Data Governance for Managers: The Driver of Value Stream Optimization and a Pacemaker for Digital Transformation

167 Pages·2022·3.468 MB·English

by  Lars Michael Bollweg

Management for Professionals
Lars Michael Bollweg
Data Governance
for Managers
The Driver of Value Stream Optimization
and a Pacemaker for Digital
Transformation
Management for Professionals
The Springer series Management for Professionals comprises high-level business
and management books for executives. The authors are experienced business
professionals and renowned professors who combine scientific background, best
practice,andentrepreneurialvisiontoprovidepowerfulinsightsintohowtoachieve
businessexcellence.
Lars Michael Bollweg
Data Governance
for Managers
The Driver of Value Stream Optimization
and a Pacemaker for Digital
Transformation
LarsMichaelBollweg
Dortmund,Germany
ISSN2192-8096 ISSN2192-810X (electronic)
ManagementforProfessionals
ISBN978-3-662-65170-4 ISBN978-3-662-65171-1 (eBook)
https://doi.org/10.1007/978-3-662-65171-1
Translation from the German language edition: “Data Governance für Manager” by Lars Michael
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Foreword
Data and its proper use and application are finally receiving the attention they
deserve in German business. The legal requirements that have arisen as a result of
the introduction of the European General Data Protection Regulation (GDPR) are
making a significant contribution to this change. For the first time, there was a
notable risk for companies in the incorrect use of data. However, that protection
against risks should not be the only reason to have the own data under control is
shown to us by the economic giants from Silicon Valley. They are dominating the
stockmarketsforseveralyearswithdata-drivenbusinessmodels.Accordingly,the
mottoofthehouris:Ifyouwanttodevelopyourbusiness,youhavetounderstand
yourdataanduseitprofitably.Processimprovementandautomation,newbusiness
areasandintelligent,fact-baseddecisions,everythingstandsandfallswithdata,the
knowledge of data, and the skills required to use this data correctly. Data Gover-
nanceformsthebasisfororganizationstofacethischallengingtask.
The establishment of a data organization capable of acting on data issues is
therefore at the heart of a Data Governance implementation program. However, if
aDataGovernanceprogramistohaveachanceofsuccess,itmustfocusonsoftas
well as on hard factors.Forexample, it is essential that a cultural change toward a
data-centriccompanyisaccompaniedandpromotedbyDataGovernance.Datamust
therefore not only be referred to as an asset, but also be treated as such. This is
importantandoldparadigmsmustbequestionedforthispurpose,particularlywhen
dealingwithaneconomicassetthatcanbereplicatedalmostfreeofchargeandbeing
sold without losing it. This complexity coupled with the need to change the way
companiesworkandtheneedtolearnnewskillsacrosstheenterprise,highlightsthe
challengingscopeofimplementingDataGovernance.
AsheadoftheprogramtoimplementDataGovernanceatWestnetzGmbH,itis
Dr.LarsBollweg'sjobtobundlethismultitudeofperspectivesintoajointinitiative.
Inadditiontostringentsupportfromtopmanagement,itisthankstohisenergyand
ingenuitythatDataManagementatWestnetzisnowmorethanataskforafew,but
anessentialpartoftheentirecompany.Onceagain,DataGovernanceisnotatopic
fortheivorytower.DataGovernancelivesinthedecentralizedunitsthatworkwith
the data every day and that are responsible for its quality and proper provision.
Above all, Data Governance only really comes to life when no member of a Data
Managementunitisrequiredtouseorunderstanddataprofessionally.
vviiii
viii Foreword
The steps and principles described in this book for implementing Data Gover-
nanceinanorganizationarenotpuretheory,butcomefromthelivedpracticeofa
successfulprogram.Boththerolesdescribedandthegivenapproachthereforeexist
outsidealaboratorysituationinalivingandbreathingcompany.AtWestnetz,too,
the road to the first successes of Data Governance was long, and it is still way to
go. However, take the advices given in this book to heart and persevere. Only
stamina and full conviction in the matter will lead to success. The good thing is—
theworkisworthit!
DataManagement,WestnetzGmbH HenningKrings
Dortmund,Germany
Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Reference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
PartI Basics
2 WhatIsDataGovernance?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.1 BasicsandDefinitionofDataGovernance. . . . . . . . . . . . . . . . . . 9
2.2 LevelsofComplexity.. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . 13
2.3 DataLifecycle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.4 DataResponsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2.5 RolesofDataGovernance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.6 StructuresofDataGovernance. . . . . . . . . . . . . . . . . . . . . . . . . . 32
References. . . . .. . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . . 45
PartII Design
3 SuccessFactorsfortheImplementation. . . . . . . . . . . . . . . . . . . . . . 49
3.1 ProvideResources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
3.2 IdentifyImplementationDrivers. . . . . . . . . . . . . . . . . . . . . . . . . 52
3.3 DevelopDataManagementCapabilities. . . . . . . . . . . . . . . . . . . 53
3.4 SelecttheOrganizationalStructure. . . . . . . . . . . . . . . . . . . . . . . 69
3.5 CreateAddedValue:RightAway. . . . . . . . . . . . . . . . . . . . . . . . 73
3.6 CommunicateIntensivelyandInvolveStakeholders. . . . . . . . . . . 74
3.7 Data-CentricCorporateCulture. .. . . .. . . .. . . .. . . .. . . .. . . . 75
References. . . . .. . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . . 78
PartIII Implement
4 DevelopmentofaResponsiveOperatingModel. . . . . . . . . . . . . . . . 81
4.1 FundamentalsoftheOperatingModel. . . . . . . . . . . . . . . . . . . . . 81
4.2 LineOrganization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.3 MatrixOrganization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
4.4 LineorMatrixOrganization. . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
4.5 ProcedureModel:IntroductionofDataGovernance. . . . . . . . . . . 86
iixx
x Contents
4.6 ProcedureModel:PreparationforRegularOperationofData
Governance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
References. . . . .. . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . . 100
PartIV Run
5 FundamentalsoftheDigitalTransformation. . . . . . . . . . . . . . . . . . 103
5.1 StagesofDigitalValueCreation. . . . . . . . . . . . . . . . . . . . . . . . . 104
5.2 FundamentalsofBusinessArchitecture. . . . . . . . . . . . . . . . . . . . 108
References. . . . .. . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . . 112
6 DataGovernanceasDriverofValueStreamOptimization
andasPacemakerfortheDigitalTransformation. . . . . . . . . . . . . . 113
6.1 FundamentalsofProcessDocumentation. . . . . . . . . . . . . . . . . . . 114
6.2 ClassicValueStreamMapping. . . . . . . . . . . . . . . . . . . . . . . . . . 116
6.3 Data-DrivenValueStreamOptimization. . . . . . . . . . . . . . . . . . . 119
6.4 ApplicationofData-DrivenValueStreamOptimization. . . . . . . . 126
6.5 TheDigitalProductionLine. . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
References. . . . .. . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . . 142
PartV Control
7 MeasuringtheSuccessofDataGovernance. . . . . . . . . . . . . . . . . . . 145
7.1 DataGovernanceMaturityModel. . . . . . . . . . . . . . . . . . . . . . . . 145
7.2 Self-AssessmentoftheCurrentDevelopmentStatus
oftheDataGovernanceImplementation. . . . . . . . . . . . . . . . . . . 148
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
8 ListofPrinciples. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
9 Bonus:DataDefinitionTemplate. . . . . . . . . . . . . . . . . . . . . . . . . . . 155
10 ClosingWords. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161