While I was planning a CIO panel for next year's ACORD Annual Conference, one suggestion was a session on the “Confessions of a Former CIO.” Is this really a thankless job or what? Or is it the typical whining from scapegoats who represent the failure of organizations to come to terms with the need for the business people to have some skin in the game?

Perhaps its a bit of both. One fellow put it bluntly and said that its all about ham and eggs. The pig is definitely committed, but the chicken only gets involved. It really seems like were having a ham sandwich.

CEOs have classic complaints about IT budgets, schedules and deliverables, and not without reason. When you review the statistics on failed IT projects or tech overspending, the numbers are disappointing.

But I also sense a lack of understanding of IT and the role of CEOs in IT's ultimate success.

I have always said that it is the responsibility of the CIO to bridge the gap between IT and business, not the other way around. (See my earlier column on how “Insurance Seeks To Span the Digital Divide” in the May 22 technology trends supplement of NU.) But show me a CEO that doesnt “get it” and Ill show you (more often than not) a CIO not doing his or her job.

Of course, sometimes the problem is more personal than intellectual. But nevertheless, the relationship between CEO and CIO will speak volumes about IT strategy and its overall success in the organization.

One CIO told me that the CEO must have basic knowledge about how IT interweaves throughout the business, and must buy into the development cycle of major initiatives. Failure to spend the required time to understand the process usually leads to anxiety, but more importantly, it is the reason why it may fail to deliver required results. “Show me an IT failure and I will almost always show you an organization-wide failure,” he quickly snapped.

The reality of todays environment requires the CEO to trust and to communicate with the CIO frequently. On the other hand, the CIO must have detailed knowledge of the organizations operational units, and be able to talk at the business level. In this way, the CEO can understand in general what it will take to be successful and the impact overall.

For better or worse, the modern CEO needs to understand the IT process just as they would any other strategic area of the business (such as claims, underwriting, actuarial, distribution). Its no longer a back-office service, and can be as vital as the other disciplines on the CEO radar screen. In most cases, IT is inextricably linked to the business process itself.

Organizations are truly changing the way they do business, and IT is the enabler. But this is the part of the equation everyone seems to forget. In fact, the process and cultural changes are as vital as the technology itself.

Perhaps its the words we use when we talk about systems, like “install” and “maintain,” that reinforce our perception about systems as computers. You buy one and install it. When it breaks down, you call a service technician in to fix it. Today, we are all part of the “system.”

The lack of quality business unit support in a strategic IT initiative is an obstacle to success. Unfortunately, they are usually too involved in their own work to commit the necessary time to IT projects. Yet it must be part of the workload.

If a business leader is unable to be a true senior sponsor of a project for some reason, the CIO can act as a surrogate working with the business partner. But communications between the two must be strong.

Consequently, the CIO must have business knowledge, skills, and understanding to determine the needs of the business and what systems have the best bottom line benefit for the organization.

Within the organization, the CIO must build consensus among the management team as to the benefits of any system, and obtain the business unit's commitment for continued support and high-quality staffing to assist in the project development.

The key to success is to assemble the right team of people on any project. The CIO must orchestrate the chemistry of the team, ensure that all members contribute, and maintain a realistic timetable to meet delivery dates.

The CIO must also set the expectations and not over-commit to the results and time to achieve. This is one of the major reasons projects fail or disappoint users. They are oversold from the onset.

There is no magic formula for this increasingly important and challenging role in the organization. The CIO must be a businessperson first and a technologist second.

Its time to shed the stereotypes from a bygone era. IT cannot tell the business what it can or cannot do. IT can explain what tools are available and what is possible and at what cost.

Our business process is increasingly complex and we need increasingly sophisticated tools to make it appear simple for all of us–especially the customer. So the new breed of CIO must perfect the craft in a noisy world of alliances, collaborations and coalitions, both inside and outside the organization. Is it any wonder they often burn out so fast?

Gregory A. Maciag is president and chief executive officer of ACORD, the non-profit industry association based in Pearl River, N.Y., with offices in Belgium and the United Kingdom.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 19, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.