Small Business Data Governance: A Roadmap to Scale with Success

As a small business, your data is a valuable asset. It informs your decisions, helps you comply with regulations, and opens doors to new opportunities. However, as your business grows, so does the need for effective data governance. In this article, we'll provide practical tips for managing data effectively and strategies for scaling data governance capabilities. We'll also examine examples of successful SMBs that have scaled due to data governance effectiveness.

Why Effective Data Governance is Critical for Small Business Success?

Think of your data as a map that guides your business decisions. Just as a map needs to be accurate and reliable, so does your data. By prioritizing data governance readiness, you can ensure that your map is accurate and reliable.

How Do You Scale Your Data Governance Capabilities:

Small businesses face unique challenges due to limited resources and budgets. However, they can still enhance their data governance capabilities by taking some key steps:

1.?Start by creating a data governance framework that outlines policies, procedures, and standards for managing data.

2.?Invest in data management tools and technologies.

3. Additionally, train employees and ensure compliance with regulations like GDPR - invest in data literacy.

4.?Promote successful data governance and break down siloes between business and IT to enable better data flow.

Examples of successful small businesses who have scaled due to data governance effectiveness:

1.?HelloFresh: Meal-kit delivery company HelloFresh scaled analytics with Informatica to democratize data and make it easier for employees to find and use. This saved 100+ hours/week in data discovery and helped meet increased demand during the pandemic, resulting in doubling its year-over-year revenue.

2.?Bulldog Solutions: Bulldog Solutions, a marketing agency, implemented a data governance program that helped them improve data quality and consistency. As a result, they were able to create more effective marketing campaigns and increase revenue.

3.?T-Mobile: While T-Mobile is not a small business, their data governance efforts have been particularly effective in helping them compete with larger rivals in the telecommunications industry. By implementing a data governance program that focused on improving data quality, consistency, and accessibility, T-Mobile was able to better understand customer needs and preferences and offer more personalized and effective services. This helped them gain market share and increase revenue.

4.?Mailchimp: Mailchimp is a marketing automation platform. They use data quality tools to ensure that their customers' email lists are accurate and up to date, which has helped them scale their business and become a leader in their industry.

How do you even begin to get there??

Hint: Start By Assessing Your Small Business's Data Governance Maturity:

To assess your small business's data governance maturity, you need to ask yourself some key non-negotiable questions. These questions will help you identify gaps, risks, and opportunities for improvement in your data governance practices. Here are the six questions you should consider:

1.?How do you collect and manage data, and are you compliant with legal requirements?

2.?How do you ensure the quality and accuracy of your data?

3.?How do you protect your data against unauthorized access and malicious attacks?

4.?How do you monitor and audit your data usage, and ensure compliance with regulations?

5.?Have you developed a data governance plan, and are the roles and responsibilities clearly defined?

6.?Are you prepared for data recovery in case of a disaster?

Your Initial 100-Day Strategy for Data Leadership

In a data-centric small company,?the first 100 days are crucial for establishing a successful data management approach for a data leader. It's vital to comprehend the present status of your organization's data management and devise a strategy for utilizing data solutions and services to enhance it.

The first 100 days plan should include:

·???????Discovering the culture of the organization

·???????Engaging with quick wins

·???????Building literacy and trust

·???????Working with data governance?

·???????Mapping data movement

·???????Beyond 100 days - creating a long-lasting strategy.

Your data is valuable. Managing it effectively is key to building a data-driven business that can maximize profits and deliver excellent customer service. With the rapid growth of SMBs and the desire to keep pace, it can be tempting to focus solely on your business operations, forgetting the importance of data management. In the end, data management skills are what make the difference between a successful small business and an average one.