Imagine burning three trillion U.S. dollars. Businesses do this virtually every year because of poor data quality (DQ). 

In a data-driven age, organizations cannot afford to waste this time and money. Instead, they need to focus on achieving good data quality through a comprehensive program dedicated to business needs.

But how does a company implement an effective DQ offering? To provide guidance, DATAVERSITY® recently released a white paper, “Launching a Data Quality Program,” written by data evangelist Mark Horseman. 

The white paper provides insights into structuring a charter to successfully create and maintain a DQ program. As the journey is complex, it first helps to define a data quality program.

What Is a Data Quality Program?

Good data quality meets business standards for accurate, consistent, and reliable data. Organizations can build a foundation of trusted information needed to make good decisions only through smart, sustained effort.

Unfortunately, as Horseman points out in the white paper, companies struggle to achieve these outcomes. Take Qantas Airlines, for instance. 

In August 2024, 300 passengers bought first-class seats at significantly reduced prices. Earlier, in 2022, Qantas sold more than 8,000 tickets for canceled flights. Both incidents indicated quality failures, resulting in fines and lost customers. A robust data quality program could have mitigated these risks.

The Importance of a Data Quality Program Charter

A Data Quality Program Charter serves as a map, guiding organizations from their current state to their desired data quality goals. Like a geographical map, it needs key elements to be effective. Missing or irrelevant details can lead to frustration and inefficiency.

So, a Data Quality Program Charter needs to provide key factors to keep an organization on track to meet its DQ objectives. These elements, as detailed in the white paper, include the following:

Context and background: What is the “why” behind starting the program? It sets the stage for the DQ program.

• Expected benefits: How will the program improve DQ? Polished narratives about expected benefits motivate stakeholders.
• Scope: What does the program cover? Detailing what is in scope and what is out of scope prevents ambiguity.
• Roles and responsibilities: Who are the people tasked with executing and guiding the DQ program? Aligning these details fosters transparency, reduces ambiguity, and sets the initiative for success.
• Key performance indicators (KPIs): KPIs are metrics answering questions about past performance, such as “What happened?” Regardless of the specific measures, they must align with overall business goals to be meaningful.
• Return on investment (ROI): What is the program’s worth to the business? A good ROI demonstrates effective use of human and financial resources and time savings. It can back up increased revenue and risk reduction.

Note that DQ priorities go beyond the technical details or a software solution. Instead, setting up a program requires good communication and working together as an organization. Good charter documentation processes, such as these, support the key pieces needed for a successful DQ journey.

How to Set up a Data Quality Program

Any process to establish or update a DQ program charter must be adaptable. For example, a specific project management or a local office could start the initial DQ offering. As other teams see the program’s value, they would show initiative.

In the meantime, the charter tenets change to meet the situation. So, any DQ charter documentation must have the flexibility to transform into what is currently needed. Companies must keep track of any charter amendments or additions to provide transparency and accountability. 

Expect that various teams will have overlapping or conflicting needs in a DQ program. These people will need to work together to find a solution. They will need to know the discussion rules to consistently advocate for the DQ they need and express their challenges.

Ambiguity will heighten dissent. So, charter discussions and documentation must come from a well-defined methodology. As the white paper notes, clarity, consistency, and alignment sit at the charter’s core. While getting there can seem challenging, an expertly structured charter template can prompt critical information to show the way.

The Importance of an Expertly Structured Charter Template

The best practices documented by the charter stem from clarity, consistency, and alignment. They need to cover the DQ objectives mentioned above and ground DQ discussions. 

Accessing these best practices requires leveraging an expert’s knowledge to focus conversations on important priorities of a DQ program. A well-structured charter template, like the one in the white paper, makes these digestible through its sections. A good template needs to encompass the following:

• Program charter and document controls: Organizations must establish basic audit controls. These include appropriate approval, sign-off, and verification that the DQ program is meeting its stated purpose.
• Program details: Businesses need to know details about the DQ program and its boundaries. Any charter template needs to feature the first three objectives: context and background, expected benefits, and scope.
• Program staff resources and steering committee: Specify roles and responsibilities in the DQ program; a good charter template facilitates this. Organizations need to consider the staff directly involved in the DQ program execution and the steering committee that guides the program’s overall direction.
• Program sponsor: The role of a program sponsor goes to the entity or individual funding and supporting the program. Formalizing this role provides clear accountability and alignment with goals.
• Program manager: A program manager oversees the program’s day-to-day operations. That person coordinates activities and ensures the program objectives are met.
• KPIs, observations, and results (OKRs): Draw out precise metrics to understand where DQ is in a corporation and where it is heading. This data needs to be actionable and timely to ensure alignment with the business goals.
• ROI: The ROI validates the DQ program’s worth with concrete evidence. Stakeholders gain alignment and confidence that DQ efforts contribute meaningfully to the organization’s success by seeing effective use of financial and human resources, proof about how the business benefits, and time savings in digging through DQ issues.

The “Launching a Data Quality Program” white paper expands on each section, why they are important to the charter, and a solid foundation for the DQ program. It gives practical tips and tricks about using these sections to gain agreement, ensure risk coverage, and focus results on business needs.

Conclusion

Surviving and thriving in today’s marketplace requires good data quality across the entire organization. This drives accurate decision-making and efficient operations and mitigates risks.

Moreover, having good data quality prevents poor customer experiences and fuels innovation. These reasons provide the rationale to begin and sustain a comprehensive and effective data quality program.

Organizational buy-in to the DQ program is spearheaded through the processes of agreeing to DQ principles that align with business needs, documenting these through the DQ charter, and seeing the ROI.

These successes come about from a beneficial Data Quality Program Charter Template. It needs to foster the following:

• Clarity: Organizations know their DQ context, roles, and responsibilities.
• Focus: Companies define what data they will ensure is high quality vs. what data will not be targeted.
• Alignment: Enterprises ensure that data quality planning and activities agree with business objectives.
• Proof of Value: Businesses methodically measure and demonstrate how data quality progresses to meet their goals. 

An expertly structured charter template provides these assets, fostering a comprehensive strategy, implementing robust processes, and changing the culture to a data-driven one. Then, the business can begin and continue to lay down a solid foundation, for the present and the future.

Ready to get started? Download the white paper and charter template.