Master data governance describes a core set of attributes which are the basis of a common definition of master data that is consistent across the organization. For example, a customer master can contain name (full name of person or business name), address (shipping and billing), email, phone, payment terms, and any other attribute that is vital for your business processes. It is important to define which attributes are critical, otherwise you risk trying to master too many attributes—which will negatively impact the agility and success of your master data management (MDM) activities.

 

Understanding the master data present in the source systems of the acquired company and how it maps to your master data definitions can reduce integration costs, accelerate business value, and reduce financial reporting risk.

 

Process mapping: Just as a catalog documents where master data resides, process mapping shows how master data flows between sources as part of business activities. Understanding not only the sources of master data, but also how it flows through processes helps you better visualize things: how data is being used, compliance risk exposure, and where rules need to be embedded into process to enforce policies. To illustrate this, think of a clinical trials process. You need to understand where data is collected, which systems it flows to, and what third parties it is shared with so you can enforce standards and policies for clinical data acquisition and submissions.

 

People: mro data governance documents and provides visibility into the people across organizational functions who are key to the success of MDM activities. These key people include:

 

The subject matter experts in the business, who can determine both standardized master data definitions for the organization, along with the levels and types of quality thresholds required for different business processes.

 

The data stewards who are responsible for remediating data quality issues for specific master data domains.

 

IT people are responsible for the architecture and management of databases, applications, and business processes.

 

Legal and security people are responsible for data privacy and protection. And cross-functional leaders, who comprise the governance board or council responsible for resolving disputes between different functions within an organization.

 

Workflow: Once you have defined your key people, you also need to document the workflows that will enable those people to collaborate:

 

Workflow for master data creation requests that define the mechanism for creating the request

 

Which master data steward the request is routed to, based on domain responsibility

Whether there are multiple people in different organizations who need be involved with parallel workflows, approval, and go-live activation and distribution to applications.

 

Metrics: Master data governance also defines the metrics that you use to measure and manage master data. Common technical metrics include things like the number of duplicate records in an application, the accuracy and completeness of master data, and how many personal data attributes are encrypted or masked. While these types of metrics can help in the technical management of master data, leading organizations will frequently also try to further define how these technical metrics impact business outcome metrics. For example, understanding how quality and consistency of material and supplier master data impacts your ability to negotiate better procurement terms, mitigate supply disruption risk, and reduce inventory carrying costs.

 

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