- Local Projects: Additional service projects are put together at the local offices based on local community needs. This allows them to be creative, take ownership and respond to the changing needs of their community.
- Project Variety: Events that cover all three major aspects of community support — volunteer work (time/talent), fundraising and item donation collection — are encouraged to provide comprehensive support.
- Competition: Stanley CSS takes a competitive approach to community service, with local branches competing to see who can raise the most money, volunteer the most hours and develop the most creative fundraising event.
Overall, in 2008 Stanley CSS employees raised or donated nearly $100,000 for surrounding communities and donated 4,251 hours of volunteer work — helping almost 50 different charities.
“Serving others, both customers and communities, is core to Stanley Works’ culture,” Byerly says. “We believe that if we treat our customers, associates, employees and the general public with honesty and integrity and provide assistance whenever needed, our own success will follow.”
Stanley CSS also contributes to the industry, especially The American Society for Industrial Security (ASIS). Both at a corporate and field level, Stanley CSS supports the ideals and initiatives of ASIS. At the ASIS International Annual Seminar and Exhibits event, Stanley CSS creates booth themes that are designed to highlight its creative approach to security solutions and maximize the opportunity for security professionals to come together and interact.
In 2009, the Stanley Game Day Field was used to highlight Stanley Security Solutions as a key player in the security industry. The entire exterior of the two-story booth was graphically wrapped with sports images, customer testimonials and information about services offered. “We deliberately avoid the less personal, product centric feel favored by most other security companies when it comes to tradeshow booths,” says Tarnoff. “Our booth themes provide an atmosphere that is conducive to starting conversations that lead to relationships. There is a reason our booth traffic has grown double digits since we started a theme booth concept in 2005 – people like a break from the traditional approach to tradeshows. This has become a major marketing initiative for us each year and really is a remarkable success story for Stanley CSS.”
FUTURE FOCUSED
After a year full of “remarkable success stories,” Stanley CSS is looking to the future focused on continuing the same mission that led to its success this year — to be the “industry gold standard” — the preferred electronic security provider of choice that others look to be part of, do business with, partner with and emulate.
“Strategically, we do not see any drastic change in our stated vision of being recognized in the market place as the ‘Best in Class,’ Byerly says about the future. “We will continue on our mission to be the industry gold standard. We will continue to focus on our holy grail — exceptional delivery against the five customer touchpoints: account management, installation, service, monitoring and billing. We will also continue our efforts to mainstream Sonitrol audio verification technology. Tactically, as we have always done, we will continue to take a comprehensive and systematic approach to continuous improvement and continued transparency. We are planning some exciting enhancements on this front — pushing ourselves to deliver even more transparency for our customers in all aspects of our business. We intend to do it better and broader than anyone in the industry, taking our industry-leading approach today to even greater heights tomorrow.”
That should lead to some pretty incredible numbers and accomplishments for next year.
At a Glance
Stanley CSS, U.S., Naperville, Ill.
Number of employees: 1,727 full time, 15 part time
Revenue: $397.3 million in 2008
Recurring monthly revenue: $16.7 million in 2008
Customers: More than 300,000
Number of employees: 1,727 full time, 15 part time
Revenue: $397.3 million in 2008
Recurring monthly revenue: $16.7 million in 2008
Customers: More than 300,000
Stanley CSS’s Management Team
North American Leadership Team Years worked in industry
(From left to right)
Christopher BenVau, vice president, national accounts 19
Pete Straka, vice president human resources 13
Steve Welsh, vice president of corporate services and procurement 20
Jim Kopplin, vice president of field operations 19
Tony Byerly, president 20 +
Dan Bresingham, chief financial officer 5+
Bill Fitzhenry, vice president of field sales 25
Felix Gonzales, vice president, strategic initiatives and business development 20
Damon Kanzler, vice president of national account operations 17
(From left to right)
Christopher BenVau, vice president, national accounts 19
Pete Straka, vice president human resources 13
Steve Welsh, vice president of corporate services and procurement 20
Jim Kopplin, vice president of field operations 19
Tony Byerly, president 20 +
Dan Bresingham, chief financial officer 5+
Bill Fitzhenry, vice president of field sales 25
Felix Gonzales, vice president, strategic initiatives and business development 20
Damon Kanzler, vice president of national account operations 17
one.
The concept of “ONE” is at the heart of the Stanley CSS business strategy supporting a straightforward philosophy; the success of its business lies in
“Bringing the Best Together”:
One Vision – to be the #1 preferred electronic security provider of choice
One Goal – consistent, exceptional delivery on the five customer touchpoints
One Team – an entire organization working together for success
One Customer – to make every customer feel like they’re the only one
“Bringing the Best Together”:
One Vision – to be the #1 preferred electronic security provider of choice
One Goal – consistent, exceptional delivery on the five customer touchpoints
One Team – an entire organization working together for success
One Customer – to make every customer feel like they’re the only one
One Stanley – a single unified company operating as one
One Future – one day at a time to achieve our company goals
One Future – one day at a time to achieve our company goals
Stanley CSS’s eServices: Real Time Information — Any Time
Stanley CSS’s eServices put real-time security information at the fingertips of its customers. Stanley CSS’s eServices includes:
eAccountManager—online status, history and documentation of a customer’s installations, service repairs, billing and overall account management.
eDataManager—online, real-time information on a customer’s alarm incidents, open/closes, action plans, fire inspections, service requests and more.
eAudioManager—online activity information on a customer’s Sonitrol Audio intrusion alarm including access control functionality.
eAccessManager—Stanley CSS’s Web-based centrally managed access control service that provides complete administration and management of the access system by Stanley CSS for the customer.
eVideoManager—a full-spectrum of video monitoring services including eVideo Alarm Verification,
eVideo Open/Close Supervision, eVideo Guard Tour, eVideo Live View and eVideo Audit services, all with online activity reports and associated video clips.
Stanley eServices are secure with 128 bit encryption and SSL certification and are invaluable tools for security directors, national customers, small business owners and technology-hungry homeowners alike.
Market and Operations
As a comprehensive security provider, Stanley CSS designs, installs, maintains, services and monitors electronic security systems including intrusion, fire, video, access control and systems integration. Primary markets are commercial, government, national accounts, and industrial. Stanley CSS provides UL and FM 24-hour monitoring through its three central stations (ProtectionNet™ Customer Service Center (PNC) – North located in Minneapolis, Minn., PNC – West located in Santa Ana, Calif., and PNC – East located in Baltimore, Md.). Stanley CSS monitors approximately 70,000 residential and 230,000 non-residential accounts. On a weekly basis, the PNC locations process approximately 4 million alarm signals and 200,000 inbound and outbound phone calls.
Stanley CSS also provides audio and video intrusion verification, alarm communication back-up, online eManagement tools, service plans, preventative maintenance, fire alarm tests and inspections, embedded services, 24-telephone technical assistance, custom software solutions and more. Also unique to Stanley CSS are its more than 90 independent Sonitrol franchise partners across North America.
Auburn University: The Art of Listening
Stanley CSS prides itself on listening to a customer’s needs and challenges, and then delivering whatever is necessary. One example is the ongoing project at Auburn University, Auburn, Ala. Stanley CSS worked with Auburn to design and install a multi-platform system solution.
“What started as a challenge to replace the old and defunct stadium access system before an opening season home game has flourished into a powerful relationship,” says Jim Kopplin, vice president, field operations, Stanley CSS. “Working together Stanley CSS and Auburn have successfully leveraged the platform to seamlessly present an accessible and supportable enterprise solution for many of Auburn’s most demanding security and safety challenges.”
The security platform integrates new athletics badging program, a new housing addition called “The Village,” the Banner administrative system, new wireless access control hardware, security’s latest campus video investment, and campus management and mass notification plans. Stanley CSS’s Software Solutions Group (SSG) helped the university with all the integration, developing a streamlined workflow of departmental data, alarm information, video and student badging.
The access control system now includes more than 1,700 card readers, more than 7,000 monitored access points and integration of more than 250 cameras on campus.
“Stanley CSS has stood and helped Auburn press through to get what we need,” says Jimmy Knox, supervisor, access control, Auburn University Facilities.
