POLICIES AND RULES: THE HOUSE RULES OF DATA
It’s the 1st ingredient out of 5.
Just like a well-prepared dish requires the right ingredients, data governance is built on five essential components. The first and most fundamental “flavor” is policies and rules—the guiding principles that keep data structured and secure.
To truly understand and apply data governance, we need to start with policies and rules. Think of these as the household rules that keep things running smoothly—like “Take off your shoes at the door” or “Wash the dishes after eating.” Similarly, in data governance, there are rules like:
“Do not modify customer data without authorization.”
“All passwords must be encrypted.”
Without these policies, data would be all over the place, leading to chaos and confusion.
I once knew a company where employees were constantly arguing over deleted data: “Who erased this file?!” Eventually, they introduced a new policy: “All data deletions must be approved by the team lead.” After that, the chaos stopped overnight.
However, there’s a balance to maintain—if policies are too strict, they become suffocating. If they’re too loose, the data turns into a mess. The key is to find the right balance that works for your organization.
Rules Should Be Practical
A common mistake is setting unrealistic expectations. Imagine if your parents said, “Clean your room every single day!” Would you really do it? Probably not. Instead, “Do a deep clean once a week” feels more reasonable, right? The same applies to data governance.
For example, instead of demanding:
🚫 “All data must be reviewed daily!” (Too unrealistic)
Try:
“Critical data should be checked daily, and everything else can be reviewed weekly.”
Documentation is crucial. If rules are only communicated verbally, people will forget or misinterpret them. A friend of mine once told his team, “Always back up your data.” But because it wasn’t written down, some employees did it, and others didn’t—until one day, important data was lost. That was the moment they realized: “We need to document our policies!”
The Data Governance Policy: Your Organization’s Rulebook.
A well-structured organization relies on clear rules and policies, and data governance is no exception. These policies are compiled into what’s known as a Data Governance Policy Document—a structured guide that ensures everyone follows the same rules when handling data.
Data Governance Policy: The Household Rulebook for Data
A Data Governance Policy Document is like a household rulebook—a single place where all the essential guidelines are recorded so that everyone knows what to follow. Instead of saying, “Just do it this way,” it clearly outlines:
- Why the rule exists
- Who is responsible
- How it should be followed
For example, if a house rule is “Wash the dishes after eating,” the policy version would specify:
Why? (To keep the kitchen clean)
Who? (The person who ate)
When? (Immediately after eating)
A data governance policy follows the same structure. Instead of just saying, “Don’t touch customer data,” it clarifies:
Why? (To comply with privacy laws)
Who? (Only authorized data stewards)
How? (Access requires approval)
One of my friends, Jake, runs a small store. At first, he thought verbal instructions were enough—until his employees started asking: “Who’s responsible?” “What should we do first?” This led to confusion, and data handling became a mess. I told him, “Write it down.” So he created a simple policy:
- “The store manager handles customer data, backs it up daily, and ensures encryption.”
Once it was documented, everyone knew what to do—and things ran smoothly from then on.
What Goes into a Data Governance Policy?
A good policy document outlines every aspect of data governance in a structured way. Here are some key elements:
- Purpose: “Why are we doing this? To ensure data remains secure and organized.”
- Scope: “What data does this cover? Customer information, order history, inventory data.”
- Rules: “Who can access what? Customer data requires approval; passwords must be encrypted.”
- Roles & Responsibilities: “Who handles this? The team lead oversees compliance, employees check data daily.”
- Compliance & Monitoring: “How do we enforce this? Conduct weekly audits, report issues to the team lead.”
One company I know implemented a policy stating: “Confidential data must be encrypted and undergo monthly audits.” This made it easy to track mistakes, and employees felt more confident handling data.
At Jake’s store, his policy stated: “Customer information cannot be accessed without approval, and data must be backed up daily.” He later told me, “This simple rule probably saved my business.”
Why Is a Data Governance Policy Important?
Without a policy document, data management can become chaotic. Think of a household without rules—there would be constant arguments like: “Who’s doing the dishes?” or “Why should I clean up?”
In a business setting, this translates to:
❌ “Who deleted this data?”
❌ “Why wasn’t this backed up?”
With clear policies in place, you can simply refer to the document:
“The policy says the team lead must approve deletions.”
“Backups are mandatory—check the logs.”
Additionally, regulations like GDPR and data privacy laws require businesses to handle data responsibly. A documented policy proves that your organization is compliant.
I know of a company that suffered a data breach and got into legal trouble. They were asked, “Why wasn’t this data protected?” Since they had no formal policy, they couldn’t justify their actions. After facing penalties, they immediately implemented a comprehensive data governance policy, ensuring this would never happen again.
How to Write a Simple Data Governance Policy
Creating a policy document isn’t as complicated as it sounds. Start with a basic structure:
1️ Define the purpose: “We aim to manage data securely and efficiently.”
2️ Establish the rules: “Critical data must be reviewed daily; encryption is mandatory.”
3️ Assign responsibilities: “The team lead is responsible for enforcing these policies.”
4️ Document everything: Store it in a shared file (Word, Excel, or an internal wiki).
Jake once said, “Writing a policy is a hassle,” but I convinced him to try a one-page version for his store. It simply stated:
“The store owner manages customer data, backs it up daily, and encrypts sensitive information.”
Afterwards, he told me, “That was way easier than I thought—and it works!”