Every successful security business understands the value of discipline. You expect your technicians to be skilled, professional, and dependable. You rely on your project managers to stay organized, communicate clearly, and keep clients satisfied. But do you hold your financial team to the same standard? And more importantly, what does financial discipline actually look like in practice?
Too often, business leaders overlook the importance of financial rigor—until problems arise. Yet financial discipline is what allows a company to thrive, grow and remain resilient in uncertain times. It not only strengthens the bottom line but also reduces sleepless nights for owners and principals, giving everyone in the organization a stronger sense of stability and success.
So how do you build financial discipline into your security organization?
Regular Reviews
Start with consistent financial reviews that bring together your operations, sales, and finance teams. These reviews should encourage open, respectful dialogue focused on three goals:
- Understanding the numbers – what they mean and what they reveal.
- Correcting course when necessary.
- Improving accuracy and usefulness of the information being presented.
Errors should be identified and resolved collaboratively, not combatively. If reports can be improved, those conversations should be welcomed. The best reviews are two-way conversations rooted in trust, where no one feels threatened by the numbers.
A monthly cadence works well for most companies, keeping reviews to 30 minutes or less helps maintain focus and efficiency.
Finance’s Role in the Financial Discipline Process
Your finance team is responsible for setting up dashboards and Key Performance Indicators (KPIs). But once those are in place, operations, sales, and management should have full authority to refine them as needed.
Dashboards and KPIs should be simple and easy to interpret. A good rule of thumb: no more than three KPIs per manager, and dashboards that can be understood in under a minute. The purpose is to highlight issues—not overwhelm with detail.
When reviewing results, have operational leaders present the data, not finance. This ensures true ownership of the numbers. Finance should act as a support partner, but, ultimately, it’s the operational teams making decisions and driving outcomes.
Suggested Dashboards and KPIs
Every security organization has unique needs, but here are common starting points:
Dashboards (high-level financial health):
- Fixed expenses as a percentage of revenue
- Days Sales Outstanding (DSO)
- Percentage of receivables past due vs. internal target
- Current ratio
- Days of Sales in Backlog
KPIs (trends and departmental measures):
- Revenue per employee
- Inventory turns or days sales in inventory
- Days Sales Outstanding (DSO)
- Cash conversion cycle
- Metrics tied to specific projects or priorities
Keep KPIs minimal—no more than three per manager—to maintain clarity and accountability.
The Cadence of Review
Dashboards and KPIs should be reviewed quickly, with deeper follow-up handled by the responsible leaders and finance staff. This collaborative process not only improves responses but also builds mutual understanding between departments. Over time, both operational and financial teams become more effective together.
The Payoff of Financial Discipline
When financial discipline becomes part of your culture, every department benefits. Clear, consistent financial information improves focus, strengthens cash flow, and supports sustainable growth. In short: financial discipline doesn’t just keep the books in order; it drives your security organization forward.
Allen Riggs is the chief financial officer at PSA Network.
https://www.securitysales.com/insights/why-financial-discipline-matters-security-finance-101/613833/