Most government and public sector organizations recognize that seamless use of data is essential to shoulder the increasing interactions between humans and machines. Data is no longer seen as the byproduct of operational transactions but as a valuable strategic asset that provides quicker and better actionable insights for decision-making. Data-driven decisions enable organizations to coordinate efforts, reduce time and waste, uncover new insights, and steer resources to maximize mission outcomes. But realizing those mission benefits typically starts with an effective, implementable data strategy.
Organizations often do apply data-driven approaches, but these practices are usually siloed or sporadic. Most people, even data leaders, can struggle to identify the data an organization holds or how it’s being used.
Without an enterprise-level approach to analyzing its data, an organization may miss untapped opportunities for improved efficiency, innovation, collaboration, and communication. However, it could lead to more severe ramifications such as inconsistent or inaccurate use of data, uncontrolled data issues, noncompliance with evolving expectations, or loss of trust and engagement from those they serve.
The government’s focus on becoming more data- and customer-centric can further galvanize the need for a sound data strategy.1 And chief data officers (CDOs) may be best-positioned to drive data strategy across their organizations. It is, therefore, not surprising that 86% of CDOs consider defining a data strategy as their top priority.2
The US Consumer Financial Protection Bureau (CFPB) was created in the digital era as a digital agency. Data was baked into its DNA from the start. After all, it may be difficult to ensure that markets for consumer financial products are fair, transparent, and competitive without data.
This advantage helped CFPB’s CDO when it came time to make a data strategy. From the beginning, leaders across the organization understood the central role that data played in accomplishing CFPB’s mission. But this buy-in was just the start of the journey. CFPB gathered input from 20 program offices to understand the organization’s needs and used that input to create five strategic data priorities. The CDO then chaired an executive committee to oversee the initial programs addressing each of the five strategic priorities. The programs are already helping CFPB improve the lives of consumers.
CFPB may have had a jump start as a “digital native” agency, but its journey illuminates a road others can travel as well from effective data strategy to real-world mission impact.3
CDOs may feel daunted by the prospect of designing a data strategy. However, it’s important to note that no one-size-fits-all solution exists for a successful data strategy. Before starting their data strategy journey, a CDO should carefully consider the unique data challenges they may face within their organization to plan against them strategically. Common challenges a CDO may face include:
Take the challenge facing many cities and local governments today in complying with Justice40 grants requirements.4 Many of the programs funded by the Inflation Reduction Act and Infrastructure Investment and Jobs Act are covered by the Justice40 initiative, which aims to deliver at least 40% of the overall benefits of certain federal investments to disadvantaged communities. While many state and local government leaders struggle to understand and execute the stipulations of the grants, they may not realize that they are really wrestling with a data problem. Data is needed to identify which communities are disproportionately affected by health, education, or other systemic inequalities. Data is required to help devise effective interventions. Postimplementation data is needed to evaluate the impact of the fund allocation. In this way, compliance with Justice40 requirements could be an ideal sprint for CDOs seeking to show their value quickly.
A CDO should consider the organization’s unique mission and challenges to create an effective data strategy. By following a strategic planning process that includes the following steps, the resulting data strategy will provide immediate value:
To effectively design and execute a data strategy, it needs to be supported by the right organizational capabilities. For further information on establishing the operating model and organizational infrastructure for the CDO function, please refer to our article, The power of data ecosystems.