In my view, I see the checks and balances concept established by Sarbanes-Oxley as the deciding factor. Although the concept of "partnership" between LP and Operations is very important, the Loss Prevention Department should provide checks and balances to the Operational Pyramid. It is almost impossible to stay objective and evaluate your supervisor's pyramid if you report to him or her.
Since LP completes many internal investigations, it is best practices to not have LP report to Human Resources. This allows HR to review each case and provide an avenue for employees to go to if they have an issue with conduct or decisions by LP.
Companies that "get it" have Loss Prevention report to Finance. This fosters a true "checks and balance" culture within the company. Finance usually manages shortage control, risk management, and cash control. Since these three areas usually fall under Loss Prevention's responsibility, they are in the right pyramid to impact these areas and provide open feedback on operational execution in the field.
Free free to email Steve with comments at Steve@LPjobsFREE.com and visit his on line training course at http://www.lpdetective.com/.
