Data Governance Principles

Data governance starts with core principles that lay a solid foundation for managing your organization's data assets. These principles establish a framework of trust by making sure the data you collect is accurate, accessible, and secure. In practice, this approach involves setting clear policies, standards, and procedures to guide your team in handling information properly throughout its lifecycle. Following good data governance principles can give you reliable data to work with so that your organization can make informed decisions and drive better outcomes. 

How Good Governance Can Boost Trust & Value in Your Decisions

Data governance involves setting clear policies and standards for data security. These guarantee that information is used appropriately and safely. In today’s business landscape, where decisions can have far-reaching implications, this level of accuracy and trust is crucial.

Moreover, good data governance facilitates better access to high-quality data. This is key to making timely and effective decisions. When teams can easily access the data they need, they can respond more quickly to changes in market and customer needs as well as internal demands.

Top Data Governance Principles & Best Practices

Remember, there’s no one-size-fits-all approach to the modern data governance strategy. Every organization has unique needs and objectives, so you must tailor your approach to fit your specific circumstances. Thus, behind every data governance best practice are principles that guide its effective implementation and execution. 

Knowing these can help you better understand the importance of data governance and how to apply it in your organization. Below are the top six data governance principles and best practices you need to learn about to properly govern your organization’s data:

Data integrity

The principle of data integrity focuses on the accuracy and consistency of information in your organization. It’s about making sure the data is reliable and trustworthy so that you can make informed decisions with confidence.

When you’re unsure of the integrity of your data, you risk causing errors that could damage the credibility of your organization and cost you millions in losses. As such, you must establish processes and controls to uphold integrity throughout your data’s lifecycle.

Here’s how you can put this principle into practice:

1. Perform validation checks

Check your data by verifying formats, checking for missing or duplicate values, and validating it against predefined rules or constraints. This way, you can identify any inconsistencies or errors in your data and take appropriate action to correct them.

2. Audit and cleanse data

Staying on top of your data assets can help you spot problems that could affect data integrity. Consequently, you can cleanse your data using tools such as Integrate.io and Tibco Clarity to automate the process of detecting and resolving data quality issues.

3. Set up clear data entry standards and guidelines

Upholding data integrity starts from the very beginning - during data entry. Establish clear standards and guidelines for how data should be entered into your system. This may include specifying required fields, valid formats, and naming conventions.

Data accessibility

Data accessibility means making sure that the right people have access to the right data at the right time. Fostering a data governance culture focusing on accessibility allows organizations to use and leverage their data assets effectively.

Without access to the right information, your team won’t be able to do their jobs properly. It leads to inefficiencies, delays, and missed opportunities. Here’s how you can put accessibility into practice:

1. Define clear access policies and user roles

Determine who should have access to what data based on their roles and responsibilities within the organization. The process involves defining access levels, permissions, and restrictions so that only authorized people can obtain sensitive data.

2. Leverage software for easy access to data

Data management tools such as Microsoft Azure or Google Cloud Platform can provide a centralized platform for accessing and managing data. These come with customizable user authentication mechanisms to facilitate secure and controlled access to data.

3. Review and update access controls

Employees get promoted or terminated, so it’s important to review and update access controls regularly. For example, when someone changes roles in the company, their access to certain data should be revoked or adjusted accordingly. By doing so, they can have access only to the data that is relevant to their new position.

Data security

Data security should accompany data accessibility to make sure that your assets are protected from unauthorized access, use, or disclosure. This principle focuses on implementing measures to prevent data breaches and safeguard sensitive information.

Small businesses have been a prime target for cyberattacks. A recent report found that 61% of SMBs have fallen victim to these attacks in the past year. Regardless of your company’s size, you must uphold this principle in your data governance efforts to protect and foster trust in your organization. 

Here’s how to get started:

1. Set up comprehensive cybersecurity measures

One of the cybersecurity protocols you should implement is encrypting data that’s in storage (at rest) and when it’s being transferred between systems. Encryption involves using algorithms to convert data into a format that can only be accessed with a decryption key.

It adds an extra layer of protection to your data and makes sure that it cannot be read or used even if it is intercepted. Additionally, firewalls can help you monitor and control incoming and outgoing network traffic.

2. Perform regular audits and vulnerability assessments

Regular checks on your systems and networks can help you identify any potential weaknesses in your data security. By doing so, you proactively address issues and implement necessary security measures to protect your data.

3. Train employees on cybersecurity and data privacy best practices

Human error is often a contributing factor to data breaches. Educate your employees on cybersecurity and data privacy best practices, such as creating strong passwords and recognizing phishing attempts. When they’re equipped and confident about handling sensitive data, you can significantly reduce the risk of a security breach in your organization.

Data transparency

Data transparency is all about making the assets’ origins, structure, and modifications visible and understandable to authorized users. This principle is important because it promotes accountability and builds trust internally. 

Without transparency, data users may question the credibility of the data and the decisions made based on it. It can then lead to a lack of confidence and collaboration within the organization.

If you want you organization’s data to remain transparent, here’s what you should do:

1. Maintain comprehensive logs of data changes and access

Document all changes made to the data, including who made the changes and when they were made. Having records like these can provide a clear audit trail and foster accountability for any modifications or accesses to the data.

2. Invest in data lineage tools

Data lineage refers to the flow of data from its source to its destination. Data lineage tools can track and document the journey of data, including any transformations or modifications that occur along the way. Collibra and Octopai have dedicated lineage features to help you visualize and understand the data lineage.

3. Communicate how and why data is used

Make sure to openly discuss the processes and reasons for using data in your organization. While you don’t need to share confidential details with everyone, it’s good to give your team an idea of your data governance framework to keep them engaged in the process. You can do this through team meetings, email updates, or company-wide presentations.

Data compliance

Another key principle is data compliance. It involves adhering to relevant laws, regulations, and policies related to data management and privacy.

For instance, data protection regulations such as the General Data Protection Regulation (GDPR) or state-specific consumer privacy acts require organizations to handle personal data in a specific manner to protect individuals’ privacy rights. As a business entity, it’s your responsibility to comply with these regulations and support consumers’ rights.

Here’s how to get started:

1. Stay updated on relevant data protection regulations

First, you must be aware of the current data protection regulations that apply to your organization. Joining industry-specific forums or subscribing to newsletters from regulatory bodies can help you stay informed about any updates or changes in these laws.

2. Implement data protection measures

Once you’re familiar with the regulations, you can set up appropriate data protection measures, such as anonymizing or pseudonymizing personal data. You can also prioritize obtaining explicit consent from individuals before collecting their data. Lastly, follow proper data retention and disposal practices.

Data accountability

Accountability makes sure that individuals take ownership of data quality and security, which leads to better governance overall. When every employee understands their role in upholding the data governance principles above, your organization can continue to operate with confidence and trust in the data being used.

Here’s how you can implement data accountability in your organization:

1. Assign clear data ownership and stewardship roles

Data owners are responsible for the overall management of specific data assets. Data stewards, on the other hand, handle the day-to-day tasks related to data management, such as data entry, data validation, and data quality monitoring.

While everyone in the company should uphold data governance principles and practices, you should still assign people who are accountable for specific data assets. This way, there’s clear responsibility and authority over the information in your data warehouses or data lakes.

2. Establish accountability mechanisms like KPIs and regular reporting

Quantify the process of tracking data quality through specific key performance indicators (KPIs), such as the number of data errors or the percentage of data completeness. Set targets for these KPIs and monitor them for continuous improvement.

Regular reporting also gives you visibility into how well your data governance efforts are going. Create reports that highlight key data governance metrics, such as data quality scores, data security incidents, and compliance adherence. You can share these reports with stakeholders and leadership to demonstrate accountability and track progress over time.

3. Foster a culture of responsibility and transparency around data

Emphasize the importance of data governance and accountability at all levels of the company, from top management to individual employees. You can do this by involving employees in decision-making processes and providing opportunities for them to contribute their insights and expertise.

Additionally, review and update your data governance policies and procedures regularly so that they align with industry best practices and regulatory requirements. With this, you demonstrate your commitment to maintaining high standards of data accountability and security. Make sure to communicate these changes to all employees and provide training or resources to help them understand and comply with the updated policies.

Challenges in Enforcing Data Governance Principles

Data governance is beneficial to all, but it won’t be easy getting everyone on board. This is especially true if your organization has been operating without a strong data governance framework in place and you introduce changes that might disrupt existing workflows or require additional resources.

Here are some challenges you may face when enforcing data governance best practices and principles:

Resistance to change

Effective change management is critical when implementing any new framework or process. Some employees may be resistant to adopting new data governance practices because they are comfortable with the current way of doing things or fear that it will create extra work for them.

Overcoming resistance to change requires an investment in  communication and training. It involves showing employees the practical benefits of data governance in their individual tasks and the organization as a whole.

For instance, good governance leads to improved data quality, which means sales teams can rely on accurate and reliable information when reaching out to potential buyers. They can prioritize the sales funnel appropriately and focus on prospects who are most likely to convert into paying customers. Similarly, effective data governance can help marketing teams target the right audience with personalized campaigns, which can result in higher conversion rates.

Lack of data governance awareness and understanding

Another challenge is the lack of awareness and understanding of data governance. Some employees may not fully grasp the importance of why they should handle data properly and how it affects their daily work. It leads to a lack of motivation or buy-in when it comes to implementing best practices.

To address this challenge, you can organize onboarding training to explain the data governance framework and tools you’ll be using. Make sure to highlight how proper governance increases efficiency, enhances security, and, ultimately, improves decision-making for everyone in the company.

Limited data and resources

Limited resources, such as budget constraints, can make it difficult to allocate the necessary resources for training, tools, or hiring dedicated data governance personnel. To overcome this, 

you can start small, prioritize the most critical areas in your organization that need data governance and focus your resources on those.

For example, departments or teams that handle sensitive customer information or are heavily involved in data-driven decision-making should be the first priority. These could be HR or finance departments, where data privacy and accuracy are crucial. 

Once you’ve successfully executed and demonstrated the value and impact of data governance in these areas, you’re more likely to get support and secure additional resources for broader implementation.

Lack of executive support

Speaking of support, one of the main challenges to upholding data governance principles is the lack of executive backing. The key decision-makers should be fully on board and committed to enforcing policies and driving cultural change in the organization. Without their support, it can be difficult to even start on your governance framework.

Often, this challenge is tied to a lack of awareness of the importance of handling data properly. Education is your best tool to overcome it. Show them how effective governance can boost the company’s bottom line and mitigate risks. Provide case studies or examples of how other organizations achieved positive outcomes after they established a data governance framework.

Lastly, discuss the potential financial and reputational risks of not governing data properly. Consequences can come in the form of data breaches, legal troubles, and missed business opportunities.

Lack of standardized processes

Inconsistent or fragmented processes can be an obstacle to effective data governance. Without a set of standards and guidelines, you can’t guarantee data quality and integrity.

Before you develop your governance framework, you must first identify and document your organization’s current data processes. It includes understanding how different departments collect, store, analyze, and share across your internal systems. Once you have a clear picture of your existing processes, you can use these insights to develop standardized processes. It may involve creating data templates and establishing data entry protocols for consistency and accuracy. Moreover, get each department involved in this undertaking for practical changes that align with their needs.

Of course, as you lay the foundation for your data governance system, remember that it’s an ongoing process. You need to monitor, evaluate, and improve the strategy regularly to manage and protect your data effectively.

Build A Solid Foundation For Reliable Data

Data governance principles can help you outline the guiding framework for your strategy. In fact, they are more than just guidelines; they’re a foundation that can help you build a solid data-driven organization. 

Each step toward good management can help you transform your data into one of your most valuable and strategic assets.

FAQs

What is the most important data governance principle?

The most important data governance principle is data integrity. This principle emphasizes data accuracy, consistency, and reliability throughout its lifecycle.

It’s foundational because it directly impacts the trust and confidence that organizations and their stakeholders place in the data. When you uphold data integrity, you and your team can make decisions based on high-quality, trustworthy information which is crucial for the success of any organization.

Are there any tools used for data governance?

Data governance tools are software applications or platforms that help you manage, secure, and use your data effectively. Some examples include SAP, Ataccama, and Talend, which provide features for data quality management, metadata management, data cataloging, compliance monitoring, and workflow automation.

How do you structure data governance? What does a proper data governance framework look like?

A typical data governance framework involves establishing clear roles for data owners, stewards, and governance teams. Next, you must develop a framework that outlines how you’ll be managing, accessing, and protecting data.

Make sure to integrate your data governance framework into all key business processes for better decision-making and operational efficiency. It’s also best to invest in governance tools to support and automate the processes involved.

Lastly, assess and refine your data governance structure. This way, it remains aligned with your business’ growing needs and technological advancements.