March 7, 2008-Bismarck Tribune

The review also said leadership in human resources was poor, and that a whistleblower’s actions as internal auditor were inappropriate. Further recommendations suggested a complete restructuring of the executive management team.

The Conolly &Associates’ human resources and management review of Workforce Safety and Insurance suggested the agency become licensed and then be subject to the regulation of the North Dakota Department of Insurance.

Both Jasper Schneider, Democratic candidate for the insurance commissioner, and Adam Hamm, current commissioner, agree on the idea.

“This recommendation reinforces the proposal that I made in early February,” said Hamm in a news release. “It makes sense to use the existing regulatory structure, expertise and authority that exists in the department to oversee what is essentially an insurance company.”

Hamm has asked the Legislature to consider a proposal that would allow his office to regulate the agency, a move that the governor’s office has supported, although they also continue to push for the agency to be returned to the control of the governor.

Schneider said in a news release: “There is a consensus building that the insurance commissioner should have a regulatory role over North Dakota Workforce Safety and Insurance. That is a good thing.”

Among other review suggestions: revisit the role of Kay Grinsteinner, the internal auditor, and the leadership in human resources, as well as a restructure of the management team.

“We frankly have a serious problem,”Conolly said of Grinsteinner. “Not with the whistleblower type issues … but with respect to the November letter to the board, and the suggestions made in that letter, and the way it was done and delivered …”

Conolly was referring to a letter and e-mail in which Grinsteinner called some claims’ processes WSI’s “dirty little secret.”

“Our problem is that job requires, to be effective, the trust of the organization,”he said.

Further, Conolly said he thinks the executive management team should be pared down from seven to five, retaining employer services (interim director John Halvorson’s former role), injury services and law positions, then adding a chief financial officer and an administration officer. The communications and human resources executive positions would be middle management and report to the administration officer, and the strategic planning role also would be middle management, under the CFO.

As for human resources, Conolly said WSIstaff don’t seem to trust the human resources department.

“We think we need strengthening of leadership there, and some more attention paid to established credibility to their staff, which, in different corners of the organization, that is not the feeling right now,”he said.