Lead­er­ship Fo­rum: Dig­i­tal Trans­for­ma­tion is Un­der­way

Se­nior lead­ers from TD Bank, IBM, GE Health­care and Sco­tia­bank de­scribe how they are em­brac­ing — and en­abling — dig­i­tal trans­for­ma­tion.

Rotman Management Magazine - - FRONT PAGE - By Glenda Crisp, Con­nie Bonello, Jon Zim­mer­man and Thayde Olarte

Se­nior lead­ers from TD Bank Group, IBM, GE Health­care and Sco­tia­bank de­scribe how they are em­brac­ing — and en­abling — dig­i­tal trans­for­ma­tion.

INMOST OF TO­DAY’S OR­GA­NI­ZA­TIONS, data un­der­pins ev­ery trans­ac­tion, oper­a­tion and in­ter­ac­tion. And yet, the abil­ity to ex­tract its value and con­vert it into ac­tion­able busi­ness in­sights re­mains elu­sive to many. Based on our ex­pe­ri­ence, the man­age­ment, care, pro­tec­tion — in short, the gov­er­nance of data — forms the foun­da­tion that en­ables pow­er­ful data-driven in­sights to emerge.

Data gov­er­nance ad­dresses some fun­da­men­tal ques­tions: Where is our in­for­ma­tion? What data is crit­i­cal? How can we get at it when we need it, in the form we need it in? Can we trust it? And, How do we man­age it?

Four years ago, the emerg­ing con­sen­sus within TD Bank Group was that more could be done to meet grow­ing ex­pec­ta­tions to use data to add value to the cus­tomer ex­pe­ri­ence. To gain a deeper un­der­stand­ing of the chal­lenge, TD con­ducted in­ter­views with over 200 of its se­nior lead­ers. Among the themes that emerged: Data was be­ing man­aged pri­mar­ily at the busi­ness level; from an en­ter­prise per­spec­tive, the abil­ity to trace the flow of data and iden­tify data sources could be en­hanced; and an­a­lyt­ics and re­port­ing were siloed, with ca­pa­bil­i­ties dis­persed be­tween sev­eral teams and sys­tems, re­sult­ing in in­ef­fi­cien­cies.

Se­nior ex­ec­u­tives agreed that the busi­ness im­pli­ca­tions of these chal­lenges — along with the ever-grow­ing amount of data TD was col­lect­ing — war­ranted a com­plete data trans­for­ma­tion pro­gram.

TD was the first of Canada’s big-five banks to ap­point a Chief Data Of­fi­cer (CDO) in 2013. The CDO [one of the au­thors] is a mem­ber of the se­nior man­age­ment team, help­ing to en­sure that the bank’s data strat­egy is aligned with busi­ness pri­or­i­ties and that the data im­pli­ca­tions of those pri­or­i­ties are taken into con­sid­er­a­tion. Upon join­ing TD, the CDO es­tab­lished an Of­fice of the Chief Data Of­fi­cer (OCDO) in Toronto and Cherry Hill, New Jersey. The first tasks were to de­velop an En­ter­prise Data Strat­egy, es­tab­lish data ste­ward­ship roles within the in­di­vid­ual lines of busi­ness, and pi­lot Data-is­sue-and-change and Data-Qual­ity-man­age­ment pro­cesses.

TD also en­gaged se­nior ex­ec­u­tives from each line of busi­ness as ‘Data Spon­sors’, to en­sure line-of-busi­ness data strate­gies were aligned with the en­ter­prise strat­egy. Each ex­ec­u­tive Data Spon­sor is re­spon­si­ble for pro­vid­ing fund­ing, driv­ing data gov­er­nance and qual­ity and ap­point­ing ‘stew­ards’. The bank now has over 300 Data Stew­ards, who report to the line-of-busi­ness Data Spon­sor and are re­spon­si­ble for ex­e­cut­ing on the data strat­egy. Al­ready, projects that en­gage Data Stew­ards have re­al­ized bet­ter out­comes.

One of the key lessons learned dur­ing TD’S data trans­for­ma­tion jour­ney to date has been the need to have sim­ple pro­cesses in place to en­sure wide­spread adop­tion of a data strat­egy. For ex­am­ple, the orig­i­nal data qual­ity process doc­u­ment was 141 pages long and in­cluded 46 steps. Feed­back was that it needed to be stream­lined. To ad­dress this, TD en­gaged IBM to con­duct a full­day work­shop with its Data Stew­ards to help sim­plify the data-qual­ity pro­cesses and en­able the adop­tion of data qual­ity tools. This re­sulted in the data qual­ity process be­ing re­duced from 46 to 17 steps.

In gen­eral, TD has taken a test-and-learn ap­proach to data gov­er­nance, pi­lot­ing ev­ery­thing with the Data Ste­ward com­mu­nity and then adapt­ing pro­cesses based on real ex­pe­ri­ences. It also con­ducts part­ner­ship sur­veys to get feed­back on the over­all ef­fec­tive­ness of its data gov­er­nance pro­gram and to de­ter­mine if Data Stew­ards have the re­sources and sup­port re­quired to ex­e­cute the strat­egy. The bank chose to build its own Data Is­sue & Change Gov­er­nance tool — an en­ter­prise-wide repos­i­tory of all data is­sues and pro­posed data changes. This tool gives the CDO vis­i­bil­ity across the or­ga­ni­za­tion and en­ables her to look for pat­terns in is­sues that arise, which — if solved once — can ben­e­fit other parts of the or­ga­ni­za­tion.

For other as­pects of its pro­gram, TD chose a li­censed-so­lu­tion ap­proach, im­ple­ment­ing IBM’S In­fo­s­phere In­for­ma­tion Gov­er­nance Cat­a­log and In­fo­s­phere In­for­ma­tion An­a­lyzer. The for­mer is a data qual­ity pro­fil­ing and an­a­lyz­ing so­lu­tion that helps to de­rive more mean­ing from en­ter­prise data, re­duces the risk of pro­lif­er­at­ing in­cor­rect in­for­ma­tion, fa­cil­i­tates the de­liv­ery of trusted con­tent, and helps to lower data in­te­gra­tion costs; while the lat­ter is a meta­data busi­ness glos­sary and data lin­eage so­lu­tion that en­cour­ages a stan­dard­ized ap­proach to dis­cov­er­ing data as­sets.

To­day, TD con­tin­ues on its quest to build en­ter­prise-data ca­pa­bil­i­ties. Rolling out Meta­data Man­age­ment and Data Qual­ity tools across the or­ga­ni­za­tion re­mains an im­me­di­ate pri­or­ity. In ad­di­tion, TD is de­vel­op­ing a job model, ca­reer path and cer­ti­fi­ca­tion pro­gram for its Data Stew­ards.

Suc­cess fac­tors iden­ti­fied for the pro­gram in­clude line-of-busi­ness sup­port that has a clear un­der­stand­ing of the value of en­ter­prise-level data gov­er­nance poli­cies and stan­dards; the use of au­toma­tion and tech­nol­ogy to fa­cil­i­tate data qual­ity, trace­abil­ity, mon­i­tor­ing and ac­count­abil­ity; and a fund­ing model that sup­ports foun­da­tional in­vest­ments for en­ter­prise-wide so­lu­tions as well as longer-term goals. Above all else, TD’S in­vest­ment in its peo­ple — through both the Data Ste­ward com­mu­nity and the OCDO team it­self — has been crit­i­cal to the suc­cess of its data-gov­er­nance jour­ney.

The views ex­pressed here are the au­thors’ own, and do not nec­es­sar­ily re­flect the views of IBM or TD. The in­for­ma­tion in this ar­ti­cle is based on the au­thors’ un­der­stand­ing at the time of writ­ing.

Con­nie Bonello As­so­ci­ate Part­ner, Fi­nan­cial Ser­vices, IBM Canada

Glenda Crisp Se­nior Vice Pres­i­dent and Chief Data Of­fi­cer, TD Bank Group

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