I Adjust

By Sharon Schwartzman

As the pundits offer bleak predictions for the new year, we have to keep in mind we're certainly not helpless. I'm reminded of a quote I've read from Savielly Tartakower (1887-1956), a Russian-born chess player and writer who became a Polish and French Grandmaster–besides being known as a bit of a character.

“Tactics is knowing what to do when there is something to do. Strategy is knowing what to do when there is nothing to do,” said Tartakower.

In chess, as in these times we live in, tactics may offer near-term moves, but strategy is the way to win the match. And at a time when we think there may be nothing we can do, what we first must do is reassess the strategy at play in insurance IT today (for more, see “To the Rescue,” p. 14).

A recent newsletter from Forrester described a dinner attended by top executives, including CEOs and CIOs, hosted by the research firm. The discussion came around to what actions CIOs should take to respond to current conditions and position for the future. The responses made the following points: (1) Make adjustments to the project portfolio, working with business to review the priority of active and in-queue projects; (2) Make the “right” cuts, keeping in mind as IT budgets shrink so does business' satisfaction level with IT; (3) Use metrics to measure recruitment, retention, and development of human capital to make sure the talent is on board; (4) Take advantage of the tightening job market to acquire recruits with “hard-to-replicate competencies”; (5) Enable success through the structure and culture of IT even in hard times; (6) As budgets and resources decrease, the CIO must communicate what the risks and outcomes will be in order to adapt in the way business requires.

What becomes apparent in this list is the human element–a stark contrast to much of what we have read lately on how to survive in this environment, which typically focuses on the technology (accessing more data, getting better business intelligence, increasing underwriting efficiency, etc.). However, CIOs know they won't get results unless the right people with the needed skills to overcome the current hurdles are in place.

What also is clear is determining the correct strategic approach will guide the proper tactical initiatives. In serious chess play, there is a practice in which a player who wishes to touch a piece without being required to move it can say “J'adoube,” which means “I adjust.” The instinctive response may be to stick to the tactical to achieve quick ROI. But given our current environment and a new presidential administration soon taking office, those who will navigate near-term volatility and succeed in the long term will be the ones who best adjust both strategically and tactically. And ending on a lighter note, warmest wishes to all for happy holidays.