How to establish a data governance framework for your CRE business

Good data governance ensures you have the data your enterprise needs to achieve your business goals. This encompasses the standards, policies, and practices required to manage, utilize and protect data assets.

While most organizations typically have some form of data governance within specific business units or functions, an effective organizational framework should span all strategic and operational levels as an ongoing, iterative process.

To successfully drive a strategy for data and analytics excellence, we’ve identified five fundamental elements critical to overcoming barriers and progressing along your transformation journey. This insight explores the third fundamental: establishing a data governance framework.

What is data governance and why does it matter?

Although you can find many definitions of data governance, for the purpose of this framework, the Data Governance Institute, defines data governance as “a system of decision rights and accountabilities for information-related processes, executed according to agreed-upon models which describe who can take what actions with what information, and when, under what circumstances, using what methods.” In other words, the standards and practices that are put in place to determine how data is managed, utilized, and protected.

Step 1: Identify the common goals of your data governance program

While the goals of your data governance program will depend upon the unique requirements of your operation, common goals include:

• Generate the greatest possible return on data

• Capture important opportunities to leverage data

• Assets

• Minimize data risks

• Enable better decision-making

• Strengthen reporting

• Reduce costs

• Increase efficiencies

Step 2: Build a framework on three pillars

A robust data governance framework rests on three pillars: people, processes, and technology.

People

People are responsible for defining the processes and driving the outcomes that support business strategy. A governance framework needs to define skills, roles, and responsibilities. And it should include a change management strategy to support organizational alignment and buy-in.

Processes

Processes need to be properly managed throughout operations to ensure trusted data is available to critical business processes. This involves establishing appropriate data definitions, standards, and rules, and ensuring processes can manage data to deliver meaningful results.

Technology

Technology encompasses the tools and techniques that interconnect people and processes to provide operational efficiency and effectiveness. Numerous technologies can support all aspects of the governance process – from data quality, architecture, modeling, integration, storage, and security, to documents and business intelligence.

Step 3: Integrate data privacy and security

As data and its uses continue to expand, so do breaches involving this data, which is leading more jurisdictions around the world to establish data protection directives and legislation.

According to the United Nations Conference on Trade and Development, more than 120 countries now have in place legislation to secure the protection of data and privacy, such as Europe’s influential General Data Protection Regulation (GDPR).

The Government of Canada recently established a Digital Charter to provide Canadians with new rights and expectations about how businesses will treat their personal information. This is driving changes to the country’s Personal Information Protection and Electronic Documents Act (PIPEDA) with greater obligations for private sector companies. To meet these stringent new requirements, CRE companies must be prepared with data privacy and security practices integrated into a strong data governance framework.

Step 4: Draw guidance and support from leadership

The key to the success of a data governance framework is its governing body. Typically, this is a council or steering committee comprising of senior-level managers for each business unit and key functional area.

This body is responsible for the vision, specifying goals, establishing the overall governance strategy, defining a roadmap, identifying the key roles for managing data across the company, championing progress and holding the appropriate people accountable for outcomes.

When the “how do we start?” question comes up, it may be helpful for the governing body to work with a trusted, experienced external partner for guidance on the initial crucial steps needed to establish an effective governance framework.

Next steps

Developing good data governance is crucial to achieving your business goals. And while it will take time to establish an effective organizational framework that spans all strategic and operational levels, the process will also be renewable and ongoing. Keep these key steps in mind when it’s time for you to establish or renew your data governance program:

• Identify the common goals of your data governance program

• Build a framework on three pillars

• Integrate data privacy and security

• Draw guidance and support from leadership

Now that you are ready to establish a data governance framework, take the next step in your data transformation journey and learn about the fourth fundamental: Using data as your strategic advantage.