Insuring Peace of Mind

Though Richard Ollis may carry the company name, Ollis & Co. is more than just one man. The proof was in the pudding as the president and CEO underwent cardiac bypass surgery on New Year’s Eve, and the heart of the company didn’t skip a beat.

The fourth-generation of the Ollis family to lead the Springfield-based insurance company, Ollis said he was walking with his wife Dec. 27 and felt short of breath.

“It was kind of a fluke deal. I had to stop a couple times to catch my breath and that doesn’t happen; I’m in pretty good shape,” he said. “We both looked at each other and knew something was wrong.”

Driving himself to the hospital, the 50-year-old underwent a battery of tests before doctors discovered a problem with his heart.

“I often joke now, except for four clogged arteries, I was in perfect health,” he said of the Dec. 31 triple bypass surgery.

The sudden surgery could have been a staggering blow for an unprepared company, but Ollis said the insurance company already had an executive insurance plan in place.

The Ollis touch
A collaborative effort in Ollis’ absence, Sales Director Kevin Robbins and Finance Director Dick Pogue – the two other members of the firm’s executive team – are charged with running the business.

“Dick handles the operations side of the business and I handle the sales side of it, so we really have that management in place to handle both aspects,” Robbins said.

But covering for a recovering CEO is only half the battle plan, Ollis said, citing the firm’s open-book management approach and cross-training program.

“Open-book management means everyone is already familiar with all aspects of the company. The entire organization is really in tune with where we are as a company,” said Ollis, who is already back in the office part-time. “Our management team also meets regularly, and we work hard to make sure everyone is cross-trained on duties.”

Robbins said the company didn’t specifically prepare for Ollis’ absence, but rather any injury, accident or natural disaster. To that end, the employee-owned business carries life and disability insurance on all key employees, a plan Ollis said is twofold for the company.

“If an employee passes away, the life insurance allows us to pay out their stock without financial strain to the company,” he said. “But it also allows us to spend money or time on finding a replacement. In some cases, that could mean a regional or national search.”

The insurance is paid by the company, something Robbins said is just part of proper business disaster preparedness.

Spreading the word
Hollister-based Connell Insurance Inc. President Tim Connell said he was glad to hear his friend’s health is on the mend, but wasn’t surprised to hear Ollis & Co. already had a plan in place. He said it’s smart business for any company.

“Just like diversifying one’s company on what you are making money at or trying to grow, being there for your clients in the time of need is imperative,” he said in an email interview.

With four principal owners at Connell Insurance, Connell said each has duties in management and sales, but a total management team of eight people meets every two weeks to coordinate.

Like Ollis, Connell said it’s key each employee understands the role of others in the agency.

“In the event of an exit of a principal, there would be no slow down in the work of the agency flow,” Connell said of the cross-training plan. “Delegation is something that all owners need to learn. I am of the school that a good employer surrounds themselves with people that are capable or more talented than themselves and empowers people to take the task at hand further.”

No stranger to emergency plans, Connell said his agency has lived through three catastrophe claims in recent years – flooding, hail and a tornado – and learned some lessons along the way.

“As your business unfolds and grows, so does the path to follow for the disaster plan,” he said. “We have also taken steps such as placing our computer server in an underground facility so there is no question that we would be available to our clients in the event of a disaster.”

Connell also said the agency has recently revamped life insurance policies on it’s four owners and are working with a consultant to discuss where the agency is headed five and 10 years down the road.

“I am a firm believer in a family or any type of business that a good third party will push you to expand your horizons and to also hold you accountable for change, which as we all know, is hard to do at times,” he said. “By having these planning sessions, you also take a moment to step away from the business at hand, which you can get to close to and become immersed to where you do not plan for the unexpected.”

Moving forward
Making a disaster plan is about starting with the basics, Robbins said.

“The best advice I can give a company is to just start a plan,” he said. “We meet with a lot of clients who don’t have a plan in place, saying they are too busy to put something elaborate together. The plan doesn’t have to be perfect. It just has to be there, be discussed and be ready.”

Life insurance purchased before an event is far less expensive than trying to purchase insurance after something happens, Ollis added.

Robbins said while the company has missed it’s CEO at the helm, the emergency plan proved it’s effectiveness and helped highlight areas of improvement.

“We have learned we can be more efficient at times, but that can be said for just about everyone,” he said. “We have been lucky that Richard was in good health and has recovered fairly easily from this setback.”

Originally slated to return half time in February and full time April 1, Ollis said he’s on the fast track to recovery and already is making regular appearances in the office. If all goes well, he could return full time as early as March.