Mar 16, 2008 - 04:05:30 CDT
When a consultant's report about the management of North Dakota's workers compensation agency was published, legislators welcomed its conclusions that it was generally doing well at serving its injured clients.What was played down was the report's tales of upper management secrecy, bullying and a department overhaul planned and executed so bizarrely that the report calls it "unprecedented, either in the insurance or business world."
The board of directors of Workforce Safety and Insurance was oblivious to it all. "Of the five current members of the board we had the opportunity to meet and interview, none was ever made aware of the details of what we learned," the report says.
Board members have embraced the conclusions of the report, done by Conolly & Associates, a firm whose namesake, Henry Neal Conolly, presented it to board members and the Legislature's interim Industry, Business and Labor Committee.
They used its recommendations to justify firing three Workforce Safety and Insurance managers and eliminating the jobs of two others. This week, board members are hoping to adopt its suggestion to hire an outside interim chief executive officer to restructure the agency's upper management.
The genesis of WSI employees' discontent, the report says, dates from the summer of 2005, about a year after former chief executive Sandy Blunt was hired.
Blunt organized a meeting to discuss revamping the agency's management structure, which included the "demeaning and occasional humiliation of then-current management by subordinates," the report says.
It was followed by another meeting that fall, with about two dozen participants who were ordered to keep the discussions secret. Participants were given copies of a motivational book, autographed by Blunt.
"Word of (the meeting's) occurrence spread quickly, as did a fearful perception among the staff, supervisors and managers that a large reorganization was coming," the report says.
In late 2005, the chief of employer services, Dave Spencer, unveiled a new structure for the department that was vague about the duties of jobs listed on it, the report says. Managers and staff were told they had 24 hours to pick a new position.
In replying to a question about how someone should choose a job without a description of its duties, Spencer allegedly replied: "If you have passion, it should not matter whether you have experience."
Service from the employer services division, which included handling new accounts, premium collections and safety, deteriorated, the report said. "Trained and competent staff were transferred from their trained activity and demeaned, while unqualified and untrained staff took their places," it said.
Spencer said he had not read the report and declined comment. Blunt said the report did not mention "the successes and professional developments by many of those who did transition into roles that were well suited for them."
He apologized to employees for difficulties that the reorganization caused, Blunt said in an e-mailed response to questions about the report.
"The approach, while uncommon, was designed to tap into what people wanted to do in their career, and allow them to have a say in selecting a role that they wanted to perform," Blunt said. "The execution was not as fluid as we had hoped, and in the end, we had to backtrack on a number of decisions."
Spencer was dismissed in September 2006 after senior staffers confronted Blunt and demanded he be fired, the report says. The reorganization was reversed.
The events "have become internally legendary, and are widely cited as the seminal cause of staff and supervisory fear, distrust and emotional scarring at WSI," the report says. "These same actions are universally regarded as mistakes, and as symbols of the kind of management action or inaction that has produced today's turmoil."
Conolly, in an interview, called the reorganization "ridiculous." "It really tore apart this place, and there are people who are still very angry about it," he said.
Blunt said he believed the report's conclusions were too broadly drawn.
"While I do not believe I would ever undertake such an initiative again, I will also now characterize the entire effort as an abject failure," he said.
Sorry leo but i don't agree this time! wrote on Mar 22, 2008 1:03 PM:
Horizon wrote on Mar 22, 2008 7:41 AM:
1 IW 4 All wrote on Mar 18, 2008 1:16 AM:
We will be discussing ways to make changes to North Dakota's Workforce Safety and Insurance and common problems obtaining benefits.
What: ND Injured Workers Support Group Meeting
When: Thursday March 27, 2008
Where: Hope Lutheran Church, 3636 25th St South, Fargo, ND 58104
Time: 6:00p.m. to 8:00p.m.
For more information contact:
ndworkcomphelp@gmail.com
"
Yeah, it was just one instance, sure. wrote on Mar 17, 2008 8:46 AM:
Additionally, prior to the existing leadership, WSI as an organization had years of distrust passed from one leader to another. As reported recently in the November 3, 2006 edition of the Fargo Forum, “…in October 2003, documents that news reporters and others obtained through open records requests described (Executive Director’s) management style as mercurial and hostile ... Staff evaluations and letters, both signed and unsigned, used terms including ‘outbursts of anger,’ ‘impulsive,’ ‘irrational,’ ‘fear,’ ‘low morale,’ ‘temper,’ ‘intimidation,’ ‘hostile behavior,’ ‘retaliation,’ ‘rage,’ ‘vindictive,’ ‘hostile work environment,’ ‘harassment’ and ‘retribution.’”
These statements can not be overlooked when considering the cited survey results. The organizational trust level will take years to earn back. Consequently, absent comparative data, management is unable to conclude whether the survey results are more or less favorable than they would have been in prior periods.
To transform an organization’s culture is a long-term commitment. In a peer-reviewed article entitled Transforming Local Government: Practical Experience Building a Program-Based Organization by William S. Chiat, Chiat notes that it can take four to six years to change an organization's culture. This article also alluded to the importance of investing time in this process of cultural change. “Don’t become discouraged when anticipated change does not occur as quickly as expected.”
Considering that WSI has had four different Executive Directors in the last seven years and that it takes four to six years of steady leadership to change an organization’s culture (the current leadership team had only been together about one year at the time of the SAO survey), one can understand the reduced level of trust and uncertainty pointed out in the survey results. "
kathy wrote on Mar 16, 2008 5:56 PM:
After reading the article.....possibilities to replace current WSI slogan "To us, it's personal" include: "WSI--Unprecedented!" or "North Dakota (WSI)...Legendary!" "
leo wrote on Mar 16, 2008 5:09 PM:
While it is true the Governor appoints the board members, in another sense, he doesn't. The system is set up whereby the board of directors itself submits a list of candidates in which the Governor is to choose one. If the names of Hitler, the devil, or a good Norwegian are submitted, which one will be chosen?
On the other hand, the Governor renewed Bob Indvik and Ms. Ripplinger. If it was me, I think I'd ask them for more names. "
Not the Governor! wrote on Mar 16, 2008 3:01 PM:
Kimberly wrote on Mar 16, 2008 2:55 PM:
mikesouth wrote on Mar 16, 2008 2:11 PM:
What did Conolly miss? wrote on Mar 16, 2008 2:07 PM:
Great move Guys and Bobbie. Tip - you are not helping. An organization that is "wracked by dissention (sic) and division, mistrust, disloyalty and destructive behavior" does not need more of the same.
Perhaps the new ICEO can fix thinks by fixing your screw ups. "
EINSTEIN wrote on Mar 16, 2008 1:53 PM:
"
Get Real wrote on Mar 16, 2008 1:48 PM:
"
Conolly said the CEO job would be a dream wrote on Mar 16, 2008 12:44 PM:
Bullying at WSI wrote on Mar 16, 2008 12:30 PM:
Black Brian wrote on Mar 16, 2008 11:39 AM:
Edward wrote on Mar 16, 2008 10:35 AM:
Heritage wrote on Mar 16, 2008 10:28 AM:
And with these words... wrote on Mar 16, 2008 8:31 AM:
leo wrote on Mar 16, 2008 6:38 AM:
Mr. Wetzel, thank you for providing a glimpse of what it was like to work in the WSI environment when Blunt and crew were in charge. You've hit the tip of the iceberg. If you need more information, please refer to the past reports of the ND Auditors office or contact some of those former 80 employees. Maybe they won't be ignored this time. "
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