Understanding Collaborative Governance for Data Success
TL;DR:
- Master data is a shared asset, and its ownership cannot be assigned to a single individual or department.
- Effective management of master data requires collaborative governance across three key areas: when the data is created and consumed, when policies are defined, and when policies are enforced.
- Data stewards and governance committees play a crucial role in ensuring master data quality, security, and compliance at global, regional, and local levels.
- Syncari’s Autonomous Data Management platform helps automate these processes with features like real-time data sync, AI-powered data quality checks, and customizable management tools, ensuring efficient, scalable master data unification and automation for real-time business decisions.
Many organizations ask the question, “Who owns master data?” Often this leads to confusion and inefficiency. Attempting to assign a single owner to master data can hinder the collaborative effort required to create, manage, and enforce master data policies. Instead of focusing on individual ownership, organizations should prioritize shared accountability and effective governance.
Quick Answer: Who Owns Master Data?
Master data is a shared asset that cannot be effectively owned by a single individual or department. Its control is exercised through collaborative policies and procedures. Rather than assigning ownership, organizations should establish decision rights and accountability frameworks across three key areas of master data control:
- When Master Data is Created and Consumed?
- When Governance Policies are Defined?
- When Governance Policies are Enforced?
Master Data as a Shared Asset
Due to its shared nature, master data cannot be fully controlled by any one team. Instead, its creation, management, and usage involve multiple stakeholders across the organization. These stakeholders must collaborate to define, enforce, and adhere to master data governance policies, ensuring consistency, accuracy, and compliance.
Three Key Dimensions of Master Data Governance
Master data governance isn’t about assigning ownership; it’s about setting up a framework of shared responsibility. Here’s how control is exercised:
1. When Master Data is Created and Consumed
Master data is often created and consumed by a wide range of stakeholders, from sales teams creating customer accounts to financial teams reviewing transactions. The individuals or systems creating or using the data have a significant role in ensuring its accuracy. However, they do not “own” the data, as the governance policies governing its use are established by higher-level teams like regional or global data governance committees.
For example, the same set of customer master data could be used by sales, finance, and logistics in a single day. As such, no single team can claim exclusive responsibility for this data. Instead, each team must follow the policies set by the governance committee to ensure proper data usage.
2. When Master Data Governance Policies are Defined
Master data governance policies—covering areas like data quality standards, access permissions, and security protocols—are typically established by a data governance committee. This committee includes senior executives (such as the COO and CFO), business process owners, and data stewards. These policies guide the entire organization in managing, sharing, and securing master data.
For regional or department-specific data, smaller governance bodies may establish policies that meet their particular needs while adhering to global standards. This collaborative approach ensures consistency and compliance across the organization.
3. When Master Data Governance Policies are Enforced
The enforcement of master data governance policies is the responsibility of data stewards. These stewards ensure that master data adheres to the defined policies and is used correctly across the organization. Stewards monitor for compliance, resolve discrepancies, and ensure that master data remains accurate and reliable.
Data stewards typically operate at global, regional, or local levels, depending on the organizational structure. At the local level, stewards may focus on ensuring compliance within specific departments or applications, while global stewards oversee enterprise-wide adherence to governance policies.
Global, Regional, and Local Governance of Master Data
Effective governance requires collaboration at multiple levels:
- Global Level: Governance boards define enterprise-wide policies for managing and sharing master data across all business units.
- Regional Level: Regional committees tailor global policies to fit local requirements and ensure compliance with regional laws and practices.
- Local Level: Local stewards enforce policies at the application or departmental level, ensuring that data is created and used in line with global standards.
This tiered approach allows organizations to maintain consistency while adapting to the specific needs of different regions and departments.
See Figure 1: Gartner Dimensions of Master Data Ownership.
The Collaborative Nature of Master Data Creation and Consumption
Master data is created and consumed by various teams across the enterprise. For example, customer data might be used by sales, marketing, and customer service simultaneously. This distributed nature of data usage makes it impractical to assign ownership to a single department.
By establishing governance policies that apply to all data users, organizations ensure that everyone follows the same standards for data quality, security, and access rights. This collective responsibility helps avoid bottlenecks and mitigates the risks associated with data mismanagement.
Governance Policy Definition: The Role of Committees
Master data governance policies are typically defined by a data governance committee that includes senior leadership and key stakeholders. These committees are responsible for setting guidelines on data quality, security, and access. They ensure that all teams adhere to a unified approach to managing and using master data.
In some cases, regional governance committees may set policies specific to their geography, aligning with both global standards and local regulations.
Data that is not extensively shared beyond a specific application, functional group, or department is not technically classified as master data and can be managed locally by that group (see: Master Data vs. Non-Master Data).
Enforcement of Master Data Governance: The Role of Data Stewards
Once governance policies are established, data stewards ensure their enforcement. They monitor data quality, compliance, and usage. If a violation occurs, stewards take corrective action and ensure that future issues are prevented. Stewards are essential to maintaining the integrity, accuracy, and reliability of master data.
Why Choose Syncari for Master Data Governance?
As organizations grapple with the complexities of master data governance, Syncari provides a comprehensive solution designed to automate and streamline these processes. Syncari’s master data platform ensures data accuracy, centralized governance, and democratized access to data across the organization, ensuring data accuracy and consistency for real-time business decisions.
Key Features:
- Unified Data Fabric Architecture: Syncari integrates data from multiple sources into a single, unified view.
- Multi-Directional Sync: Real-time synchronization of data across all systems ensures consistency and accuracy.
- Programmable MDM: Customizable data management workflows that adapt to specific business needs.
- AI and ML Automation: Syncari automates data quality checks, ensuring continuous compliance and accuracy.
Master data ownership should be viewed as a collaborative effort, not an individual responsibility. By focusing on shared governance and defining clear accountability for data creation, policy definition, and enforcement, organizations can achieve the control needed to maintain data integrity and drive business success.
FAQs
- Can master data have a single owner in an organization?
No, master data is a shared asset. Assigning sole ownership to one person or department is impractical. Instead, ownership should be collaborative across multiple stakeholders.
- How do data stewards help enforce master data governance?
Data stewards are responsible for monitoring data quality, ensuring adherence to governance policies, and resolving any issues related to master data usage.
- How does Syncari support master data governance?
Syncari’s Autonomous Data Management platform automates the governance of master data through features like multi-directional sync, data quality, and advanced data management.
Learn how to unlock the power of Autonomous Data Management.
