Insurance company board members are painfully aware of the importance of technology to the company's business. They understand that the issues include having the appropriate hardware, using the most secure software, buying the right number of electronic devices for employees, and guarding against cyber attacks among others. But often when the company's chief information officer (CIO) gives a presentation, the board members think the CIO is speaking a foreign language.

"One of the differences between more successful and less successful CIOs is their ability to communicate effectively with their boards," explains Frank Petersmark, AVP of Research & Consulting, Novarica. "Being able to communicate effectively with your board will help make securing organizational support for IT initiatives, such as funding and resource commitments much easier, as well as achieving the strategic goals of IT, which, if aligned properly will benefit the entire organization," says Petersmark.

Novarica, a research, consulting and advisory firm for Property/Casualty and Life/Annuity insurers, has just published a new CIO checklist report to help insurance CIOs effectively communicate with board members. Developing a common communications approach is a critical part of the CIO function.

The following checklist can be used for board meetings or presentations and for IT leaders' overall communications with their board members.

Speak the insurance company board's language, not IT's.

This should be obvious, but it often is overlooked by subject matter experts, not just IT professionals. When you use technology terms, jargon or acronyms, you risk confusing your audience. If the board members don't understand what you're saying, they're likely to tune out and vote against any of your recommendations.

You'll be more successful in your presentation if you use familiar business terms, such as investments, returns, risks and revenue. It may take some practice to feel more confident using language appropriate to an insurance company's board of directors, but it should yield positive results in the long run.

You'll also be perceived as a more valued business partner who understands the organizations goals. You won't be pigeonholed as "another one of those tech guys."

(Photo: Shutterstock/Syda Productions)

Keep the discussion simple.

Don't overwhelm your audience with too many dense charts, graphs or slides. You do need to give the board some details about the IT projects and programs that you want approved, funded and supported. But they're focused on the larger picture of overall effect on the organization, not the day-to-day details that you're concerned with.

Your goal is to help the board understand what will change as well as how. Gaining the board's understanding is a critical part of the process of managing their expectations.

(Photo: Shutterstock/Franck Boston)

ABC: Always be contextual.

There should always be a reason for your presentation to the board. Your organization may want regularly scheduled updates or you may have an important topic to bring to the board's attention. Whatever the reason, you should provide some context so the board understands why this topic is important to discuss at this time.

When you put information in context, using insurance industry language, you'll show the board that you're a strategic thinker who views the information technology function as part of the larger organization's overall goals and objectives.

(Photo: Shutterstock/Gustavo Frazao)

Talk about the benefits to the organization.

As dear as technology is to every CIO's heart, the reality is that most board members are only interested in how technology helps the insurance company move forward. They really aren't interested in whether the latest version of software will make it easier to aggregate and sort data, for example. They want to know whether such things as product development and speed to market will be improved.

(Photo: Shutterstock/alexmillos)

Present options, showing which one is best and why.

Insurance company board members face a number of decisions at every meeting. Their time to spend on any one topic is often limited, and it's important to distill information to the key points necessary to help them make those decisions.

The CIOs who are most successful at dealing with the board only present options that are realistic and have been thoroughly investigated. Your presentation should outline each option and its pros and cons along with your strong recommendation for one. Often, your ability to explain your choice and why you think it's the best one for the organization will help get your choice approved.

(Photo: Shutterstock/kostasg)

Don't hide the risks.

The basic business of an insurance company is risk management, and it affects every department in the organization. At the highest level, that's also what the company's board of directors does. In your presentation to the board, be sure to communicate the risks of the decision you want the board to make—but only after you've laid the groundwork. You want the board to stay focused on the need for the action you're recommend and its value to the organization before they consider the risks.

Remember that risks can be economic, such as the effect on company revenue or profits. In other situations, the risks may be more intangible but still real—for example, the impact on employee morale or customer perception. The board needs to weigh all these factors before making a decision.

(Photo: Shutterstock/jijomathaidesigners)

Paint a picture of the organization after the effort.

The old saying, "A picture is worth a thousand words," is never truer than when a CIO is making a presentation to a board of directors. Show the board a video if you can, or photos of before and after, demonstrating the impact of the project.

The board won't remember pages of charts and graphs, and they may not do more than skim the detailed written materials you handed out as background. They will remember the vision you showed them.

(Photo: Shutterstock/Rawpixel)

Recap and ask for support.

The best communicators spend as much time crafting the conclusion of their presentations as they do the introduction. Use the conclusion to bring together all the pieces of the puzzle. This is also your opportunity to gauge the level of support from the board for your proposal.

Ask for some feedback from the board members, even if you do it indirectly. If you know that one of the board members generally supports IT efforts, is the chair of the IT committee or has an IT background, that person might be the best one to start with.

When your project is a major one that requires board sponsorship, don't leave the room without identifying the board member who will be the sponsor. Plan to communicate with that person regularly, providing updates on the project outside of board meetings.

(Photo: Shutterstock/wavebreakmedia)

Return with progress reports—good, bad and ugly.

Your progress reports to the board should be high level, but honest. Give them an overview of how the project is moving along, letting them know of delays, if any, and how the delays are being handled. Bring only the two or three problems that the board can help resolve to their attention. Use their experience, perspectives and suggestions as appropriate to move the project along.

Editor's Note: On Thursday, September 24 at 2 p.m. (ET) Frank Petersmark will discuss best practices in board communication. This webinar is open to all insurance professionals. Registration and additional information is available here. For more information about this report, download a free preview here or contact inquiry@novarica.com.

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