What is Data Governance?
A starting point for data governance.

What is Data Governance?

Data governance is a way of managing data in your organization. Data governance in itself is thus also not the goal; it is a necessity that many organizations need because of their challenges with managing data according to the governance rules required.

Data Governance is about people, processes, policies, and tools. These will allow organizations to make the right decisions, following best practices (and compliance rules) while they use data to become more successful.

In this two-part newsletter series, I'll cover the following topics:

  • 1: What is Data Governance and a Data Governance Framework?
  • 1: Advantages of Implementing a Data Governance Framework
  • 2: The challenges with implementing data governance
  • 2: A step-by-step plan on how to get started with data governance
  • 2: Best practices to succeed with data governance


What is Data Governance and a Data Governance Framework?

As the introduction mentions, Data governance is about three things: people, processes, and tech. A data governance framework is a blueprint for governing your data. Every data governance practice begins with defining this framework — unique to the organization.

The framework for data governance starts with defining the basis for your data strategy and compliance. First, the organization's data(-model) needs to be defined: what are the inputs, what data do we capture, and what do we output? The governance model then captures the processes and responsibilities that define how these data flows are managed and controlled.

In short, your data governance framework should include:

  • Organizational structure: The different teams' roles and responsibilities involved with data. This includes a champion at the management level down to the individual teams that produce and work with the data.
  • Data Definitions: What data do we have, in which systems does it reside, and what does it represent? (Can we all agree on the same definitions for our KPIs?) What is the structure of our data?
  • Norms and Policies: What branch-specific policies do we need to adhere to? Are we GDPR compliant?
  • Measure and improve: How can we measure the success of our data governance?


Advantages of Implementing a Data Governance Framework

The analogy "data is the new oil" underscores the potential value of data, but like crude oil, data requires refinement to unlock its true worth. A robust data governance framework is essential to help you establish processes that will allow you to transform your raw data into high-quality, actionable insights.

  1. Enhanced Data Quality: A data governance framework ensures that data is accurately collected, stored, and maintained. This improves data quality, making it reliable and trustworthy for decision-making processes.
  2. Improved Efficiency: With clear guidelines on data collection, storage, and usage, organizations can streamline their data management processes. This improves efficiency as teams spend less time searching for data or rectifying errors, allowing them to focus on value-adding tasks.
  3. Optimized Decision-Making: High-quality data leads to more informed decision-making. Businesses can confidently make strategic decisions by leveraging accurate and timely insights derived from the data governance framework. For example, marketing teams can tailor their campaigns based on precise customer data, leading to better ROI.
  4. Better Risk Management: A data governance framework also helps mitigate risks associated with data breaches, compliance issues, or data inconsistencies. Organizations can safeguard sensitive information and ensure regulatory compliance by implementing standardized protocols for data handling and access.
  5. Increased Agility: Agile decision-making is facilitated when decision-makers can access reliable and relevant data. A data governance framework enables organizations to adapt quickly to changing market conditions or emerging opportunities by providing a solid foundation of trustworthy data.

A well-established data governance framework refines raw data into valuable insights. It drives organizational efficiency, informed decision-making, and strategic agility, improving performance and competitiveness.



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