First San Francisco Partners collaborated with a medium-sized, multi-national pharmaceutical company to support its data governance initiative. The company wanted to maximize the value of its data investments and minimize friction in data-dependent business processes.
With strong backing from executive sponsors, the company established a Data Council that included executive and senior-level leaders. Additionally, they implemented a data catalog to facilitate data stewardship, ensuring a solid foundation for long-term success in data governance.
The company engaged FSFP because they were having challenges gaining traction with operational leaders and data users. They were trying to establish stewardship groups to identify critical data, create data definitions that could be used consistently across the enterprise, and drive consistency in business processes that relied on shared data.
Due to silos in operations, as well as data warehouses and other technical applications, people at the company did not see the value of building a cross-functional understanding of critical data. This disconnect resulted in people declining meetings and the data governance program stalling. Interest and engagement in governance grew smaller the closer we got to people who knew the data best.
Identifying Roadblocks to Engagement
Despite the company’s efforts, the path to successful data governance faced significant hurdles. The lack of buy-in from their operational and front-line leaders led to a lack of resource commitment, creating a barrier to progress. While the initiative had financial backing, without active involvement from key stakeholders, the work could not proceed which caused the program to stall.
The solution? Our client needed a data governance business case to clearly articulate what they planned to do and why it was necessary.
And that’s what we created — a business case to drive interest and engagement with leaders across the pharmaceutical organization. Early on, we spoke to a variety of leaders who shared data challenges that cost their teams time and money. We also heard about their company culture that resisted change without concrete evidence the change would provide a financial benefit. The data governance business case became a narrative summary of these discussions to describe the challenges data governance could solve and the quantifiable value it would generate.
The business case document was circulated widely as an introduction to the program. It had the desired effect — leaders we knew started asking how soon we could get started, and leaders we hadn’t even met with were asking how they could get involved.
First San Francisco Partners’ pharmaceutical industry client needed a data governance business case to clearly articulate what they planned to do with their program and why it was necessary. The resulting business case did what it was intended to do — generated interest and engagement with leaders across the organization.
Data Governance Business Case Template
A business case justifies an initiative or project, aiming to convince stakeholders that the initiative is worthy of investment. Organizations often have multiple initiatives competing for resources, and a business case helps outline an initiative’s required resources and the anticipated value of an initiative.
The concept of a business case stems from project management and typically includes several key components.
Here’s a streamlined business case template tailored specifically for data governance:
- Opportunity/Problem Statement: Identify specific challenges and opportunities that necessitate a data governance initiative.
- Your business case could include issues like data silos, inconsistent data definitions, compliance risks or a broader need to improve decision-making processes through enhanced data quality and accessibility. By clearly defining these elements, stakeholders can grasp the urgency and importance of addressing these data governance issues, setting the stage for a transformation that supports your governance goals.
- Initiative/Solution Description: Outline actions and strategies the data governance initiative will employ to resolve challenges or leverage opportunities.
- This might involve implementing standardized data management practices, forming data stewardship teams, establishing clear data governance policies, and utilizing technology to enhance data integration and accessibility. Through these concrete plans and strategies, the data governance business case demonstrates the feasibility and pragmatic approach of the initiative, building confidence in its potential for success.
- Required Resources: Detail the required investment to successfully execute the data governance initiative.
- This part of your data governance business case could encompass financial resources, personnel time, technology investments, training and any additional tools or support structures necessary to facilitate the initiative. By outlining resource needs, your governance business case underscores the foundational support required to drive meaningful change and secure organizational commitment.
- Anticipated Value: Describe the expected outcomes and benefits for the organization upon successful implementation of data governance.
- This section includes tangible financial returns, such as cost savings from improved data efficiency and accuracy and improved regulatory compliance, as well as intangible benefits like enhanced user satisfaction and the capacity for data-driven innovation and strategic decision-making. Highlighting these anticipated gains ensures stakeholders understand the long-term value proposition, aligning their priorities with your strategic vision for improved data governance.
Think Beyond the Balance Sheet
One common misconception is that a business case should only include the financial investment and return. However, many organizations do things that cost them money to create value that can’t be added to a balance sheet.
For example, implementing a data governance framework often incurs costs in terms of resources — such as funding for establishing data governance policies, hiring or training personnel for data stewardship roles, and investing in technologies to ensure data compliance and security. Although the direct financial benefit might not be immediately quantifiable, organizations pursue data governance to achieve benefits like enhanced data-driven decision-making, increased operational efficiency and the fostering of a data-centric culture.
Impactful business cases consider tangible and intangible costs and benefits equally, showcasing the comprehensive value of data governance initiatives.
Position Your Governance Business Case for Success
For a business case to influence people at your organization, they need to understand it. While this might seem obvious, write your data governance business case in clear, concise language.
Here are tips to help you write the most compelling data governance business case:
- Identify Your Business Case’s Audience: We recommend crafting a data governance business case so it resonates with both operational and executive leaders as these groups control resources (i.e., funding and human resource allocation).
- Remove Jargon: Use the same language your audience uses. If a new term or concept is needed, define it in the text of the business case and in a glossary. A data governance business case will often be given to business and technical audiences, so use language both audiences will understand.
- Be Concise: This is not the place to document everything you know about data governance — the challenges it is meant to address, all the possible solutions to data problems, etc. Paradoxically, using fewer “right” words will demonstrate more knowledge and understanding than using many “wrong” words.
- Be Clear: Clearly outline the roles, responsibilities and time frame required for the program. Instead of scaring people off, this transparency will showcase the depth of understanding and careful planning that has gone into addressing challenges and developing effective solutions.
Build Your Business Case to Drive Change
Your business case will be an effective tool for building data governance awareness, regardless of when you create it. Often, organizations launch governance initiatives with the best intentions but encounter obstacles like resistance to change or unclear priorities. If this has happened to you, your business case can provide the clarity and focus needed to re-energize your program. By outlining your initiative’s value, addressing roadblocks and aligning stakeholders around shared goals, a business case can serve as a powerful tool to get a stalled or struggling program back on track.
And here’s something else remember: A business case can live beyond its initial purpose of gaining resource commitment when done well. With FSFP’s pharmaceutical client, its data governance business case became required reading for anyone involved with governance. Our client shared it with its data stewards as an introduction to the governance program to help them understand the value of their contribution. They also shared it with the company’s people leaders to justify the time the data stewards were spending on governance-related efforts.
Our client’s business case became a tool to support awareness-building, alignment and priority-setting. Could an effective data governance business case help your company? If you’re considering one, consider the challenges you face and the opportunities a clear, compelling data governance business case could unlock. Whether it’s gaining executive support, breaking down silos or prioritizing resources, a strong business case can pave the way for real progress.
Use the template and tips provided in this two-page download to learn how to create a data governance business case. And remember: A well-crafted business case doesn’t just secure resources — it helps build the momentum and alignment you need to achieve your data governance goals.