How to build the data culture, understand the capacity for change, and assess your maturity level

1. Data Governance It’s a cultural shift 1 Nancy Northrup PMP, SSLBB, CIPP September 2011

2. Overview CIT Group Building the data culture What is it? What are the maturity components Change Management and the WIIFM Communication Maturity model Getting the word out Communicating change Change Management check list Easy to recommend, hard to resolve Data laws 2

3. CIT Group Overview Founded in 1908, CIT founder Henry Ittelson set up shop in St. Louis, Missouri to fulfill a vision – to provide comprehensive financing solutions and services to individuals and businesses. Today CIT Group continues its mission as a bank holding company. Greater than $35 billion in finance and leasing assets Supporting financing and leasing capital to over 1 million small businesses and middle market clients and their customers in over 30 industries CIT retains leadership positions in small business, middle market lending, factoring, retail finance, aerospace, equipment, and rail leasing, and global vendor finance Global Headquarters are in NYC and Corporate Headquarters are in Livingston NJ There are approximately 3,800 employees 3

4. What CIT Does Products Services Asset based loans Secured lines of credit Enterprise value and cash flow loans Leases: operating, finance and leveraged Factoring services Vendor finance Import and export financing Small business loans Acquisition and expansion financing Letters of Credit / trade acceptances Debtor-in-possession / turnaround financing Financial risk management Asset management and servicing Debt restructuring Credit protection Account receivables collection Debt underwriting and syndication Capital markets Insurance services 4

5. What is Data Culture? 5

6. Data Culture The degree to which the financial entity understands and accepts data management as a critical and stand-alone component of operations EDM Council http://www.edmcouncil.org/default.aspx How do I know if I have a Data Culture? 6

8. Defines the executive sponsor of the data management program and determines where the program resides in the corporate hierarchy

9. Organizational Model

11. Data practices exist but are local

12. Quality

13. Practices

14. Storage

15. No senior management buy-in

16. Quality is based on short term objectives emphasizing error repair (manual reconciliation)

17. Data failures occur on a cross-functional basis.

18. Oversight

19. Requirements

20. Naming conventions and definitionsNo senior management buy-in

22. Data repair shifts to error prevention

23. Data definitions and business rules are immature

24. A centralized platform for managing data is available at the group level and feeds analytical data martsThe IT goal is to automate business processes

26. Identify deviations from standards

27. Support a Business Glossary or Data Dictionary and usage

28. Enterprise-wide data platform feeds all reference data repositories

31. Data quality monitoring and correction is fully automated and adaptive

32. Improvements are implemented based on their expected contribution

33. Duplication is controlled and justified

34. The dynamic platform feeds all master data storesData driven governance

35. Data Centric Culture through Shared Data Goals 13 Shared goals drive data culture and alignment

36. Ensure Data Centric Culture… through Shared Goals Create strategic data management goals for senior management Continuous focus on data and information management Data is incorporated into the way we conduct business A focus on data becomes part of the daily work Goals are tickle down Management levels create tactical goals aligned to the common good Staff level create specific goals aligned to the tactics Transformational thinking required to drive the culture Improving the quality and management of data is everyone’s responsibility. Shared goals drive the data culture Goals drive our behavior What is measured and tracked is achieved 14

37. Change Management 15

39. How are you going to communicate the expectations?

40. How much can this organization absorb now?

41. People / Process / Technology need to be balanced.

42. Focus on a comprehensive effort, not one-offs.

43. Build commitment and trust through good planning and quick hits.

44. Ensure a balanced solution (50% tools/50% consequences).

45. Obtain adequate sponsorship for resources and barrier management.

46. Use of a structured change model such to frame the change effort and guide. actions.16

47. What are the Roles? Champion Executive leader with cross organizational influence Able to obtain funding Able to apply positive and negative consequences Customer Individual or group who will use the final product/service Defines the maximum scope of work Advocate High level executive Communicates with the sponsor regularly and informally Target Those who must change for the change to be successful Change Agent The program / project leader who helps make the change happen Influencer Individuals with informal power and influence 17

50. Rigorous Project Management Effective change management requires effective project management. Rigorous scope analysis Resources analysis Be realistic about your timetable Triple constraint – each effects the other You cannot always just add resources Continually reassess your options Be forthright above all 20

52. Quick hits for Commitment

53. Process Control Metrics

54. Functional Metrics

55. Predictive ability SPC (Statistical Process Control)

57. Noise isolation

58. Process Robustness

59. Project Management rigor

61. Create maturity model

62. Collect Requirements

63. Collect historical defect data

64. Create the WIIFM

66. What Customer Data can Do for You! Multiple uses for cross-corporate view

68. No consequences

69. No rewards

70. No WIIFMWhere’s the WIIFM? 23

71. Communication There is never enough

72. What is communication? Customer understanding Supplier understanding Organizational learning Knowledge sharing Liaison 25 Respect

73. Communication Maturity Managed State Prevent Abnormalities (Error-Proof) Informal Pervasive IT / Business adaptive Level 5 Stop Abnormalities Level 4 Business and IT are unified IT is an integral part of business strategy Warn About Abnormalities (Build in alarms) Metrics Management Level 3 Good understanding, natural IT is an asset and process driver Conflict is seen as creative Build Standards into the Workplace Level 2 Limited business IT understanding IT becomes a process enabler Share Information Business and IT lack understanding IT is a cost of doing business Level 1 Communication Begins with Information Sharing

74. Assessing Maturity Strengths and weaknesses SWOT analysis Identify areas of disagreement Map the implications Define a plan to improve the maturity level Focus on alignment 27

75. Vehicles of Communication Data Awareness Training What is data? Why do I care about it? How much of it is there? How does data hurt? What tools are we going to use? What is going to happen to MY job? Article on the company intranet Town Halls Shared goals 28

76. Explain why data matters 29

77. Talk about Benefits! 30

78. Data is massive Information consists of many pieces of data. Customer name Product Contract Address Probability of default 31 Data multiplies every data and decrements every day. Data is massive and growing exponentially.

79. How do I communicate the change? What is the problem I am trying to solve? What is the benefit if the change is made? What is the cost of doing nothing? Who is the customer of the change? From the customer’s point of view, what does success look like? How will we prove success? 32

80. How do I communicate the change? What is the one sentence Vision? What is in and what is out of scope? What needs to change? What are the critical gaps to be closed? What are the assumptions? What is the exit criteria? 33

81. Final Analysis Does the organization have capacity for this change? Is the customer in agreement with our vision of the change? Do we have the sponsorship required to be successful? A willingness to provide resources & manage consequences to ensure organizational alignment. 34 Yes,then GO NO, then exit

85. There is actually always another company

86. Learn everything you can, you’ll be glad

88. Laws Pertaining to Data Management 39

89. 40 Laws Pertaining to Data Management

90. Laws Pertaining to Data Management 41