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Building a Data Governance Organization

Posted on June 30, 2008 by Dan Power

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I’m often asked how many data stewards a company needs.

A rule of thumb I’ve used for quite a while is “one data steward per $1 billion in annual revenue”, but of course that can’t be a hard and fast rule.

Depending on the company, the degree of automation, what data quality tools are available, and the major processes around the enterprise, that number is going to vary.

Here are some thoughts to keep in mind as you build your data governance organization:

  1. Build the business case and secure your funding.  Don’t forget this is a multi-year effort.  Several times, I’ve seen data governance teams and MDM initiatives that never thought beyond their first year’s funding, and who were surprised when funding for Year 2 and beyond wasn’t forthcoming.
  2. You’ll probably need a multi-layer, cross-functional approach.  Start with a high level group that sets data policy, usually called a Data Governance Steering Committee or Data Governance Council (DGC).  Your executive sponsor(s) should be involved with the DGC. Then you’ll probably have a small group of data stewards which handle day-to-day data management, which reports to the Data Governance Council.
  3. Focus on your data governance processes, including relevant metrics that show the impact to the business, and on communicating those metrics and their impact to the rest of the enterprise. Create a communications and education strategy to get the word out.
  4. Look for IT people who “speak business” and business people who “speak IT”.  These liaison-type people are going to be crucial to your data governance organization.  Although I believe that data governance should be driven by the business, there’s no question that you’re going to need a lot of support from IT. So look for the “bi-lingual” folks in your company - they’re out there and they can be incredibly valuable in understanding the business impact of data issues, and in providing the technology support that the data stewards will need.
  5. Don’t forget about metadata.  In your travels as a data governance organization, you’re going to run into a lot of metadata (information about information).  Develop a disciplined approach to cataloging and maintaining the metadata you come across.  In many ways, that will probably be one of the most useful outputs of your data governance initiative.

We’ll have more to say on data governance in this blog in the future, but let me leave you with one idea.  Instead of describing your MDM initiative as (hopefully) including data governance, think of it as a data governance initiative that has an MDM component.

You’ll be doing data governance in your enterprise long after your current MDM hub implementation is over.

If you don’t agree, or you have a perspective on data governance you’d like to share, please comment here on this blog.

Filed under: Best Practices, CDI, Customer Data Integration, Data Quality, Governance, MDM, Master Data Management, Politics, Strategy, business case | Tagged: CDI, Customer Data Integration, data governance, Master Data Management, MDM, Metadata, stewardship

« Consolidation of Data Quality and Data Integration Building Integration using SOA »

6 Responses to “Building a Data Governance Organization”

  1. Random Curry - Adventures in Deepest Darkest Corporate America » Building a Data Governance Organization, on June 30th, 2008 at 2:00 pm Said:

    [...] Building a Data Governance Organization [...]

  2. Steve Putman, on June 30th, 2008 at 2:01 pm Said:

    Hey Dan -

    I published my comment on my blog…

    http://lemoncurry.net/randomcurry/?p=139

    Thanks, Steve

  3. Identity Resolution Daily Links 2008-6-30 - Identity Resolution Daily, on June 30th, 2008 at 4:11 pm Said:

    [...] Hub Solution Designs: Building a Data Governance Organization “I’m often asked how many data stewards a company needs. A rule of thumb I’ve used for quite a while is ‘one data steward per $1 billion in annual revenue’, but of course that can’t be a hard and fast rule. Depending on the company, the degree of automation, what data quality tools are available, and the major processes around the enterprise, that number is going to vary.” [...]

  4. Dan Power, on June 30th, 2008 at 4:21 pm Said:

    Hi Steve,

    I think your point is 100% right - data governance doesn’t have a lot of sex appeal, but in today’s compliance-heavy environment, it is gradually be recognized as important, and as being worth spending time / money / effort on.

  5. jsantic, on July 15th, 2008 at 11:34 am Said:

    Dan,

    great post. your perspective is helping with a much needed paradigm shift that will have companies view their data as a strategic asset. In one article, http://towardintelligence.wordpress.com/2008/07/09/data-as-asset-on-your-balance-sheet/ the IBM data council predicts that data will be an asset on the balance sheet. This all goes to show the increasing importance of data governance and quality that seems to be gaining the mind-share of executives.

  6. Dan Power, on July 15th, 2008 at 12:40 pm Said:

    @jsantic,

    Thanks for commenting. I think that paradigm shift is underway.

    Part of it is a reaction to the information overload people are struggling with, part is due to the more complex regulatory and compliance environment companies are living in today, and part is due to the opportunity to decrease costs and increase revenue through better data. But it is starting to happen.

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