Data Governance Fundamentals

What is Data Governance?

 Definition by Different Organizations:

o DAMA International: Authority and control over data

management (planning, monitoring, enforcement).

o Gartner: Framework for decision-making and accountability in

data and analytics.

o Informatica: Strategies and technologies ensuring

compliance with regulations and corporate policies.

 Key Takeaway:
Data governance is a structured approach to managing data assets,
ensuring their quality, security, compliance, and value.

Core Elements of Data Governance

1. People (Decision Makers)

o Defines who is responsible for making data-related decisions.

o Establishes roles and responsibilities for maintaining data

quality, security, and definitions.

2. Framework (Policies & Procedures)

o Defines rules for managing data in an organization.

o Ensures consistency in data handling, including:

 KPI Definition: Standardizing key performance

indicators.

 PII Storage Policies: Ensuring compliance with privacy

laws.

 Data Availability Alerts: Processes for notifying users

about data issues.

Why Data Governance Matters?

 Prevents data leaks and security breaches.

 Helps companies comply with government regulations (e.g., GDPR).

 Ensures businesses remain competitive by managing data

efficiently.
  Avoids legal issues and reputational damage.

Introduction to Data Governance

1. Definition by Various Organizations

o Dama International: Managing data assets through

authority and control (planning, monitoring, enforcement).

o Gartner: Defining decision rights and accountability for

proper data handling.

o Informatica: Focus on compliance with regulations and

corporate policies.

2. Key Components of Data Governance

o People: Roles and responsibilities for data decisions.

o Framework: Policies and procedures defining data handling

(e.g., KPI definitions, data storage policies).

The Importance of Data Governance

3. Principle 1: Consistency

o Different teams may report different figures for the same

metric (e.g., average sales per customer).

o Data silos (departments using separate systems) create

inconsistencies.

o A governance framework ensures clear definitions and a

single source of truth for data.

4. Principle 2: Compliance

o Governments regulate data storage, access, and security

(e.g., GDPR in Europe).

o Personally Identifiable Information (PII) needs strict

governance to prevent breaches and legal issues.

5. When Data Governance May Not Be Necessary

 Small startups struggling with finances.

 Businesses that operate with just one system.

 Small operations like a coffee shop with a simple POS system.

6. Implementing Data Governance

  Start small with critical reports and key performance indicators
(KPIs).

 Use a hybrid model by governing only essential data first.

 Expand governance as the company grows in complexity.

Key Concepts in Data Governance

Data governance refers to the practices, policies, and standards put in

place to ensure data is accurate, secure, and used responsibly within an
organization. Here’s a breakdown of important concepts and roles
involved:

1. Executive Sponsorship

 Role: Ensures the success of the data governance program by

securing necessary resources and buy-in from other departments.

 Key Responsibility: To represent the program to other executives

and help guide it based on the company’s broader strategic vision.
This ensures that data governance has the support and commitment
needed to succeed.

 Why it's Important: Without an executive sponsor, the program is

at risk of lack of support and resources, leading to potential failure.

2. Data Governance Administrator

 Role: Acts as the public face of the data governance program.

 Key Responsibility: Facilitates meetings, drives initiatives, and

ensures communication regarding data governance across the
organization. They keep the program moving forward and ensure
engagement from all stakeholders.

 Challenges: It's important that this person is a strong leader to

avoid teams bypassing governance processes. They help others
understand the program’s value.

3. Data Stewards

 Role: The subject matter experts responsible for ensuring the day-
to-day quality of the data within their domain.

 Key Responsibility:
 o Manage metadata and data catalogs.

o Collaborate with other stewards and the Data Governance

Council on specific tasks.

o Ensure compliance with legal and regulatory requirements.

o Report issues and ensure the quality of data is maintained.

 Types of Data Stewards:

o Business Data Stewards: Focus on the data within business

processes.

o Systems Data Stewards: Understand system data storage

and communication.

4. Data Governance Council

 Role: A cross-functional team that makes decisions on data quality

standards, architecture, and legal compliance.

 Key Responsibility:

o Set strategic goals for the program.

o Determine processes and policies that must be followed by all

members involved in data governance.

 Why it’s Important: They help ensure that data governance aligns
with the company’s overall objectives and provides consistent
reporting and compliance.

5. Data Consumers

 Role: Those who use data for decision-making, such as marketing

coordinators or customer care supervisors.

 Key Responsibility:

o Report issues with data, such as inconsistencies in reports or

dashboards.

o Communicate missing data points that would improve their

workflow.

 Why it’s Important: Data consumers are the main users of the
governance program. If they can trust and effectively use the data,
the program can be considered a success.
Key Takeaways

 Effective Data Governance is Collaborative: Success relies on

the collective effort of many roles—executive sponsors,
administrators, stewards, councils, and consumers.

 Roles are Interconnected: Each role plays a part in ensuring data

quality, compliance, and usage across the organization.

 Data Governance is Dynamic: Depending on the size and

complexity of your organization, the implementation of data
governance will evolve over time.

Sections of the Charter

1. Purpose

 Why the group exists: The purpose section should clearly define
the reason for the existence of the Data Governance Council (DGC)
or similar body.

 Example Purpose Statement:

"The Data Governance Council’s role is to provide oversight of the

company’s data assets, ensuring consistency and compliance,
safeguarding customer data, and ensuring that data is trusted for
accuracy and completeness."

2. Scope

 Focus of the Program: Define what the program covers. Start with
critical data, like customer data, and expand over time.

 Example Scope Statement:

"The DGC will have decision authority over the handling of all customer
data and will approve any new systems in which customer data is shared."

3. Responsibilities

 Key Duties: List the responsibilities of the governance group.

o Data integrity across systems.

o Approval of new data processing systems.

o Regular audits to ensure compliance.

o Reporting breaches of security affecting customer data.

 Example Responsibilities:
"The DGC is responsible for ensuring data integrity between systems,
approving new data systems, auditing access, and reporting data security
breaches."

4. Measurement

 How Success is Measured: Define the key performance indicators

(KPIs) used to assess the effectiveness of the program.

o Data Value: How useful, complete, and timely is the data for
its consumers?

o Data Issues: How frequently data issues are reported and

addressed in governance meetings.

o Data Access: How quickly and easily users can access the
data needed for their roles.

 Example Measurement Statement:

"The DGC will measure the effectiveness of the program using KPIs,
including data value, data issues, and data access."

5. Members

 Who’s Involved: List the departments or teams involved in the

governance process, ensuring key stakeholders are represented.

o Example Members:

"The DGC will include members from marketing, sales, operations,

customer service, and finance—all departments that handle customer
data."

Example Data Governance Charter (Filled-in Version)

 Date: [Insert Date]

 Location: [Insert Location]

 Attendees: [List of Attendees]

Purpose:
The Data Governance Council’s job is to provide oversight of the
company’s data assets to ensure consistency and compliance so that
customer data remains secure and trusted.

Scope:
The DGC will have decision authority over all customer data and will
approve any new systems in which customer data may be shared.
Responsibilities:

 Ensure data integrity across all systems.

 Approve new data systems.

 Regularly audit access to data for compliance.

 Report security breaches that may compromise customer data.

Measurement:
The DGC will implement KPIs for:

 Data Value: How useful, complete, and timely the data is for users.

 Data Issues: Review data issues in regular meetings.

 Data Access: Speed of access to data by consumers.

Members:

 Marketing

 Sales

 Operations

 Customer Service

 Finance

Approaches to Implementing a Data Governance Program

1. Command and Control Approach (Top-Down)

 Description:
This is a strict, top-down approach where data governance is
enforced by assigning new roles, creating new processes, and
ensuring compliance at all times.

o Everything comes to a near halt to implement governance.

o Governance is seen as 100% necessary and is strictly

enforced to ensure high-quality data.

 Advantages:

o Ensures data quality through strict control.

o High compliance and consistency in data management.

 Challenges:

o May slow down development and rollout of new initiatives.

 o Likely to receive pushback from employees due to the rigid
nature.

 Best Use Cases:

o Ideal for industries that require high compliance, such as law

firms or healthcare organizations.

o Not recommended for startups or companies looking to scale

quickly.

2. Standard Approach (Balanced)

 Description:
A middle-ground approach where new processes are added, but it’s
not as strict as the command and control model.

o Roles are assigned based on skillsets, and tools to measure

compliance are implemented.

o Focus is on finding value through participation and building a

culture of support around governance.

 Advantages:

o Not overly invasive, encourages buy-in from stakeholders

early on.

o Strikes a balance between strict enforcement and flexibility.

 Challenges:

o Requires clear communication and proper role assignment to

be effective.

 Best Use Cases:

o Suitable for organizations that want to enforce governance but

without stifling growth and innovation.

3. Passive Approach (Minimally Invasive)

 Description:
This approach formalizes existing processes without introducing
major changes or new roles.

o Existing practices, such as how IT grants database access, are

documented and formalized.
 o The goal is to formalize existing processes, rather than
enforce new ones.

 Advantages:

o Low effort to implement, ideal for startups or organizations in

early stages.

o Minimal disruption to current operations.

 Challenges:

o May not fully address all gaps in data governance.

o Long-term sustainability could become an issue if processes

aren’t continuously refined.

 Best Use Cases:

o Ideal for startups or small organizations that don’t want to

slow down progress.

o Great for companies that need to keep their operations

flexible while still establishing basic governance practices.

Starting Small with Data Governance

Regardless of the approach chosen, it’s important to start by focusing on

key data assets that are crucial to your organization. For example:

 Start with executive dashboards or other critical data metrics.

 Write down how each metric is collected and defined, and document
it.

 Share this information with the data consumers (the people who use
the dashboards) to ensure transparency and accountability.

By starting small and focusing on critical data, you can gradually build out
the governance program while minimizing disruption. This approach can
be scaled as the organization grows and data governance becomes more
integrated into daily processes.