Data Governance: In Practice and over Time Presented by: Elizabeth Davis October 15, 2008 Information Resource Manageme

1. Data Governance: In Practice and over TimePresented by: Elizabeth DavisOctober 15, 2008Information Resource Management Association of Canada

2. Today’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 IFC • Lasting Legacies

3. Today’s Agenda IFC at-a-glance: the Data Environment

4. IFC at-a-glance: our data management 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.

5. IQ Group Origins: Advantageous Pre-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

6. Top 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

7. Principles and Mandate 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 possible Mandate: • 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.

8. Results = PermanentIQ 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

9. IFC’s OrganizationalChart Today

10. Today’s Agenda Data Governance in Practice

11. OrganizationalData Governance Data Governance IT Project Development IT GOVERNANCE BODY: Business membership approves all IT capital budget and spending Recourse via IT Governance Body or VP Risk Management BUSINESS SPONSOR: Manager / Director champions the business need for a new enabling tool 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 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 TIP: Don’t depend on process – political strength requires strong relationships. TIP: Cultivate relationships with Data Consumers who rely on data accuracy and consistency. Sources of Corp Standards: Data Creators and Consumers

12. Never underestimate the power of food – feed your audience for better attendance! Respect others’ time –begin and end on time 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 Follow-through consistently – be dependable, responsive, and trust-worthy Always distribute meeting notes and have all parties approve them as a final record of the discussion Building Relationships andConsensus

13. Consensus = Standards

14. Defining IFC’s Investment 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.

15. Promoting a Culture ofAccountability • 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”

16. Dictionary Data Stewards Data Definitions Working Group Working Groups of Experts Products Product Classification Clearinghouse Info Delivery Working Group IQ Group Promotion & Branding Daily Exception Alerts & Clean-up Documented Consensus/ Ownership Promoting a Culture of Accountability Data Governance Principles Governance Methods Corporate Standards and Rules Corp Reference Tables and Business Rules

17. Today’s Agenda A Measure of Success

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

19. “Data Stewardship” 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.

20. Definition of the Data Stewardship measures:(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)

21. Overall Data Management Scores (May 2006)

22. Today’s Agenda And Now? Two Years Later at IFC

23. That was then, what’s up now? • 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

24. That was then, 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

25. That was then, 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

26. Today’s Agenda Lasting Legacies

27. Lasting 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?

28. Lasting Legacies Fundamental Data Governance Principles Remain Valid: • Be Relevant • Deliver Value • Be Visible • But, all of these are harder to achieve without an enterprise-wide, mandated data governance function with “teeth” and persuasiveness.

29. Annex A: IFC Information Management Policy • Provided as a separate document/handout

30. Annex B: IT 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.

31. Annex C: IT 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