Data Governance And Culture


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

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Data Governance And Culture

  1. 1. Data Governance<br />It’s a cultural shift<br />1<br />Nancy Northrup<br />PMP, SSLBB, CIPP<br />September 2011<br />
  2. 2. Overview<br />CIT Group<br />Building the data culture<br />What is it?<br />What are the maturity components<br />Change Management and the WIIFM <br />Communication<br />Maturity model<br />Getting the word out<br />Communicating change<br />Change Management check list<br />Easy to recommend, hard to resolve<br />Data laws<br />2<br />
  3. 3. CIT Group Overview<br />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.<br />Greater than $35 billion in finance and leasing assets<br />Supporting financing and leasing capital to over 1 million small businesses and middle market clients and their customers in over 30 industries<br />CIT retains leadership positions in small business, middle market lending, factoring, retail finance, aerospace, equipment, and rail leasing, and global vendor finance<br />Global Headquarters are in NYC and Corporate Headquarters are in Livingston NJ<br />There are approximately 3,800 employees<br />3<br />
  4. 4. What CIT Does<br />Products<br />Services<br />Asset based loans<br />Secured lines of credit<br />Enterprise value and cash flow loans<br />Leases: operating, finance and leveraged<br />Factoring services<br />Vendor finance<br />Import and export financing<br />Small business loans<br />Acquisition and expansion financing<br />Letters of Credit / trade acceptances<br />Debtor-in-possession / turnaround financing<br />Financial risk management<br />Asset management and servicing<br />Debt restructuring<br />Credit protection<br />Account receivables collection<br />Debt underwriting and syndication<br />Capital markets<br />Insurance services<br />4<br />
  5. 5. What is Data Culture?<br />5<br />
  6. 6. Data Culture<br />The degree to which the financial entity understands and accepts data management as a critical and stand-alone component of operations<br />EDM Council<br />How do I know if I have a Data Culture?<br />6<br />
  7. 7. Components of a Data Culture<br />Alignment<br />There is a mechanism to ensure that all relevant stakeholders are in agreement with the principles and objectives of the data management program<br />7<br /><ul><li>Oversight
  8. 8. Defines the executive sponsor of the data management program and determines where the program resides in the corporate hierarchy
  9. 9. Organizational Model
  10. 10. Determines the component ownership and stewardship structure as well as the reporting relationships associated with the data management program</li></li></ul><li>Maturity Model<br />Level 1 - Initial<br />Data management is ad hoc<br />Data quality is inconsistent across platforms and groups<br />Data quality processes are informal, not owned, not repeatable<br />8<br /><ul><li>Level 2 – Reactive and local
  11. 11. Data practices exist but are local
  12. 12. Quality
  13. 13. Practices
  14. 14. Storage
  15. 15. No senior management buy-in
  16. 16. Quality is based on short term objectives emphasizing error repair (manual reconciliation)
  17. 17. Data failures occur on a cross-functional basis.
  18. 18. Oversight
  19. 19. Requirements
  20. 20. Naming conventions and definitions</li></ul>No senior management buy-in <br />
  21. 21. Maturity Model<br />Level 3 - Defined<br />IT supports the business analysts who control the data process <br />Data is recognized as an enterprise asset<br />Controls are limited <br />Data Governance emerges as an organization<br />Data is part of the business / IT conversation<br />9<br /><ul><li>Core data is identified and supported with a policy
  22. 22. Data repair shifts to error prevention
  23. 23. Data definitions and business rules are immature
  24. 24. A centralized platform for managing data is available at the group level and feeds analytical data marts</li></ul>The IT goal is to automate business processes <br />
  25. 25. Maturity Model<br />Level 4 – Managed according to agreed upon metrics<br />Data is accepted as a critical enterprise assets<br />CEO and executive level strategy includes enterprise data management <br />Statistical process control is intertwined throughout data collection and analysis<br />Data Stewardship is a core competency<br />10<br />Data quality and integration tools are standardized<br />A centralized metadata repository exists and all changes are synchronized. <br /><ul><li>The data group partners with development cataloging metadata
  26. 26. Identify deviations from standards
  27. 27. Support a Business Glossary or Data Dictionary and usage
  28. 28. Enterprise-wide data platform feeds all reference data repositories
  29. 29. Enterprise-wide data quality and integration tools are standardized</li></li></ul><li>Maturity Model<br />Level 4 - Managed<br />Processes are automated ensuring consistent, accurate and reliable data across the enterprise. <br />Advanced platform tools manage the metadata repository and data transformation processes<br />Data quality control, integration and synchronization are integral to business processes. <br />Root cause analysis addresses errors <br />Data policies and usage are documented and enforced enterprise-wide <br />Data impacts are assessed for all new initiatives<br />11<br />Anomaly prevention striving for “zerodefects” <br />
  30. 30. Maturity Model<br />Level 5 – Optimized – Continuous Improvement<br />Managed process enhancements utilize feedback and quantitative understanding of the causes of data inconsistencies<br />Innovation is high<br />Enterprise wide business intelligence<br />Core values are aligned and process improvement is everyone’s goal<br />Flexible processes responds to evolving business objectives. <br />Data is a key resource for process improvement<br />12<br /><ul><li>All change is evaluated from a data perspective
  31. 31. Data quality monitoring and correction is fully automated and adaptive
  32. 32. Improvements are implemented based on their expected contribution
  33. 33. Duplication is controlled and justified
  34. 34. The dynamic platform feeds all master data stores</li></ul>Data driven governance <br />
  35. 35. Data Centric Culture through Shared Data Goals<br />13<br />Shared goals drive data culture and alignment<br />
  36. 36. Ensure Data Centric Culture… through Shared Goals<br />Create strategic data management goals for senior management<br />Continuous focus on data and information management<br />Data is incorporated into the way we conduct business<br />A focus on data becomes part of the daily work<br />Goals are tickle down<br />Management levels create tactical goals aligned to the common good<br />Staff level create specific goals aligned to the tactics <br />Transformational thinking required to drive the culture<br />Improving the quality and management of data is everyone’s responsibility.<br />Shared goals drive the data culture<br />Goals drive our behavior<br />What is measured and tracked is achieved<br />14<br />
  37. 37. Change Management <br />15<br />
  38. 38. Key Components<br /><ul><li>What are the expectations?
  39. 39. How are you going to communicate the expectations?
  40. 40. How much can this organization absorb now?
  41. 41. People / Process / Technology need to be balanced.
  42. 42. Focus on a comprehensive effort, not one-offs.
  43. 43. Build commitment and trust through good planning and quick hits.
  44. 44. Ensure a balanced solution (50% tools/50% consequences).
  45. 45. Obtain adequate sponsorship for resources and barrier management.
  46. 46. Use of a structured change model such to frame the change effort and guide. actions.</li></ul>16<br />
  47. 47. What are the Roles?<br />Champion<br />Executive leader with cross organizational influence<br />Able to obtain funding<br />Able to apply positive and negative consequences <br />Customer<br />Individual or group who will use the final product/service <br />Defines the maximum scope of work <br />Advocate<br />High level executive<br />Communicates with the sponsor regularly and informally<br />Target<br />Those who must change for the change to be successful<br />Change Agent<br />The program / project leader who helps make the change happen<br />Influencer<br />Individuals with informal power and influence<br />17<br />
  48. 48. The Fear Factor<br />80 % people management <br />Establishing direction, aligning and motivating)<br />20% content (problem solving, planning and organizing<br />Change fails because of :<br />18<br />Fear<br />Surprise<br />Perception of Interference<br /><ul><li>Expectation Management
  49. 49. Understand everyone’s requirements even if it is “Don’t Tread on Me”</li></li></ul><li>Capacity<br />Focus on the precious few<br />Separate the needs from the wants (fin is the regulators – use Ed’s conversation here)<br />Think of it as supply chain<br />Too much demand results in dysfunctional behavior<br />Decreased productivity<br />Quality compromised<br />Start with a maturity assessment<br />Be aware of sensitivities<br />Be aware of the need to feel good<br />19<br />
  50. 50. Rigorous Project Management<br />Effective change management requires effective project management. <br />Rigorous scope analysis<br />Resources analysis <br />Be realistic about your timetable<br />Triple constraint – each effects the other<br />You cannot always just add resources<br />Continually reassess your options<br />Be forthright above all<br />20<br />
  51. 51. Building Commitment<br />Results<br />Good planning triggers engagement<br />Begin the Journey<br />Build the<br />Commitment<br /><ul><li>Execute the strategy
  52. 52. Quick hits for Commitment
  53. 53. Process Control Metrics
  54. 54. Functional Metrics
  55. 55. Predictive ability SPC (Statistical Process Control)
  56. 56. Quality Scorecards</li></ul>Preparedness<br /><ul><li>Focus on productivity
  57. 57. Noise isolation
  58. 58. Process Robustness
  59. 59. Project Management rigor
  60. 60. Shared goals</li></ul> VOC/VOP<br />Building<br />Awareness<br /><ul><li>Understand capacity for change
  61. 61. Create maturity model
  62. 62. Collect Requirements
  63. 63. Collect historical defect data
  64. 64. Create the WIIFM
  65. 65. Contact targets</li></ul>Assess capacity for change<br /><ul><li>Root cause analysis</li></ul>Transformation requires changes to <br />Tools, Methodologies, Standards, & Procedures<br />21<br />
  66. 66. What Customer Data can Do for You!<br />Multiple uses for cross-corporate view <br />
  67. 67. Focus<br />If you don’t know where you are going, you will be somewhere else<br />ALONE!<br />Be clear on the desired state<br />Must haves are willingness and ability to change<br />How do I know I am in trouble:<br /><ul><li>Focus is on tools
  68. 68. No consequences
  69. 69. No rewards
  70. 70. No WIIFM</li></ul>Where’s the WIIFM?<br />23<br />
  71. 71. Communication<br />There is never enough<br />
  72. 72. What is communication?<br />Customer understanding <br />Supplier understanding <br />Organizational learning<br />Knowledge sharing<br />Liaison<br />25<br />Respect<br />
  73. 73. Communication Maturity<br />Managed State<br />Prevent Abnormalities (Error-Proof)<br />Informal<br />Pervasive<br />IT / Business<br />adaptive<br />Level 5<br />Stop Abnormalities<br />Level 4<br />Business and IT are unified<br />IT is an integral part of business strategy<br />Warn About Abnormalities (Build in alarms)<br />Metrics Management<br />Level 3<br />Good understanding, natural<br />IT is an asset and process driver<br />Conflict is seen as creative<br />Build Standards into the Workplace<br />Level 2<br />Limited business IT understanding<br />IT becomes a process enabler<br />Share Information<br />Business and IT lack understanding<br />IT is a cost of doing business<br />Level 1<br />Communication Begins with Information Sharing<br />
  74. 74. Assessing Maturity<br />Strengths and weaknesses <br />SWOT analysis<br />Identify areas of disagreement<br />Map the implications<br />Define a plan to improve the maturity level<br />Focus on alignment<br />27<br />
  75. 75. Vehicles of Communication<br />Data Awareness Training<br />What is data?<br />Why do I care about it?<br />How much of it is there?<br />How does data hurt?<br />What tools are we going to use?<br />What is going to happen to MY job?<br />Article on the company intranet<br />Town Halls<br />Shared goals<br />28<br />
  76. 76. Explain why data matters<br />29<br />
  77. 77. Talk about Benefits!<br />30<br />
  78. 78. Data is massive<br />Information consists of many pieces of data.<br />Customer name<br />Product<br />Contract<br />Address<br />Probability of default<br />31<br />Data multiplies every data and decrements every day.<br />Data is massive and growing exponentially.<br />
  79. 79. How do I communicate the change?<br />What is the problem I am trying to solve?<br />What is the benefit if the change is made?<br />What is the cost of doing nothing?<br />Who is the customer of the change?<br />From the customer’s point of view, what does success look like?<br />How will we prove success?<br />32<br />
  80. 80. How do I communicate the change?<br />What is the one sentence Vision?<br />What is in and what is out of scope?<br />What needs to change?<br />What are the critical gaps to be closed?<br />What are the assumptions?<br />What is the exit criteria?<br />33<br />
  81. 81. Final Analysis<br />Does the organization have capacity for this change?<br />Is the customer in agreement with our vision of the change?<br />Do we have the sponsorship required to be successful? <br />A willingness to provide resources & manage consequences to ensure organizational alignment.<br />34<br />Yes,then GO<br />NO, then exit<br />
  82. 82. Change Management check list<br />Find a Champion who can remove roadblocks and wants to maintain communication with the team<br />Socialize with the team and stakeholders<br />How do you want to work together<br />How can the relationship be pain-free<br />Champion is involved<br />Do not force waterfall team to convert<br />Use prioritized backlog to let others see what needs to be worked<br />Don’t wait for answers to everything before implementing incremental functionality<br />Follow the “barely sufficient philosophy”: Do only the necessary as simply as possible <br />Focus on WASTE <br /><ul><li>Unavoidable waste
  83. 83. Waste that can and should be eliminated (low hanging fruit)</li></li></ul><li>Change Management check list<br />Kick-off meeting is required for the entire team<br />Let others fix what they can and you fix what you must<br />Pay attention to behaviors<br />Include everyone on Lessons Learned session – it may effect the entire enterprise<br />He that would be a leader must be a bridge<br />(Welsh proverb)<br />
  84. 84. Easy to recommend, hard to resolve<br />You may be asked to do something with no sponsor<br />You may not have the right tools<br />Your company may be operating on a shoe string<br />37<br />Things to remember<br /><ul><li>You are building your skills
  85. 85. There is actually always another company
  86. 86. Learn everything you can, you’ll be glad
  87. 87. Get every certification you can, you never know</li></li></ul><li>Laws for data<br />38<br />
  88. 88. Laws Pertaining to Data Management<br />39<br />
  89. 89. 40<br />Laws Pertaining to Data Management<br />
  90. 90. Laws Pertaining to Data Management<br />41<br />