Most organisations think they’re doing data governance. The truth is, they’re just ticking boxes, and it’s costing them.

 

The Terms and Conditions Applied series cuts through the noise surrounding data governance with straightforward, practical insight into why governance efforts often stall and what to do differently. Designed for business and technical audiences alike, the series offers:

 

  • Practical strategies for evolving governance from tick-box compliance to a scalable, value-driven capability.
  • Clarity on the often-misunderstood roles of metadata management and MDM in a complete governance framework.
  • A blueprint for turning proof of concept efforts into robust, scalable governance solutions.
  • Guidance on integrating governance seamlessly into enterprise-wide data strategies.
  • A forward-looking view of how AI, automation, and real-time governance are reshaping the landscape.

 

Over eight instalments, Terms and Conditions Applied challenges conventional thinking and provides actionable guidance drawn from real-world experience. The goal? To help organisations turn governance from an overhead into a genuine competitive advantage.

Building the business case for governance when talking to the C-suite

This is the fifth post in the Terms and Conditions Applied series. Previously, we’ve covered governance as the overlooked weak link in data projects, clarified the tooling landscape, highlighted governance as a product, and discussed the importance of scaling from PoC to MVP. Now, let’s tackle the critical challenge of making the business case for governance to senior stakeholders.

 

 

Shifting the narrative

Data governance often struggles to secure senior sponsorship because it’s traditionally seen as a necessary but uninspiring internal function, an overhead rather than an enabler. To win executive buy-in, governance must be reframed as a strategic asset that directly contributes to business outcomes by reducing risk, driving operational efficiencies, and enabling revenue growth.

 

 

Framing governance as a business enabler

When speaking to senior executives, particularly those in the C-suite, focus on how robust governance impacts areas they inherently value:

  • Risk reduction and compliance: Governance protects organisational reputation by significantly lowering the risk of data breaches and regulatory penalties. For example, Equifax’s 2017 data breach, caused by poor data governance and oversight, resulted in a $700 million settlement with U.S. regulators and the establishment of a $425 million fund for affected consumers. Similarly, the Facebook-Cambridge Analytica scandal of 2018 demonstrated the reputational damage and financial consequences of inadequate data governance, including billions lost in market value and a $5 billion fine from the FTC.
  • Operational efficiency: This isn’t just about cost-cutting; it’s about enabling better decision-making through improved data quality. According to Forrester, businesses leveraging automated data governance processes can reduce manual efforts by up to 40%, freeing resources to focus on high-value activities. Inconsistent or inaccurate data can slow down decision-making, delay product launches, and result in missed revenue opportunities. Addressing these inefficiencies directly contributes to bottom-line improvements.
  • Revenue generation: Enhanced governance supports data-driven initiatives such as predictive analytics, which can improve targeting accuracy by up to 15%, leading to increased revenue opportunities. For example, a well-governed customer data platform can enhance marketing ROI by providing accurate segmentation and personalisation.

 

For executives, governance initiatives must align with broader business goals such as cost optimisation, innovation, customer retention, and building organisational resilience. Addressing these priorities through a governance framework is essential for gaining their support.

 

 

Metrics that matter

To resonate with senior stakeholders, demonstrate the ROI clearly and convincingly:

  • Cost savings: Highlight tangible savings from reduced data duplication, improved data accuracy, and automation of previously manual processes. A simple metric here might be reduced operational expenditure or measurable decreases in data remediation activities.
  • Risk mitigation: Quantify reductions in compliance-related penalties, costs associated with breaches, or insurance premiums. Articulating a clear financial saving associated with proactive governance can resonate strongly with CFOs and CROs. Remember, balance the effort to fully quantify against the gravitas this will carry. With all things governance, the aim is to generate maximum value from minimum effort. It is often difficult to fully quantify risk so articulate to an appropriate level to demonstrate the scale of the issue.
  • Revenue impact: Showcase scenarios where improved governance directly influenced growth; for example, better analytics leading to increased market share, improved customer retention, or new revenue opportunities identified through data innovation.

 

Gartner estimates that poor data quality costs organisations an average of $12.9 million annually. Demonstrating how governance initiatives can reduce this cost by improving data accuracy and consistency is a compelling argument for investment. Additionally, organisations implementing data governance automation have reported efficiency gains of up to 30% by streamlining manual processes.

 

 

Industry scenarios

Consider a common scenario: a large retail organisation struggled with inconsistent customer data leading to ineffective marketing campaigns and poor customer experience. By investing in governance and establishing clear data ownership and quality standards, they improve campaign effectiveness by over 20%, directly increasing annual revenue.

Another example could be a financial services firm facing significant regulatory penalties due to inaccurate compliance reporting. Implementing governance with clear accountability and automated data quality processes could lead to an immediate reduction in regulatory incidents, avoiding substantial fines and reputational damage.

 

 

The Telefónica Tech perspective

When making the case for governance to senior stakeholders, it’s important to show that governance frameworks are not just theoretical models but practical, structured approaches that deliver measurable value. Telefónica Tech offers frameworks designed to address both governance and data strategy at scale:

  • Governance Accelerator Programme (GAP): A structured approach to embedding governance practices that align with business objectives, demonstrating clear value through measurable outcomes. GAP is designed to progress governance from isolated efforts to scalable, enterprise-wide initiatives.
  • Data Navigator Programme (DNP): Focused on building a broader data strategy that encompasses governance as part of a wider, value-driven transformation. While GAP addresses governance specifically, DNP ensures that governance efforts are integrated into the overarching data strategy for maximum impact.

 

These frameworks provide a structured methodology for turning governance from an internal function into a strategic asset. By aligning governance initiatives with broader business objectives and showcasing tangible ROI, Telefónica Tech helps organisations build a compelling case for governance at the highest level.

 

 

Achieving buy-in

Ultimately, repositioning governance from an internal overhead to a strategic asset requires clarity of value and measurable impact. For executives, the value of governance lies not just in compliance but in accelerating growth, enhancing operational efficiency, and building resilience. Demonstrating how governance directly supports these goals is essential to making a compelling business case.

 

In the next post, we’ll delve into how to embed governance sustainably into your organisational culture so it becomes second nature rather than an additional task.

#DataGovernance #Metadata #Purview #Compliance #Analytics #TelefónicaTech #TermsAndConditionsApplied

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