Any business has several critical assets, but the people who make up the company are the most important asset. Data is the second; it is data governance that ensures that this vital data is accessible and usable. Data governance encourages companies to look at data as a tool that can be utilised to identify trends in customer behaviour and for cost-saving strategies.
When data governance is used effectively, it can lead to better analysis of data, better decision-making for the business and better operational support. Data governance also assists when it comes to avoiding errors or inconsistencies that have the potential to lead to numerous business issues. When a decision is made using insufficient data, it will usually be an incorrect decision and could lead to a problem; something that could have been avoided.
That isn’t the only important role that data governance plays, however. Its role in regulatory compliance is essential. It can help companies, no matter their size, comply with all of the regulatory requirements that are relevant to them. Companies like Agile Recruit are there to help companies ensure they have the right people on their teams to ensure they are fully compliant with data governance to avoid the hefty fines levied for non-compliance.
When good data governance is in place, it can lead to decreased data costs, an improvement in the quality of the data, and an increase for everyone in having good data.
What makes a good data governance strategy?
Each business will need its unique data governance strategy; what works and is suitable for one company will not necessarily be the most appropriate approach for another.
However, every company will share the same three key objectives:
- Compliance with all regulatory requirements is essential throughout the implementation and development phases.
- Ensuring all data is used correctly prevents personal and sensitive data misuse and errors.
- Improvement of data security – a key objective of data governance is to ensure all data remains secure and that there is no unauthorised access.
When creating a governance data strategy for a business, these three objectives should always be kept in mind when thinking about your “why.
Why do we need to understand the importance of why?
When you understand why you need good data governance, it will help you guide the data governance strategy you implement within your organisation. A company’s stakeholders will need to know why such a strategy is essential to the business. Team members must also understand and know “why” to get involved in a change management programme.
Why should a company adopt a data governance strategy?
There are numerous reasons why a company should consider doing this:
To be compliant with any regulatory requirements – any company that has data governance policies should have the policies in place that will help them ensure they are meeting the regulations
- A strategy breaks down data and people silos. Not only can good data governance practices assist with sharing insights, but they can also assist with good decision-making across the board.
- It creates a foundation for a data-driven organisation – companies with a good understanding of data are more likely to succeed.
- Improvement of data quality – data governance policies that are company-wide give the option for everyone to monitor, measure and improve the quality of the data that has relevance to them
Data is constantly changing, in line with the needs of a business. Data governance and related policies also need to change to match the needs of an organisation.