“Managers care for the body of the organization. But leaders care for the spirit. And great leaders care about both. That is not my saying, but it is how I view leadership in any successful business,” says Tim Caddigan, Director, Corporate Security & Facilities for Altria Client Services.
Caddigan has a tough but rewarding role at Altria, whose companies are makers of the world’s leading cigarette and smokeless brands. “Supply chain theft by organized crime groups and counterfeiting are the most significant threats to our business,” he says. “The profit potential is enormous, while the penalties are relatively weak.”
Thus, the leadership and management challenges securing Altria are perfect for Tim’s professional skills and personal interests. “My first career was in law enforcement at the Secret Service working on counterfeiting and financial crimes. Most people do not know that the Agency was first formed to combat counterfeiting. After I retired and thought about how to marry up my experience and interest with the private sector, the opportunity to focus on counterfeiting within Philip Morris USA was perfect. I was fortunate to find a Security 500 and Fortune 100 Company where my skills and interests fit so well.” Tim joined in 2005 and moved to the leadership position with Altria Client Services in 2008 when he broadened his role to focus on the other security issues facing the company.
A carton of cigarettes sells for around $120 in a high-tax city like New York, and to criminals it is the same as cash. The product is highly liquid, and the profits are huge, as a single truckload of cigarettes has a $3 million value. As a result, the supply chain risk and retaining custody of goods is critically important. “There was a professional group in Florida that ‘took orders’ to steal certain products,” Tim explains. “We worked to eliminate their opportunity, and that group migrated to other high value products like pharmaceuticals because tobacco theft became too difficult. That same organized crime group was apprehended in the Eli Lilly warehouse theft (see Security, August 2012).”
“One of the most important things we did was to educate law enforcement,” he adds. “On the surface, cigarette theft or counterfeiting does not sound like a significant issue for their time and focus. But it is a costly crime that fuels funding for organized crime and reduces tax revenue. By putting a focus on the size and scope of the problem we are able to get proactive policing and mitigate the risks. At the C-suite level, understanding risk and having an appreciation and focus on prevention is key for a successful security outcome.” Because Altria has that preventative focus, its security program has been successful.
“Our role is to protect people, places and products. We are aligned to the HR department because security is about people first and foremost. We developed a centralized Security Operations Center to proactively communicate with and protect our employees. It is important that they feel secure, not only in their individual workplaces but especially as we expand to international markets.”
Altria is the parent company for Philip Morris USA, John Middleton, U.S. Smokeless Tobacco Company and St. Michelle Wine Estates. Philip Morris International spun from the Altria portfolio in 2008 and retained the iconic brands sold in the international space. Now Altria is expanding into emerging and frontier markets. As a result, Tim’s team is providing workforce protection by leveraging the SOC. “Tobacco leaf purchasing is fairly routine and repetitive,” he says. “And we believe we have robust risk and security programs in place. As our business operations migrate to new markets, however, we need greater situational awareness, people tracking and local support from partners. Political unrest, natural disasters, intellectual property theft and espionage are serious risks that need consistent attention and focus.”
“We have a great company, and I am constantly in awe of the manufacturing equipment and processes,” Tim adds. “There is amazing innovation and spirit in this company where employees from different functions and departments work together to achieve astounding results. Successful leaders are surrounded by highly motivated and capable people who build relationships based on respect with a focus on results. As a leader, my role is to create a vision of success, anticipate issues and manage through them in order to achieve our stated goals. Our security team is proud to be recognized as a valued contributor to the success of Altria’s mission.”
In his free time, Tim enjoys spending time with his three grandchildren and playing golf.
- Annual Revenue:$24 Billion
- Security Budget:$17 Million
- Expansion into International Markets
- Supply Chain Security
- Asset Protection/Loss Prevention (for Resale)
- Enterprise Risk Management
- Global Security Operations Center
- Supply Chain/Logistics