One way buy-side firms can trim their current expenses is leveraging data governance. Companies can obtain this result by using the right information policies and procedures to eliminate any data they have that is redundant or not crucial to operations.
In the current environment, companies are facing many different expenses that are moving higher. Buy-side firms frequently having to deal with shrinking budget allocations for their crucial data. In addition, these companies might have to spend more on compliance than they did at other points in time.
The number of man hours – and therefore the total labor costs – they put forth forth to meet the current framework of rules and regulations could potentially move higher, as well. Several landmark reforms have been passed in the years following the financial crisis, and only time will tell what the final implementation of these regulatory regimes will look like.
Companies can take specific data governance steps
While the environment may be completely uncertain, those who want more clarity should know there are specific steps they can take to leverage data governance to realize cost savings.
In a recent CIO Magazine article, Doug Kaminski, vice president of a unified communications solution provider, noted the key importance of establishing specific goals. The article used the analogy of losing weight. If a person wants to pursue this, having a specific goal is crucial.
Key importance of obtaining buy-in
The author noted that it is important to obtain the buy-in of people across the company. He stated that if a firm wants to effectively develop and maintain standards, achieving this is crucial.
Companies that want to do this must keep in mind that any organization can be segmented into three levels. There are senior executives, managers and those who are involved in actually executing any policies that are created. Getting an executive mandate is absolutely necessary, but does not do much good if the people below do not actually follow through.
Likewise, if the people in the bottom two rungs are on-board, but data governance initiatives do not have the enthusiasm of management, they will probably not get very far.
Identify and address major problems
Once a buy-side firm has the buy-in it needs to get things done, the firm should identify its biggest problems, the author stated. If a company does not already know what major challenges it is facing currently, it might consider working with a specialist that can perform business process analysis. Using this method can help an institution save itself some time.
Be willing to embrace new methods
After a company has taken the steps needed to shore up its data governance framework and reduce its costs, the organization needs to be willing to take on the new processes that will help keep information growth under control, Kaminski wrote. In this instance, the firm is similar to a person who just lost 20 pounds. If the individual doesn’t have the right eating habits, he will simply fall out of shape once again.