Data Governance and the CEO

Not new; evolution, not revolution

© 2015 IMCue Solutions, Inc.

Understand CEO Drivers First

RevenueMore customers Bigger shareNew products and services

Board of Directors

Cost More efficient

Faster cyclesBetter outcomes

Board of Directors

RiskComplianceReputationLiability

Board and External

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Growing interest in more rigor around data

2010 2015

Fearful Few Many and growing

Apathetic Vast majority Many, but fewer

Truly Excited A few, mostly in the data space

Still relatively few, but growing, and not just those in the data space

Getting Engaged

Few Numerous, but sorting out what is means to their organization

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• Taken from a qualitative review by Dr. Thomas Redman*

Ladley-The CEO

perspective

*”Fear has Replaced Apathy as the Number One Enemy of Data”OCDQ Blog, July 13, 2015 Thomas C. Redman

Agenda

• Why does the CEO care about Data governance?– What are the drivers that capture and keep the CEO’s

attention?– How do competitive pressures weigh on governance

priorities?

• What accountability does the Board expect?• What problems are posed by middle

management?

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Why does the CEO care about Data Governance?

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Do CEOs care about Data Governance?

NoNot any more than any other necessary

function

Yes If and only if it is relevant to their

accountabilityand fulfillment of business strategy

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Why Data Governance?

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• Opportunity and leverage – Evolve from data driven to monetized and managed

data as an asset or product– “Data Governance can unlock value of data “– “Part of everyone’s job”– “You mean we don’t do anything like this now?“– “Real value comes from insight and productizing the

data” – “We are really a data company that happens to make

stuff” “It’s about what data your organization is being driven by—and whether that data is driving your organization to make better decisions. “ Jim Harris

CEOs already seem to expect DG?!?!

• “In Gartner's recent CEO survey, we uncovered the nugget that 10% of CEOs say their company treats ‘information as an asset.’ … Moreover, 80% of respondents have operationalized the notion of data as an asset — in particular, they measure the value of information and treat it as a balance sheet asset.” - from CEOs Seek to Exploit Data, Creating Marketing Opportunities and Risks, Analyst: Mike McGuire

• Analysis by Doug Laney of Gartner Group – “This shows how dreadfully disconnected senior executives are from the

realities of enterprise information management and governance in their companies – if not accounting regulations regarding asset capitalization. There’s no evidence to suggest that even 1% of organizations collect, manage and value information as closely as, say, raw materials or financial assets.

– Further evidence of this gaping disconnect is that most executives I have surveyed believe information is a balance sheet asset – which of course it is not.”

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CEO View - Why is Data Governance Important?

Internal pressures• Desire to understand

customer at any time from any channel

• Board-level oversight of Risk – Reputation – Compliance – Liability

• NOT: – Data Quality issues are persistent– Balance of old and new

technologies– Movement to the cloud and

losing control of data– Data Volumes are increasing

External pressures• Greater amounts of new

regulations• Social media faux pas• Unintended consequences

from data mobility • Reputation detection • Increasing Customer

Demands – my information anywhere at any time

• NOT: – Technology changes

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What accountability does the Board expect?

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Accountability, DG and CEOs

11© 2015 IMCue Solutions, Inc.

Corporate charter and the CEO

Principles of Corporate Governance are same as DG:• “The corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of

management by the board, and the board’s accountability to the company and the shareholders.” OECD (2004)

The Board is Governance

The responsibilities of the board are separate and distinct from those of management. The board does not manage the company i.e. GOVERNANCE

The CEO is accountable to follow policy stemming from governance

CEO is accountable for achieving goals set by the board

Therefore - Governance is NOT NEW TO CEO’s

Data governance need not be sold, only explained and justified

CEO Accountability - Where DG can help

• Achieve business strategy – Monetize data

• Board-level oversight of Risk – Reputation – Compliance – Liability

• Social media faux pas– Unintended consequences

from data mobility • Reputation detection

– Data quality at point of consumption

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How do competitive pressures weigh on governance priorities?

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Competitive Pressures Affect DG SupportDG gets CEO support if:• It supports strategy and goals • Does not cost more than it can help

bring in • Does not add to risk, or eliminates it • Blends into culture, and is not too

disruptiveDG gets NO sustaining support if: • It is perceived as part of a shaky IT

project• Is holding back strategic initiatives• Does not support Vision and Mission• Middle management are distracted or

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© The Jetsons and related works are property of Warner Bros.

What problems are posed by middle management?

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All management issues around DG are based on simple concepts of management

and human emotion:a) Stuff flows down hill

b) Fear is a root human motivator

Line and functional management scenarios

• CEO needs to consider (not override) common resistance and obstacle patterns

• A CEO will provide (or order) “air cover” for DG at 4 and 2

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Based on concepts from Technical Debt Strategies 2013 Steve Garnett and Ripplerock

Will take too long to deploy DG

Business goals and corporate

governance require what DG

offers

All this data talk is a passing fad

Prior data mgmtactivities have

created obstacles to progress

Delib

erat

e In

adve

rten

t

Reckless Prudent

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2

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Resistance and Obstacle Scenarios

• Threats to measured work success– Development - “Delays to projects” – Architecture – “Alignment and business information

metrics will not be effective”

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Resistance and Obstacle Scenarios

• Historical perceptions of role and loss of position and authority– Development - “Applications to the rescue “– Architecture – “Business success depends on new technology

architecture, not process-like DG” – Management – “the new CDO will “do” DG and IM. We just go about

business as usual “

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Wrap up – Relevance to practitioners

• CDOs are playing an increasing role in these activities • Organization size, span, and data-centricity shapes CEO

engagement • Actions

– Educate executive team and sponsors in 2 and 4 areas – Align to REAL strategic business initiatives– Have responses to predicable resistance areas ready

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THANK YOU!Questions?

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Building Value Through Information Asset Management™

jladley@imcue.com314-422-9076

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