How to Build a Data Governance Strategy for Your Organization

An effective data governance strategy is crucial to manage and oversee data effectively, especially as data becomes more critical and technologies evolve. This strategic approach to data governance aligns with findings from a McKinsey survey, suggesting that companies with solid data governance strategies are twice as likely to prioritize important data — leading to better decision-making and organizational success.

However, creating a solid strategy requires careful planning and execution, involving several key steps and responsibilities.

What is a Data Governance Strategy?

A data governance strategy is a comprehensive framework that outlines how data is named, stored, and processed. A vital aspect of this strategy includes sharing data seamlessly. This objective is to ensure data integrity, accessibility, and compliance with regulatory frameworks.

Building upon this foundation, a good data strategy is a blueprint for organizations to achieve their overarching data aims. It does so by adding specific details to the broader goals. For instance, if an organization aims to launch a new product, a good strategy will ensure that up-to-date data backs up the launch and related decisions. It would focus on what the customer wants, how the market is behaving, and what other competitors are doing, all through the lens of fresh, accurate data.

In short, a data governance strategy includes the following:

• Establishing principles, policies, and procedures for data management.
• Developing a strategic plan with resource allocation and timeline.
• Implementing governance bodies to oversee compliance.
• Aligning the overarching data strategy.
• Ensuring ongoing monitoring and adaptation.

Three important components of data governance strategy ensure an organization’s practical management of data assets. These components offer a comprehensive plan for maximizing the value of data assets.

Data Governance Framework 

A data governance framework is the backbone and foundational structure of the data governance strategy. It encompasses a set of rules, principles, policies, and processes that govern data collection, storage, and use.

Under the data governance framework, organizations consider questions like:

• What standards and policies are in place to manage data?
• Who is responsible for various data governance roles?
• What are data privacy and security protocols?
• How will they monitor data access and sharing?

 Data Governance Roadmap  

A data governance roadmap essentially outlines the strategic plan and timeline for implementing the data governance framework. The goal is to identify key milestones, initiatives, and activities for successfully executing a data governance strategy. Think of it as a project plan that guides an organization to where it is now and where it wants to be regarding data governance.

In a governance strategy, the roadmap identifies areas needing improvement, areas performing well, and those that have not met expectations, enhancing data utilization and strategy performance.

Under the data governance roadmap, organizations consider questions like:

• What resources, such as tools and budget, are required?
• What are the key milestones and what is the timeline being considered for each stage?
• What projects are planned to enhance data governance?
• How will the KPIs be measured and reported?

How will the KPIs be measured and reported? 

Data Governance Program

A data governance program executes policies defined in a data governance framework guided by the strategic direction set in the roadmap. In simple terms, it deals with the operationalization aspect of any data governance strategy, which is needed to ensure that the principles and plans turn into concrete actions and outcomes.

Under a data governance program, organizations consider questions like:

• How are data governance principles applied in daily operations?
• How is the impact of data governance programs on quality and business outcomes measured?
• How is cross-functional collaboration facilitated?
• How are the data quality issues identified and resolved within the strategy?

Why is a Data Governance Strategy Needed? 

IDC predicts that by 2025, the worldwide volume of data is expected to expand by 163 zettabytes, covering information across physical systems, devices, and clouds. Processing and managing such a large amount of data requires an effective data governance strategy. It is needed to navigate the complexities of data systems.

A data governance strategy helps with the following concerns:

• Need for Compliance

It helps establish clear rules and procedures to ensure adherence to relevant regulations like GDPR. This strategy helps prevent data mishaps and builds a culture where data is handled wisely, protecting the company’s image.

• Data Security

A good data governance strategy also includes measures to protect the data from breaches. By effectively implementing access controls, authentication mechanisms, data masking, and other security measures, teams can protect sensitive information effectively.

• Cost Reduction

It helps reduce operational costs by reducing errors and redundancies in the data. Data governance strategies promote seamless data sharing; hence, fewer resources are spent on data maintenance, contributing to overall cost savings.

• Employee Productivity

It clearly defines roles and responsibilities for data management. This clarity leads to employees spending less time searching for information and dealing with complex data systems, allowing them to focus on higher-value tasks and projects.

• Better Decision-making

A good data governance strategy equals data integrity, and it ensures decision-makers have access to timely and reliable data. This results in better strategic outcomes and, ultimately, better business performance.

Building a Data Governance Strategy for Your Organization  

Here are five actionable steps to build an effective data governance strategy for your organization:

1. Assess Current Data Management State

Evaluating the current data state is the foundation for an effective data governance strategy. To effectively govern data, start by understanding what the data entails and whether it aligns with the objectives of data of the data governance strategy.

Here is how to approach it in detail:

Catalog Your Data 

Identify and map out data by clearly outlining each data set within the organization. This process includes structured and unstructured data on digital servers, online platforms, manual records, and cloud repositories. One tip is automating your data cataloging. Automated data solutions allow organizations to have a comprehensive data overview, thus making it possible to more effectively understand and interpret data as indexed in a data catalog.

Review and Identify Gaps 

After cataloging, evaluate how the data is stored, managed, and used. Consider any procedures related to data quality and security that are currently in place. Closely look for mismatches between existing data practices and the ideal state or regulatory standards and collaborate with different departments to gather insights on their data usage.

2. Define Goals and Objectives  

For a strategy to be successful, it needs a clear direction. This step begins with defining the data governance goals. The significance of establishing well-defined goals and objectives is deeply rooted in the strategy’s capacity to facilitate quick and seamless data sharing. When creating a plan, ensure that goals are clear and cover everything from big to small targets.

For instance, a data governance strategy can have the following goals:

• Achieving 100% compliance with data privacy regulations.
• Reducing data-related errors by 50% within the next year.
• Enhancing data quality through routine audits.
• Streamlining data sharing between departments.

Here is how to approach defining goals in a data governance strategy:

Define Key Performance Indicators (KPIs)  

For each goal, define clear KPIs that will help measure progress. The KPIs can include metrics like the reduction in data errors, improvement in data accessibility, or the number of staff trained in data governance practices.

Set Priority for Each Goal 

Not all goals can be handled at once. Prioritize data governance strategy goals based on their urgency and impact on the organization. Start with the most impactful and urgent goals, such as ensuring full compliance with GDPR/CCPA regulations within 6-8 months to avoid legal penalties.

Try the SMART Approach

When working on data governance objectives, ensure that the goals are Specific, Measurable, Achievable, Relevant, and Time-bound. This clarity will facilitate easier monitoring of progress and evaluation of the strategy’s effectiveness.

3. Identify Resources for Data Governance 

Selecting the right tools and personnel is crucial for data governance success. An IBM report shows companies with robust data governance and the right resources see a significant increase in revenue, highlighting the importance of having skilled individuals. To identify the necessary resources for a data governance strategy, a three-tiered data governance lead (DGL) is efficient.

DGL ensures proper data use and aligns data rules with business goals across all departments. In a DGL, the:

• Steering Committee (SC) leads,
• Data Governance Office (DGO) coordinates,
• Representatives from each business area, including IT, come together as the Data Governance Working Group (DGWG).

Here is how to identify the right resources for data governance strategy:

Evaluate Skills

Emphasize the recruitment of experienced personnel while highlighting the skills necessary for success, including effective communication, the ability to build consensus, and a deep understanding of governance industry practices.

Set Performance Metrics  

Use necessary metrics to check the effectiveness of the chosen tools and the team’s performance. Evaluation helps identify areas of improvement and measure the success of your data governance strategy.

4.  Implement Metadata Management  

Metadata management is a core step in building an effective data governance strategy. Metadata provides data with specific context, such as its format, source, creation date, and version. In simple terms, it adds meaning to the data. By implementing metadata management into the data governance strategy, you create a structured environment where data is not only secure and compliant but also readily accessible and usable for analytics and decision-making,

Here’s how to approach this:

Define Metadata Standards

Create clear standards for metadata, including formats, naming conventions, and taxonomy, to ensure consistency across data assets.

Audit Existing Metadata

Conduct a comprehensive audit of existing metadata across the organization. This examination includes identifying all data sources, their associated metadata, and any gaps in metadata documentation.

Implement A Repository

Create a centralized metadata repository or a catalog that serves as the single source of truth for metadata across the company. The repository should be accessible to all stakeholders, supporting searchability and metadata management.

4. Establish Governance Framework 

A data governance framework serves as a blueprint for your data governance strategy, containing all the policies and procedures. For instance, policies may specify data retention periods and access controls, while procedures detail the monitoring and maintenance of data quality.

Approach the governance framework in your data governance strategy by:

Setting Goals

Define what you want to achieve with your governance strategy. Also set a scope by identifying which data assets will be governed and the departments or business units involved.

Creating Policies and Standards

Develop clear data governance policies outlining roles, responsibilities, standards, and procedures. Policies should cover data quality, privacy, security, and usage. Establish data standards and metrics for measuring data quality, compliance, and the effectiveness of governance activities.

Assigning Roles

Define a governance structure that includes roles such as data stewards, data owners, and a data governance council or board. Assign specific responsibilities for data management and governance activities to individuals or teams.

Implementing a Data Governance Strategy  

As mentioned before, putting your data governance strategy into practice involves following the roadmap, using the framework, and managing the governance programs. Start by following the roadmap, which tells you what steps to take and when. This approach helps keep the implementation focused and aligned with your primary business goals.

Alongside, ensure the rules and responsibilities set out in your framework are followed daily. This adherence means having teams check that everything is running smoothly and making any necessary adjustments. By keeping on top of these tasks, your strategy will fit well with current operations and strengthen the overall management and use of data in your organization.

Wrapping Up!  

To sum up, a good data governance strategy is the main step in creating a successful data governance program, and each governance strategy is unique, with its own set of goals and objectives. By keeping points like being clear when defining goals and opting for the right resources and tools, organizations can lay the groundwork for a reliable data governance strategy, enhancing efficiency and data-driven insights.

LIKE.TG’s data governance solution enhances this process by offering a no-code, unified platform that simplifies data management, ensuring data integrity and enabling seamless sharing.

Try out a free 14-days trial today for a comprehensive solution to all your data governance needs.