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Data Governance10 min read

Why Data Governance Is the Foundation for Business Success

Do you trust your data? Without trustworthy data, organizations can't confidently pursue their business goals. Here's how to build a data governance strategy that creates real business value.

What Is Data Governance?

Data governance is the practice of creating policies, procedures, and standards to manage and protect data across an organization. Effective strategies must be collaborative and inclusive across all organizational roles—not siloed within IT or data teams.

The Cost of Poor Data

What Happens Without Data Governance?

Organizations lacking proper data governance face three primary symptoms:

10x

Work takes ten times longer with flawed data versus accurate data

$15M

Average annual cost of poor data quality per organization

Time wasted correcting errors instead of advancing goals

The Real Impact

  • Teams waste time correcting data errors instead of advancing business goals
  • Decision-making is impaired by inaccurate information
  • Expenses escalate from corrections and compliance issues
Core Elements

Three Characteristics of Strong Data Governance

1

Accurate

Data collection follows prescribed processes with quality assurance at every step

2

Organized

Events are documented in accessible formats with rigid guidelines for consistency

3

Secure

Tool and data access is appropriately granted with clear ownership and accountability

The Council Model

Establishing a Data Governance Council

Rather than the "Wild West" approach (uncontrolled democratization) or the "Single Point of Contact" method (bottleneck gatekeeping), we recommend establishing a data governance council with three roles:

Council Members

Manage the entire governance process and enforce standards across the organization. They set policies, resolve conflicts, and ensure alignment.

Data Owners

Oversee implementation and monitor the tracking plan for their domains. They ensure data quality and advocate for their team's needs.

Data Users

Work with data in a self-serve capacity within the guidelines. They provide feedback on what's working and what's missing.

Policy Framework

Five Essential Policies

The governance council should create and maintain these policy documents:

1.Data Integrity Policy
2.Data Classification Policy
3.Data Access Policy
4.Data Usage Policy
5.Data Security Policy
Operational Motions

Three Core Activities

1. Define and Document

Create clear event definitions using object-action naming conventions. Document everything in a centralized tracking plan that's accessible to all stakeholders.

2. Audit and Validate

Implement testing and monitoring to catch data quality issues early. Regular audits ensure the tracking plan matches reality.

3. Adapt and Iterate

Your data taxonomy and tracking plans will evolve. Build processes for proposing, reviewing, and implementing changes.

Special Considerations

Common Scenarios to Plan For

New Employee Onboarding

Training should include:

  • Data policies and expectations
  • Taxonomy and naming conventions
  • How to read and use the tracking plan
  • Governance best practices

Product Releases

The council must address:

  • How releases affect event deployment
  • Accommodating new data sources
  • Preventing test data pollution
  • Communicating schema changes

GrowthBench's Four Core Pillars

1.Data collection follows prescribed processes with quality assurance
2.Data is documented in accessible, guideline-compliant formats
3.Tool and data access is appropriately granted
4.Ownership and accountability are clearly defined

Data governance is complex and often deprioritized. But forward-thinking organizations recognize its value for digital transformation success.

Ready to Build a Data Governance Strategy?

We've helped 400+ companies establish trusted data foundations. Let's discuss how to create governance that works for your organization.