Alignment From The Top: Great CEOs and CIOs

As the editors of Insurance & Technology work on this year's Tech-Savvy CEO (June) issue, our thoughts have been turning to the qualities of both individuals and company culture that make for IT/business alignment -- which in turn drives the greatest impact for each technology dollar spent. One would like to think that the SOA craze and associated developments are helping to forge a common business and technology language, but the consultants and analysts I speak to remain skeptical. For now, what appears to matter most is the relationship that CIOs have with line-of-business heads and the CEO, and how well the latter understands the utility of IT to his or her company's strategic goals.As much progress as CIOs have made over the last decade in making their mark on strategic direction, their ability to bring their influence to bear remains dubious. That being the case, "it is critical that the ultimate strategic leadership of the insurer -- the CEO -- understand the potential enablers IT brings, since they are often the only leader that can get past the tyranny of the ROI model," says Chuck Johnston of Oracle. "The ROI model often stifles tectonic change since it is not predictable."

Nevertheless, "tectonic" change may be what insurers need to achieve. As challenging as the previous year may have been, insurers face an even tougher time going forward as new economic pressures and regulatory issues compound existing challenges. As the margin of competitive victory narrows, visionary leadership that leverages an understanding of IT to carve out greater efficiency, more precise pricing and compelling service to distributors and customers will be increasingly important.

The best of insurance CEOs seem to understand this, as I trust I&T's Tech-Savvy CEO issue will demonstrate. Some of our honorees are more hands-on in their technology interest, some less so, but all are close observers of the evolving role of technology in the service of business, especially as it pertains to customer- and distributor-facing applications.

It's too late to submit nominations for this year's Tech-Savvy CEOs, but we encourage you not to hesitate to share with us any outstanding chief executive officer you may know about so that we can consider him or her for next year.

It is just the right time to send us your nominations for this year's Elite 8 and next year's Elite 8 International. I&T has honored many fine insurance IT officers over the years, but we're confident that more and more CIOs and other senior technology executives are rising up to distinguish themselves. There is no question that outstanding people continue to rise in the ranks, evidenced by the appointment, since late last year, of numerous new CIOs at some of the industry's leading companies, including New York Life, State Farm, UnumProvident, Chubb, MetLife, Safeco and Northwestern Mutual -- to say nothing of the numerous CTOs, VPs of IT and divisional CIOs eligible for the Elite 8 award.

Whether the reader is a technology executive, a business officer or a vendor, I&T's Elite 8 (domestic and international) and Tech-Savvy CEOs are a great way to honor distinguished colleagues and by doing so enjoy a little reflected glory.As much progress as CIOs have made over the last decade in making their mark on strategic direction, their ability to bring their influence to bear remains dubious. That being the case, "it is critical that the ultimate strategic leadership of the insurer -- the CEO -- understand the potential enablers IT brings, since they are often the only leader that can get past the tyranny of the ROI model," says Chuck Johnston of Oracle.

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio