What happens when uniquely unqualified people run workers comp insurers?
Nothing good.
Exhibit One, the disaster in North Dakota, as their IT systems overhaul is now well over budget, behind schedule, and so obviously mismanaged that there’s no date certain when the much-needed and long-delayed conversion will be completed.
After former Director Sandy Blunt was forced out on trumped-up charges, a former State Trooper with zero experience in workers comp was named Director. While Bryan Klipfel may (or may not) be a decent guy, his complete ignorance of anything comp-related didn’t seem to phase the politicians who appointed him to oversee the state agency. And Klipfel didn’t think it was going to be that difficult, saying:
“I’m going to work with Bruce (Furness) [former interim Director] for a couple of weeks, and I’ll just have to learn some of that information as time goes on,” Klipfel said. “My strong points are that I have leadership ability, and I understand human resources, how to deal with people. And I think that’s the big part (of the job) right now.”
As I said a year-and-a-half ago, “He’s going to learn on the job? While getting mentoring for a ‘couple of weeks”? In a business that is incredibly complex? At a time when investments and reserving practices are critically important?
And his qualifications are his understanding of human resources and leadership ability?”
Now we have solid evidence of just how much damage the North Dakota witch hunt has done. Not only has it destroyed the life of one of the finest people I’ve ever had the honor of meeting (Sandy Blunt), it is costing NoDak’s taxpayers and employers millions due to the incompetence of the new Director. And that’s just what’s hit the press.
Specifically, the delay is now projected at two plus years, with cost overruns – so far – at $3.6 million. The Legislature has to approve the funds, leading some to ask ‘what happens if they don’t.
According to the article, “WSI CEO Bryan Klipfel said they were going to remain positive as many contracts are signed under such circumstances.
“We need the system,” Klipfel said. “If we don’t get the money… well, hopefully that doesn’t happen.”
Now THAT’s a forward-thinking CEO, one with enough experience to always have a Plan B – just in case.
There are a lot of good folks at North Dakota’s work comp fund; unfortunately they are being led by a guy who is in way over his head.
Oct
18
