Tag Archives: balance sheet
In my previous post I emphasized the importance of demonstrated project management fundamentals as a key enabler of effective data quality delivery. In this blog, I will discuss why an understanding of corporate financial concepts is so important to data quality success.
Despite the continued evolution of data management technologies and the growing awareness of the challenges and promises of data quality, business buy-in is still a major barrier to the widespread adoption of data quality as another lever to achieve operational effectiveness. One of the key reasons for limited adoption is a clear linkage between data quality and a business’s performance, which is measured in a myriad of ways from operational metrics to managerial reports to formal KPIs. But, eventually, the enterprise’s performance is summarized in three key financial statements; the income statement, the balance sheet and the cash flow statement. Positioning data quality impacts or improvements in the context of these financial statements begins to “connect the dots” and moves data quality from the abstract to the concrete and from the theoretical to the practical. To illustrate this point, let’s take a look at the impacts and implications of a simple data quality issue like “undeliverable” billing addresses. (more…)