Russ Bostick has spent the better part of his career working on two key issues important in almost any company: IT portfolio management and business alignment.
A veteran who has worked in three different industries–retail, airline, and insurance–Bostick consistently has helped companies choose the right technology and align it with their business strategies. In his current role as executive vice president and CIO at Conseco, Inc., Bostick and his team are focused on helping the company simplify its systems environment to operate more efficiently and cost-effectively.
"Once you pick a platform, it's not always important how long it will last but rather how long it will stay within the company, which could be longer than it will last," Bostick says. "You need to be very thoughtful about how you approach a company's portfolio of technologies in terms of its usefulness."
When Bostick joined Conseco as CIO in 2005, the company was executing a massive administrative systems conversion program. Within a few months, however, Bostick deferred most of the conversions "because they weren't going to achieve their objectives of making things simpler," he recalls. Instead, he focused efforts on process maturity, project management, and simplifying front-end systems. Today, with a more mature IT organization in place, Conseco has restarted systems conversions.
"One of the most difficult parts of a CIO's job is helping people see the long-term horizon and trying to estimate that with policyholder and distributor expectations, risk management, and compliance issues in mind," Bostick says. "You need to balance the need for generating immediate results against the ultimate total cost of ownership of the strategy."
To that end, Bostick worked with his business peers to create a project management structure, including a project management office that supports the entire company. He and his team standardized workflow and imaging systems and developed a Web-based customer service representative portal that provides agents with a single screen to access multiple systems. In addition, earlier this year at Conseco Insurance, the company implemented NaviSys Front Office for underwriting, case management, and new business workflow. NaviSys now is part of Accenture. The system will go live at Conseco's Bankers Life and Casualty unit later in the year.
Earlier this year, Conseco began converting some of its administrative systems–the project Bostick put on hold when he first arrived. This time, however, the conversion is being conducted in the wake of a portfolio analysis that determined whether each system was strategic, sustainable, or needed to be sunset.
"As each new business initiative comes along, we look at the systems that are affected and change our strategy for that system in terms of how we're going to use it," he explains. "When we provide a new solution, it's always with that road map in mind."
Bostick's interest in technology began in college, when he learned to build lab instrument controllers in an advanced chemistry class. After graduating from Wabash College with a bachelor's degree in chemistry and mathematics, he joined IBM and its IT training program. During the next several years, he worked closely with large customers on developing IT strategies. In 1987, Bostick was IBM's implementation manager for the PS/2 rollout at United Airlines, IBM's initial large customer for the PS/2.
Admitting he always had an interest in insurance, Bostick left IBM to work as a VP of IT at CNA Insurance. After three years, he joined Corporate Software & Technology as chief technology officer. Before joining Conseco, Bostick worked for seven years as chief technology officer for what ultimately became Chase Insurance, J.P. Morgan Chase & Co.'s insurance arm. During that time, he served as CIO for its predecessors, Zurich Life U.S. and Bank One Insurance. In that capacity, he led an IT organization through two acquisitions and their subsequent transformations in less than a year.
Such experience working on transformation projects has proven useful as Bostick helps Conseco align its IT and business strategies and manage its systems portfolio more effectively–work that he claims is paying off. "We are a much stronger company and stronger IT department than we were a year ago," he contends.
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