The Importance of Metrics
As much as I dread coming up with metrics, I know that they are absolutely necessary for the success of the Data Governance Program. Whether you are thinking about doing Data Governance, have just started, or are sailing along smoothly, you’ll want to keep metrics on everything you do.
For those trying to funded, metrics are going to help get you funded. Your metrics must show that you are increasing the bottom line, decreasing costs, or mitigating risk. The third is probably the hardest to show with metrics… maybe, “If this continues to occur at a 1% increase per year, upper management can expect to be in orange jumpsuits by Q3 2008″. Seriously though, if you start with a pain point like we just talked about, and throw some metrics into the mix, you have a seriously powerful case for data governance at your hands.
Lets say you work for a lending company and your marketing department says it would be great if we knew the point at which the borrower is 3 months from paying off their home loan because it would be a good time to send them literature about their special “Mercedes Benz loan” (now that they don’t have a mortgage payment). Lets also assume that everyone knows that the final loan payment date has serious problems.
If you, 1. Find out what the response rate is on their Mercedes Benz Loan to mailings currently, you can then 2. Determine what a 1-2% increase in those mailings would yield revenue wise. In this, you are solving the pain point of a bad final loan payment date as well as increasing the bottom line. A win-win for everyone! That increase alone could potentialy pay for your DG program, and more!