By Scott Goldfine
On March 27, 2010, an altercation between two male employees at the Lancaster, Pa., YMCA resulted in one being shot in the head and torso. Police identified and caught the gunman thanks to the mortally wounded man’s description of the killer combined with video surveillance from the scene. The perpetrator is presently awaiting his homicide trial.
When this incident occurred, the operations team of Beltsville, Md.-based ASG Security — which installed, monitors and maintains the Y’s intrusion, fire and surveillance systems — worked diligently with detectives to retrieve video evidence from the onsite DVR. “From ASG’s perspective, this is a stark reminder of what we do every day — the protection of lives and property,” says ASG President/CEO Joe Nuccio.
It’s also a prime example of the commitment to outstanding service and exceptional execution that has made ASG a model security installation and monitoring services business. This is a company whose mission statement, “To consistently provide affordable, best-in-class security solutions to our customers while exceeding the value expectations of our shareholders and employees,” is more than words on paper — it’s reality.
These principles and actions have resulted in ASG being named SSI’s 2010 Installer of the Year. A runner-up for the honor when it was introduced in 2009, this year ASG beat out Alarm Detection Systems of Aurora, Ill., and Provident Security Corp. of Vancouver, British Columbia, Canada.
Discover how ASG so successfully met the six hallmarks of what it takes to be an Installer of the Year: providing exceptional customer service; surefire business practices and marketing strategies; making sure personnel are properly trained; keeping employees motivated and fulfilled; giving back to communities served; and contributing to the security industry’s betterment.
It All Starts at the Top
ASG, then known as Alarm Security Group Monitoring Inc., was founded in 1999 and within three years had branch operations in Dallas, Houston and Baltimore. In July 2002, private equity companies Waud Capital Partners LLC and Northwest Capital Appreciation Inc. acquired the company and appointed a top-notch management team led by Nuccio.
In November 2007 ASG was recapitalized with Parthenon Capital LLC, providing long-term growth capital for the business. Today, jointly owned by Parthenon and ASG’s senior management team, the company continues to build itself as a super-regional top 10 U.S. security operator.
“We have a very, very experienced management team,” says Nuccio. “Our team operates from the perspective that we are all partners in a business, not employees. Everybody wears a lot of hats and we place tremendous emphasis on each team member producing original work. Most importantly, we love to barb and jab each other and have a good time.”
Other members of the executive team, which has toiled shoulder to shoulder for more than seven years and been involved in 55 acquisitions, include: CFO Ralph Masino; Senior Vice President, Operations William Rose; Senior Vice President, Sales & Marketing Robert Ryan; and Vice President, IT & Corporate Services Glenn Seaburg.
ASG’s principal operations are in the Mid-Atlantic region, Texas and New England, including branch offices in Boston, New Jersey, western Pennsylvania, Maryland, Virginia and the Carolinas. The firm has 130,000 customers, half residential and half consisting of commercial, government and national accounts. ASG generates $5.5 million of recurring monthly revenue (RMR) from its McAllen, Texas-based CSAA Five Diamond central monitoring station.
“Our goal is to achieve market density in larger growth-oriented cities through a balanced plan of acquisitions and steady organic growth,” says Ryan. “Our primary market and strategic emphasis is on the mid to large security systems market, where we promote intrusion, fire, video surveillance and access control solutions.”
Resolving Customer Issues
ASG’s Customer Care Center located within its Maryland headquarters is the nerve center of the operation. The facility is staffed with highly trained customer service agents who specialize in scheduling and tracking service calls, answering security-related inquiries, and resolving account issues around the clock.
“We run disciplined business systems and processes based on best practices to ensure we can meet the needs of our customers in real-time,” says Rose. “Our model is to provide service where a customer can make one call and resolve all issues. From the branch perspective, our goal is to free them from repetitive tasks that can be efficiently centralized, allowing a level of customer service not commonly offered in this industry.”
ASG solicits and depends on customer and branch feedback to continually adjust its delivery so as to improve the customer experience on a continuous basis. To that end, the firm staffs its Outbound Marketing Center in McAllen with a team of specialists who communicate with customers in a number of different areas.
“We make frequent, proactive contact with our client base to ensure we are meeting their expectations and operational requirements,” continues Rose. “For instance, after each completed installation an agent contacts our customer to grade their satisfaction level with our sales representative, technician and the overall installation.”
Those grades are quantified and reported by the branch office. If a branch falls below ASG’s current benchmark or if a significant issue is identified with a particular account, senior management gets involved to ensure long-term corrective measures are put in place. Branches scoring above the targeted level are rewarded and recognized. This process is also used to grade samplings of the company’s regular service calls.
Eye on Balanced Growth
In addition to strong management and first-rate customer service, there are four other key areas ASG has strategically focused on to forge the foundation of its success.
The first is regional density, with more than 90 percent of RMR being within 60 miles of any branch. This concentration provides greater operational leverage and robust internal sales. Next is a sales engine that includes more than 200 associates and helps spur organic growth to complement its acquisition capability. Third is a diverse mix of commercial and residential accounts. Finally, ASG applies a meticulous approach to its acquisitions.
“There are certain model companies that fit well with ASG and we try to stick to a very specific formula in this regard,” says Nuccio. “Along the way, however, we’ve considered companies that extended far beyond our core geographies or were simply too immense in size and complexity. Sometimes, the best decisions are the ones you never make.”
Business plans are executed locally by ASG branch management teams and supported by corporate support groups. Budgets are set annually and normally do not adjust until the succeeding year. Branches are given the autonomy to run their operations given certain parameters.
“The corporate function is to provide them with the tools, resources and guidance to exceed their objectives,” says Masino. “Our operating plan calls for single-digit RMR growth over a substantial RMR base. This is achieved approximately 50 percent through acquisitions and 50 percent through organic sales growth.”
Helping Sales Succeed
ASG’s sales and marketing resources are organized around its targeted market segments. Specifically, the company has dedicated sales forces in the residential, small business and commercial/integrated systems categories.
“We do not have the sales and marketing war chest of the ultra-large companies like ADT and Broadview, who rely on television and radio for lead generation,” says Ryan. “Our strategy is to self-generate the majority of our opportunities by providing our sales force with best-in-class marketing and collateral materials.”
This self-generation activity is augmented with highly targeted lead generation through the firm’s telemarketing centers in McAllen and Dallas, in addition to its Web site and various lead-aggregation partnerships. ASG’s marketing materials have earned the company multiple SAMMY (Sales & Marketing) awards through the years.
“We are in constant communication with our sales force and sales management teams in order to keep our fingers directly on the pulse of the business, and to dialogue issues and opportunities across our regions,” adds Ryan. “We subscribe to a bottoms-up communication process to develop our pricing, plans and lead-generation systems.”
Staffers Feel Like Stars
Even the best management, business practices, and sales and marketing support will have limited impact unless there is the same emphasis on the quality of frontline personnel. This means not only recruiting the right people but also ensuring they are properly trained, and finding ways to keep them engaged and motivated. ASG embraces this human resources approach. The firm constantly recruits for positions across markets to add to its already sizeable employee base. ASG uses traditional channels like CareerBuilder and Monster.com, and contract placement providers for higher level positions.
“We are fortunate our managers are very well connected from an industry standpoint, and their relationships allow us to identify and recruit exceptional talent at a very low cost,” says Nuccio. “From an employer standpoint the market has never been better than it is today. The qualities important to ASG are personal integrity, experience and work ethic, among others.”
Once an associate is onboard, the company offers several avenues of additional training, including reimbursement for individual classes, college credit courses, continuing education unit courses, seminars, certification classes and tests, preparatory or review classes, and licensing fees and examinations.
“Employee training is a priority at ASG and we encourage and support the pursuit of higher education and personal development,” says Aggie Hassan, vice president of HR. “All required training to maintain professional licensing is arranged and paid for by the company.”
To help keep its staff motivated, ASG goes out of its way to recognize and reward superior performance and loyalty. Employees are saluted in the company’s quarterly newsletter with compliments from customers and coworkers. ASG’s President’s Cup Challenge promotes high achievement for sales, management and operations personnel to earn a trip to a tropical destination. And key positions in sales, operations and general management are incentivized with bonus plans for exemplary performance.
Thinking Big Picture
The motivation theme dovetails nicely with the concept of giving back to the community. One of the great values in participating and supporting such endeavors is the positive impression it creates both internally and externally. ASG has progressively developed its efforts in this area since 2002 to the point of winning 2008’s SAMMY Award for Best Community Service Program.
“ASG employees passionately practice volunteerism in the local communities we serve,” says Ryan. “Across the board, our team members use their time, skills and passion to help those in need. We believe volunteerism and charitable contributions strengthen our communities by building networks of hope and trust.”
Many employees participate in a variety of community-focused events, including holiday adopt-a-family, school supply drives, blood drives, Habitat for Humanity and others. In addition to making sizeable financial contributions to charities, ASG routinely gives employees paid time off for philanthropic activities.
While the core of ASG’s strength lies in its concentration on conducting business locally, its leadership understands the importance of reaching out to the entire industry. The company is active in trade associations such as the Electronic Security Association (ESA) and Central Station Alarm Association (CSAA), and contributes toward legislative and other important causes.
“ASG is committed to making positive contributions for the advancement of the electronic security industry. We believe in the importance of working side by side with other industry leaders, including our competitors, to tackle common issues that confront all companies as well as sharing our knowledge to help foster growth of the industry as a whole,” says Nuccio, who like others within ASG regularly speak at industry functions.
In sum, Installer of the Year ASG Security has the complete package. So much so the company appears virtually impervious to the whims of economy, posting its best year ever in 2009. As Nuccio explains, it’s no accident — it is the result of playing both smart and tough.
“Deals were scarcer than in better times and each and every deal won was a hard-fought victory,” he says. “We are fortunate that every year since 2002 has been our best year ever. When times are tough we simply refocus on the basics of the business.”
Print | posted on Thursday, August 26, 2010 9:54 AM