ING: Ready for Convergence

One of the best ways a CEO can get a grasp on technology challenges is to have a CIO who thoroughly understands the business, says Thomas J. McInerney, chief executive officer of ING US Operations (Atlanta).

McInerney, who had his first exposure to computers in high school with punch card machines, does not consider himself a technologist, but he has always used technology. "Technology has always been a core part of Aetna Financial Services and ING, so I have always been close to it," he says.

One reason he has such a good grasp of IT is because Paul Donovan, ING US' CIO, has been his IT partner for a number of years, first at Aetna and now at ING.

"It definitely helps us to have a very business-savvy CIO in Paul Donovan," says McInerney. "Paul has a thorough understanding of the business and is a great communicator. Because IT is such a central part of our strategy, it is important for Paul to be able to quickly translate and communicate the strategy into what will be needed in terms of IT."

In fact, McInerney says Donovan's expertise has especially helped ING US during its recent reorganization, when Aetna Financial Services, ReliaStar and ING were consolidated into ING US Operations in late 2001. "We were integrating the companies during the worst two recent years in the economic markets," he says. "Paul has done a really nice job. The IT is the furthest along," when compared to the other integration efforts needed to combine the three companies.

ING US is in the process of consolidating 61 different financial and payroll systems onto a PeopleSoft (Pleasanton, CA) platform, 18 call centers into four and five data centers into one. "You can't imagine the increase in efficiency and productivity we are seeing," McInerney says. "The consolidation of the data centers alone will save us $25 million a year."

And in today's market, increased efficiency is the name of the game. Even more important, McInerney says, is making the right decision the first time. "It was pretty easy to look like a superstar CEO in '97, '98 and '99," he says. "In a tough economy, you can't afford to make mistakes because time to market is more crucial than ever. The wrong decision will cost crucial time, not to mention dollars."

Managing During the Tough Times

For a CEO who was managing his company correctly in the boom times, managing in today's market "is not 360-degrees different, it's more like a 90-degree difference," he says. "A CEO always has to be careful with spending, in good times and bad. I manage the corporate dollars like I manage my own-carefully."

One difference that is a direct result of economic and competitive pressure is the current shortened business planning cycle. "We used to have a three- to five-year planning cycle, and the IT investments followed accordingly," he says. "Now the business plan is one to three years, but with IT, projects have to be completed in less than 12 months. We look for a 20 percent ROI on IT projects in one year."

One reason why ING US consolidated its operations is to gain a better view of its customers, with the goal of better serving its financial advisors—ING's main distribution channel. "ING started the consolidation of financial services years ago," McInerney relates. "But banks and insurers have been separated in the US for such a long time that the idea of consumers doing all of their services with one provider is not going to happen for a while.

"Integrated financial services is part of our strategy and the number of products each customer has will go higher," he adds. "It is a long-range plan, and we are using technology to bring the right resources to the advisor."

-------------------------------

THOMAS J. MCINERNEY

CEO, ING US Operations (Atlanta), part of ING Group, $467 billion in assets.

BACKGROUND:

Previously, CEO of ING's US Worksite Financial Services; prior to that president, Aetna Financial Services. MBA, Amos Tuck School, Dartmouth College, 1982; BA, Economics, Colgate, 1978.

FAMILY:

Married, three daughters. "My kids are my best technology consultants. They are very tech-savvy."

DREAM JOB:

"If I were more talented, I'd be a professional golfer. That is my second love."

ONE PERSON I'D LIKE TO MEET (AGAIN):

"Jack Welch. I met him 15 years ago. He is much more well-regarded now."

Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio