By Briar Christensen, Principal Advisory Consultant
The Seven Essentials: Why Strong Governance (a.k.a. Leadership) is the Cornerstone of Data Success
At Stellar, we see firsthand how strong governance, the first pillar in our Seven Essentials Framework, can make or break a data initiative. You might assume we’re referring to data governance, but that’s only part of the story. While data governance is vital for managing data effectively, what we’re talking about here is much broader: organisation-wide leadership, essential to the success of any data programme of work.
Within the Seven Essentials, effective governance is not just about frameworks or steering committees. What it boils down to is what you might think of as leadership – clear direction, sustained executive commitment, and ensuring that data investments are delivering real business value. When you have top-down executive support, the right decisions are made, and your strategic direction is clear and visible to the entire organisation.
Our Principal Advisory Consultant, Briar Christensen, shares some key truths about what works in governance in practice through experience supporting complex organisations and programmes – what works in governance, and why.
So, what are they key truths about governance we’ve uncovered? Here are four that stand out:
- Strategic Vision Isn’t Optional – It’s Essential
One of the starkest contrasts we see across organisations is the presence – or absence – of strategic thinking at the top. A clear, well-articulated strategic vision anchors a data programme and keeps everyone aligned on the purpose.
We worked with a large government agency aiming to improve how they used their information. Their CEO had written one of the best strategic direction documents our team has ever come across – clear, concise, and visionary. That document didn’t just sit on a shelf, it became a living guide throughout the engagement, helping to align stakeholders and drive decisions. It made a massive difference.
If you’re a CEO, here’s a simple challenge: can you describe your data vision in a 30-second elevator pitch?
- Business Objectives Must Align with Value Realisation
It’s easy to get excited about the potential of better information, smarter reporting, or more powerful analytics. But if you can’t clearly articulate how those benefits will translate into real business value or a measurable return, you’re flying blind.
Stellar once asked a senior executive leading a major programme how they’d know it was a success. Their answer? “We’ll figure that out later.” That’s not enough to justify investment in a data programme.
If your initiative doesn’t have a direct line to business objectives, or a clear payback, pause. Reassess. Otherwise, you may just be throwing good money after bad.
- Governance Isn’t a One-Off – Stay Engaged
During the initial stages of a data programme, it’s not unusual for C-level executives to show up with enthusiasm. But we’ve seen those same stakeholders lose focus months later when other priorities emerge. This is where good governance starts to unravel.
If you’re serious about seeing a return on your data investment, stay involved. Your data programme needs airtime. Without executive backing and continued focus, the wheels can quickly fall off.
- Don’t Assume Better Reporting Is Baked Into Every Tech Investment
We’ve watched plenty of organisations invest millions into core operational systems – like ERPs, CRMs, and claims processing platforms – believing that advanced analytics and reporting are part of the package. They’re not.
And when that realisation hits, it’s often too late (and very expensive). Stellar has been called in after the fact to deliver the reporting capabilities that should’ve been planned for up front. While we’re happy to help, we’d much rather be there earlier to ensure the right conversations happen at the right time.
The Bottom Line
Governance is more than a tick-box or pulling together a steering committee – it’s leadership in action. Without clear strategic intent, ongoing executive engagement, and a laser focus on value, data initiatives risk becoming expensive experiments.
Keen to Learn More?
We’ve seen what works. And we’d love to help you get it right from the start. If you’re curious about how Stellar can support your data and analytics journey, get in touch on 0800 228 872 or email bi@stellarconsulting.co.nz.
