Late last year, a subtle restructure at security systems distribution giant Norbain saw the appointment of Barry Shakespeare as the company’s new managing director.
Eagle-eyed readers of my exclusive inaugural interview with Norbain’s talisman will remember that the second and final instalment of that discussion ended thus…
‘As we concluded what was a most enjoyable conversation, Shakespeare opined: “Give me 100 days or so and then I’ll give you my considered view of where the UK business can and will go.” I’ll hold you to your word, Barry…’
Six months on to the day from publication of that necessarily detailed missive, on 4 May Shakespeare and I sat down at Norbain’s Winnersh Triangle hq in the heart of Berkshire to discuss that bigger picture (and a fair few more pressing matters besides).
Professionalism of security practitioners
“I’ve been extremely impressed with the professionalism of the security industry,” urged Shakespeare. “The decision I made to join Norbain and become part of this business sector was a sound one, Brian.”
In terms of Norbain’s key customers – ie the installers and integrators who supply security technology to their own end user customers – Shakespeare told me professionalism here is “significant” in comparison with their equivalents in the worlds of IT and telecommunications (industries of which he has a deep and well-rounded understanding having worked in them prior to joining Norbain).
At the start of this month, one of Shakespeare’s initial ideas came to fruition with a substantial change to the company’s sales effort.
Historically, of course, Norbain has concentrated sales based on geographic footprint and through ‘geographic eyes’. In essence, its vast customer base was served from either the southern or northern office (although, as Shakespeare swiftly pointed out, “there’s much more to it than that if you looked behind the scenes”).
Having met his own target of breaking bread these last six months with each and every one of Norbain’s Top 25 customers (as well as the 20 foremost vendors) and, in addition, hosting one-to-one’s with Norbain’s 250 direct employees, Shakespeare has formed Orwellian thoughts in his mind’s eye.
“All of our customers are on an equal footing with us,” he explained, “but the demands from some are quite different to those of others.”
As a result, Shakespeare has harnessed the team’s attentions on customer business demands, and two new sales operations have now been formed under the charge of experienced sales director Chris Webster.
Previously European sales director for Ingram Micro, Webster brought 20 years-plus experience of selling digital and IP products to the company when he joined in 2004.
The first of these commercial tracks is trained on what Shakespeare defined as “high touch customer sales”. Headed up by Shaun Lenehan, this part of the sales equation is modelled around customer intimacy.
The second – which is all about “operational excellence and efficiencies” and “the right stockpile being available to customers straight off the shelf” – is led by Amanda Gascoyne (who was first appointed divisional director for southern England back in 2008).
So, the creation of two new sales operations… but what’s the underlying reason behind the move?
“It’s pretty simple really,” replied Shakespeare. “We feel that serving our customers’ needs will be an even more efficient process with this structure in place. We believe we should be driving hard towards greater e-enablement, not just in terms of trading but when it comes to engagement with our customers. In the main, Brian, I’m talking about the electronic exchange of invoices, or parts and pricing information, as well as buying over the web.”
Strategic accounts arm targeting the blue chips
To carry that latter wish forward, Shakespeare has kick-started a strategic accounts arm for blue chip customers (Sainsbury’s being a prime example). “This is a bid to enhance our role as an outsourced service provider.” That particular operation is being led by Heather Constantine.
In the short term, one focus for Norbain at IFSEC 2011 next week will be the introduction of lower end analogue cameras and DVRs specifically designed for sales in new customer segments such as the electrical wholesaler space.
“If I look at the analogue market just now, it shows all the signs of commoditisation,” explained Shakespeare, who’s clearly come to terms with the machinations of the security market in a relatively short space of time.
He then used an analogy from his past commercial life in the IT world. “What I mean by this, Brian, is that if you look at the price tags for basic laptops over the last few years, they haven’t really increased. The difference is that now the consumer realises more value for money as the technology moves on. The prices have hit a floor, but the capability of the systems has moved on.”
In the analogue-based security niche, at the lower end of that there are products of high quality but with a limited range and what Shakespeare termed “a no-frills wrap” around them. “That’s why we’ve created a product to serve that arena.”
Like a host of other companies who operate on an April-to-April financial year, Norbain has just closed out 2010-2011 and, for Shakespeare, now’s the time to focus on growth in tandem with those aforementioned “increased operational efficiencies”. In short, there’s a desire to boost market share.
“We’re incredibly focused on IP technology,” urged Shakespeare, “as it affords us a fantastic opportunity to assist our customers.” He went on to describe how without pausing for breath.
“For example, we can load IP addresses to cameras before we send them out to a particular site. Customers will be able to dial-in to Ashton Moss [the company’s purpose-built warehouse in Lancashire] and create their own configurations which we can then factor-in for them in advance of any solutions being sent to site.”
A pretty vital step forward, to be frank, as this helps customers to maintain their cost control – particularly important at this present moment in time – and also minimise installation timescales as well as installation risks.
Pre-dead on arrival systems testing
At this point quoting something of an oxymoron, the straight-talking Norbain managing director began to wax lyrical on the concept of “pre-dead on arrival” systems testing.
“While we have products out of their box,” he explained, “we’ll perform various elements of pre-testing to eliminate failed installations.”
This is certainly an idea Shakespeare brings to the Norbain party from the IT world, where reductions of 20%-30% to installation failures have been shown as a result of such procedures having been introduced.
Shakespeare firmly believes that IP technology in the security space will really “come of age” during IFSEC 2011, although Norbain’s stand – as always – is destined to offer an eclectic mix of solutions. In essence, then, there’ll be “other HD technology that’s not exclusively IP” is what Shakespeare told me.
He opined: “The IP world has moved away from bleeding-edge technology towards being leading-edge, although not quite mirroring the levels some people were predicting for this year.”
Harking back to the start of our conversation and the industry per se, Shakespeare elicited that one element he feels we – ie the security sector – haven’t quite managed to get 100% right as yet is training and education.
“Talking to our customers,” he outlined, “many are very advanced in their knowledge of IP and networks. Many more are aware, but they’re also unsure of how to go about gaining the knowledge they really need in order to progress the point.”
Shakespeare’s adamant that “there’s no world class training capability” available for Norbain’s customer base. He also suggested to me that, perhaps, there’s an opportunity here for the company – either on its own or in partnership – to craft and deliver training for CCTV installers.
“We’re determined to take the lead here, Brian,” urged Shakespeare in no uncertain terms. “There are several partners we could work with. On the basis that we exist to serve our customers, we need to demystify the training available to them and then make it far more appropriate. Indeed, that’s a corporate obligation for us, although having said as much I wouldn’t want the process to become The Norbain Story.”
Impressions after six months in The Hot Seat
If Shakespeare had to use one word in describing how he feels after six month’s in The Norbain Hot Seat, it would be ‘energised’. “I’m energised about Norbain as a company, its customers and its vendor partners.”
He elaborated: “In terms of the company itself, there’s a depth of knowledge and commitment to quality of service here that’s very much in the DNA of the business,” enthused Shakespeare. “There’s a high level of competence, professionalism, knowledge and commitment.”
When it comes to the customer base, Norbain is determined to continue its desire to equal commitment across the three basic product areas: CCTV, intruder alarms and access control. “Customer loyalty is vital,” stressed Shakespeare, “and we can maintain that by helping our customers craft their way forward.”
As for the vendor partners, Shakespeare reckons the distributor must continue to listen to them and react to what they say with the clearest of immediacies. “There are lots of smaller new players in the market now, and they’re committing so much energy to the security cause. We need to help them further their cause as well as our own.”
Of the immediate economic future for the business set within the context of an ongoing fiscal downturn, Shakespeare points towards “cautious excitement” when he looks ahead to Quarters 3 and 4 of 2011 and beyond.
“It’s all about the key verticals and the relative sizes of the end user segments within them, Brian” Shakespeare told me. “Those who depend on the construction sector are, understandably, very cautious at present, so too those who work on Government-based contracts where, quite simply, a lot of that kind of work has just disappeared.”
Ending on an upbeat note, though, Shakespeare pointed towards the retail and transportation verticals where he sees signs of growth.
“Come and have a chat with me again around Christmas time, Brian,” he said, “then I’ll be able to tell you more.”
Remember to check back on SMT Online/Info4Security in early December for the latest industry overview courtesy of Norbain’s new driving force.