Driving Data Initiatives: A Leadership Perspective

Data management is a priority for many organizations worldwide. Several factors influence the trends in developing this business area, such as economic uncertainty, increasing regulatory pressure, technology development, business digitalization, and rapid progress in AI. These factors drive organizations' data-related initiatives: developing IT and deployment approaches, establishing data management frameworks, collaborating with other business functions, etc. The involvement of top management is crucial for the success of these initiatives. In this article, we:

·????? Review the trends in the roles responsible for initiating data-related initiatives

·????? Analyze the challenges associated with implementing a data management framework

·????? Highlight the importance of involving top management in data-related initiatives

·????? Discuss key reasons for an organization's top management to implement a governance framework

·????? Provide high-level recommendations

Trends in the roles responsible for initiating data-related initiatives

Many data professionals complain that it is difficult to gain the attention and support of C-Suite members for data-related initiatives. I conducted the same poll on LinkedIn in 2020, 2023, and 2024, asking a simple question: "Who has initiated the implementation of data management or governance function in your company?" Figure 1 demonstrates the results of these polls.

Surprisingly, the role of C-suite members in initiating data-related initiatives is relatively weak. Even more concerning is the gradual decline in the percentage of CEOs and CFOs involved in these initiatives. This is perplexing, considering that CFOs often experience significant data delivery and quality challenges.

On the other hand, the role of CIOs, CTOs, and CDOs in initiating data-related initiatives has increased significantly, from 24% in 2020 to over 60% in 2024. CIOs/CTOs are becoming the primary drivers of data initiatives, reflecting the growing importance of technology in data management and strategy.

Middle management's involvement in initiating these initiatives has decreased sharply, from 42% in 2020 to a projected 17% in 2024.

These trends indicate a significant shift in responsibility for initiating data-related initiatives. The role of broader executive roles (CEOs and CFOs) in these initiatives is gradually declining, while more specialized, technology-focused roles (CIOs/CTOs/CDOs) are taking the lead. This shift underscores the increasing recognition of data management as a critical strategic function, strongly emphasizing leveraging technology and data to drive business outcomes. The dominance of CIOs/CTOs/CDOs in initiating data-related initiatives signals that data management is increasingly viewed as a technological and strategic function rather than a general business function. The decreasing role of middle management further highlights that data initiatives are being managed at more senior, specialized levels within organizations.

One of the trending data-related initiatives is the implementation of a data management framework. Let's discuss the key challenges organizations worldwide face.

Challenges associated with implementing a data management framework

Figure 2 demonstrates the results of the poll I conducted on LinkedIn, which aimed to investigate the trends and challenges related to implementing a data management framework.

The graphic highlights the evolving challenges in implementing a data management framework between 2023 and 2024. While some specific challenges, such as securing C-suite and business support, are becoming less significant, the general complexity of implementing a data management framework is increasing. There is a notable rise in the number of respondents who perceive all listed challenges as significant, suggesting that as organizations advance in their data management efforts, they encounter more complex and interconnected challenges. This is particularly evident in the growing difficulty of establishing a robust data governance framework.

Despite a slight decline in the percentage indicators of "C-Suite and business support," it remains one of the most prominent challenges, indicating ongoing difficulties in securing top-level support for data management initiatives. This challenge stands out compared to others. The fact that "C-suite and business support" remains high underscores the critical role leadership plays in the success of data management frameworks, even as other challenges fluctuate.

Let's briefly discuss the importance of involving top management in a data-related initiative.

The importance of involving top management in a data-related initiative

Every data management initiative is both time-consuming and resource-intensive. It may begin as a project or program, but once initiated, it becomes an ongoing business-as-usual activity, primarily if the organization aims to establish data management as a core business function. This leads to a straightforward conclusion: for a data management initiative to succeed, the organization's top management must sponsor it and recognize it as a strategic priority.

It is worth noting that the European Central Bank's latest "Guide on effective risk data aggregation and risk reporting" imposes substantial requirements on an organization's management body. The guide stresses that the management body is accountable for "accepting accountability and exercising full responsibility for risk data quality and governance as a part of the overall risk management framework" and "selecting one or two members of the management body in its management function to exercise responsibility for implementing the data governance framework." Should all organizations comply with this regulation, progress in improving data management practices would be tremendous.

In many of my workshops, I frequently encounter the same questions: "How can we involve top management in a data-related initiative? How can we demonstrate the importance of a governance framework?" Let's explore the key points you can use to persuade C-suite members to actively sponsor data-related initiatives effectively.

Key reasons for an organization's top management to sponsor establishing a governance framework

Many organizations begin their data management initiatives at the operational level by implementing various IT tools. While eager to adopt these tools, they often attempt to save money by skimping on data governance.

To convince your management to invest in a "full-scope" data management approach and develop a comprehensive governance system, consider using the following reasons:

Control over data and IT assets

Any organization needs to establish a governing system to control and monitor the usage of data assets. This system can make such a control cohesive and consistent. It ensures a consistent approach to handling and managing data and IT assets across all organizational departments, reducing the risk of discrepancies and errors.

Read further: https://datacrossroads.nl/2024/08/12/driving-data-initiatives-a-leadership-perspective/

About the author:

Dr. Irina Steenbeek is a well-known expert in implementing Data Management (DM) Frameworks and Data Lineage and assessing DM maturity. Her 12 years of data management experience have led her to develop the "Orange" Data Management Framework, which several large international companies successfully implemented.?

Irina is a celebrated international speaker and author of several books, multiple white papers, and blogs. She has shared her approach and implementation experience by publishing?The "Orange" Data Management Framework,?The Data Management Toolkit,?The Data Management Cookbook, and Data Lineage from a Business Perspective.

Irina is also the founder of Data Crossroads, a coaching, training, and consulting services enterprise in data management.?

To inquire about Irina's training, coaching, or participating in your company webinar or event, please email?[email protected]?or book a free 30-min session at https://datacrossroads.nl/free-strategy-session/