‘Organization really needs a reset’: controversy-plagued MPI hires new CEO from within

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This article was published 06/02/2024 (578 days ago), so information in it may no longer be current.

Satvir Jatana is promising to be a steady hand for Manitoba Public Insurance as she buckles in for a rough ride as the Crown corporation’s new chief executive officer.

On Tuesday, the seasoned MPI executive was announced as the corporation’s new president following a months-long, international executive search.

Jatana steps into the role after serving four years as vice-president and chief customer officer in MPI’s corporate headquarters, where she had a front-row seat from which to view the instability and turmoil that have plagued the publicly owned auto insurer.

“It’s not lost on me that the organization really needs a reset,” Jatana told the Free Press Tuesday. “The mandate that has been given to me — and I’m taking this to heart — first and foremost is to build the trust with our employees, partners, stakeholders and regulators.”

MPI had been without a permanent leader since May, when the board fired former president Eric Herbelin following a review of his work-related conduct.

Herbelin’s dismissal came after a string of controversies for the company, including massive cost overruns on the Project Nova information-technology modernization program, the awarding of high-priced, untendered consulting contracts and pay increases for MPI executives amid wage freezes for staff.

A 10-week long strike by MPI employees last summer later paralyzed the corporation during a government-ordered organizational review, the results of which were released last month.

Jatana said she’s prepared to tackle the significant challenges faced by MPI, which include delivering its $290 million IT program on budget and without further delays, and restoring trust with employees, customers and the Public Utilities Board.

“I have the background, the skill set but, more importantly, the willingness to listen and learn from our employees, our stakeholders, working with the board — it’s really helped this organization, lead this organization through this challenging time,” she said.

“I’m one of those individuals that believe you need to be part of the solution.”

Board chair Carmen Nedohin said Jatana’s insight as a long-term employee, experience as an executive leader, and desire to engage MPI’s workforce, made her the right person to lead the corporation.

“Given the challenging period MPI has been through over the past year, as discussed in the final report of the organizational review, it was critical that we selected someone who can heal and lead MPI,” Nedohin said.

“Satvir’s insight as a long-term employee, breadth of experience as a leader and strong desire to unite and engage MPI’s team makes her the right person to lead MPI into a new chapter”–MPI board chair Carmen Nedohin

As chief customer officer, Jatana was responsible for product development, communications and government relations. She also served as executive director of operations, vice-president of human resources and corporate services during her tenure with MPI.

She also held executive positions at Princess Auto and Canad Inns, and spent more than 12 years with Walmart Canada in operations and human resources for Western Canada.

“It was important to the board that we selected a leader who has broad leadership background and who understands public insurance, as well as the unique characteristics of a Crown corporation and how it operates,” Nedohin said.

“Someone who is passionate about providing outstanding service and affordable rates, and has deep respect for the accountability a Crown corporation has to its employees, customers, stakeholders and regulator.”

DHR Global was hired to conduct the executive search, which resulted in more than 150 applications, Nedohin said. The job comes with an annual base salary of $350,000, the same rate offered to Herbelin in 2021.

Jatana’s first priority will be to establish the framework for a new corporate strategy, expected to be completed within 30 days.

The organizational review, carried out by consulting firm Ernst & Young, concluded the corporation has operated without a solid strategy or key performance indicators, leading to confusion and a lost sense of direction, which has manifested in its financial and workforce planning.

It also found MPI’s management structure lacks accountability and stability, owing to a lack of clearly defined roles and responsibilities for senior leaders and significant organizational changes over the past two years.

“There are a number of challenges the corporation will have to deal with coming out of the strike and with the revelations in the most recent Ernst & Young report”–Union president Kyle Ross

MPI’s new corporate strategy will include engagement with its stakeholders, Jatana said.

“Alignment in a Crown corporation is very, very important because we operate in an ecosystem where our success is dependent on our relationship with our partners, our stakeholders, our employees and the public,” she said.

The strategy will then inform a multi-year plan for the corporation, she said.

Manitoba Government and General Employees’ Union president Kyle Ross said rebuilding relationships with employees will be a critical task for the new CEO.

“There are a number of challenges the corporation will have to deal with coming out of the strike and with the revelations in the most recent Ernst & Young report,” Ross said. “The new CEO had a front-row seat on the management team when things went wrong in the recent past.

“We hope those lessons are well learned, and that we can get on with the business of ensuring Manitobans are getting the best service and value possible.”

Justice Minister Matt Wiebe, who is responsible for MPI, said hiring an internal candidate to fill the top job is a step towards “righting the ship.”

“This allows her to hit the ground running, to understand the unique challenges within MPI, but to understand what the overall goals of MPI are, which is delivering affordable rates to Manitobans, giving good customer service to ratepayers,” he said. “These are things that MPI has lost their way on in the past. The new CEO understands that is the mandate and the priorities of the corporation going forward.”

“This allows her to hit the ground running, to understand the unique challenges within MPI”–Justice Minister Matt Wiebe

In a statement, the Consumers’ Association of Canada-Manitoba congratulated Jatana as she takes on the task of leading MPI through  “significant challenges in the months and years ahead.” The association regularly intervenes in rate hearings on behalf of ratepayers.

Reducing the risk of Project Nova running over budget, ensuring MPI has an appropriate number of employees on its payroll, and setting a clear corporate direction are critical to ensuring the corporation’s health, the spokesperson said.

“The corporation has gone through a period of turmoil with significant turnover and loss of institutional knowledge within the corporation,” they said.

“The lack of strategic direction for the corporation will be one of the most important challenges for the new CEO. A renewed strategic direction will necessitate re-examination of relationships with key stakeholders and performance indicators to drive budgeting decisions in order to deliver outstanding service at affordable and efficient cost for Manitoba ratepayers.”

danielle.dasilva@freepress.mb.ca