Navigating the Roadways of Data: Why Governance Matters

Originally published on LinkedIn on September 5, 2024

Governance is often misunderstood. The mere mention of "governance" can elicit responses like, "I don’t want rules and bureaucracy to bottleneck my ability to do my job."

I understand the sentiment. Like anyone driving from point A to point B, I'm not thrilled by bottlenecks such as speed limits, traffic lights, or parking restrictions that slow me down (sarcasm intended).

But imagine for a moment a world without these controls. This traffic analogy makes it easier to explain the vital role of data governance.

Align Governance with Strategic Objectives

Data governance aligns with an organization's strategy and goals, balancing between defensive and offensive objectives. For example, banks, operating in highly regulated industries, focus on defensive strategies to protect sensitive information and meet compliance requirements. Conversely, a sales organization might prioritize offensive strategies to maximize data utility and drive business growth.

Similarly, different approaches to traffic systems manage the flow and safety of vehicles. Consider this: Japan's traffic system, designed for efficiency amidst high population density, contrasts sharply with Canada’s, which focuses on accessibility due to vast, sparsely populated areas. These strategic differences in traffic management are analogous to the strategic decisions in data governance.

Defining the Scope of Governance

Governance isn't about controlling everything but about prioritizing what needs oversight. Just as not every road in a country is a major highway, not all data in an organization requires the same level of governance. Decisions on the scope of governance should align with strategic impacts and resource availability, much like how traffic management varies by municipal, provincial, or federal jurisdiction based on the road's importance to the economy and wellbeing of citizens.

Managing Stakeholders Effectively

In data governance, identifying stakeholder roles is crucial. Using the RACI framework helps clarify who is responsible, accountable, consulted, and informed. Similarly, in traffic systems, lawmakers are accountable as they set regulations that align with strategic visions, while bureaucrats, police and bylaw officers are responsible for enforcement.

Moreover, just as drivers must be licensed to ensure they understand and comply with traffic laws, data users are granted permissions based on their roles and responsibilities. For example, just as a regular license does not permit someone to drive a 16-wheeler, a regular employee should not have access to system administration functions that may topple the data system. This ensures that everyone interacts with data appropriate to their training and responsibility, supporting overall system integrity.

Maintaining High Data Quality

Data quality is foundational to reliability. In Japan, vehicles must undergo a rigorous bi-annual inspection to ensure they meet high standards of roadworthiness, reflecting the country's strategic priority for efficient traffic flow. In Canada, where accessibility to travel over vast distances is crucial, vehicle inspections are less stringent but still aligned with the strategic goal of ensuring citizens have a means of travel.

These practices in traffic management serve as a parallel to data governance activities like maintaining data dictionaries and standards, implementing system controls, conducting regular data quality checks and user training.

Securing the Data Infrastructure

Just as traffic infrastructure such as parking, roadways, bridges and ferries facilitate the efficient storage and flow of cars and people, data infrastructure composed of hardware and software ensures the efficient storage and flow of data to end-users. Infrastructure decisions need to be commensurate with needs.

Within data infrastructure, data security is akin to ensuring that the valuables within vehicles and the vehicles themselves are adequately protected. Would you prefer to put a briefcase holding $1,000,000 in a car trunk or in an armoured truck? Similarly, the level of data security implemented depends on the data’s value and role in the organization's strategy.

Conclusion: Governance is Managing the Organization, not the Individual

Without governance, both traffic and data systems are prone to chaos. Though it may seem that governance restricts agility, the lack of it can lead to much greater problems, affecting not just individuals but the entire organization. Effective governance emphasizes the organization's broader needs and strategic goals, rather than constricting individual freedoms.

Just as cities differ in size and complexity, the depth and breadth of your data governance program should reflect your organization's scale and resources. Whether it's a bustling metropolis of 5 million or a modest community of 500,000, governance is what keeps the traffic flowing smoothly and safely.

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