With a clear succession plan executed, Safety Insurance can map out its next phase of employee development

 
Joe and Stephen Palmer

Company: Safety Insurance Services (Atlantic) Ltd. 
Revenue: $16,470,000
Location: Hartland, N.B.
2010 Rank: 74

Joe Palmer can't remember the first time he and his father, Stephen, went on a business trip together, but it was probably in 1990, when Joe was 10 years old and Stephen was company president. Stephen wanted to teach his son about the family business, so in 2008, when Joe started going on business trips solo as president of the Hartland, N.B.-based Safety Insurance Services, he was prepared. “My dad taught me to be confident,” he says. “Once I got a good handle on the job, I knew I could protect and build the company.”

With the Palmers (pictured at right) at the helm, Safety Insurance Services is efficient and profitable. Based on solid management, a seamless succession plan, intensive training programs, and the effective use of consultants, it ranks No. 1 in the Top 10 Organizations for Internal Practices.

Solid management involves planning for the future. In 2005 Joe became chief operating officer; three years later he took over as president, which capped off a six-year succession-planning process. Corporate Protection Group, a consulting firm based in Brampton, Ont., helped the Palmers develop the plan and monitor Joe’s progress. He completed key targets, including completing the Canadian Accredited Insurance Broker (CAIB) program and handling large client portfolios. “Everything was mapped out,” says Joe. “I knew exactly what was expected from me.”

Expectations must be stated clearly to pass on a family business successfully from one generation to another. Stephen began to place his son in leadership positions at the firm a few years before putting a formal plan in place. “You need clarity, creativity, and confidence to be a leader,” says Stephen. “I told Joe he needed to do a few things before I could give him the company. We had a clear plan on how to do this, and I wanted him to be confident he would make the right decisions.” Stephen’s confidence in Joe, and Joe’s commitment to the company, helped ensure a smooth transition. “Dad was willing to let go of the responsibility,” says Joe, now 30. “That gave both of us comfort in the process.” 

After the succession was complete, Joe shifted his focus to employee training. There are two groups of workers: the “backstage” staff who deal with customer service and the “front-stage” staff who work in sales. Training for the backstage staff traditionally involved attending courses in Fredericton for CAIB certification and general training on job duties. Joe decided to take a different approach with a new program run by MIHI Group, an Ontario consulting firm specializing in the insurance industry. Employees in each department handle their work processes through Focus Days, in which each day has a designed primary task. For example, one day could be set aside to follow up on renewals from clients, another to contact new customers, and yet another to handle back-logged work. “People are more organized and less stressed,” says Joe. “Everyone knows what to do, so the office isn’t so hectic. The plan helps people stay focused.”

For the front-stage staff, training and development is seen as a long-term process. After Joe took the helm, employees went through an intensive training program with a consultant in Toronto. The team meets once a month, and employees can also get additional support from the firm’s external sales coach.  

Safety Insurance Services invests heavily in its employees. Over the past two years, the firm has spent more than $100,000 on training, including hiring external consulting services. “Sometimes you can’t see the forest through the trees,” says Joe. “We needed outsiders to give us a fresh perspective. It helps us stay efficient.”

The changes continue in the Palmer family. After Stephen left his post at Safety Insurance Services in 2008 he founded Fuel Sense Canada, a Hartland-based firm that specializes in helping the transportation industry with fuel efficiency. His younger son, Chris, works with him as the sales-and-marketing manager, while Joe handles business at Safety Insurance Services. “Our companies are like a close-knit family,” says Joe. “Our focus is on creating a positive environment for our clients and our employees.”