Buy-side firms that want to effectively manage their data quality can harness a handful of techniques to ensure their key information will be accurate.
Importance of high-quality data
The value of having data that lacks errors goes without saying. Making decisions with erroneous information can lead to lost revenue, which can hurt the bottom line. Once institutions know the importance of having high-quality information, they should figure out how they will attain this result.
Data governance infrastructure
Proper data governance efforts can help companies ensure that they minimize the existence of information that is low-quality or redundant. Buy-side firms that want to do this the right way need to not only establish a set of policies and procedures, but also make bolstering this framework a constant focus.
Perform a data quality assessment
Firms that want to create the right data governance infrastructure can start out by conducting a comprehensive assessment of all their information. Performing one of these reviews might require some digging, as companies sometimes hold information inside of legacy systems that were set up decades ago. In addition, social media channels, third-party data providers and external applications can all serve as the source of this key information.
Obtain buy-in at all levels
Establishing a set of policies and procedures for the information of a firm is one thing, but getting staff to follow it is another. To ensure that the people working for a buy-side firm follow a data governance framework, it is important to obtain the buy-in of people at all levels of the business.
For example, senior management can provide an executive-level mandate and obligate the rest of an institution’s workers to follow whatever set of policies and procedures has been set up. However, failing to get people at the lower levels on-board will generate pushback and will result in less-than-optimal results.
Obtaining the buy-in of the people who actually execute the company’s policies and procedures on a daily basis will bring an institution one step closer to having an ideal data governance framework.
Another key step in developing the right set of policies and procedures is figuring out who has ownership of important information. Otherwise, nobody knows who has responsibility for crucial data. In a situation like this, everyone may believe that IT is in charge of vital data, and these technology professionals maintain that operations is responsible.
Ensure steady business process improvement
Buy-side firms that want to have the right framework of policies and procedures might consider consistently reviewing their data processes. Once they have singled out these key components of operations, they can test them to see how well they work and then revise them as needed.
While data governance efforts require significant time and energy, institutions should keep the substantial benefits in mind when they are working toward maintaining an optimal framework.