Previously, I outlined a “bridge to nowhere” situation involving a former client and a CRM system that failed to achieve its goals. The CRM software ultimately became a well-intentioned business application with little real business application. In this post, I'll review the steps that this company missed with the CRM system that should be included in an MDM effort.

In my view, this company should launch a data governance effort that initially focuses on MDM.  This program should incorporate the people, processes and governance structures needed to access data for MDM – even if the data is external.  It should establish a viable closed-loop data quality process for the MDM data elements, a process that includes business participation.  And it should engage the right group of executive stakeholders, specifically those with the knowledge and authority to make both business and technology decisions.

Let’s look at these in a little more detail (and in reverse order):

Engage appropriate executive stakeholders.  A cross-functional steering committee is important to any enterprise data governance initiative because governance requires decisions that affect multiple business units. This includes new roles and responsibilities, new or changed processes across both business and IT, and possibly new technology. It is likely that all of these items will be required to govern MDM data and the right steering committee can make them happen.  For the bank’s focus on customer data, this group must include all business stakeholders needed to forge change in customer matching and survivorship rules.  At minimum, Marketing, Branch and Call Center Operations, Credit, Risk, and both Commercial and Retail business lines should have a seat at the table. Everyone in the  group should be aware of their expected role in facilitating cross-business unit decisions around customer information.

Establish a closed-loop data quality process. The quality of data will determine whether history repeats itself with an MDM deployment.  This process can focus on the data needed for MDM and provide for identification of problems, root cause analysis (which can span business process, user training, and internal and external originating systems), issue remediation, and ongoing monitoring.  Business and IT will both have roles in this process, as will the steering committee.  The bank should seriously consider setting up a data stewardship program with formal business stewards assigned the “care and feeding” of customer data. On the technical side, IT stewards can provide assistance for those systems that will participate in MDM.

Ensure access to necessary data.  Securing access to data is essential if MDM is to become a vital and beloved part of the customer information infrastructure (rather than a “bridge to nowhere”).  The steering committee will play a key role here as well, and participation should be broadened to encompass the executive(s) that can influence negotiation of third-party vendor contracts.  Going forward, these contracts will need to include provisions for data quality monitoring, quality issue remediation, and data acquisition, as well as the ability to get problems and requests addressed in a timely fashion.  The steering committee should also include IT leadership because MDM can (and often does) require changes to existing legacy application systems (e.g., CIF modification).  In this case, the bank is also modernizing some of its legacy infrastructure and it will be essential to incorporate MDM requirements into this process.

The moral of this story for anyone considering CRM or MDM is that data governance plays a critical role in the ultimate success or failure of the initiative.  If you have an existing data governance organization, you should examine it to see if it covers MDM data and decisions.  If, like my client, you don't have formal governance, you should consider initiating the critical components highlighted in this blog before embarking on your project. That way, you can ensure that you build a “bridge to everywhere.”