Data Governance: Data Governance: In Practice and over TimeIn Practice and over TimePresented by: Elizabeth DavisPresented by: Elizabeth DavisOctober 15, 2008October 15, 2008Information Resource Management Association of CanadaInformation Resource Management Association of Canada

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Today’s AgendaToday’s Agenda IFC at-a-glance: the data environment

Creating a Data Governance function: Advantageous Pre-Conditions

Data Governance in Practice

A Measure of Success

And Now? Two Years Later at IFCLasting Legacies

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Today’s AgendaToday’s Agenda

IFC at-a-glance: the Data

Environment

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IFC at-a-glance: our data IFC at-a-glance: our data management landscapemanagement landscape Over 3,300 staff, made up of more than 120 nationalities,

with 53% based in developing and frontier regions. IFC is the largest provider of multilateral financing for the

private sector in the developing world. In FY08, new investments totaled $16 billion, including $11 billion for in

new commitments for our own account and $5 billion in funding that we mobilized for clients. Altogether we supported 372 projects in 85 countries.

We also approved 299 new advisory services projects in 75 countries with total expenditures of $269 million ($123 million from IFC’s account and $146 million from donors).

Financial products to client companies include: long term loans, debt securities, equity investments, quasi-equity investments, guarantees and stand-by financing, risk management tools, and structured finance products.

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IQ Group Origins: Advantageous IQ Group Origins: Advantageous Pre-Conditions FY2001Pre-Conditions FY2001

External and Internal Audits identified “dirty data” as a source of financial, operational and reputational risks

Senior Management/EVP endorsement of a “Task Force” to respond to audits – origin of IQ Group, initially staffed by external consultants to IFC

Appointment of seasoned, respected Manager to lead Task Force, with 25 years of WB/IFC experience

Coincides with large corporate investment in IT integration, data warehouse, unified reporting tools, and retirement of legacy systems

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Top Down EndorsementTop Down Endorsement

“A major issue facing the Corporation is the quality of data. Without accurate data, none of us – staff assistants, investment officers, financial officers, or senior management – can make educated decisions or manage risks. Not having accurate and timely data puts all of us at great risk from both an operational and a reputational perspective. Some groups within IFC have tried to address this problem already and have created pockets of clean data; however, this is not enough. We must have clean data throughout the Corporation.”

EVP, Jan 2001, introducing the Task Force initiative to all staff

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Principles and Principles and MandateMandate

Principles: Scrub the data only if you can keep it clean going forward Accountability must be enforced at the source to “get it right

the first time” Re-use data across systems to eliminate data redundancy and

human error as much as possibleMandate: Define and govern the data management and quality

policies, procedures and guidelines. Facilitate a standard set of corporate-wide data conventions

(e.g., business rules, data definitions), separate from the functions of data modeling and IT development.

Resolve data issues between systems and units.

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Results = PermanentResults = PermanentIQ Group FunctionIQ Group Function

Quantifiable Results, in less than 2 years, $500k expense = $2 million in corrected fee income $15 million in reimbursable expenses

Intangible Results: Reputation as an “honest broker” Delivered value to business and IT Business consensus was documented into

policies endorsed by Management

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IFC’s OrganizationalIFC’s OrganizationalChart TodayChart Today

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Today’s AgendaToday’s Agenda

Data Governance in Practice

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OrganizationalOrganizationalData GovernanceData Governance

Sources of Corp Standards: Data Creators and Consumers

IT Project Development

BUSINESS SPONSOR: Manager / Director champions the business need for a new enabling tool

IT CLIENT OFFICER: Project planning, business requirement gathering, and coordination of all technical requirements, including data modeling, business modeling, application of data standards and data management principles

Data Governance

IQ GROUP: Liaison between data creators, consumers, IT, and data stewards to ensure data management standards are applied to IT development and reporting, and optimized over time to meet changing business needs

Recourse via IT Governance Body or VP Risk

Management

IT GOVERNANCE BODY: Business membership approves all IT capital budget and spending

TIP: Cultivate relationships with Data Consumers who rely on

data accuracy and consistency.

TIP: Don’t depend on process – political

strength requires strong relationships.

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Building Relationships andBuilding Relationships andConsensusConsensus

Facilitate, don’t dictate

Strive for understanding first, then consensus

Do your research – have the right parties at the table

Sell the tangible business benefits of corporate standards

Never underestimate the power of food – feed your audience for better attendance!

Always distribute meeting notes and have all parties approve them as a final record of the discussion

Respect others’ time –begin and end on time

Follow-through consistently – be dependable, responsive, and trust-worthy

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Consensus = Consensus = StandardsStandards

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Defining IFC’s Defining IFC’s Investment Product LinesInvestment Product Lines

“Points of Pain”: Three different sets of classification values, at least three systems for tracking and analysis, no definitions

Solution: One set of classification values named and defined, shared across integrated system architecture for both consistent data capture, documentation, and corporate reporting.

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Promoting a Culture ofPromoting a Culture ofAccountabilityAccountability

Data Steward Network: One or two appointed staff in each department – HQ and field (approx. 70 staff).

Data Steward Mission: To collectively and individually promote a corporate culture where information is treated as a strategic asset to support IFC’s mission. Primary departmental contact to resolve data issues or

elevate issues to IQ Group Promote best practices in their department Participate in IQ Group working groups and provide

feedback to improve processes, systems or standards

Qtr’ly Meetings, Training, “Information Day”

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Promoting a Culture of Promoting a Culture of AccountabilityAccountability

Products

Dictionary

Corporate Standards and RulesGovernance Methods

Corp Reference Tables and Business Rules

Data Governance Principles

Data Stewards

Documented Consensus/ Ownership

IQ Group Promotion &

Branding

Working Groups of Experts

Data Definitions Working Group

Product Classification Clearinghouse

Info Delivery Working Group

Daily Exception Alerts & Clean-up

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Today’s AgendaToday’s Agenda

A Measure of Success

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High Marks for IFC’s ProgramHigh Marks for IFC’s ProgramData Mgmt Audit 2006Data Mgmt Audit 2006Rating for IFC Data Stewardship

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““Data Stewardship” Data Stewardship” as defined by as defined by

Ensuring that specific individuals are assigned the responsibility for the maintenance of specific data as organizational assets, and that those individuals are provided the requisite knowledge, skills, and abilities to accomplish these goals in conjunction with other data stewards in the organization.

Stewardship is most effective if it is managed at the organizational level.

The on-going improvement in data management practices should be an integral part of the organization’s charter.

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Definition of the Data Stewardship Definition of the Data Stewardship measures:measures:(as defined by )(as defined by )

IFC Scores: (May 2006) Leadership & Guidance = 4 = managed Asset Creation = 4 = managed Metadata Management = 4 = managed Quality Assurance = 4 = managed (the use of documented guidance is

mandatory and management attempts to ensure that it is applied consistently) Change Management = 3 = defined (guidance is documented and available) Data Quality = 2 = repeatable (local guidance & expertise exists)

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Overall Data Management ScoresOverall Data Management Scores (May 2006) (May 2006)

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Today’s AgendaToday’s Agenda

And Now? Two Years Later at

IFC

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People Move, Focus Changes: Enterprise-wide approach to data governance is

being challenged IT struggles to find a partner to enforce data quality

principles with the business

“Integrated Risk Management” is emerging as a new driver for information quality and consistency: A new round of integration requirements will be

driven by top-down demand for “actionable” strategic reporting

That was then, That was then, what’s up now?what’s up now?

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That was then, That was then, what’s up now?what’s up now?

Integration is NOT the light at the end of the tunnel! Impact analysis is costly and time consuming –

business doesn’t like to wait!Successful data re-use is extremely complex –

who can successfully sell this complexity to the business?

Data governance mandate and enforcement authority must be very strong to maintain discipline over time

IT institutional knowledge weakened by outsourcing and off-shoring

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That was then, That was then, what’s up now?what’s up now?

IT Governance Structure in flux (see Annex B)Business sponsorship and parochial interests made it

difficult to prioritize capital projects

New IT Project Approval thresholds challenged authority and relevance of IT Governance body IT Governance body approves up to $500k; VP to $1 mil; Mgmt Group

over $1 mil Reduced detailed oversight weakened incentive for IT to enforce

corporate data standards in design and business documentation

New IT Strategy Council (4 VPs) and IT Steering Committee (Directors) being put in place this month

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Today’s AgendaToday’s Agenda

Lasting Legacies

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Lasting LegaciesLasting Legacies

Business knows that corporate definitions and standards are essential for reliable and usable corporate information. But,who will make it happen?

The principle of data re-use is largely accepted across the enterprise. But,who will sell it and enforce it to IT and the business?

Pockets of data governance indicate recognized value of standards and active quality oversight. But, who develops and ensures enterprise-wide buy-in, consistency and implementation?

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Fundamental Data Governance Principles Remain Valid:

Be Relevant Deliver ValueBe Visible

But, all of these are harder to achieve without an enterprise-wide, mandated data governance function with “teeth” and persuasiveness.

Lasting LegaciesLasting Legacies

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Annex A: IFC Information Annex A: IFC Information Management PolicyManagement Policy

Provided as a separate document/handout

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Annex B: Annex B: IT GovernanceIT Governance

IT Strategy Council: is a sub-committee of the Management Group with the mandate to formulate and approve IT strategy and priorities within the context of IFC’s strategic business objectives and resource constraints following the IT Guiding Principles (see Annex C).

IT Steering Committee: is a council of directors, reporting to the IT Strategy Council, with the mandate to plan and implement the IT components of IFC’s business process improvements per the approved IT strategy and investment plan.

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Annex C: Annex C: IT Guiding PrinciplesIT Guiding Principles

Corporate Priorities drive IT Investment IT is Integral to the Business IFC’s Clients are the Primary Focus Risk & Uncertainty are Proactively Controlled Information is a Corporate Asset: Technology

is managed to protect the Corporation’s information and enable a single point of data entry; however, data quality is the responsibility of the user community at the source.

IT is Managed as an Investment