{"id":26607,"date":"2019-04-10T13:39:29","date_gmt":"2019-04-10T18:39:29","guid":{"rendered":"https:\/\/centricconsulting.com\/?p=26607"},"modified":"2022-09-30T12:48:56","modified_gmt":"2022-09-30T16:48:56","slug":"data-governance-insurance-all-pain-no-gain","status":"publish","type":"post","link":"https:\/\/centricconsulting.com\/blog\/data-governance-insurance-all-pain-no-gain\/","title":{"rendered":"Data Governance in Insurance: All\u00a0Pain,\u00a0No\u00a0Gain?\u00a0"},"content":{"rendered":"

There is no way to eliminate all the pain in data governance. It is hard work. But with a good plan, you can minimize the pain and maximize the gain.<\/h2>\n
\n

Part of a blog series.<\/a><\/p>\n

Data governance is a stupid name. Data<\/a> and information are not the same thing.\u00a0<\/span>The name \u201cdata governance\u201d <\/span>implies that data<\/span>\u00a0(albeit\u00a0<\/span>governed data<\/span>)\u00a0<\/span>is the\u00a0<\/span>ultimate goal<\/span>.<\/span> Data is okay, but i<\/span>nformation is better.<\/span>\u00a0<\/span><\/p>\n

Today<\/span>\u00a0we find ourselves drowning in data. Standing on the corner of a busy intersection, we can look around and see magazines in the stand telling us how to\u00a0<\/span>\u201c<\/span>lose 15\u00a0<\/span>lbs<\/span>\u00a0overnight.<\/span>\u201d\u00a0<\/span>A sign in the grocery store<\/span>\u00a0across the street<\/span>\u00a0reads\u00a0<\/span>\u201c<\/span>P<\/span>eaches\u00a0<\/span>are Half-Priced.<\/span>\u201d<\/span><\/p>\n

But\u00a0<\/span>right now,\u00a0<\/span>the information\u00a0<\/span>I need<\/span>\u00a0<\/span>to know is,<\/span>\u00a0\u201c<\/span>can<\/span>\u00a0I<\/span>\u00a0cross Main Street safely<\/span>?\u201d\u00a0<\/span>Fortunately,\u00a0<\/span>there is<\/span>\u00a0an accurate, clear and convenient\u00a0<\/span>information system in place: <\/span>t<\/span>he cross-walk signal.<\/span> Is the red hand-lit or the walking green man?<\/span>\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Data governance, or as it should be called “Information Governance” is the process of getting the right information to the right people at the right time<\/a>.\u00a0<\/strong><\/p>\n\n

\n
\n Join our data and analytics experts to learn how taking an agile, minimally invasive approach to data governance can lead to higher adoption, greater business value, and increased accountability in your organization.\n <\/div>\n
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The Value of Data Information<\/h2>\n

Information has value.\u00a0<\/span>Some companies like Facebook are founded on d<\/span>ata\u00a0<\/span>a<\/span>s\u00a0<\/span>a<\/span> commodity.\u00a0<\/span>But even if your company sells widgets,\u00a0<\/span>your\u00a0<\/span>data\u00a0<\/span>has<\/span>\u00a0value. When properly collected and used, data can help a company lower costs, increase revenue, develop a competitive advantage, and reduce risks.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

The Declaration of Independence states, \u201c<\/span>We hold these truths to be self-evident, that all\u00a0<\/span>men<\/span><\/b>\u00a0are\u202f<\/span>created<\/span>\u00a0equal<\/span><\/b>\u2026\u201d\u00a0<\/span>But that truth does not extend to data.\u00a0<\/span>N<\/span>ot all data is created equal.\u00a0<\/span>My love of p<\/span>eaches\u00a0<\/span>is why<\/span>\u00a0<\/span>I<\/span>\u00a0cross the street, but the price is<\/span>n\u2019<\/span>t going to make\u00a0<\/span>my<\/span>\u00a0trip<\/span>\u00a0across Main Street<\/span>\u00a0safer.\u00a0<\/span><\/p>\n

Raw data, without context,\u00a0is next to useless.\u00a0<\/strong>Three properties of the information that have been properly transformed from raw data:<\/strong><\/p>\n

    \n
  1. Must be Correct \u2013 accurate and complete<\/li>\n
  2. Must be\u00a0Clear \u2013 consistent\u00a0(correlated, connected, and conformed)\u00a0and comprehensible<\/li>\n
  3. Must be Convenient<\/li>\n<\/ol>\n

    When crossing Main Street, I need to know that\u00a0<\/span>the\u00a0<\/span>cross-walk\u00a0<\/span>signal<\/span>\u00a0is correct. I place my trust\u00a0<\/span>that<\/span>\u00a0the\u00a0<\/span>designers<\/span>\u00a0and installers have\u00a0<\/span>incorporated\u00a0<\/span>checks and balances\u00a0<\/span>to<\/span> ensure that the green walking man illuminates only when the cross-car<\/span>\u00a0traffic has a red light. <\/span>I also appreciate that the message is clear.\u00a0<\/span>I don\u2019t have to guess about the meaning. It\u2019s either safe, or it isn\u2019t.\u00a0 <\/span><\/p>\n

    I do<\/span>n\u2019t\u00a0<\/span>have to\u00a0<\/span>know<\/span>\u00a0French to\u00a0<\/span>understand<\/span>\u00a0the message\u00a0<\/span>at<\/span>\u00a0a cross-walk\u00a0<\/span>beside<\/span>\u00a0the Eiffel Tower. And I can\u00a0<\/span>easily\u00a0<\/span>use\u00a0<\/span>the<\/span> information because the sign is conveniently located at the intersection. <\/span>Imagine if the cross-walk\u00a0<\/span>signal\u00a0<\/span>had been designed as an 800-number that I needed to call?\u00a0<\/span>\u00a0<\/span><\/p>\n

    \u201cData Governance\u201d\u00a0Isn\u2019t a Four-letter Word<\/h2>\n

    Data governance has been around for many years. Many companies, excited about\u00a0the promise,\u00a0started\u00a0their\u00a0data\u00a0governance program. Many\u00a0never finished. The work was\u00a0<\/span>difficult,<\/span>\u00a0and the return proved lackluster.\u00a0<\/span>Before long \u201cData Governance\u201d became a dirty word. <\/span>Too much\u00a0<\/span>effort<\/span>\u00a0without any benefit\u00a0<\/span>led<\/span>\u00a0companies to abandon their\u00a0<\/span>projects<\/span>. The goal wasn\u2019t wrong, the approach w<\/strong><\/span>as wrong, and the pain was real.\u00a0<\/strong><\/p>\n

    Where did we go wrong? Several places: we started wrong, we attempted too much, and we took some ill-advised short-cuts. <\/span>\u00a0<\/span><\/p>\n

    1. The Business Must Lead<\/h3>\n

    Data governance is a business exercise, not a technical one.\u00a0<\/span>M<\/span>any companies\u00a0<\/span>have a<\/span>\u00a0<\/span>wall<\/span>\u00a0between the business<\/span>\u00a0group<\/span>\u00a0and\u00a0<\/span>the\u00a0<\/span>technology<\/span>\u00a0group<\/span> that neither side understands.\u00a0<\/span>Too many times\u00a0<\/span>reporting\u00a0<\/span>projects are thrown over the\u00a0<\/span>wall<\/span>\u00a0<\/span>toward the<\/span>\u00a0technology<\/span>\u00a0group<\/span>.\u00a0<\/span>Many are last-minute and high-priority. <\/span>T<\/span>oo many times\u00a0<\/span>the\u00a0<\/span>technology\u00a0<\/span>group\u00a0<\/span>throws their collective hands into the air because they feel they are asked to do the impossible<\/span>. This is bad, but\u00a0<\/span>it<\/span>\u00a0can get<\/span>\u00a0worse<\/span>.\u00a0\u00a0<\/span><\/p>\n

    Imagine that<\/span>\u00a0the\u00a0<\/span>technology group\u00a0<\/span>simply\u00a0<\/span>push<\/span>es<\/span>\u00a0<\/span>past<\/span>\u00a0<\/span>their\u00a0<\/span>own\u00a0<\/span>ignorance and deliver<\/span>s<\/span>\u00a0a\u00a0<\/span>report<\/span>\u00a0that is just wrong<\/span>?<\/span>\u00a0The business\u00a0<\/span>thought<\/span>\u00a0the request\u00a0<\/span>was<\/span>\u00a0simple<\/span>\u00a0to understand,<\/span>\u00a0but\u00a0<\/span>they lacked the<\/span>\u00a0<\/span>require<\/span>d<\/span>\u00a0technical expertise. <\/span>The<\/span>y\u00a0<\/span>forg<\/span>ot<\/span>\u00a0<\/span>a simple truth. <\/span>J<\/span>ust\u00a0<\/span>like<\/span>\u00a0they were not hired for their technical\u00a0<\/span>knowledge<\/span>, the technology\u00a0<\/span>group was<\/span>\u00a0not hired for their business\u00a0<\/span>knowledge<\/span>.\u00a0\u00a0<\/span><\/p>\n

    Since the\u00a0overall\u00a0usefulness\u00a0of the information matters to the business, the\u00a0business\u00a0must take\u00a0ownership.\u00a0<\/strong>The mechanism for taking that responsibility is data governance.<\/p>\n

    2. Don\u2019t Try to Do It All at Once<\/h3>\n

    Data Governance is not a once-and-done exercise.\u00a0<\/span>The<\/span>\u00a0Big Bang apparently work<\/span>ed<\/span>\u00a0for the\u00a0<\/span>universe but<\/span>\u00a0is a poor choice for Data Governance.\u00a0 <\/span><\/p>\n

    Too many companies have tried to\u00a0develop\u00a0governance for everything in their data sphere. They get stuck in analysis, with\u00a0every element uncovered leading to more.\u00a0Without\u00a0a defining\u00a0scope,\u00a0they get lost in an endless cycle of discovery.\u00a0<\/strong><\/p>\n

    Y<\/span>ou\u00a0<\/span>may<\/span>\u00a0find<\/span>\u00a0mountains of data, but\u00a0<\/span>can you\u00a0<\/span>safely\u00a0<\/span>cross<\/span>\u00a0<\/span>the street?<\/span>\u00a0<\/span>L<\/span>et\u2019s consider\u00a0<\/span>an<\/span>\u00a0agile process.\u00a0 <\/span><\/p>\n

    Start with the core components of the core systems.<\/span>\u00a0Deliver some value, then add more. Continue adding more,\u00a0<\/span>over<\/span>,<\/span>\u00a0and over<\/span>, and over<\/span>\u00a0again<\/span>.<\/span>\u00a0\u00a0<\/span><\/p>\n

    How about a more proactive approach? S<\/span>tart looking at what you\u00a0<\/span>want to get out of your analytics.<\/a><\/span>\u00a0What are the critical success factors for your business?\u00a0<\/span>Can you identify 10 Key Performance Indicators (KPIs)?<\/span>\u00a0<\/span><\/p>\n

    Now round that out with 50 or so additional result or performance indicators. What elements are required to perform these measurements?\u00a0 <\/span><\/p>\n

    You\u2019ve just scoped your data governance program for the first two or three iterations.\u00a0<\/strong><\/p>\n

    3. Know Which Shortcuts to Avoid<\/h3>\n

    Data governance is<\/span>\u00a0not\u00a0<\/span>a\u00a0<\/span>care-free<\/span>\u00a0path<\/span>. There are\u00a0<\/span>risks<\/span> from start to end.\u00a0<\/span>It reminds me of a game that I played when Atari first came out. Pitfall. The character<\/span>, Pitfall Harry,\u00a0<\/span>was challenged with\u00a0<\/span>finding treasure while avoiding<\/span>\u00a0various obstacles. Some obstacles would\u00a0<\/span>simply cost points for each second you were in contact<\/span>, while others would\u00a0<\/span>take a life<\/span>.\u00a0 <\/span><\/p>\n

    The same can be said of the obstacles within a data governance program. Finding a new, better formula for key performance indicators will cause a momentary\u00a0<\/span>hiccup<\/span>. <\/span>What reports have been delivered that may require an update? In heavily regulated industries, like finance or insurance, this may require new updates to previously delivered regulatory reporting.\u00a0<\/strong><\/span>While\u00a0<\/span>other industries<\/span>\u00a0will simply move forward with the\u00a0<\/span>updated<\/span>\u00a0values from this day<\/span>\u00a0<\/span>forward.\u00a0<\/span><\/p>\n

    Some<\/span>\u00a0pitfalls are\u00a0<\/span>more severe<\/span>. Imagine if<\/span>\u00a0your data warehouse design is based on a faulty understanding of the company\u2019s business. There is no way to modify a faulty design. This pitfall requires returning to the\u00a0<\/span>earlier<\/span>\u00a0stage of business-centric data design.<\/span>\u00a0<\/span><\/p>\n

    Three properties of a successful information governance program:\u00a0<\/strong><\/p>\n

      \n
    1. Business-centered conceptual data architecture. Not a data exercise, a business exercise.<\/span>\u00a0<\/span><\/li>\n
    2. Agile, not big-bang delivery<\/span>.<\/span>\u00a0Rinse and repeat.<\/span>\u00a0<\/span><\/li>\n
    3. Deliberate, d<\/span>iligent technical (logical and physical)<\/span>\u00a0data design<\/span>. No shortcuts. No quick fixes.<\/span><\/li>\n<\/ol>\n

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      Final Thoughts\u00a0<\/span><\/h2>\n

      There is no way to eliminate all the pain in data governance. It is hard work. <\/span>But with a good plan, you can minimize the pain and maximize the gain.\u00a0<\/strong>Data governance might be a stupid name, but it is a great idea.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      There is no way to eliminate all the pain in data governance. It is hard work. But with a good plan, you can minimize the pain and maximize the gain.\u00a0<\/p>\n","protected":false},"author":230,"featured_media":32262,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1],"tags":[18616,3759],"coauthors":[15529],"acf":[],"publishpress_future_action":{"enabled":false,"date":"2024-07-22 00:18:24","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category"},"_links":{"self":[{"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/posts\/26607"}],"collection":[{"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/users\/230"}],"replies":[{"embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/comments?post=26607"}],"version-history":[{"count":0,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/posts\/26607\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/media\/32262"}],"wp:attachment":[{"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/media?parent=26607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/categories?post=26607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/tags?post=26607"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/centricconsulting.com\/wp-json\/wp\/v2\/coauthors?post=26607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}