Introduction
The mere mention of data governance tends to elicit groans, or the urge to stifle a yawn. It's often seen as a dull, bureaucratic task that tends to be relegated to the bottom of the priority list. But what’s the cost of not taking it seriously? That cost can be much higher than you might think.
Data governance is not revolutionary, it's evolutionary. Just like opposable thumbs, if your organization does not have effective data governance, you risk being outpaced by organizations that do have this survival advantage.
The Governance Gap
Most companies struggle with data governance for a few glaring reasons:
- Lack of Ownership and Stewardship: Without clear data owners and stewards, data management becomes everyone's and no one's responsibility. Data owners have the responsibility for their subset of the data and usually have multiple data stewards under them. These stewards work hands on with the data daily and understand the minutiae of their specific part of the data ecosystem.
- Undefined Policies: Companies often have vague or non-existent data governance policies, resulting in different decisions being made for the same data and introducing inconsistencies that actually damage the data.
- Reactive Governance: If there is no intentional data governance then the process tends to be reactive, triggered by crises rather than being a proactive, ingrained practice. Reactive governance costs much more, and is not as effective.
- Weak Data Culture: Companies with a weak data culture view data as more of a byproduct of doing business. A strong data culture shifts that view so that data is treated as a valuable organizational asset, not so different from a chair or a desk. Ensuring that data is clean and standardized allows it to be confidently used to make decisions. Just as an employee wouldn't cut off a corner of their desk because it was in their way, they shouldn't cut corners with data.
The Benefits of Proactive Governance
So, why should organizations take the plunge into proactive governance?
- Improved Data Quality: With structured governance, data quality improves, reducing errors and inconsistencies.
- Enhanced Security and Compliance: A robust governance framework helps safeguard against breaches and ensures compliance with regulations by identifying sensitive data, and treating it accordingly.
- Boosts Trust in Reporting and AI/ML Models: Cleaner datasets lead to more accurate and reliable reporting. This is also a prerequisite for AI and machine learning models.
- Competitive Edge: Reliable insights derived from well-governed data can give businesses a significant competitive advantage.
- Increased Understanding and Efficiency: Data owners and data stewards not only govern the data but truly understand it. Having individuals who are deeply knowledgeable about the data can significantly reduce development timelines and enhance the organization's ability to leverage their data effectively.
Key Principles of Effective Governance
Now, let's dive into what makes data governance effective:
- Define Data Ownership and Accountability: Clearly assign data ownership to ensure that knowledgeable individuals are responsible for the data. Any major changes to the data or the way it is used must be approved by the data owner. This helps to ensure that it maintains its integrity, consistency, and usefulness.
- Implement Scalable Policies with Automation Tools: Use tools like data catalogs and lineage tracking to automate and scale many governance processes.
- Tie Governance to Business Outcomes: Governance should be aligned with business goals, not just IT processes. This ensures that the governance efforts are driving real value, and not just checking boxes.
Conclusion
Gone are the days when data governance was optional. In today's data-driven world, it's a survival mechanism.
Here’s some actionable advice: Start small with manageable governance initiatives, focus on value, and scale responsibly as your organization matures.
By treating data as the lifeblood of your organization, that nourishes and enables growth for every facet of your operations, you set the stage for sustained success. Remember, every organization has some level of governance (usually sporadic, maintained by individuals), but the real growth can only come with a solid, well-structured data governance program. Haphazard governance can be more damaging than no governance at all, as it may foster a false sense of security.
Let’s not forget that data ownership is crucial. Knowledgeable data owners who oversee data integrity and consistency play a key role in maintaining the trustworthiness and reliability of your organization's data.
