Securing a Solid Market Niche
The following are excerpts from an article written by Sheryl Nance-Nash and published in “Family Business Magazine,” Spring 2010.
Reprinted with permission.
Whelan Security, family-owned for more than 60 years,
is one of the largest and fastest-growing
contract security firms in the U.S.
From humble beginnings as a riverfront patrol company
in St. Louis, Whelan Security now provides contract security
services to corporations, financial institutions, multi-tenant
office buildings, educational campuses, industrial facilities and
others in 24 states and in Washington, D.C. It offers uniformed
and special event security and patrol and emergency response
services, as well as consulting, labor response services,
background screening and executive protection.
At a time when other security companies are merging,
consolidating or being acquired, Whelan celebrated its 60th
anniversary back in 2009. Despite the economic downturn,
the company is expanding: revenues have more than tripled
over the past seven years. For 2011, Whelan projects revenue
of close to $140 million. That’s a far cry from the $150,000
the company booked in 1978.
Since 2008, the company has extended its reach to Wisconsin,
Pennsylvania, Arizona, California, Washington, Kentucky and
Ohio… and it plans to move on to Alabama, Florida, Georgia,
Indiana and Iowa.
The secret of the company’s success, according to Chairman
Patrick Twardowski, is its “conservative and fiscally prudent
business strategy.”
All of the growth has been organic, and that has been by design.
“Our competitors are growing through acquisition, but, with
acquisitions, corporate culture is weakened,” Greg Twardowski,
President, says. As a result, Whelan has never made
an acquisition.
4
2011
Seeing the upside of the downturn
“We have been through many unique challenges,” Patrick,
nephew of company founder James T. Whelan, says. “But we
have been fortunate that our clients (as well as our employees),
some who have been with us more than 25 years, believed
(and continue to believe) in our promise.”
Greg’s brother, Dan Twardowski, a principal in the company,
points out that the company’s expansion mitigates its
dependence on any one market. While Whelan is growing
rapidly, the growth has been controlled.
truth report
Whelan uses a proprietary performance measurement tool
called “The Truth Report” to assess key performance metrics
– such as the staff’s professional appearance, billing accuracy,
training frequency, employee retention and security reporting
– to measure the company’s performance and the client’s return
on investment.
Whelan has also developed an employee training program and
offers professional development opportunities through classes,
self-study programs and an interactive e-learning academy.
Dan says the focus on employee training and retention has
been among Whelan’s smartest moves because it has helped
build brand identity and establish the company as an
employer of choice.
Maintaining a family feeling is a bit more of a challenge now that
the company has thousands of employees. “We work very hard
Pictured above: Whelan Ownership Team: Patrick Twardowski (seated), Chairman and nephew of the Founder, with (from left) sons Dan, Greg and Prentice Robertson
line of succession
to keep that same culture that helped shape the company from
Patrick Twardowski was working in human resources at
them at all times. The card contains the company’s mission
had no children, asked him to invest in the company and
the beginning,” Dan says. He says small things are the key.
Employees are given a card that they are asked to carry with
and core values – good “old-fashioned” Midwestern values
like truth-telling, promise-keeping, respect, loyalty, discipline,
empowerment and leadership, among others. “As leaders,
we have to constantly engage in discussions with our
employees,” Dan says. “That is why we put such a strong
emphasis on the character and work ethic of our senior
and branch management teams. It is their job to instill our
values and philosophies across our organization. We firmly
believe in the inverted organizational chart – which puts
our security officers at the top of the organization and senior
management and principals at the bottom. Our senior team
supports the regional teams who, in turn, support our branch
offices – who, in turn, support our most important asset:
our security officers. If there is a weak link anywhere in the
structure, our mission is compromised.”
“It’s about continuing what my
Uncle Jim began many years ago –
building a company that people can trust.”
McDonnell Douglas in 1969 when his uncle, who had founded
Whelan Security in 1949, passed away. Patrick’s aunt, who
assume management responsibilities. At the time, she had
three options: close the business, sell it or attempt to keep
the business operating. “The company was still relatively
young when I came aboard,” Patrick recalls, “and I didn’t
give much thought to joining until my aunt presented the
opportunity to me.” He became President of the company
in 1978.
Greg joined Whelan in 1989. He had worked as a
transportation coordinator for a commodities wholesaler
in St. Louis for a year following his graduation from Wake
Forest University with a degree in Business. Dan joined in
1991 after graduating from Rockhurst University in Kansas
City with dual degrees in Finance and Economics.
Greg succeeded his father as Whelan Security’s President
in 2003 after nearly 15 years with the company. By the
time Greg became President, the company had added key
executives, including Chief Operating Officer Prentice
Robertson, who had worked at Barton Protective Services
in Atlanta. “I knew the company would be in good hands,”
Patrick says. “And when I see what we have achieved since
then, I was correct.”
20115
Greg describes himself as the one with a vision for the company,
who is adept at developing strategy, financial management and
customer relations. He leaves other responsibilities to those who
can better handle them, he says. “I hired to my weaknesses and,
fortunately, assembled an industry-leading executive team.” His
brother, Dan, concentrates on strategic decisions and manages
the mid-central region, which includes the flagship office in
St. Louis.
Today, Whelan’s six legal entities are owned by Patrick, Dan
and Greg; and Robertson is the only non-family principal.
Patrick has one lament. “Significant free time is not something
that generally comes with a family-owned company, especially
one that has grown as quickly as Whelan has over the last 15
years,” he says. “But our families have always been
understanding. They know what managing a company like
Whelan entails and they are very patient and accommodating.”
maintaining momentum
What are Whelan Security’s prospects for the future? “We are as
optimistic as ever,” Patrick says. “We are busy contacting
prospects to pitch our services. The troughs of the economy
are out of our control, so we have to look at what we can
control – and that is brand, reputation, quality of service, quality
of client relationships, customer service and employee
development. We must also strive to find innovative and
cost-effective solutions for our clients.”
Of course, there are challenges ahead. “We must sustain the
momentum we have created,” Greg says. “We want to continue
to expand and parlay existing relationships. Over the next three
to five years, we will continue to grow at a minimum of 15% per
year and continue doing it organically (without acquisition).
More importantly, we will remain a quiet, humble, Midwestern
family business.”
The family’s goal for the company is simple, Patrick says. “It’s
about continuing what my Uncle Jim began many years ago –
building a company that people can trust,” he says. “So far, with
a strong management team, conservative values and a growing
family of 4,000 strong, we have been able to do just that!”
Pictured above: Whelan founder, James T. Whelan
by Sheryl Nance-Nash, a freelance writer based in Long Beach, N.Y.
for “Family Business Magazine,” Spring 2010.
6
2011
Guided by a unique culture and entrepreneurial spirit,
our philosophy is made up of our mission and values.
To Our Valued Employees:
We fundamentally believe that the people of Whelan Security are good,
moral men and women of honor and integrity who understand the difference
between right and wrong. Integrity carries beyond the business environment
into our homes and the people with whom we choose to associate. If we
have nothing else, we have our integrity. Those without it are not welcome.
Our hope is that these words encourage you and fill you with pride as a part
of an organization who truly believes in these principles – and we hope that
you will proudly carry your mission and values card with you at all times on
and off the job. If you need a new card, please contact your local branch office.
Our Mission
Our Values
To Deliver Maximum
Value to Our Customers
We live up to our challenging
mission by operating within the
context of our 10-Star Core Values
Truth-Telling
Discipline
By being transparent and
candid, we earn credibility
and respect.
Driven by a culture of discipline,
we will provide consistent, high
quality services.
Promise-Keeping
We are committed to
keeping our promises.
Respect
We are considerate, courteous
and attentive to our employees,
clients and vendors.
Loyalty
Our internal and external
associates can count on our
allegiance and dependability.
Empowerment
We believe in and trust our
well-trained employees and
hold them accountable for
their actions.
Leadership
Through innovation, foresight
and initiative, we will remain
an industry leader and expect
employees to lead by example.
Flexibility
We will offer unique
services to each client
by always remaining agile.
Quality Assurance
We are passionate about
quality and measuring the
results of our performance.
Results
We hold ourselves accountable
to achieve results for our clients,
employees and ownership.
20117