Enterprise Data Governance: The Human Element

Enterprise Data Governance: The Human Element A DataFlux White Paper Prepared by Phil Simon Table of Contents Executive Summary ..............................................................................................................2  Acme Company History .......................................................................................................3  Key Players ............................................................................................................................4  Acme: The Current State of Data Quality ..........................................................................4  Peeling Back the Onion .......................................................................................................5  People-Related System Issues.........................................................................................5  Poor System Setup and Data Migration Decisions .......................................................5  Deficient Employee Training ...........................................................................................6  Setup Issues and the Dangers of Automation ...............................................................6  The Beta Acquisition: Data Integration Issues ...............................................................7  Limited Influence ..............................................................................................................8  Master Records .................................................................................................................8  Organizational and Cultural Issues ...............................................................................10  Poor Employee Performance Management ................................................................10  Failure to Recognize the Importance of Data Quality ................................................10  Incentives .........................................................................................................................10  Overly Specialized Employees ......................................................................................11  Recommendations for Acme .............................................................................................11  Initiate Data Cleansing ...................................................................................................11  Hire Hybrids and Provide Enhanced Tools ..................................................................12  Imbue a Culture of Data Quality ...................................................................................12  Summary and Conclusion ..................................................................................................12  About the Author ...............................................................................................................13  Additional Resources .........................................................................................................13  Enterprise Data Governance: The Human Element 1 Enterprise Data Governance: The Human Element Executive Summary Enterprise data governance (EDG) is a bit of a catchall term, with many nuances and complexities not typically emphasized by those looking for a quick fix. To be sure, technology and business processes are essential if one wants to be able to reliably run reports and make decisions based on accurate information. However, many organizations overlook the cardinal importance of the human element before, during, and after their data quality and governance initiatives. This white paper analyzes the human factor. Almost every organizational endeavor impacts data quality – from individual data entry to automated database backups (and everything in between). This white paper examines these data management issues within the context of Acme, Inc., a fictitious manufacturer of widgets. Rather than looking at data quality and management though a theoretical lens, this white paper uses a persona-oriented approach to tackle the issues endemic to many organizations vis-à-vis EDG. Enterprise Data Governance: The Human Element 2 Acme Company History Acme, Inc. is an international widget manufacturer. The company was incorporated in 1980 with corporate headquarters located in Anytown, NJ, USA. Over the last 30 years, it has had its fair share of ups and downs, including a series of recent headaches. Expansion in the mid-1980s resulted in significant growth. At present, the company employs more than 5,000 employees across the globe. 2010 profits were $500M USD on $2.1B USD in revenue. Table 1 presents a brief history of major events at the company: Table 1: Acme Company History Year Event 1980 Formal incorporation of company. 1987 Acme finishes series of acquisitions designed to increase its global presence. 1990 Company files for initial public offering (IPO). 1995 Company begins to search for replacements to existing enterprise resource planning (ERP) and customer relationship management (CRM) solutions. Current applications and systems no longer meet organizations’ needs. Enterprise Solutions1 is selected. 1997 Implementations of new ERP and CRM solutions begin in earnest. 2000 After repeated delays and cost overruns, Acme finally goes live with Enterprise Solutions ERP and CRM products. 2002 Passage of Sarbanes-Oxley (SOX) Act in the United States causes major problems for the company, as internal controls were particularly lax. 2004 Faced with declining profits, Acme announces layoffs of ten percent of its workforce. 2010 New CEO announces acquisition of smaller widget maker (Beta). Data from Beta is loaded into Acme’s ERP and CRM systems. Major issues ensue. 1 For the purposes of this paper, Enterprise Solutions is a fictitious enterprise software vendor that also provides annual system-related support, consulting, and maintenance to Acme. Enterprise Data Governance: The Human Element 3 Key Players Many companies suffer from internal conflicts and issues, especially with respect to enterprise data governance. To be sure, Acme is no exception to this rule. This paper focuses on five key internal players at Acme:  Eddie Garcia, enterprise architect. She has worked for Acme for 15 years and is probably the only person in the organization who understands how each system and application works.  Ira DeYoung, director of information management. He has worked for Acme for 13 years and, as such, has intimate knowledge of key cultural and personal issues. He has been a technical lead on dozens of projects, and he knows what makes some projects successful – and why others end in disaster.  Fernando LaBrie, director of finance. He has worked for Acme for eight years. Diligent and conscientious, he frequently has to scramble in order to satisfy his superiors’ request for information.  Patricia Petrucci, payroll manager. She has worked for Acme for 25 years and is nearing retirement.  Vanessa Lifeson, SVP of customer acquisition and retention. A results- oriented recent hire, she comes with an impressive pedigree in marketing and customer relations and has little patience for bureaucracy. Acme: The Current State of Data Quality Poor data quality and management do not happen overnight. What’s more, they are rarely tied to a discrete event. It’s more common for an organization to suffer from a culture of ambivalence and neglect to one of its most important assets: its data. Lamentably, Acme is no exception to this rule. At a high level, data quality and data “Fighting fires” is a poor method to data management at Acme are rudimentary at best. The company has historically triaged management. Ask all data management issues. That is, its approach has been entirely reactive, not yourself why they are proactive. Previous executives have attempted to imbue a culture of increased occurring in the first accountability, if not data governance, but these initiatives have always lost place. momentum. In every case, these executives left the company after a very short period of time. Some were frustrated over their inability to obtain basic and accurate information. Others were tired of making decisions based upon gut feel and instinct.