Award Winning Data Governance

Copyright © 2011 Sallie Mae, Inc. All rights reserved.

Dataversity/DGPO WebinarOctober 27, 2011

AN OVERVIEW OF THE SALLIE MAE DATA GOVERNANCE PROGRAM

8/29/2011


2Copyright © 2011 Sallie Mae, Inc. All rights reserved.

SALLIE MAE BACKGROUND► Sallie Mae is the nation’s leading provider of saving,

planning and paying for education programs

► Since its founding more than 35 years ago, the company has invested in more than 31 million people to help them realize their dreams of higher education

► Sallie Mae manages $236 billion in education loans and serves 11 million student and parent customers

► Through its Upromise affiliates, the company also manages more than $27 billion in 529 college-savings plans, and is a major, private source of college funding contributions in America with more than $575 million in member rewards

► Sallie Mae is a Fortune 500 company with 8,000 employees in 16 locations nationwide



DG & DQ Programs

DATA GOVERNANCE AND DATA QUALITY: THE FOUNDATION FOR BUILDING SALLIE MAE BUSINESS

Operational Alignment Initiatives

Business Objectives



ENTERPRISE DATA MANAGEMENT STRATEGY AT SALLIE MAE

Data Governance

Data Ownership Data Stewardship Data Quality

Metadata Management

Repository Standards Processes

Data Architecture & DesignBusiness Context Model

Conceptual Data Model

Logical Data Model

Physical Data Model

Provides the creation of management structure for policies and rules governing enterprise data

Implement necessary tools to automate process

Provides documentation of all aspects of the business and technology components of enterprise data

Includes repository building, defining standards, architecture, maintenance process, tool selection

& implementation

Design, development and maintenance of data models at the business context, conceptual, logical and physical level

Represents the data entities, their relationships, attributes, structure and usage

Provides capabilities to support comprehensive EDM services

Data Management Services Definition

Mapping & Conversion Synchronization Exception

HandlingPerformance

Mgmt

Replatforming Integration Movement Matching

Consolidation Quality Analysis Transformation

Backup & Recovery Security Testing Support Access



Enterprise Data Definition

Data Architecture

Data Governance

LAYING THE FOUNDATION FOR DATA GOVERNANCE

EDD Project

March - July 2006

Copyright © 2011 Sallie Mae, Inc. All rights reserved.Copyright © 2011 Sallie Mae, Inc. All rights reserved.

ENTERPRISE DATA DEFINITION – APPROACH

6

Both

“top-down” and

“bottom-up” approaches to leverage

existing information

Physical Database Structure

(Detailed Level)

E.G., Borrower table & associated

columns

Top

Dow

n Botto

m U

pConceptual Data Model (Abstract

Level)

E.G., Borrower, Organization, Loan

Logical Data Model (Business Level)

E.G., Borrower Address, Borrower

Phone, School, Lender, Guarantor


EDD – CONCLUSION

1282

363

0

200

400

600

800

1000

1200

1400

Pre-Engagement Post-Engagement

Entities

7

21218

3127

0

5000

10000

15000

20000

25000

Pre-Engagement Post-Engagement

Attributes

Total in-scope physical entities reduced by 71% Total in-scope attributes reduced by 85%

Entities Attributes

► 4 Month Effort (March through July 2006)► Why so quick?

Centralized Data Management team Repository based data modeling tool



CHANGE IN MARKETING STRATEGY

2006Moving from institution based marketing (schools, lenders) to consumer based marketing


DG/DQ PROGRAM TIMELINE

9

Pilot Project:7 DE

EDD Project

March - July 2006

August – October 2006



DEMONSTRATED BUSINESS VALUE FROM DAY ONE

► DG Pilot project Increased revenue by $2.4M

for the first two years based on an estimated increase of $50M in loan volume

Eliminated costs of $4.8M spent on letters/postage that were replaced by email campaigns

► Don’t be a solution waiting for a problem, find the problem and be the solution to it!



11

DG Program Implemented

DG ProgramDesign

Pilot Project:7 DE

EDD Project

March - July 2006

November 2006–March 2007


April 2007



COORDINATION AND COOPERATION

► The ability to get the right people together to make decisions and agree on effective action regarding Sallie Mae’s data is never easy

In a complex environment it can feel…IMPOSSIBLE



MAKING DECISIONS AND TAKING ACTION

► Fortunately, for data-related issues, Sallie Mae has in place: A process to

• Make decisions• With appropriate representation (from LOBs, teams, etc.)• And knowledge (access to subject matter experts in business,

data, and IT)

So they can• Resolve issues• Implement effective changes• Avoid unexpected consequences• Communicate actions

Cutting through the red tape



DATA GOVERNANCE AT SALLIE MAE

► Data Governance is a discipline, a program, and a key component of the Sallie Mae Enterprise Data Strategy

► Data Governance occurs where Business, IT, and data intersect and includes proactive, reactive, and ongoing efforts



DATA GOVERNANCE COOKBOOK

► The Data Governance Program is defined in a Data Governance Cookbook with an introduction and nine modules Policy Organization Process Office Administration Organizational Alignment Communications Data Quality DG and SMPAL Business Benefits


GOVERNANCE MATURITY LEVELS FOR SALLIE MAE DATA► Sallie Mae adopted a Governance Maturity

Model to describe the levels of maturity for its enterprise data

► This model began with best practices from the Data Governance Institute, then was customized to the unique Sallie Mae environment

► This model describes data that is: Level 0 - Ungoverned Data Level 1 - Modeled Data Level 2 - Repository Data Level 3 - Standardized Data Level 4 - Standardized with Known Issues Data Level 5 - Matured Data

16


THE DATA GOVERNANCE STRATEGY DEFINED

17



SALLIE MAE DG/DQ SERVICESWHO’S WHO?

Business and IT Senior ManagementIT Sponsor

Business Sponsor

Enterprise Data Management (EDM) Strategy

Data Governance Council

Barbara Deemer and other LOB

representatives

Data Quality Services (DQS)

DQ Core Team

Splits into working groups

Data Governance Office (DGO)

Michele Koch

Data GovernanceData Governance

Subject Matter Experts (SMEs)

Business


Data


IT



HOW DG WORKS

Identify Issues

Research Issues

Make Decisions and Take Action

•

Track and Communicate Progress

DG Council

Business

IT

Project Teams

DGO

Management

DQS

Other Subject Matter Experts

(SMEs)(Business,

Data, and IT)

DGO

DGO

DG Council

LOB reps


ProjectTeam

Data Modelers

DataArchitecture

DataStewards

Data Governance Office (DGO)

Update watch

list

Provide status to

stakeholders

Trigger

Add project to watch

list

Send FYI to

Stewardsand

Modelers, ask PM to

include DGO on

stakeholder and

participation lists

Trigger

Trigger

Trigger

1. Project InitiationInvoke Data Governance in response to triggers:• EA

Assessment• Knowledge

that Enterprise Data willbe impacted

2. Technical DesignInvoke Data Governance during or before

SD-3 Perform Technical Design

Update MetadataRepository if needed

Performmodeling

On watch-

list?

UpdateDGO

N

Modelingissues?

resolved?

resolved?

Help resolve

N

N

Y

Y

Y

3. Issue ResolutionUse Data Governance to escalateand resolve issues

Determine how the Data GovernanceProgram fits into your SDLC

IDENTIFIED HOW GOVERNANCE INTEGRATED WITH OUR SDLC

20



THE PERFECT STORM

2007-2008

CREDIT MARKETS

CRASHStaff changes at all

levels

Sale of Sallie Mae falls through


SOME BUMPS ALONG THE WAY

► Communication is key when you encounter obstacles

22

Budget cuts/

loss of staff

in 2008

New management at the executive level


ROAD TO RECOVERY

23

Progress continues but at a slower pace without additional staff

Leveraged new enterprise initiatives to show the value of Data Governance

Used an audit to re-seed the DG council and gain support for additional funding



HEALTH CARE REFORM

2010► FFELP student loan program is abolished

80% of our ability to originate new assets is lost!

► Time for some tough decisions While competitors closed their doors, we aggressively

targeted new products and new customers



COMPANY TRANSFORMATION

► Executives had confidence in the data needed to make decisions to move the company forward as a result of strong Sallie Mae data management and DG programs



STRONG BUSINESS/IT PARTNERSHIP

► Data Governance Office = 3

► Data Quality Services Team = 3

► Data Governance Council

Lines of Business = 18

Business Data Stewards = 23

► Business SMEs = 18

► IT SMEs = 25

► Data SMEs = 2

Enterprise Participation



GREAT STAKEHOLDER CARE

► Serve in a “Trusted Broker” position in all dealings with stakeholders

► Ensure that members of senior management and the DG Council are made aware of potential impacts of decisions put before them

► Arrange for mentoring or coaching of stakeholders as required



METRICS

Capture as you go!

Pilot project metrics:• Industry standards and publications

• Interviewed business areas

DG Program metrics:• Determine business value

• Define reporting categories

• Determine how to track data issues



WHAT A DG/DQ PROGRAM DOES FOR SALLIE MAE

Increase Revenue Facilitate Private Credit products speed to market

Increase volume available for the PUT process and trusts

Improve servicing performance for Dept of Ed contracts = increased Sallie Mae volume percentage awarded

Manage Cost and ComplexityEliminate data reconciliation efforts and workarounds

Reduce operational servicing costs

Implement enterprise architecture improvements (e.g. SOA, person matching)

Reduce Risk and Support Corporate ComplianceImproved risk management and corp. compliance through DQ and standardization

Reduce audit findings due to inaccurate or inconsistent data

Improve identification and documentation of identity fraud


Categories for DG Program metrics

Data Standardization

33%

Data Quality

37%

Metadata Support

5%

ProjectSupport

11%

MDM14%

DG REPORTING CATEGORIES

30



DOCUMENT BUSINESS VALUE METRICS

► Implemented resolutions for 77% of the data issues since DG Program inception

► Utilized proven techniques for quantifying business value

► Linked business value calculations to financial statement categories

Goal: Focus on solving business problems while always keeping your eye on delivering a first rate DG Program



COMMUNICATION

Key is regularly and consistently!

► Easy to focus on the day-to-day activities, must focus on communicating the wins and payback



1

2

3

METHODS OF COMMUNICATION

Decision makers for boundary

spanning data issues

Meets every other Tuesday

Meeting agenda and supporting

documentation posted on web

and sent prior to the meeting

DG Council

DG Web Page

data_governance/dghome

Calendar of meeting dates

Meeting agenda and minutes

Participant list

DG issue reports

Documents and presentations

Meeting archives, DG news and

announcements

Use to send information on new

data issues, pose questions,

comments, and concerns

Mailbox goes directly to:

DGO Program Director

Chief Data Steward

DGO Assistant

[email protected]

DGO Mailbox



TYPES OF COMMUNICATION

► Mission and value statements

► Elevator speech

► Slogan/Logo

► Status Reports

► Dashboards

► Presentations

TO INFINITY…AND BEYOND!



35

DG Program Implemented

DG ProgramDesign

DQ ProgramDesign

Pilot Project:7 DE

EDD ProjectDQ Program

& Pilot Implementation

Monitor dataFocus on

root cause & prevention

March - July 2006

October-December 2009

November 2006–March 2007

July 2010 - Present


April 2007January – June

2010



Data Quality Services

The DQ Program:

• Develops DQ management as a core competency

• Improves DQ throughout Sallie Mae

The DG Program:

• Provides guidance, prioritization, and decisions for DQ activities

• Oversees resolution of DQ issues

THE DATA QUALITY PROGRAM AND DG



KEY DG/DQ ENGAGEMENTS

► Reconciliation projects for Finance

► Loan Acquisition Conversions

► EDW Support

► MDM Support

► New project support

► Metadata support

► Training on DQ tools

► Consulting to teams



HOW THE DQ PROGRAM SHOWS VALUE AND PROGRESS

► Three categories of metrics are reported State of Data Quality Business Value from Data Quality Data Quality Program Performance

► For each category, a dashboard level status is summarized from detailed reports

► Drilldown information is included as appropriate for the specific metric

Dashboard

Drilldown

Detail



CONTINUING TO SHOW BUSINESS VALUE



NEXT STEPS► DG program must evolve and

grow as Sallie Mae continues to redefine itself and expand into new product areas

► Continue to move from reactive to pro-active

► DG/DQ become integral to our core business processes as the environment gets more complex



LOOKING AHEAD

► Need to maintain data governance vigilance in order to ensure customer satisfaction and data quality



► For further information, please contactMichele [email protected]

QUESTIONS?

Data GovernanceData GovernanceSolving boundary-spanning issues

by pulling together the pieces of the data puzzle.

Data GovernanceData GovernanceSolving boundary-spanning issues

by pulling together the pieces of the data puzzle.

mailto:[email protected]

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