Kerdetra Osborne is a director of people systems and operations with 20+ years of experience. She has implemented HR systems across various platforms and is passionate about data accuracy.
Data is the backbone of every organization, driving crucial decisions across industries, titles, and global operations. Yet, amidst the digital advancements, data discrepancies persist.
The success of any organization relies on accurate information. It transcends financial investments in systems; it's about securing data, managing access, and maintaining accuracy to enable informed decision-making.
In the realm of business, data shapes narratives and dictates choices. Without precision, decisions rest on shaky ground. The foundation of sound business decisions lies in accurate data, not in misleading information that, without adequate scrutiny, can often be deemed reliable. This scrutiny should take the form of a well-defined data audit. Organizations must undertake this process to ensure their data maintains its integrity, enabling accurate and informed business decisions.
The Importance of Data Audits
Here’s a hypothetical. What would you rather be working with missing data, or incorrect data? Let’s think this through. From finance data to employee data, business leaders who are less familiar with specific data sets than those working with them daily are less likely to identify data discrepancies or inconsistencies. For example:
- If a business leader is reviewing inaccurate compensation data that has not been independently verified by tools for accuracy, they may not realize that a specific role’s compensation is out of range and therefore inaccurate.
- If an employee is missing that compensation data, on the other hand, they’ll know immediately that it’s incorrect.
In both scenarios, uninformed decisions plague organizations lacking structured data processes, and trusting inaccurate data can lead to misguided strategies. To navigate this, a holistic approach beyond mere data audits is imperative.
The foundation of sound business decisions lies in accurate data. Unfortunately, some organizations unknowingly base crucial choices on flawed information they trust to be reliable.
To address this, a defined data audit process is essential. Without a clear framework, audits vary widely within organizations, leading to inconsistencies in approach and outcomes. A well-defined data audit process tailored to an organization's needs is key to maintaining data integrity and making informed business decisions.
Effective data audits must be meticulously defined to ensure integrity. It is essential to establish what will be audited, when audits will occur, and who will conduct them. While achieving total data accuracy may be impossible, a robust system can prevent errors at the entry level, and a well-defined audit process can address the rest.
Organizations can safeguard data quality by setting clear goals, defining processes, and conducting audits before key business cycles. Prioritizing accuracy in active products, people, and critical information will ensure informed decision-making.
When conducting an audit, it's critical to establish clear guidelines to ensure consistency and accuracy. Different interpretations of data audits can lead to varying approaches within an organization, even within the same team. To maintain data integrity, defining what elements of data to audit is key.
While preventing data entry errors at a company level is feasible, achieving 100% data accuracy is naturally challenging. Implementing a structured data audit process tailored to your organization is therefore essential. Consider factors like active products, terminated employees, and the timing of audits before key business cycles for optimal results.
Keys to Data Audit Success
Setting measurable goals and communicating them clearly is vital for a successful data audit process. Ensure that information is accurate, hierarchies are correct, and salary details align with guidelines. By defining a systematic approach to data audits, you can enhance data quality and decision-making within your organization.
The “what” will ensure alignment as to what critical information must be audited.
The “who” can refer to both the population being audited and who is expected to perform those audits.
Additionally, consider “when” are you going to perform those audits? At what frequency should they occur, and within what stages of an organization’s key business cycles should they be scheduled?
At a minimum, the audit cadence should be aligned with key milestones, such as before a new implementation or major launch in a critical area such as performance management or compensation.
For example, before starting your performance and compensation cycles, checks and audits should be completed to ensure the organizational hierarchy is correct, and that short- and long-term incentive information is accurate, including bonus plan assignment and target percentages. Additionally, the audit can confirm salary information adheres to salary guidelines and is reasonable based on the employee’s working location.
Data tells a story. The accuracy of that data determines whether that story is fact or fiction. The better you define, execute, and adhere to your business processes and audit procedures, the more equipped your organization will be with facts, and the more informed decisions can be made.
Remember, a system is only as good as its data. Ensure that proper systems and processes are in place to keep the data as clean as possible.
Join us on Oct. Nov. 12-14 for ASUG Tech Connect, where we'll be discussing how organizations and develop and adopt effective data strategies. Register here.