LifeExpress at Lennox
Cast of Characters:
Diana Sullivan-CIO (20 years insurance experience, recruited 3 years ago from a major competitor)
Clay Fontana-CFO, her boss
James Bennett, CEO
Background:
"Computers have never been our strength"-Bennett
Sell policies through 10,000 independent agents (sell others products as well)
Sullivan had helped Lenox catch up-updating key applications, bringing in new technologies, and reorganizing and streamlining the IS organization.
Led development of Lifexpress-a laptop system to aid agent sales (cross selling) (multimillion $ project)
Two competitors offering competing products even though they started after Lennox
Bennett and Fontana had, "charged Sullivan to conceive a technology vision for Lennox
Lifexpress development involved a team of key executives including Fontana, IS, marketing, field operations, and sales (AGENTS?)
System delivered on time and on budget
Now:
Implementation is slow (behind schedule)
Low tech agents vs. competition making learning curve slower
Theirs more "user friendly" / Only 40% of Lennox products on system
Lennox has twice as many projects as competitors (and no product strategy other than "me too")
Not getting data from Disability is slow (commitment??)-What should management do—Blame Diana or get on Disability management and show commitment to the system?
Fontana wants to make the system and its problem Diana’s
Bennett seems to be jumping ship as well
Lennox /Lifexpress Takeaways
Management’s made mistakes on how they DECIDE ON, MANAGE, and FUND information technology investments:
Inadequate Vision and Leadership
Delegated "vision" to the newly hired CIO (must be shared , believed in, and acted on by company management.
No Business Accountability
Sullivan couldn’t make Lifexpress successful with agents and customers. Only BUSINESS MANAGERS who are held responsible for delivering business results can do that. Sullivan should have known this and insisted early on to get responsibility sharing from management.
Slow Implementation
Three year project is unacceptable. Sullivan should have known this.
Insufficient IT Funding
Lennox was playing catch-up. More commitment was necessary from the top, including funding.
Management was looking for a "magic bullet."
Hired a new CIO, gave a mission to her and walked away. More like abdication than delegation.
Bennett/Fontana viewed the problem Lenox faced with its projects and field agents as technological and seemingly bypassed or ignored the company’s business leaders.
Organizational Location of CIO
Under CFO, not CEO
Would have had more signals of commitment, interaction with top, breadth of scope and focus if reporting to the CEO