Data Governance: The Secret Sauce to Software Success

Implementing enterprise software like ERP (Enterprise Resource Planning) or CRM (Customer Relationship Management) systems is no small feat. It’s akin to constructing a skyscraper: you need a solid foundation before you start building upwards. In the world of software implementation, a significant part of this foundation is your data governance program. Without it, you’re essentially trying to build a skyscraper on quicksand.

What is Data Governance?

Data governance is a comprehensive approach that encompasses policies, procedures, and standards to ensure the effective management of data across an organization. It ensures data accuracy, consistency, and security, providing a clear framework for data management practices.

Why Data Governance Matters

Imagine you’re baking a cake, but instead of measuring your ingredients, you just throw “a little” of this and “a lot” of that into the bowl and hope for the best. But a little to me is probably different than a little to you and is a lot a cup, a pound or a gallon? With these vague references, chances are, you’ll end up with a disaster rather than a delicious cake. Implementing enterprise software without a robust data governance program is much the same – garbage in, garbage out.

1. Consistency is Key:

   • Without data governance, there’s no consistent structure across the organization on how to manage data. This leads to discrepancies, errors, and a lack of trust in the data.

2. Accurate and Current Data:

   • Enterprise systems rely on accurate and current data to function correctly. Without it, no system, no matter how sophisticated, can help you make good, timely decisions.

3. Avoiding Data Chaos:

   • Think of data governance as the traffic cop that directs the flow of information. Without it, you’re left with a chaotic intersection where data crashes are inevitable.

The Dangers of Skipping Data Governance

Skipping data governance before starting your ERP or CRM implementation is like ignoring the foundation while building a house. Here are some potential pitfalls:

1. Data Management Nightmares:

   • Without a clear data governance strategy, managing data becomes a nightmare. You’ll face inconsistencies, duplication, and errors that can cripple your new system from the get-go.

2. Migration Mayhem:

   • Data migration is a critical part of any software implementation. Without governance, you’re essentially transferring junk from one system to another, exacerbating existing issues.

3. Customization Catastrophes:

   • Implementing enterprise software often involves customization and integration. If you’re simultaneously dealing with poor data quality, you’re in for a double whammy that can set you back significantly.

Real-World Consequences

Imagine you’re opening a new restaurant. You hire top chefs, design a stunning interior, and invest in the best kitchen equipment. But if your supplier delivers spoiled ingredients, no amount of culinary expertise can save your restaurant from failure. Similarly, no ERP or CRM system can compensate for poor data quality.

I call this out as many enterprise-wide system implementations that happen are on the common “hurry up and wait” highway, and when they finally get the go ahead, they are all in to start solutioning with the software. No, data governance is not sexy and you can’t show it off like a new enterprise-wide system. But if you don’t spend the necessary time up front setting up your data for success, in the middle of the system implementation (really a few months in), you find the data is a mess and have to scramble to sort that out in the midst of the system development chaos (which is almost often is). I truly don’t know one organization that has clean and accurate data prior to going through this type of project and spending the time and attention up front will save lots of time and money as you move forward on the path.

The Solution: Prioritize Data Governance

Quite often, you’re spending tens or hundreds of millions of dollars on these enterprise-side system implementations and upgrades. To avoid these pitfalls, it’s crucial to prioritize data governance before embarking on your software implementation journey. Here’s how to get started:

1. Develop a Data Governance Framework:

   • Establish clear policies, procedures, and standards for data management. Define roles and responsibilities to ensure accountability.

2. Conduct a Data Audit:

   • Assess the current state of your data. Identify inconsistencies, inaccuracies, and areas that need improvement.

3. Cleanse Your Data:

   • Before migrating data to the new system, ensure it is accurate, complete, and consistent. This may involve data cleansing and enrichment processes.

4. Implement Data Management Tools:

   • Use data management tools to automate and streamline data governance processes. These tools can help enforce data quality standards and monitor compliance.

5. Testing for data quality

• Testing your data early and often helps detect common quality issues before they have the chance to impact downstream data consumers or products.

A few common types of data quality testing include:

- Unit testing: Automated tests that can detect whether the data coming through your pipeline looks as expected. Unit tests can evaluate data freshness, detect null values, and check that all values in a column fall within a certain range.

- Integration testing: A testing technique that verifies data from diverse sources is loaded, integrated, and transformed according to set business rules.

6. Train Your Team:

• Ensure that all stakeholders understand the importance of data governance and are trained in best practices. This includes everyone from data stewards to end-users.

If you skimmed through the rest, I hope you’ll remember the following:

1. Data Governance is Essential:

   • It provides the foundation for effective data management and ensures the success of your software implementation.

   • Work with knowledgeable, experienced partners to help you sort through this. You wouldn’t implement an ERP or CRM without support. Don’t try to establish a data governance organization without experienced people to help

2. Start Early:

   • Prioritize data governance before starting any enterprise software implementation to avoid costly setbacks.

3. Invest in Quality Data:

   • Cleanse and enrich your data before migration to ensure it is accurate and consistent.

4. Train Your Team:

   • Ensure all stakeholders understand the importance of data governance and adhere to best practices.

By prioritizing data governance before implementing your ERP or CRM system, you’ll set your organization up for success. Remember, a solid foundation is essential for building anything lasting and reliable – whether it’s a skyscraper, a cake, or an enterprise software system. Don’t let poor data quality be the quicksand that sinks your project. Invest in data governance and watch your implementation and business succeed!