Work in Progress

On several different occasions in the recent past some insurance CIOs and industry insiders have said to me, only somewhat jokingly, that CIO stands for Career Is Over. If past performance is indicative of future results (taking poetic license with the disclaimer usually found on financial promotions), most CIOs shouldnt spend too much time daydreaming about moving into the CEOs corner office.

But to use a well-worn clich, in life the only constant is change. Thats not to say CIOs need to grab an eraser right away to change that middle letter from an I to an E. Still I believe theres been a remarkable shift in the role of the CIO in as short a span as, say, even the last year.

While such financial hot buttons as reduced budgets, cutting expenses, and ROI were and remain the first priority, other buzzwords, driven by those earlier ones, are being heard ever more frequently. The business-IT partnership, aligning IT with business goals, delivering business valuethose are all catch phrases that actually have caught on and are transforming the job description of the CIO (for more on the evolving management team, see Cracking the Lineup, p.16).

A recent survey by Gartner, entitled Drive Enterprise Effectiveness: The 2003 CIO Agenda, reveals that while cost pressures are still the top business driver, among several others, effective CIOs are meeting this challenge by taking a stronger leadership position in working closely with their executive colleagues, demonstrating ITs business value and implementing transparent governance.

Similarly, a report by Meta Group says: With 70 percent of IT organizations still perceived to be cost centers rather than value centers, managing the real and perceived business value of technology becomes a critical CIO issue. Indeed, leading CIOs, whose organizations are viewed as value centers by their business colleagues, have become value communicators par excellence. . . . This value management process dramatically changes the perceptions of value, ensures the capture of real value, and ultimately optimizes the related investment patterns in technology.

So, while the corporate cost-management mandate to pinch every penny on both sides (see Spending Smart, p. 20) is ongoing, this mandate has solidified the CIOs role on the management team, raising it to a new strategic level. The CIO is no longer the geek in the basement. He or she needs to be an effective communicator/salesperson (boardroom skills), a strategic thinker with an enterprisewide view (leadership skills), and financially savvy (business skills).

Are these the makings of a CEO? Could the business-IT alignment become so entwined it creates overlap in the head chair of the boardroom table? With the changing perception of insurance IT comes the changing perception of the CIO. As more insurers recognize the critical role of technology in their success, they may crack the ceiling that has kept the CIO confined. And advancement-seeking CIOs should actively start working to add demonstrable non-tech skills to their talents. When the only constant is change, nothing is certain. Realistically, industry observers say all this probably wont happen anytime soon or in quantity. But as with any work in progress, it might be worthwhile to keep that eraser in a handy drawer, just in case.

Sharon S. Schwartzman
Editor-in-Chief