The company
SATS Security Services (SSS) is a wholly owned subsidiary of Singapore Airport Terminal Services (SATS), which is itself a subsidiary of the Singapore Airlines group of companies. It encompasses an auxiliary police force engaged in providing security services to airlines and other related organizations at airports in Singapore. As its mission statement says, it " aims to provide outstanding security services at reasonable cost and at a profit to the company". SSS was established in 1965 and provides a wide range of security services for most airlines operating in Changi and other organizations in Singapore as well as overseas. The majority of its staff are police officers trained to utilize a wide range of sophisticated security equipment.
SSS is in the forefront of aviation security, covering aircraft and passengers. Its services include baggage identification, boarding pass/passport check, cabin search, security for VIPs, guarding aircraft, passenger profile screening, travel document forgery detection, X-ray and other screening of baggage, explosive sniffer screening and on-board air marshals, guarding and escorting inadmissible passengers, access control, CCTV monitoring, investigations, crime prevention advice, training and consultancy.
The company has grown from a staff of 450 in 1989 to 760 in 1999.
Main driving factors
Competition and the market
SSS provides a full range of security services for airports. However, it faces a different set of constraints than most commercial concerns, in that it has not only to compete in the market, but because it is an auxiliary police force it also faces a number of legal obligations and constraints which cover its activities.
Originally, the parent body, SATS, had a monopoly on the provision of airport services at Changi Airport, but the Government felt that it would be good to have competition. A new competitor was formed in the early 1990s, Changi International Airport Services (CIAS), jointly funded by the Port of Singapore Authority and seven airlines to provide an alternative. CIAS provides a range of airport services, including catering and security services. Competition with SATS and especially SSS is on the basis of price and quality, with SSS competing largely on the basis of quality. SSS serves about 48 airlines in Changi Airport and has 80 per cent of the security market. Its other clients are embassies.
However, as an auxiliary police force, SSS is also regulated by the national police authority and is therefore subject to a set of strict accountability rules and constraints (for example, it must meet certain standards of fire-arms performance) in addition to those which stem from the market. At certain times, the requirements for effective policing may conflict with strict commercial cost-reduction considerations. The CEO therefore has to constantly balance the profit criteria and policing criteria. SSS can tender for police jobs, although as yet this has not become a significant market.
Another distinctive feature of SSS activities is that because it is competing in terms of community criteria, e.g. reducing bomb threats, threats to public security and crime reduction, it is not always in competition against other providers and therefore can cooperate with agencies in other countries and in Singapore, e.g. CIAS, in joint operations and in sharing ways of improving security.
Because of these distinctive features of its market, the General Manager of SSS, Mr. Silva Kandiah, makes extensive use of benchmarking as a means of improving performance. Almost all of this benchmarking is with overseas organizations which face similar market and security problems.
One of the partners in these benchmarking exercises is New Zealand Aviation Security Service, with whom SSS has joint training. In the United States, it uses IACP. Benchmarking is found to be especially useful for challenging assumptions.
The interest in providing community service is also evident in the concern of SSS with the general problem of crime prevention. This spills over into sponsorship with schools, the SATS provision for the homeless and the establishment of the Community Service Committee.
Product and quality: "Human beings as a quality product"
SSS was suffering from low morale, low motivation and poor levels of service performance when Mr. Kandiah was appointed in 1992. The aim of his changes was to introduce higher levels of service and professionalism into the company. The focus was twofold: to generate higher levels of customer satisfaction and to improve the "company product", i.e. the security guard.
When Mr. Kandiah took charge of SSS, training was often thought of in a negative way by hard-pressed police commanders, taking people away from operations, making arrangements for coverage, and incurring additional costs. The problem facing him was how to change the police commanders' mindsets. His solution was to introduce business concepts into police management and to see a police officer and his actions as a product and training as product development. In his words, "Once we take this approach, we are able to see why it is important not just to look at police training but at all processes that affect a police officer's performance including areas that are traditionally not thought of as an organization's concern, such as a police officer's physical and medical fitness, his communication skills, his contribution to the community beyond mere policing and his long-term development. While it appears altruistic, it is a very hard-nosed, practical approach to improving police officer performance and hence the organization's effectiveness." In this respect, the investment in training is seen as the equivalent of a manufacturer investing in research and development. Performance in the service sector is seen by the General Manager as requiring the full utilization of human potential.
The General Manager's basic belief is that managers should "develop your people, treat them well, motivate them, empower them, and they will take care of your problems for you". He sees the system he has introduced as reflecting these principles rather than any abstract concept of high-performance working, although the systems and procedures he has put in place (team working, job rotation and multi-skilling, clear management objectives, performance-based rewards, leadership and business training) would be recognized as high-performance practices.
Technology
The technology in SSS is relatively basic in that results depend to a high degree on the vigilance of the individual guard, but the company has invested in the latest technology in the form of CCTVs, baggage X- ray machines, forgery detection equipment and video surveillance, as well as computerized administration and tracking systems for training and human resource development purposes.
Global capabilities
At the moment, this area is largely unrealized potential. As SSS has improved performance, it is being approached more and more for consultancy advice and help in improving the performance of companies overseas. There is therefore considerable scope for providing consultancy services abroad. The company has already provided training for external organizations such as Malaysia Airlines, the Civil Aviation Authority of Vietnam, Esso Singapore and the Zambian Airport Authorities. It markets courses in security awareness, bomb threat handling, profile screening techniques.
In terms of security, SSS provides a full consultancy for those setting up new airport security systems. These include screening of employees, recruitment and testing of employees, supervision of installation, commissioning and testing, and liaison with police and other agencies. In addition, it provides consultancy on general security in the areas of left luggage, safe deposits, investigation of baggage and cargo pilferage, crime prevention services, cargo security, security intelligence and access control.
Company performance is measured by profit and by a series of performance indices. As the level of performance has improved over the last five years, there has been more success in combating crime, and customers have become more satisfied with the company and therefore willing to pay more for the service, which has then fed back into the profitability of the company. As service levels have improved, clients have been willing to accept an increase in price. In addition, more consultancy opportunities have been created and the market widened, which have all fed into higher profits. The company customer satisfaction among clients has increased from 44.2 per cent in the early 1990s to 81.9 per cent in 1999.
Main managerial practices
Culture formation
A large part of the SSS culture is the result of the leadership provided by the General Manager. As the former head of HRM at Singapore Airlines, he brought with him much of the culture of the parent organization.
In the early 1990s, service levels and staff morale were very low. When he first started, Mr. Kandiah introduced feedback sessions for all staff, termed "skip-level interviews", where he made himself available for private one-to-one interviews with staff who wished to raise problems in confidence. He then acted on these complaints without ever identifying the source of the complaint. This provided the basis for the development of high levels of trust between management and employees within the organization. As there is no union for the police force, the General Manager feels it important to continue to have these channels open and continues to hold these one-to-one sessions on an annual basis, although much of the original need for them has been satisfied.
To transform the company and its culture, the General Manager launched a comprehensive Total Quality Management Programme with the help of Singapore's Productivity and Standards Board. It involved seminars on quality for all levels, beginning with his management team, the introduction of quality circles and a quality policy.
The company culture is one of structured participation in which it provides a number of ways for employees to be involved in the decision-making process. The word "structured" is used to refer to the fact that this participation is organized and shaped by the management. One way in which this is done is through the annual Strengths, Weaknesses, Opportunities and Threats (SWOTS) exercise. Each department conducts its own SWOT analysis in confidence, and the results are passed to the section leaders who repeat the exercise, the results of which are then sent to the management team. The management team then moves to a hotel for three days to study the results and incorporate them into the company's goals and to set an action plan for the next year.
Communication is taken very seriously by SSS, with members of the management team having exclusive responsibility for communication both across and within sections. Specific forms of communication used by the company are briefing sessions, which are held every three months for departmental briefings and once every three months for supervisor briefings. The briefings include a review of company financial performance, as well as other matters of concern to the company as a whole. In addition, there is an extensive newsletter which contains announcements of commendable achievements by staff, as well as letters of complaints. There is a separate bulletin for supervisors, but this is largely for technical matters There is also a staff bulletin.
The security industry is not one which traditionally has attracted highly qualified recruits. Indeed, recruitment has been a problem in the past, as SSS has to compete against the regular police force and finds that it cannot compete with some of the "softer" jobs outside. The company requires at least one "O" or "N" level for entry. Thus, this is not a highly qualified set of recruits through which to build high-performance work practices.
Internal structure of the company
Relationships within SSS are structured in such a way as to ensure accountability and therefore make sure that performance is rewarded and/or improved if the need arises.
The company has a fairly flat structure, with a senior management team of the General Manager and two managers, one overseeing three heads of support units and the other three heads of operations. Below them are the section leaders and then the team leaders; there are 30 teams. Teams vary in size between seven and 30 members.
Implementation of practices
SSS is organized on the basis of teams. These were gradually introduced by the General Manager for a number of reasons. First, they ensure accountability in the delivery of services, and they enable performance measures to be used to reward excellence and to act on poor practices across a range of areas - for example, absence rates, medical leave, and baggage and cargo pilferage rates. Data are collated on all of these and other items and then used to measure the performance of the groups responsible for cargo and baggage security, etc. Data on sick leave and absence are used to measure morale and thereby the performance of the leaders of different teams. Each of the teams acts as a quality circle in that it is a focus of discussion of performance issues and a forum for continuous improvement. The use of teams also provides a unit of personal identification and loyalty which is smaller and more meaningful than the company as a whole. Those who fail as leaders once they are promoted are moved sideways.
In addition to the internal management monitoring of team performance, the internal Inspectorate Unit also tests the teams' performance - for example, through the use of simulated bombs or threats. The Inspectorate is a semi-autonomous body responsible for ensuring that SSS meets certain safety and security standards. These exercises also provide useful information on the performance of staff, who are rated and then allocated points which are later cashed in. This exercise also helps identify good team leaders.
In addition to the use of teams, job rotation is an essential element of SSS, a practice introduced by Mr. Kandiah from his experience in Singapore Airlines. Normally, after two years in one job, the person is moved on. No one is allowed to stay in any one job for more than five years. This practice ensures that officers move around and do not become too familiar with those they are guarding and hence fall prey to corruption. It also ensures that officers do not become too familiar with other employees and thereby become lax in their vigilance. Another reason for this practice is that for those destined to move into higher positions they thereby acquire a knowledge of the whole company and its various functions. From the officers' point of view, this movement provides variety and exposes them to different types of risks.
Through this system of job rotation, all officers become multi-skilled across a range of areas. In addition to basic policing skills, the staff also require skills in handling travel documents similar to those of the immigration officers, if they are to detect fraudulent cases; skills in guarding similar to those of the prison warder, as they have to hold suspects; skills in CCTV monitoring and surveillance; skills in the interpretation of X-ray images and knowledge of cargo documentation and procedures to detect irregularities. The other area of central importance is computing, as computers become increasingly central to the running of the company. Information technology is therefore seen as one of the central skills.
Training
Given the range of skills required for the staff, it is not surprising that SSS is training intensively. Extensive use is made of formal courses, as many of the technical skills required by the police officers can be best transmitted in a formal classroom context. Eighty per cent attended at least one course last year. Training in service quality is provided by the Service Quality Centre. This is a programme located in an ex-army camp where staff are resident for a period of days during which they undergo intensive training in quality service. Most of the SSS staff have been through the boot camp. The company also uses Outward-Bound courses for developing group identification and identification with the company.
In addition to formal courses, there is an extensive system of on-the-job training (OJT) associated with the practice of job rotation and the use of teams as focal points for continuous improvement. The company provides structured on-the-job training with the theory being tested through the use of CBT. Every team leader is a trainer, having been trained in the skills required for the effective delivery of day-to-day working practices, company processes and communication.
In the case of a promotion, the relevant training for the new post takes place after the promotion. In future, it is anticipated that those promoted will have had training and will have received their certificates before they are promoted. This is possible because of the introduction of a system of assessment of potential. Those identified as having potential for higher positions are then systemically tested and given more exposure through training, acting and special assignments.
The provision of formal training starts with an annual manpower plan which is used to identify staff and associated training requirements for each year, but also any new demands which may be coming on stream in the medium term - for example, the staffing and training demands resulting from the new terminal which is currently being planned for Changi Airport.
A great deal of training is provided internally, but SSS also uses CISCO, the commercial arm of the state police, to provide the basic training for the auxiliary police, which consists of a five-week course. This is shorter than the course provided for the regular police force, which contains much training which is not relevant to the needs of SSS. Therefore, this induction training is then supplemented by training tailored to the requirements of SSS. Management training is provided through the parent group, Singapore Airlines, and SSS's own police leadership courses.
SSS has developed a sophisticated system of tracking the development of individual members of staff and career planning. After initial training, the recruit becomes an aviation security officer. His or her progress through training and job rotation is then systematically tracked. Initial training is followed by a basic aviation security course. This includes training in firearms, the use of X-Ray equipment and customer service. Success on this course results in the person being posted to an operational section where he or she undergoes modular training followed by a proficiency test and intrusion exercise. If the recruit fails, he/she is then sent for retraining followed again by sitting the proficiency test and then re-entering the ladder, moving on to the next section. The tracking is done by the training department.
In addition to these general skills, there are courses in specific skills such as fraudulent protection investigation, X-Ray screening, CCTV operation, etc. For those identified as having leadership potential, there are leadership and team-building courses, corporal and sergeant development courses and an advanced leadership course.
For all staff, there is a wellness programme. This was introduced by SSS after it realized the full cost of sickness. It is a preventative scheme which is now a core part of the business requirement; keeping fit and well is now fully recognized as not just an individual but also a company concern. The company provides free medical screening, health awareness talks and fitness provision. A $20 screening test can save thousands of dollars on cancer treatment. This programme saves the company money. There are also other courses, such as handling difficult passengers, information technology and supervisory quality-related customer service.
The evaluation of training takes the form of a report on the employee's perception of the success of the course, together with a trainer's report on the motivation of trainees and the changes which are taking place over time in their motivation. The other form of evaluation consists of the supervisor counselling the trainees before they go on the course, then again immediately after training. There is also some measure of the success or failure of the course three months after its completion, when an assessment is made of the extent to which skills acquired on the course have been transferred to the workplace.
Each officer is subject to an annual appraisal. He or she is appraised every year for on-the-job performance and every two years for promotion potential. Leadership potential is also identified through the appraisal process. The individual is assessed by one person and followed by discussions with a panel of assessors, who make the ranking. The panel consists of the peers of the person who conducted the appraisal, the idea being that, because a number of people are responsible for ranking, the results will be objective. The company is not yet ready for 360-degree appraisal because of the problem of face. This is particularly true for Asian cultures where individuals are hesitant to criticize those in superior positions.
The General Manager has mapped out a system of continuous learning which is being externally certified. Working with Temasek Polytechnic in Singapore and Edith Cowan University in Australia, officers can now progress through a Certificate and Diploma in Police Studies or Security. The first cohort has just completed its Diplomas. These provide a model for others to follow. For the first cohort this was a voluntary programme, but it will eventually be expected that all officers will participate in it. It is anticipated that within six months all training programmes will provide credits which will lead first to the Certificate and later to the Diploma. All those in leadership positions (team leaders) will have a Diploma in either Police Studies or Security.
Performance rewards
This extensive system of training is also linked explicitly to a system of performance-based rewards. These include salary increases following salary reviews, upgradings, promotions, payments from the award scheme and other benefits; for example, the top five performers annually receive a trip to a conference overseas. Salaries are reviewed every two years against levels in the external market. Then there is a different pay scale for each level and within each level a series of steps for upgrading. Salary decisions are made by a panel.
The performance measures were mentioned above and derive from external and internal audits. In addition to the upgrading and promotions, financial benefits are also derived from performance in crisis situations as identified in an audit. There are also a number of other areas where awards are made, and these also carry a number of points. These awards include the Service Excellence Awards, Citation Awards, Merit Awards, Best Team, Best Employee and Long-service Awards. Those who receive a certain number of points can convert them into a cash award. These cash awards are small, representing only 5 per cent of the wage bill, but at the margins they provide powerful incentives for the staff. In addition to the cash awards, the company makes extensive use of other rewards to create a culture in which high levels of performance are seen to be praised. These include letters of appreciation, items in the Newsletter and letters of commendation.
At the company level, one of the most important measures of performance is the annual survey of clients and the rating they provide on the company's performance in terms of service quality. This has revealed continuous improvements throughout the decade. This same success is also reflected in other measures such as the crime detection rates and the baggage and cargo pilferage reports. For example, in 1993-94 there were over 70 reports of cargo pilferage for just under 0.5 million tons of cargo handled, while in 1998-99 there were 20 reports for a total cargo of 1.2 million tons. The same applies to baggage pilferage. There were almost 200 reports in 1994-95 for a total of 25 million tons of baggage handled, while in 1998-99, although there were still about 200 reports, the total volume of baggage handled had risen to 33 million tons.
National cultural and institutional factors
SSS makes extensive use of government support for the delivery of training. It made use of the help provided by the Productivity and Standards Board in launching a Total Quality Management Programme. As a certified OJT centre, it meets the standards set by the Institute of Technical Education, namely that it has staff trained in OJT techniques and provides training for the supervisors who deliver the programme, and there is a suitable theoretical component. The company is therefore able to certify both its staff and the clients who go through SSS programmes. It was the first security company in Singapore to be certified as an OJT centre.
SSS also achieved the People Developer Standard in 1998, which confirms that its HRD procedures and practices are in accordance with the national standard. This is similar to the Investors in People Award in the United Kingdom and the Malcolm Baldridge Award in the United States.
In 1998 the company was also admitted into the prestigious Singapore Quality Class in recognition of the excellence of its quality service. Also, over three years three individual officers have been awarded the National Productivity Award and one officer received the National Superstar Excellent Service Award.
All three of these achievements are seen as important by SSS, in part because of the national recognition they bestow but also because they provide a useful service as an external audit, ensuring that the company does not become complacent about its HRD provision.
