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The D&D Daily Mobile Edition

May 19, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Frank O'Neil was promoted to Senior Vice President of Asset Protection & Facilities for Follett Higher Education Group.  Joining the rather small and elite group of senior vice president's in the retail Asset Protection industry, with responsibilities for facilities management as well, Frank has really spent his entire career focused on shrinkage reduction, inventory control, and building highly effective teams with well educated and strong leaders that are engaged in the business. As Follet's first Director of Loss Prevention, hired in 2001, Frank has delivered the results to the point of being recognized and promoted twice and now by his senior management team to this senior vice presidents level. With a BS degree in Accounting and after having spent over 30 years in the industry with such organizations as Allied Stores, May Department Stores, Morris Shoe Co., Caldor, and Home Depot Frank has proven that his relentless commitment to shrinkage reduction, process improvement, and team development has helped him be extremely successful throughout his career. We at the Daily would like to congratulate Frank and also say that he's a great role-model for those trying to pursue the senior level.
Jeffrey Santana was promoted to Director of Loss Prevention for Prada.  Jeffrey was the previous Regional Director of Operations, South East for Prada. He has been part of the Prada loss prevention team since 2003 where he started as their Corporate Loss Prevention Manager. Since then, he has been the East Coast Loss Prevention Director, and their Regional Director of Loss Preventions. Congratulations Jeffrey!

Getting inside criminal minds; Read Hayes makes it his mission to stop shoplifters in their tracks  As part of his research into understanding the criminal mind, he accompanies shoplifters to talk to them about what security measures they notice and how they decide what and whether to steal. Hayes is director of the Loss Prevention Research Council, a consortium of nearly 100 major retailers, security equipment companies and manufacturers, and co-director of the Loss Prevention Research Team in the Florida Survey Research Center at the University of Florida. His work involves research into theft and deterrence measures. Hayes and his team interview about 20 offenders a week, bringing them to stores in Gainesville, North Florida, Georgia and other locations around the nation to see what they notice inside and outside stores that make these stores more or less appealing as targets for theft. The offenders include the "dumb and unlucky" who have been caught and who refer him to other offenders who haven't been caught. Their identities are kept confidential. (Source gainesville.com)

Companies Have Further to Go to Prevent Target-Style Cyberattacks - Vendor Assessments  Companies still have some ways to improve when it comes to assessing the cyber risks their vendors pose, a new survey says. Firms rated the “maturity” of their policies, standards and procedures for managing the cyber risks posed by vendors a 2.9 out of 5 on average. The survey was the first of its kind done by the groups. It had nearly 450 responses, primarily from large firms based in North America. The companies rated their ability to continuously evaluate these risk even lower, giving the vendor cyber risk management program’s tools, measurement and analysis a 2.4 on average. Protiviti Managing Director Rocco Grillo said part of the extensive study showed that “many companies are conducting vendor reviews” but those are not always making their way to senior management. Firms rated their discussions of “results of vendor assessments and metrics with management” 2.4 out of 5. Companies should evaluate the cyber risks associated with their vendors with the same rigor they evaluate their own internal risks, Mr. Grillo said. (Source wsj.com)

Target shoppers mostly stick with chain after data breach - new Bloomberg Poll  Many Target Corp. customers are ready to forgive and forget. Following a data breach over the holiday season that affected millions of shoppers, only 7 percent of customers plan to reduce spending at the chain over the next year, according to a Bloomberg National Poll. The survey, conducted May 8-11, also found that Target’s decision to replace its chief executive officer this month had little effect on consumers’ desire to shop at the chain. (Source detroitnews.com)

HP's chief ethics and compliance officer says - "Customers generally know data is being collected for security purposes and in general that’s not going to make anyone uncomfortable."  “But if [the customer gets] an ad, then it’s, ‘Wait a minute, what does this have to do with security?’” She said it was important for corporations to maintain standards at a time when law is still developing. “Where the law is not keeping up, you can develop your own accountability,” she said. In a panel discussion last week in San Francisco tech compliance chiefs see privacy as growing concern. (Source wsj.com)

Ten questions every retailer must ask in order to survive  I would strongly argue that it's not just retailers, but any business would do well to develop a Top 10 list of Great Questions. Based on the Chicago Tribune's list, here are my Top 10 for retailers in today's disruptive marketplace:

1. Who, on the executive team or the board, has spoken to a customer recently? - James Champy, author and management expert
2. How likely is it that a customer would recommend our company to a friend or colleague? - Andrew Taylor, executive chairman of Enterprise Holdings
3. Are we relevant? Will we be relevant five years from now? Ten? - Debra Kaye, innovation consultant and author
4. Who uses our product in ways we never expected? - Kevin P. Coyne and Shawn T. Coyne, authors and strategy consultants
5. What one word do we want to own in the minds of our customers, employees, and partners? - Matthew May, author and innovation expert
6. Do we underestimate the customer's journey? - Matt Dixon, author and executive director of research at CEB
7. Do we have the right people on the bus? - Jim Collins, author and management consultant
8. Among our stronger employees, how many see themselves at the company in three years? How many would leave for a 10 percent raise from another company? - Jonathan Rosenberg, advisor to Google management
9. What was the last experiment we ran? [...and what were the measurable results?] - Scott Berkun, author
10. What successful thing are we doing today that may be blinding us to new growth opportunities? - Scott D. Anthony, managing partner, Innosight (Source retailcustomerexperience.com)

C-store industry hits $700B in total sales in 2013 - 2nd consecutive year  U.S. convenience stores generated more than $700B in total sales last year, the second consecutive year, but hit some rough patches. As fuel sales dropped 1.1% and in-store sales growth slowed to 2.1% after climbing 4.7% in previous year. The channel added more than 2,000 net new stores last year, a 1.38% increase and bringing the total number to 151,282. (Source csnews.com)

Annapolis PD Hold Emergency Drill At Westfield Mall  This weekend, Anne Arundel County police and fire teamed up, used the Westfield Mall in Annapolis and drilled. In this simulation, a shooter killed 15 shoppers and injured dozens of others. Police say valuable lessons could come from this drill because, since the 1999 Columbine shooting, police have changed their tactics. (Source cbslocal.com)

Last week's most popular news article --

50+ retailers opening new stores this year
Lately there have been a number of media reports about retailers that are expanding in the US and North America this year (it's not all doom and gloom in the retail industry). This may be important to job-seekers because that's where a lot of the new job opportunities will come from. (Source retailresumes.ca)

Retail Asset Protection Call for Speakers: Now Open!

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Session proposals must be submitted online by August 8, 2014.

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Keith White
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Leadership & Development Series

New Must-See Episode!

In a ground-breaking interview spanning a multitude of topics, Keith White, Senior Vice President of Loss Prevention for Gap Inc., sits down with LPNN for a one-on-one discussion about his philosophies on leadership, professional development and the state of retail Loss Prevention. Keith recounts his managerial transition from single store – to regional – to corporate – to an eventual directorship. He talks about the critical first six months of a directorship – and his strategy involving team members, policies and procedural changes. As one of the first LP executives to set up an ORC program, Keith tells us what makes a successful one and how to react to the emerging technological trends. This highly informative interview offers a wealth of knowledge for the LP professional at any stage of his or her career.

Sponsored by WG Security Products, Inc.


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e-commerce
Sponsored by The Zellman Group

Mobile commerce is riskier than standard ecommerce

Mobile commerce is riskier than standard ecommerce, according to more than half of merchants responding to world’s largest annual payments and fraud survey

Annual Kount Mobile Payments and Fraud Survey finds 51% of nearly 2,000 respondents believe the risk of mobile fraud has increased year on year

London, UK – 14 May 2014 – One in ten retailers expect most of their online sales to come via a mobile device by the end of 2014, according to the IMRG.1 However the number of organisations believing the mobile channel is riskier than standard ecommerce has increased by 20% year on year, according to new findings from the Kount Mobile Payments and Fraud Survey, released today.

The mobile channel is still evolving in terms of its perception and the level of importance it has within any given business, but there are certain industries that view mobile as far riskier than others. When asked if mobile was riskier than standard ecommerce, the following sectors were most concerned: money movement (33%), travel (25%) and financial services (21%), who reported that it was ‘far riskier’ than the previous year.

Across 24 industries, those who felt mobile fraud was less risky than standard ecommerce were confined to single figures (0% - 8%), with the exception of dating/social sites, with 29% believing it was actually less risky. 21 industries overwhelmingly demonstrated more concern for mobile fraud than in standard ecommerce.

This perception has led to an increase in merchants who think the mobile channel needs specific fraud tools, almost doubling (from 17% to 32%) year on year. The problem facing merchants is how to balance fast payment processing with a fraud prevention solution that provides security and reliability.

“Fraud prevention should be specific to what you need,” said Don Bush, Vice President of Marketing at Kount. “Mobile is not yet a settled channel, but a fraud protection strategy should be. One thing that is crucial for mobile, alongside the most powerful fraud prevention on the market, is speed. Consumers are increasingly demanding a near real-time purchase, irrespective of device, and this level of demand needs to be matched by a trusted one-stop shop solution that doesn’t compromise on security.”

Respondents have previously found the difficulty consumers have transacting on mobile devices to be the biggest obstacle to mobile adoption. This year, however, there is much more focus on security and fraud. The share of respondents who cited “Making it easier to transact” as the biggest obstacle fell from 36% to 28%, while the number of respondents who believe the biggest obstacles are “Addressing how to manage fraud risk” and “Addressing consumer security concerns” each grew by more than 40%.

“E-commerce in particular depends so much on the level of trust that the consumer has in your user-friendly interface and fast, secure back-end technology to automate and simplify the process. The fact is that fraud follows opportunity, and there may be no greater opportunity for fraud today than in mobile,” continued Bush. “As a relatively new platform that continues to drive deeper into new and existing markets, mobile’s potential is still being unlocked, whether it’s for communications, banking and payments, retail, gaming, social media or more. It’s an incredibly exciting time for the industry, but there will always be those who try to take advantage of security holes in order to defraud legitimate businesses and customers.” (Source kount.com)
 

"Fraud is not a person - it is a dynamic grouping of statistics that deviate from the norm."
Stuart B. Levine, CFI, CFCI
CEO, The Zellman Group & Zellman Fraudnet

Be sure to attend Stuart Levine's NRF LP Session, "EMV Impact and an Omni channel Approach to Reducing Fraud" on Wednesday June 11, 11:30-12:30pm in room 304-305

 

Retail Crime News
Sponsored by NuTech National

The real life Bling Ring: Underground network of Young Shoplifters detailing shoplifting schemes on Tumblr  An online community of shoplifting bloggers who brag about their 'hauls' and exchange advice on how best to steal from stores has been exposed, with the network quickly dubbed 'the internet's Bling Ring'. The once-under-the-radar 'lifters' - who have been likened to the seven L.A. teens who were charged for stealing from celebrity homes and immortalized in Sofia Coppola's Bling Ring - blog anonymously under names like Klepto Princess and Cash or Card and use hashtags such as #lifting and #fivefingerdiscount to link in with each other. The group were outed by a fellow blogger called We-unhallowed, who noticed the trend quietly percolating on Tumblr and decided to publish a list of the screen names involved. Before the lid was lifted on what they were doing, members of the network would share methods and stories with each other on how they steal, such as how to remove security tags using magnets and hooks, as well as what stores were easier than others. Tumblr said they have no guidelines when it comes to posting shoplifting, but said they would cooperate should there be an investigation. 'Posts depicting potentially illegal activity may not, in and of themselves, violate our policies,' a spokesperson told Jezebel. Many of the Tumblr sites have shut since the list was made public on Wednesday, out of fear that, like the Bling Ring of burglars, they would be caught. (Source dailymail.co.uk)


Experian Breach Tied to NY-NJ ID Theft Ring
Last year, a top official from big-three credit bureau Experian told Congress that the firm was not aware of any consumers that had been harmed by an incident in which a business unit of Experian sold consumer records directly to an online identity theft service for nearly 10 months. Today’s post presents evidence that among the ID theft service’s clients was an identity theft and credit card fraud ring of at least 32 people who were arrested last year for allegedly using the information to steal millions from more than 1,000 victims across the country. (Source krebsonsecurity.com)

Guard shoots, wounds, suspected shoplifter at St. Louis Aldi store  A supermarket security guard shot and wounded a suspected shoplifter Sunday afternoon. The shooting occurred in the Aldi store about 1:30 p.m. Police said the guard confronted a suspected shoplifter and shot him in the foot. The wounded man was taken to a hospital, where he was listed in stable condition. (Source stltoday.com)

Arundel, MD Police stage mock mall shooting for training exercise  It was a riveting simulation of tragic events that in recent years have become all too real. That was the aim of the Anne Arundel County Police Department, which on Sunday morning sponsored the training exercise, "Westfield Annapolis Mall Active Shooter," that demonstrated first-response procedures to an incident involving a lone man armed with handguns and a backpack shooting and harming patrons at the indoor shopping center. Anne Arundel Police and Fire departments, the Annapolis Police Department and Westfield Annapolis officials staged the exercise, which began inside the mall at 6 a.m., five hours before the mall's 11 a.m. Sunday opening. Anne Arundel Police officials said about 100 personnel took part, including patrol officers, fire EMS, 911 dispatch and a fire-and-police command post outside the mall. (Source baltimoresun.com)

Robbery Suspect Killed after Police Track him with GPS Decoy Pill Bottle  Relying on a GPS device placed in a decoy pill bottle, police officers tracked an armed man suspected of robbing a pharmacy on Friday afternoon and fatally shot him during a confrontation on the Upper East Side, police officials said. The decoy bottle was among a cache of drugs taken in an armed robbery about 1:30 p.m. from HealthSource Pharmacy. The suspect, identified by the police as Scott Kato, 45, of Mount Vernon, N.Y., was believed to have robbed pharmacies in New York City on at least four occasions since 2011, three times at the HealthSource drugstore. The police official said the GPS device helped lead the police to the man, who was confronted as his 2007 Jeep was stuck in traffic on a service road beneath the Franklin D. Roosevelt Drive at East 96th Street. As officers closed in, the man pointed a handgun in the direction of at least one of the officers; one or more of the officers opened fire, killing the man, the police said. The episode is the first known case in New York City in which a decoy bottle helped the police identify a suspect after a pharmacy robbery. (Source nytimes.com)

'Flash mob' robbery strikes DC convenience store, Video released by Police  Police have released surveillance video that shows persons of interest in a 'flash mob' robbery that happened at a store in northeast D.C. Officers say the robbery occurred on Monday, April 14, around 9:30 a.m. On the video, about twenty people can be seen entering a convenience store on the 4400 block of Benning Rd. - one right after another. The video shows several unidentified subjects dash out the store with what appear to be good in their hands. It is unsure what was stolen. No one has been charged with a crime at this time. (Source myfoxdc.com)

Walmart Loss Prevention assaulted during an apprehension in Colorado Springs, Co  The Walmart on Space Center Drive in Colorado Springs was robbed late Saturday night. Colorado Springs Police report that two women fled the store with stolen items after pepper spraying a Loss Prevention Officer at the store. One woman was seen with stolen items hidden in a plastic tub stuck in her purse. The woman was confronted by a Loss Prevention Officer, who was then attacked by the woman. The second woman was seen in the tire area while the altercation took place. (Source krdo.com)

McDonald's customers, employees held up during robbery in SE Houston  Police are looking for a group of robbery suspects accused of holding up workers and customers at a southeast Houston McDonald's restaurant. It happened around 11pm at the store on Woodridge near Office City. Police say three suspects armed with guns stormed in and demanded cash and cell phones from everyone inside. The suspects took off in a waiting vehicle. No one was injured in the robbery. No word on just how much cash was taken. (Source abc13.com)

Man accidentally shoots himself in leg while shopping at Phoenix Wal-Mart  Police say shoppers at a Phoenix Wal-Mart store were sent into a panic after a man accidentally shot himself in the leg. Phoenix police spokesman James Holmes says a male shopper's gun, which was at his hip, went off around 10:30 a.m. Saturday at a Wal-Mart near 19th Avenue and Bethany Home Road. The man suffered non-life-threatening injuries. Holmes says Wal-Mart managers evacuated the store, which was shut down for a short time. Holmes says the man is not facing any charges. (Source therepublic.com)

Two women, juvenile arrested following theft at Sangertown Mall, New Hartford, NY  New Hartford Police has announced the arrest of three females following a theft, Saturday night. According to Police, at about 7:30 p.m. officers responded to Sears in the Sangertown Square Mall where it had been reported that three females were stealing bags full of merchandise. Following an investigation of the scene, officers arrested of three females, two adults and one juvenile, for felony grand larceny after it was determined that the three had acted together to steal over $1000 in clothing and footwear. (Source wktv.com)

Thousands of dollars worth of designer eyeglass frames were stolen overnight  A thief stole the high-end glasses and sunglasses from the Union Eye Care on Chardon Road in Willoughby Hills and another store called For Your Eyes Only in Willoughby on Som Center Road. (Source wkyc.com)

Allentown, PA Police nab alleged AT&T cellphone burglar

Delaware State police investigate robberies of 2 stores a half-mile apart; Metro PCS and Shell

Suspects indicted for burglary spree in Bullhead City, AZ; Salvation Army store and Pawn Shop

Yonkers Department Store employee in Ames, IA accused of $1600 in refund fraud

Two men sought for using stolen credit cards in Maryland Heights and two other jurisdictions

Rolling Oaks Mall Macy's former employee arrested for $6,500 jewelry theft from safe

Violent women arrested stealing hand bags with two accomplices in Palm Beach County - TJ Maxx

Robberies and Burglaries

Best Buy armed robber arrested in West Nyack, N.Y.
Walmart armed robber arrested in Springettsbury, PA
Allendale Market – Sheraden, PA – Murder/ Armed Robbery – Owner shot and killed
C-Dollar Plus – Capitol Hts. MD - Burglary/ Arson
Check into Cash – Santa Ana, CA – Armed Robbery
Cigarette City - Wilmington, NC - Armed Robbery
Circle K – Sierra Vista, AZ – Armed Robbery
CVS - Atlanta, GA - Armed Robbery
CVS - Niles, OH - Armed Robbery

CVS – Orlando, FL – Armed Robbery
CVS – Absecon, NJ – Armed Robbery
CVS – Vineland, CT – Armed Robbery
CVS – Tulsa, OK – Robbery
Decker’s Flowers – Wilkes-Barre, PA – Armed Robbery
Dillons – Wichita, KS – Armed Robbery
Dunkin Donuts – Concord, NH – Robbery – employee tied up
Exxon – Greenville, NC – Armed Robbery
Hoyt Liquor – Muncie, IN – Armed Robbery / Shooting – Robber shot during struggle w/ female clerk
Kum & Go – Omaha, NB - Armed Robbery
Power Package – Atlanta, GA – Thieve cut hole in the wall
Rob’s Quick Mart – Grand Rapids, MI – Armed Robbery
Shell – Jefferson Parish, LA – Armed Robbery – 2 suspects in custody
7- Eleven – Oshtemo Twp, MI – Robbery

 

ORC News
 

Indiana trying to pass ORC legislation
With all of the states surrounding Indiana having ORC laws authorities say their ORC is spiking because the criminals know the punishment is less. To combat the trend, he said the Indiana Retail Organized Crime Coalition is working with state lawmakers and county prosecutors to pass legislation that would make boosting a more severe crime. The goal is to strip some of the low-risk, high-reward appeal. The 2013 National Retail Federation survey lists 28 states that have passed or enacted legislation related to organized retail crime, including all of the states surrounding Indiana. That's our golden goose right there," Thompson said of the legislation. "We're looking at the language in the (organized retail crime) laws of our bordering states to draft legislation for Indiana, and we hope to have it introduced in time of the next legislative session." The tougher state laws help, said Mellor of the National Retail Federation. But the patchwork of state-by-state laws motivates thieves to cross state lines in search of less severe punishment should they get caught. With Indiana being surrounded by states with organized retail crime laws, criminals in the Midwest could be drawn to the Hoosier state.  The National Retail Federation has been lobbying for organized retail crime to be defined as a federal crime with appropriate sentencing guidelines.  "We've been advocating for a number of years, so the federal lawmakers are tuned into it ,and they know how serious it is," Mellor said. "The problem is they have other priorities, and we just keep trying to get on the priority list." (Source indystar.com)

Tucson police create team to go after serial - ORC offenders  Two detectives and 24 plainclothes officers are working stores where shoplifters strike most to build felony cases against repeat thieves, said Capt. Paul Sayre of the property crimes division. Some of the officers are working undercover in hopes of catching habitual offenders in the act. Steady growth in shoplifting, along with the realization that many thieves were hitting stores over and over, resulted in the concentrated effort involving police, the business community and prosecutors. It is really important that Tucson police, the city and county prosecutors work closely together in a coordinated effort on this issue that is significantly impacting our community,” said Baird Greene, deputy city attorney of the criminal division. He said each group plays a role in making solid cases so offenders are locked up, rather than repeatedly receiving probation or being referred to diversion programs. Also, by targeting shoplifters police expect a drop in violent crimes because some of the thieves are tied to burglaries, robberies and carjackings. Last year there were nearly 15,000 shoplifting incidents in the city, police records show. That’s up from about 12,500 in 2012. The state’s Organized Retail Crime Association meets monthly and works with law enforcement to make a dent in thefts. Retailers are losing millions of dollars each year,” said Carlos Estrada, loss-prevention manager for the Arizona Division of Circle K Stores and a founding member of the state association’s Southern Arizona Chapter. “When the bad guys take our product, it hurts all of us and minimizes our government because of the loss in tax revenue. There are groups that hit stores in Phoenix, along the Interstate 10 corridor, and in Tucson — and on their return trip to Phoenix, they do the same thing.” (Source azstarnet.com)

Fraudster gets 4-year sentence for credit card scheme in Newfoundland, Ca.  Mouneimneh, along with his partner in the scheme Michael Soliman, arrived by ferry the province in February and proceeded to use stolen or fake credit cards to buy gift cards or prepaid credit cards, allowing them to steal thousands of dollars from individuals and retailers. He committed the crimes in this province while out on a conditional sentence from Quebec for similar crimes. There is also an ongoing investigation by police in Edmunston, New Brunswick. Chalker said the fact that Mouneimneh shipped the cards from province to province and owned a machine to perform the fraud meant his intention was clear. (Source cbc.ca)

ORC female duo hits Dillard's in Penn Square Mall in Oklahoma City for $17,000 in Michael Kors watches

ORC Takes Center Stage - An in-depth look at the national epidemic

From meat to razors to Tide Detergent "Liquid Gold," organized retail crime gangs are boosting everything and anything these days. To combat the ever-growing problem, LP investigators have developed new methods to counteract the criminals invading their stores. These videos offer insight into the ORC epidemic and what retailers are doing to fight it.

 
 

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Frank O'Neil was promoted to Senior Vice President of Asset Protection & Facilities for Follett Higher Education Group.
Jeffrey Santana was promoted to Director of Loss Prevention for Prada.
Shannon Griffin was named Regional Manager of Asset Protection for Luxottica Retail.
Kathy Farrell was named Regional Asset Protection Manager for Regis Corp.
Mike Toledo, CFI was named Senior Manager of Loss Prevention & Safety for American Eagle Outfitters.
Emily Cernak was named Area Loss Prevention Manager for American Eagle Outfitters.

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3 Lessons in Career Development from Comedy Greats Who Flopped  Even the greats suffer setbacks and failure before they become extremely successful. Failure doesn't mean it's the end of the line. These comedic flops can show us how to get back on track, even after having suffered a blow. (Find your identity)

How to Have a Great Day Every Day
Being, and staying, happy at work doesn't just mean following certain rules or advice that people give. Sometimes getting into and staying in a better mood comes down to the actions you take. Here are some tips to do just that! (Become inspired)

Last week's most popular articles--

Top 5 Signs That New Hire Will Be a Rock-Star Employee  A question that is heard often is what do hiring managers look for in employees. The list can go on and on, but what sets out an employee from a rock-star employee are these five attributes! Here are some qualities that will increase your odds of becoming a rock-star yourself! (No surprises)

5 Toughest Personalities at Work--and How to Manage Them  Every  leader encounters that one person, who may give you some problems in the workplace. You can't just avoid dealing with this person, and conflict could arise if you confront him or her head on. What's a leader to do? Here are some tips for five challenging personalities. (Narcissists to Guilt Trippers)

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Tip of the Day
Sponsored by Vector Security

Interacting in large networking groups can be very challenging even for the most seasoned of executives. The speed, the number of people, and the amount of information shared can be overwhelming. However, the one basic principal you can rely on is keep it simple, one person at a time and focus on that person both mentally and visually. Slow it down in your head and make sure you communicate clearly and sincerely regardless of the background you have with anyone or any group. Because at the end of the day you're all part of the same industry, the same community, and everyone has the same objective; to help develop and represent the industry as professionals.

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