By Anne Marie Smith, Ph.D., FIDM, ADGP
Many organizations are hesitant to develop a data management/data governance program since they believe common myths about the programs’ complexity, technologies, and value. It is important to examine some of these myths to learn the truth so data management and data governance leaders can base their approaches on facts and proven practices. Staff should also be aware of these myths and how to overcome them.
Data Governance and data management are only for large organizations in selected industries
Data management is essential for organizations of all sizes, regardless of the volume or structure of data. Effective data management practices benefit businesses of any scale. Data governance, as a foundational function of effective data management, is crucial for every organization. It is especially important for data-intensive industries such as insurance. Scaling programs to fit the organization’s size and the goals for data usage are some of the most important aspects of designing appropriate, sustainable data governance and the other functions of data management.
Data Governance is only concerned with regulatory compliance
Data governance focuses on effective and continuous improvement of the policies and practices to manage data consistently across the organization. Compliance ensures adherence to identified standards and best practices and should be aligned with the data governance program so the organization can realize improved outcomes and enable strategic decision-making with trusted data. Although managing compliance is often a reason for organizations to start a data governance program, it is not the only reason, even for regulated industries such as insurance, financial services, or healthcare.
Data governance is not a business function – it is technical and too complex for business users
Although Information Technology (IT) is often associated with data governance and other data management functions, business users play a significant role and should be leaders in a data governance program. Technical staff support a data governance program with tools like a data catalog, data quality management applications, and Master Data Management (MDM) systems. All data management/data governance tools should be evaluated by business users as well as by IT, since many applications will be used, in part, by business staff.
Data Governance and Data Management success depends on using a specific tool/application
While a good tool is necessary for large-scale and sustainable data management, more importantly, it is critical to focus on how the data is defined, organized, and evaluated for its fitness to be used in operations or analytics – tools will not replace the need for these human activities. Any application is a means to an end, and success with data governance is determined by human decisions and business processes more than by the implementation of any application.
Implementing data governance and data management is too time-consuming and difficult without a sufficient return on investment
Implementing data governance may seem challenging due to the multitude of domains, cultural changes, and technological aspects involved. However, all experts recommend that any organization start with a scalable framework to establish the foundation for good data governance. With that foundation, design and execute a simple plan for identifying the major data issues (e.g., consistent data definitions, improved data quality for selected data elements, identifying the most important data-related policies and standards to help manage data more consistently, etc.) and choose one of these goals as the first project. Taking incremental steps toward progress and keeping the focus on achievements can help any organization realize long-term success with data governance and the other functions of data management. Identify measures that can show progress to demonstrate value and report them regularly.
Data governance does not apply to functions like data quality improvement, analytics – it only applies to data access control
Data privacy, information security, and controlling access to data are vital aspects of data governance, and the data governance program should be involved in developing and implementing the data privacy policies (in conjunction with the organization’s information security team). However, data governance is not only concerned with data privacy. Data governance is part of enterprise data management, and the other functions of data management (data quality, metadata management, analytics, master data management, etc.) are aligned with data governance. These other functions support data governance, and effective data governance can provide capabilities for these functions to be performed more effectively.
Data governance is a project – implemented and then “on to the next project”
Data governance is a program and not a project. It is like the functions of accounting or marketing – continual. The data governance program should be developed and implemented as part of an enterprise approach to data management that includes metadata management, data quality management, etc. Once a foundational program in data governance has been established, the organization can gradually move towards more advanced data management practices and incorporate data governance into the overall practice of managing data across the organization consistently.
Data governance does not need a business case or a common framework to establish its value, goals, or business purpose
Every successful data governance program starts with a specific case study to establish the foundation of data governance, making it easier to understand and identify the expected business value and goals based on the organization’s current state and business expectations. Basing the data governance program on one of the common and robust data governance frameworks will give the organization a strong foundation for building a sustainable program. A well-designed data governance program can be built with a strong business case for the function and its objectives. Most organizations that start a data governance program with a business case and a robust framework find it relatively easy to expand it to cover additional functions in more depth as they need. A good business case can also serve as justification for spending and resource allocation for the initial data governance program and subsequent phases, while using the framework can ensure that all the appropriate best practices and connections to other data management functions are incorporated.
Conclusion
There are many myths about data governance and enterprise data management, and each of them should be examined and refuted so that data governance and data management become accepted functions at any organization. Training in the concepts, best practices, and proven approaches to data governance implementation can help dispel many myths and improve the competencies of any data governance program.
Dr. Anne Marie Smith: Architect of Modern Data Management Practices and Educator of the Profession
Anne Marie Smith, Ph.D., is an Information Management professional and consultant with broad experience across industries. She is a certified data management professional (CDMP) and is a frequent speaker and author on data management topics. Anne Marie is a primary author of several sections of the DAMA-Data Management Body of Knowledge (DAMA-DMBOK). Anne Marie received the DAMA International Professional Achievement Award in 2015. She was awarded the designation of “Fellow of Insurance Data Management” and “Fellow of International Information Management” and holds numerous certifications.
Anne Marie’s consulting areas include: enterprise information management strategy and planning, enterprise information assessment and program development, data governance program development, data warehousing, business requirements gathering and analysis, master data management, data quality management, and data architecture. She has taught numerous workshops and courses in her areas of expertise.
Anne Marie holds the degrees of Bachelor of Arts and Master’s of Business Administration in Management Information Systems (MIS) and Risk Management from La Salle University; she earned a Ph.D. in MIS at Northcentral University.
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