News Feature

How CNA Insurance Created a KM Culture

By Megan Santosus

September 01, 2002 — CIO — For Gordon Larson, telling stories is all in a day’s work at his job as chief knowledge officer at CNA, and that’s just fine with executives at the Chicago-based insurance giant.

Larson owes his job to a shift in corporate direction. Three years ago, under the direction of a new chairman, CNA set off on a new mission. The ultimate goal, says Karen Foley, CNA’s executive vice president of corporate development, was "to get out of the distribution business and become a great underwriting company." And in order to do that, the company had to become more informed about the industries and customers it served.

But CNA’s traditional structure of 35 separate strategic business units made sharing internal information among employees nearly impossible. A single customer seeking answers to different insurance needs might be passed along to a variety of departments.

CNA knew it had to create one uniform face to customers, and that meant it had to reeducate its employees. Branch offices would have to be consolidated to facilitate closer working relationships among staff teams. Most important of all, CNA had to equip its employees?many of whom had focused solely on niche markets?with the much broader knowledge of all the company’s products. To do that, CNA set about building a Web-based knowledge network that captures the expertise of its employees. And it’s that expertise that Larson uses as the fodder for his "knowledge" stories.

A Strategy in Search of a Solution

In 1999, a team of CNA executives evaluated the feasibility of becoming a "great underwriting company," and what they found wasn’t pretty. In North America, 175 branch offices supported CNA’s 35 business units. In order to create a single face for customers, the executives decided to reorganize the company’s business into three major areas: property casualty, life and group benefits, and reinsurance. By December 2001, the trio of new business units was established. CNA is still consolidating its field operations into 75 offices organized around five geographic regions, and that process is expected to be complete by early next year.

Along with the physical reorganization, the very nature of what employees did had to change as well. "Just by reorganizing, we wouldn’t get people to change how they think and work with other people," Larson says. "Moving from a decentralized culture to a collaborative one is a major change-management challenge."

As the new "single face" of the company, each employee had to cede narrow product and market expertise to gain general knowledge of the company’s entire product portfolio. In the past, a CNA small business customer that wanted additional coverage in the international arena would have to contact another underwriter and complete separate applications. With the new CNA, such customers would get all their needs met through one representative. "We needed to give the frontline underwriter the ability to appear like an expert for a variety of products," Larson says.