Data management is a priority for many organizations worldwide. Strong leadership in data initiatives is a key success factor. Several factors influence the trends in developing this business area, such as economic uncertainty, increasing regulatory pressure, technology development, business digitalization, and rapid progress in AI. These factors drive organizations’ data-related initiatives: developing IT and deployment approaches, establishing data management frameworks, collaborating with other business functions, and so on. The involvement of top management is crucial for the success of these initiatives.
In this article, we:
- Review the trends in the roles responsible for initiating data-related initiatives
- Analyze the challenges associated with implementing a data management framework
- Highlight the importance of involving top management in data-related initiatives
- Discuss key reasons for an organization’s top management to implement a governance framework
- Provide high-level recommendations
Trends in the roles responsible for initiating data-related initiatives
Many data professionals complain that it is difficult to gain the attention and support of C-Suite members for data-related initiatives. I conducted the same poll on LinkedIn in 2020, 2023, and 2024, asking a simple question: “Who has initiated the implementation of data management or governance function in your company?” Figure 1 demonstrates the results of these polls.
Figure 1: Business roles that have initiated data-related programs.
Surprisingly, the role of C-suite members in initiating data-related initiatives is relatively weak. Even more concerning is the gradual decline in the percentage of CEOs and CFOs involved in these initiatives. This is perplexing, considering that CFOs often experience significant data delivery and quality challenges.
On the other hand, the role of CIOs, CTOs, and CDOs in initiating data-related initiatives has increased significantly, from 24% in 2020 to over 60% in 2024. CIOs/CTOs are becoming the primary drivers of data initiatives, reflecting the growing importance of technology in data management and strategy.
Middle management’s involvement in initiating these initiatives has decreased sharply, from 42% in 2020 to a projected 17% in 2024.
These trends indicate a significant shift in responsibility for initiating data-related initiatives. The role of broader executive roles (CEOs and CFOs) in these initiatives is gradually declining, while more specialized, technology-focused roles (CIOs/CTOs/CDOs) are taking the lead. This shift underscores the increasing recognition of data management as a critical strategic function, strongly emphasizing leveraging technology and data to drive business outcomes. The dominance of CIOs/CTOs/CDOs in initiating data-related initiatives signals that data management is increasingly viewed as a technological and strategic function rather than a general business function. The decreasing role of middle management further highlights that data initiatives are being managed at more senior, specialized levels within organizations.
One of the trending data-related initiatives is the implementation of a data management framework. Let’s discuss the key challenges organizations worldwide face.
Challenges associated with implementing a data management framework
Figure 2 demonstrates the results of the poll I conducted on LinkedIn, which aimed to investigate the trends and challenges related to implementing a data management framework.
Figure 2: Challenges in implementing a data management framework.
Surprisingly, the role of C-suite members in initiating data-related initiatives is relatively weak. Even more concerning is the gradual decline in the percentage of CEOs and CFOs involved in these initiatives. This is perplexing, considering that CFOs often experience significant data delivery and quality challenges.
On the other hand, the role of CIOs, CTOs, and CDOs in initiating data-related initiatives has increased significantly, from 24% in 2020 to over 60% in 2024. CIOs/CTOs are becoming the primary drivers of data initiatives, reflecting the growing importance of technology in data management and strategy.
Middle management’s involvement in initiating these initiatives has decreased sharply, from 42% in 2020 to a projected 17% in 2024.
These trends indicate a significant shift in responsibility for initiating data-related initiatives. The role of broader executive roles (CEOs and CFOs) in these initiatives is gradually declining, while more specialized, technology-focused roles (CIOs/CTOs/CDOs) are taking the lead. This shift underscores the increasing recognition of data management as a critical strategic function, strongly emphasizing leveraging technology and data to drive business outcomes. The dominance of CIOs/CTOs/CDOs in initiating data-related initiatives signals that data management is increasingly viewed as a technological and strategic function rather than a general business function. The decreasing role of middle management further highlights that data initiatives are being managed at more senior, specialized levels within organizations.
One of the trending data-related initiatives is the implementation of a data management framework. Let’s discuss the key challenges organizations worldwide face.
The importance of involving top management in a data-related initiative
Every data management initiative is both time-consuming and resource-intensive. It may begin as a project or program, but once initiated, it becomes an ongoing business-as-usual activity, primarily if the organization aims to establish data management as a core business function. This leads to a straightforward conclusion: for a data management initiative to succeed, the organization’s top management must sponsor it and recognize it as a strategic priority.
It is worth noting that the European Central Bank’s latest “Guide on effective risk data aggregation and risk reporting” imposes substantial requirements on an organization’s management body. The guide stresses that the management body is accountable for “accepting accountability and exercising full responsibility for risk data quality and governance as a part of the overall risk management framework” and “selecting one or two members of the management body in its management function to exercise responsibility for implementing the data governance framework.” Should all organizations comply with this regulation, I think that progress in improving data management practices would be tremendous.
In many of my workshops, I frequently encounter the same questions: “How can we involve top management in a data-related initiative? How can we demonstrate the importance of a governance framework?” Let’s explore the key points you can use to persuade C-suite members to actively sponsor data-related initiatives effectively.
Key reasons for an organization’s top management to sponsor establishing a governance framework
Many organizations begin their data management initiatives at the operational level by implementing various IT tools. While eager to adopt these tools, they often attempt to save money by skimping on data governance.
To convince your management to invest in a “full-scope” data management approach and develop a comprehensive governance system, consider using the following reasons:
Control over data and IT assets
Any organization needs to establish a governing system to control and monitor the usage of data assets. This system can make such a control cohesive and consistent. It ensures a consistent approach to handling and managing data and IT assets across all organizational departments, reducing the risk of discrepancies and errors.
Shared decision-making
Decisions about data management can become complex and challenging in organizations with many stakeholders. The governing system provides a structured process for decision-making, helping to ensure that all voices are heard and that decisions are made in the best interest of the whole organization.
Data authority management
Clear lines of authority over data and IT assets can help prevent confusion and conflict. The data governing system delineates who has the power to make decisions about different types of data, which can streamline the decision-making process and help to prevent conflicts.
Regulatory compliance
Many industries have regulations that dictate how data must be managed. The governing system provides a framework to ensure the organization meets these regulatory requirements, reducing the risk of penalties or other negative consequences.
Risk management
Data is often one of an organization’s most valuable assets but can also be a source of risk. The governing system provides a method of managing this risk, ensuring that data is used and managed to benefit the organization while mitigating potential harm.
Standardized approach and conservation of resources
The last reason is that the data governing system defines standards to be used across the organization. This will save resources on developing duplicated documentation and avoid multiple “one-to-one” agreements between different business lines.
I know that many professionals think the same: “To convince our management to invest in data management, we must demonstrate which return on investment we will get.” It is a challenging task. We can apply management accounting methods to assess monetary and non-monetary gains from implementing data management. Realizing that you can receive some gains only after the initial investments is essential.
I had an interesting discussion with a colleague a while ago about calculating ROI for a data management initiative. He provided a fascinating analogy: “Assume somebody wants to open a restaurant business and build a new building for that. How can you calculate the ROI for constructing the foundation for this building?”
This analogy perfectly demonstrates the role of data management: it is a mandatory foundation for any business data-related initiative within the organization.
The last and most important question is how to implement everything discussed in this article.
High-level recommendations
To involve top management in sponsoring a data-related initiative, the following steps are recommended:
- Define key business priorities, such as enhancing decision-making and improving customer experience. A business strategy is the best input source.
- Prioritize these priorities, as each organization has limited resources.
- Identify key stakeholders per business priority, starting with top management.
- Identify and discuss the core stakeholder concerns and interests in reaching the goals of these business initiatives. Determine corresponding information needs related to each business initiative.
- Demonstrate the core business benefits each stakeholder group would gain from realizing these business initiatives.
- Develop and implement a stakeholder communication and engagement plan.
