Manufacturing MaladiesGP0|#21788f65-8908-49e8-9957-45375db8bd4f;L0|#021788f65-8908-49e8-9957-45375db8bd4f|National Security;GTSet|#8accba12-4830-47cd-9299-2b34a43444652018-12-01T05:00:00Z, Mark TaralloU.S. Maritime Security is a beast with several heads. After 9/11, there was a rush to improve port security, with more resources allocated in that area. But maritime security also requires the maintenance of an auxiliary force, the U.S. flag fleet, in case of crisis or attack. And it also requires strategic long-term planning and appropriation decisions so that future threats can be thwarted with properly functioning vessels that have not outlived their service life.<p>But due to insufficient funding, some of these heads are now ailing from a lack of care and attention and a lack of nourishment due to insufficient funding, according to new research and expert opinion.</p><p>Take, for example, the U.S. flag fleet. To facilitate national security, Congress mandated the development and maintenance of a U.S. merchant marine fleet that could be called upon to serve in times of war or national crisis. The flag fleet is crewed by citizen mariners, who usually are trained through the merchant marine academy.</p><p>Although most ships in this fleet are privately owned, they are partially supported by the U.S. federal government in two ways. One is an annual financial stipend provided through the Maritime Security Program (MSP). The second is a cargo preference program that requires federal agencies to transport certain percentages of government cargo on U.S.-flag fleet vessels.</p><p>But despite these two continuous means of support, the sustainability of the U.S. flag fleet is being challenged, according to a recent study from the U.S. Government Accountability Office (GAO).</p><p>First, maintaining the financial viability of U.S. flag vessels is difficult, even with the MSP stipend, because of the high cost of operating a U.S. flag vessel, according to the study, Maritime Security: DOT Needs to Expeditiously Finalize the Required National Maritime Strategy for Sustaining U.S. Flag Fleet.</p><p>Operating a U.S. flag vessel currently costs the owner $6.2 to $6.5 million annually, up from $4.8 million annually in 2009. This increase makes it harder for such vessels to remain financially viable, even though the annual MSP stipend was raised from $3.5 million in 2016 to $4.9 million in 2017.</p><p>“That [operating cost] increase is due to a range of factors, primarily the rising relative costs of employing U.S. mariners as crew versus foreign crew members. For example, one MSP vessel operator indicated that labor costs for its U.S. flag vessels are projected to increase approximately 4 percent per year,” the report finds.</p><p>Second, there is now a potential shortage of U.S. citizen mariners needed to crew the U.S. flag fleet during a crisis. A recent government study estimates that 13,607 mariners would be needed for sustained operation of the flag fleet. However, the study also estimates that there were only 11,768 qualified and available U.S. citizen mariners as of June 2017. “There are enough U.S. citizen mariners to crew the reserve fleet during an initial surge, but not for a sustained activation,” the study finds.</p><p>A few years ago, Congress mandated that the U.S. Department of Transportation (DOT), which has authority over the flag fleet, issue a national maritime strategy that would propose solutions in working with flag fleet challenges. DOT has not yet issued such a strategy, so GAO recommended that it do so expeditiously.</p><p>Meanwhile, another GAO report found that the U.S. Coast Guard lacks a strong long-term plan that could guide efforts in modernizing its fleets of cutters, aircraft, and other equipment. Given this lack of long-term vision, the Coast Guard is taking more of a short-term funding approach, driven by the annual budget process and the five-year plan. This has led to unpredictable funding and capability gaps, according to the report, <em>Coast Guard: Improved Acquisition Portfolio Management Could Help Address Aging Assets and Capability Gaps</em>.</p><p>So, until new acquisitions are funded, the Coast Guard plans to rely on aging assets, many of which are already past their intended service lives. For example, the current medium endurance cutters, which are often used for two-month patrols, exhausted their service lives in 2014, but they are still active. The Coast Guard does plan to replace them with offshore patrol cutters, but not until 2023, when the endurance cutters will be almost 10 years past their service expiration date.</p><p>“This short-term approach has also left the Coast Guard with a bow wave of near-term unfunded acquisition programs, putting future missions at risk,” the authors write. Since the annual budget and the five-year plan do not explicitly discuss what funding tradeoffs are being made, the effectiveness of the Coast Guard’s long-term acquisition planning will be limited until all stakeholders and have a better understanding of these tradeoffs, the study adds.</p><p>Both the flag fleet challenges and the funding issues illustrate the complexity of U.S. maritime security, which includes a range of components that all need to be well-maintained. After 9/11, another one of these components came into sharper focus: port security. New homeland security funding went toward tasks such as protecting boarding passengers, screening employees and crew, and more, says maritime security expert Hank Nolin, CPP, a Coast Guard-certified facility security officer (FSO) and a former chair of the ASIS Supply Chain and Transportation Security Council.</p><p>But another of the Coast Guard’s responsibilities is to protect U.S. territorial waters, which commonly extend 12 nautical miles from shore. In recent years, there has not been a large-scale terror attack in those waters. “We haven’t seen an attack on the maritime side of our country within our borders. It’s all been on land or in the air,” Nolin says. “For example, we haven’t seen a direct attack on any cruise ship within the borders of the United States.”</p><p>But that doesn’t mean there’s no risk of a future attack. “Who knows what type of rogue organization could be out there, planning to commandeer a ship or just sink it?” Nolin asks.</p><p>And from the terrorist’s point of view, the amount of damage that could be done in a single maritime attack might make such a strike appealing. “If you bring down one major cruise ship, you can bring down close to 10,000 people,” Nolin explains. And that attack could be carried out with a small pleasure boat, 20 or 30 feet long, housing a group of jihadists with shoulder-mounted and surface-to-air missiles.</p><p>“Can you imagine the impact on the American population if a cruise ship with 4,000 passengers and 1,000 staff members were attacked at 2:00 in the morning on its way to Nassau from Florida?” he asks.</p><p>Or, consider an attack somewhere in the seven-mile long channel that leads into Port Canaveral, Florida. “If a terrorist were to down a cruise ship with an attack in the middle of that strait, it would block that channel for months,” Nolin says. There’s also a nuclear submarine base in the area that would be blocked too, he adds.</p><p>Overall, Nolin says it is hard to say why terror groups haven’t attempted a U.S. maritime attack. “Sometimes I think it’s dumb luck. Other times, I think it’s good planning,” he explains. “Or maybe the terrorists don’t feel that it is a good opportunity to make a statement.”</p><p>In the end, a smart funding strategy for the Coast Guard is important, because it has to balance the different components of the mission–well-functioning ships, effective port security, long-term needs, and more. And the possibility of a future maritime attack can never be dismissed.</p><p>“Who knows that they are not planning one now, as we speak?” Nolin says.</p>

Manufacturing Maladies 2018 Industry News 2017 Industry News a Security Transition Course for Corporate Success News May 2017 Model 101 at the Border Review: Port Security Management 2015 Industry News News September 2014 Diverting Practice

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But some notable companies—IBM and Apple, for example—have overcome periods of decline and have emerged with a new focus, strong core values, and a powerful new leadership position. </p><p>There are many possible paths to this success, but for a large technology company, regaining its leadership position after a major decline requires several critical ingredients, including: </p><ol><li>A clear target-market focus with in-depth understanding of the customer</li><li>A strong, complete offering that cannot be easily duplicated</li><li>A clear market position and message</li><li>Strong organizational alignment with outstanding team commitment</li><li>A financial foundation that will support the necessary actions<br> </li></ol><p>While these elements may seem obvious to any start-up entrepreneur, they may be harder for an established, enterprise-level company to achieve. Here's a look at how these five key initiatives can be applied.</p><p><strong>1. 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Maintaining that portfolio is an ongoing process that requires both a commitment and a product roadmap that will position the organization not only as a product leader but also as a technology leader. </p><p>Crystal balls aside, listening and responding to a changing industry is necessary to ensure that the portfolio offers solutions as well as products. Offerings today must feature greater intelligence and performance capabilities that will make a difference to the industry. In the physical security market, for instance, some of these solutions include products with increased connectivity, cybersecurity features, and an understanding of the Internet of Things (IoT). The offerings should be positioned to work in combination with the expertise of select technology partners to deliver an integrated system that solves customer problems through meaningful innovation. </p><p><strong>3. 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By listening carefully, understanding what the market needs, and giving value, the company, in return, will receive value.  </p><p>Along with a restructured sales organization, an updated marketing organization can better engage in highly strategic and integrated marketing efforts that are designed to reshape the company's image and drive new business opportunities. Populating the department with internal and external teams of experienced industry professionals who have proficiency in both traditional and digital marketing further helps in achieving company goals. </p><p>Finally, in any technology-based organization, the restructuring of the engineering organization is critical to meet the continual challenge of developing and delivering mainstream solutions with meaningful innovation. 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As it becomes harder to hit performance targets, virtually all organizations need to consider some type of strategic restructuring if they want to avoid the end-of-life paradigm. </p><p>If this sounds radical, it's likely due to the negative connotations associated with restructuring. For many, restructuring conjures up images of court-supervised negotiations with different classes of creditors trying to reach consensus. But when viewed more broadly, restructuring represents an opportunity for companies to examine their operating models with the ultimate goal of optimizing their business for the long term. Companies that follow this process can remain a dominant force for many years to come.​</p><p><em>Sharad Shekhar is CEO of Pelco by Schneider Electric.</em>​​<br></p>GP0|#28ae3eb9-d865-484b-ac9f-3dfacb4ce997;L0|#028ae3eb9-d865-484b-ac9f-3dfacb4ce997|Strategic Security;GTSet|#8accba12-4830-47cd-9299-2b34a4344465 Model 101<div><p>​</p><p><img src="/ASIS%20SM%20Documents/1216%20Sidebar%20Graphic%202a.jpg" class="ms-rtePosition-2" alt="" style="margin:5px;width:356px;" /><br></p><p>Maturity models are a tool used a range of business sectors, including​ manufacturing, software engineering, operations, and logistics. The model is often used to help set process improvement objectives and priorities, and it can provide a method for appraising the state of an organization’s current practices. </p></div><p>Researchers at Carnegie Mellon University (CMU) have been developing early maturity model prototypes since the 1980s. In 2002, CMU released the first version of the Capability Maturity Model Integration (CMMI) tool, which was developed by a group of experts from industry, govern­ment, and CMU’s Software Engineering Institute. Updated versions of the tool were released in 2006 and 2010. </p><p>The Ernst & Young (EY) physical security maturity model developed with Caterpillar is based on this CMMI tool, and also on EY’s cybersecurity maturity model.</p><p>This tool uses a level 1 through 5 rating scale to define maturity levels: (1) Initial, (2) Repeatable, (3) Defined, (4) Managed, and (5) Optimized. For a hypothetical example, take the compliance component of a security department. In the Initial stage of a maturity model, processes are unpredictable, poorly controlled, and reactive. Thus, in that initial stage, the security department is conducting its compliance activities in a haphazard way—putting out fires when they flare, with no real established process for doing so. ​</p><p>When compliance reaches level 3, Defined, the compliance process is established and proactive—perhaps with guidelines enforced by a compliance officer. At level 5, Optimized, the process is so well-established, managed, and defined, that the focus is now on process improvements.  </p><p>​​</p>GP0|#28ae3eb9-d865-484b-ac9f-3dfacb4ce997;L0|#028ae3eb9-d865-484b-ac9f-3dfacb4ce997|Strategic Security;GTSet|#8accba12-4830-47cd-9299-2b34a4344465 in Shared Spaces<p>​Coworking spaces  are on the rise around the globe. These flexible work settings allow people without a traditional office building to still enjoy many of the amenities that come along with having a dedicated work environment. </p><p><em>The 2017 Global Coworking Survey</em>, conducted by Deskmag, along with, found that there are an estimated 13,800 active coworking spaces worldwide, hosting more than 1 million people. </p><p>This represents a major increase from five years ago, when just 2,070 coworking spaces were used by 81,000 people globally. COCO, a coworking company based in St. Paul, Minnesota, offers several different levels of membership and types of space, so clients are only paying for the amount of time they need and space they require, says Megan Dorn, director of operations at COCO. </p><p>“Our idea in doing that was to be with our clients as they grow—from the beginning of their business, to hiring employees, to maybe needing private offices—which we also have,” she says. “So that’s what makes us a little bit different than your typical coworking space.” </p><p>When the company started in 2010, it had to distribute physical keys to its members, “which is a nightmare as you’re trying to grow,” she notes, and a security concern if a key was ever lost. </p><p>Because COCO normally leases its space in a larger building, it needed a security solution that was as flexible as the working environment it provides. “We usually have to find ways—when we’re opening a space or acquiring a space—to work with the building to find ways to get our security system installed,” Dorn explains. </p><p>When COCO acquired a new space in Chicago last May, the existing security system was a door locked by a PIN code, which the building never changed. The PIN code was distributed to a large number of people.</p><p>“The space got broken into a week before we acquired it. Laptops were stolen, and people were really on edge,” she notes. “So as soon as we came in to the Chicago space, one of our top priorities was to get a really solid access and security system in place.” </p><p>COCO turned to Brivo’s OnAir, a cloud-based access control system that easily integrated into the company’s membership dashboard, called Bamboo. Using Brivo, COCO can easily distribute keycards to its clients and manage membership usage and levels. </p><p>To set up the system, Brivo representatives come to COCO’s space and add card readers to the appropriate doors. They also set up schedules and the different access levels for membership types.</p><p>COCO has one membership accountant who works out of the company’s headquarters and oversees assigning new members a keycard number through Brivo. “It’s all digital, so it can be done remotely,” she notes. </p><p>A community manager at the member’s location—the lead COCO employee for that site—can then log on to Brivo and see which card number has been assigned for that client, add the number to their member profile in Bamboo, and distribute it. </p><p>Changing, granting, and revoking access levels, as well as keeping track of when members come and go throughout the building, are all managed through the Brivo platform. </p><p>“Say you want to upgrade a member from part-time to full-time. We’re able to just go into Brivo and quickly change your access. It’s active the moment that you do it,” she notes. “That’s actually been really helpful for us, given we have all this variability in types of membership.” </p><p>When a member badges in, a wealth of information comes up on the Brivo dashboard for the community manager to see. “Their picture, their name, their membership level, how many times they’ve checked in already that month, it immediately shows up,” she says. “So it tells you in real time exactly who’s in your space and when.”</p><p>The business value of OnAir is immense for COCO, Dorn points out, because the company can tell how often members are actually using the space, and whether they have made payments, as soon as they present their access card to the door reader. </p><p>“Let’s say someone is delinquent on payment. As soon as the member checks in, there’s going to be big red circle with an exclamation point [on the dashboard]–you can’t miss it,” she says. “It’s definitely helped us lower the sheer amount of delinquent payments that we have, and receive that payment.”</p><p>When a member badges in, Brivo also alerts the community manager if that person hasn’t been in the space very often that month. </p><p>“If we can find a member who we consider at-risk, who hasn’t been using the space, and we’re alerted to that we can reach out to them, invite them to an event, or try whatever we can to reengage them,” Dorn says. </p><p>COCO is also in the initial stages of using Brivo MobilePass, which lets COCO staff remotely lock and unlock doors via a smart device, for members who want to access the space after-hours but forget their keycard. </p><p>Because of how easily it can deactivate and reactivate access, COCO also encourages members who leave the company to keep their keycards. </p><p>“The goal is to try to get the member to come back. So if you have that card and you come back, you’re already set up in our system, all we have to do is reactivate the card and then we’ll also waive any setup fees,” Dorn says. </p><p>She notes the combination of security and business insights from Brivo has been tremendous for COCO. </p><p>“Brivo as a security system has helped us go from being a group of people working out of a space to a full-fledged company,” she says. “It really helps us manage all of the different types of membership and the stages of business they’re in.” </p><p><em>For more information: Nicki Saffell,,, 301.664.5242 ​</em></p>GP0|#cd529cb2-129a-4422-a2d3-73680b0014d8;L0|#0cd529cb2-129a-4422-a2d3-73680b0014d8|Physical Security;GTSet|#8accba12-4830-47cd-9299-2b34a4344465