Data governance and information standardization are key to success, as they allow data to be accessible, reliable, secure, and relevant. This improves the quality of information, facilitates access, increases security, efficiency, and productivity, and promotes innovation.

The lack of data governance and data standardization between business units in a large company can lead to a number of significant problems that can affect the efficiency, decision-making, and competitiveness of the organization. Here are some of the problem areas that may arise:

Data inconsistency: Without proper data governance and established standards, different business units are likely to use different data formats, definitions, and structures. This can lead to multiple versions of the truth and a lack of consistency in reports and analysis.

Difficulty in decision-making: The lack of data standardization can make it difficult to compare and analyze data between different areas of the company. This can make it difficult for business leaders to make informed and strategic decisions, as they do not trust the quality or consistency of the data available.

Compliance risks: In many industries, there are strict regulations on data management and protection. The lack of data governance can increase the risk of regulatory non-compliance, as the company may not have adequate control over the quality, privacy, and security of data.

Higher operating costs: The lack of standardization and data governance can increase operating costs due to the need to perform additional manual tasks to clean, integrate, and reconcile data between different systems and business units.

Loss of opportunities: Without consistent and reliable data, the company may miss opportunities to identify trends, patterns, and market opportunities. This can limit their ability to innovate, compete effectively, and adapt to changes in the business environment.

Internal conflicts: The lack of clear data standards and effective governance can lead to internal conflicts between different business units that compete for resources and priorities in relation to data management.

Confusion and lack of trust in data: When different business units use different data formats, definitions, and structures, it can lead to confusion and lack of trust in the quality and accuracy of the data. Employees may question the veracity of reports and analysis, which can lead to erroneous or suboptimal decisions.

Waste of resources: The lack of standardization can result in the duplication of efforts and resources. For example, different departments may be collecting and storing similar data independently, which leads to a waste of human and technological resources. This can also lead to data discrepancies and make it difficult for teams to collaborate efficiently.

Security and privacy risks: Without proper data governance, sensitive data is more likely to be compromised. The lack of standardization can make it difficult to implement consistent security measures across all systems and processes in the organization, which increases the risk of data breaches or privacy violations.

Lack of scalability and agility: The lack of standardization can hinder the scalability and agility of the organization. As the company grows or seeks to adapt to changes in the market, the lack of standardized data structures can make it difficult to integrate new systems and expand into new business areas.

Company reputation: Errors in reports and analysis due to lack of data governance can damage the company’s reputation. Customers, business partners, and regulators may lose confidence in the organization if they perceive that it does not adequately manage its data.

Inefficiency in decision-making: The lack of standardization can slow down the decision-making process by making it difficult to obtain a complete and accurate picture of the company’s situation. Leaders may face delays in obtaining relevant and reliable information, which can have a negative impact on the organization’s ability to respond quickly to market opportunities or challenges.

The lack of data governance and standardization can have a significant impact on the operational and competitive capacity of a large company. This lack has a wide range of negative consequences, including affecting operational efficiency, data security, business agility, and the company’s reputation. It is crucial for organizations to establish effective data governance policies, processes, and technologies to mitigate these risks and maximize the value of their data assets.

Impact of the lack of data governance on Employee Experience (EX) measurements:

Data reliability: The lack of standardization leads to inconsistency in the collection and analysis of EX data, which undermines the reliability of the data and can result in erroneous decisions.

Quality of employee experience: Inconsistent data makes it difficult to identify problem areas in the employee experience, which hinders the implementation of effective improvements in the workplace.

Fairness and equity: The lack of standardization can lead to inequities in the evaluation and treatment of employees, which negatively affects morale and the perception of fairness in the organization.

Talent development and retention: The lack of standardized data makes it difficult to identify and retain key talent, which hinders the development of effective strategies to retain and motivate staff.

Company Competitiveness and Reputation: A poor employee experience can affect a company’s ability to attract and retain talent.This, in turn, affects its competitiveness and reputation as a desirable employer.

Impact of Lack of Data Governance on EX Projects:

Work Environment:

Confusion and lack of trust: The lack of standardization can lead to inconsistencies in employee climate survey data, generating confusion and a lack of trust in the accuracy of the results.

Difficulty in decision-making: The lack of consistent data makes it difficult to identify trends and areas for improvement, hindering the company’s ability to make informed and strategic decisions.

Impact on morale and motivation: The lack of fairness in evaluations and rewards can affect employee morale and motivation, compromising their commitment to the organization.

Work Life Cycle:

Talent retention and development: The lack of standardized data makes it difficult to identify and retain high-performing employees, as well as design personalized development plans.

Inequity in evaluations and rewards: The lack of standards in data collection and analysis can lead to inequities in evaluation and reward decisions, affecting the perception of fairness in the workplace.

360-Degree Measurements:

Feedback consistency: Data standardization is crucial to ensuring consistency in feedback received from multiple raters in a 360-degree assessment.

Feedback data quality: Without clear standards, the quality of feedback can be compromised, making it difficult to identify areas for employee development.

Follow-up and development actions: Standardization facilitates employee progress tracking and identification of areas for continuous development, which informs talent development and management decisions.

Why is Implementing Data Governance and Standardization Valuable?

Implementing data governance and information standardization brings significant value to organizations. First, it improves data quality by reducing duplication, inconsistencies, and errors, leading to better decision-making.

Additionally, it facilitates data access, allowing users to find the information they need quickly and easily, which increases efficiency and productivity.

On the other hand, it improves data security, protecting it against unauthorized access, misuse, and theft, which reduces risks and increases confidence.

Implementing these practices allows organizations to make the most of their data’s value by improving quality, access, security, and efficiency, which translates into greater success and competitiveness.

Good data management is fundamental to the success of any organization.

Benefits of Having Good Data Governance and Standardization:

Implementing data governance and standardization brings improvements in the quality, access, security, efficiency, productivity, and innovation of information within the organization.

Benefits:

• Improves data quality: reduces duplication, increases accuracy, and facilitates error detection.
• Facilitates data access: allows you to find information quickly and eliminates information silos.
• Improves data security: protects against unauthorized access and complies with data protection regulations.
• Increases efficiency and productivity: reduces time and resources dedicated to data management.
• Promotes innovation: facilitates the development of new products and services based on data.

Are you concerned about the lack of data governance in your company?

Schedule a free consultation with Vocé and discover what to measure, how to measure it, and what to do with what you measure.