Once a buy-side firm has set up the right foundation to establish proper data governance, which was covered in the first chapter of this two-part series, the next step is to build a house.
The prior chapter covered several essential topics, including:
- Establishing objectives
- Setting up a data governance hierarchy
- Establishing widespread buy-in
- Assessing risk
Building the best data governance strategy
Once an institution has completed these steps, it can start working on its data governance strategy in earnest. One good place to start is the data governance council we discussed in the first chapter.
Developing a vision
This elite group can do a great deal of good for the organization by establishing a vision for the company’s information policies and procedures, a data governance expert said in a recent piece in CIO Magazine. The author suggested that this council should determine where it wants data governance to be in the next few years, and then work backwards to create reasonable steps in between.
The group might benefit from setting up key performance indicators to effectively monitor its progress toward reaching these objectives, the author wrote. The more detail one of these plans has in creating milestones, the better. If a plan has more steps, progress toward achieving it will be far easier to assess.
Focusing on continuous improvement
Buy-side firms that want to progress should consider establishing a continuous improvement program based on moving to increasingly evolved data governance. Institutions that want to do this should keep in mind that progress will likely take time. In addition, firms will need to constantly assess what they have accomplished thus far, and what they will do next.
Note key considerations
While companies are developing and executing their data governance strategies, there are many important factors they should keep in mind. By paying attention to these strategies, buy-side firms can potentially generate far better results. In addition, they could easily save themselves some time and hassle.
Be ready for organizational pushback
One perfect example of a key consideration is the pushback that data governance efforts can generate. This concern was noted in a recent InformationWeek piece, in which a technology expert emphasized that setting up their data governance framework can necessitate organizational change.
The need to obtain widespread buy-in was mentioned in the first chapter. However, even if a buy-side institution succeeds in getting buy-in from many people across an organization, it can still run into other problems. For example, it could face pushback from contrarians. Pushback can also come from IT infrastructure, as this set of systems can resist change, the author noted.
Business and tech must work together
For data governance initiatives to succeed, key stakeholders in both business and technology must work together. For a company to set up the right policies and procedures, there must be a compelling business case. On the other hand, an organization cannot create one of these frameworks without the involvement of technical staff and IT infrastructure.
- Financial Sector Regulations in Australia: The Aussie Rules are Tightening Up
- Panel Discussion: The New Normal
- Consolidation in Australia’s Superannuation Funds Market: Data Quality Comes to the Fore
- Benchmarks Regulation White Paper Update
- RIMES awarded Best Ops Data Management Solution for the fifth time