Digital governance 101

Daniel Taylor looks at how boards can stay on top of the governance of digital technology, data and information

In an age of rapid digital transformation, complex data sharing between organisations, cyber security threats, UK public-purpose organisations — from local government bodies to NHS trusts and charities — face increasing pressure to adopt effective digital governance.

Digital governance encompasses the systems, policies, and practices that ensure digital technologies, data and information are managed ethically, securely and in the public interest. This concept has gained considerable traction as organisations grapple with the complexities of technology adoption, from data security to system transformations.

In this article, we explore what digital governance is, why it’s crucial for public organisations and the role boards play in ensuring good practice.

What is digital governance?

Digital governance is a strategic framework that defines how an organisation approaches and manages its digital resources — primarily data, technology infrastructure, and digital policies — to achieve its objectives, deliver services, and ensure compliance with regulations. It’s about balancing innovation and risk management, while placing an emphasis on transparency, accountability, and ethical responsibility in the digital space.

In essence, it’s a set of guiding principles that help organisations navigate the digital landscape, ensuring that the decisions made today serve the public good, protect sensitive information, and position the organisation to meet future challenges.

Key areas of digital governance

Digital governance covers a range of vital areas that can make or break the effectiveness of an organisation’s transformation efforts. Let’s delve into a few.

1. Investment in digital infrastructure and systems transformation

One of the most significant challenges facing public purpose organisations is the need for investment digital infrastructure and in systems transformation. Traditional systems and legacy infrastructure often fail to meet modern needs, creating inefficiencies and hindering innovation. For example, local councils, NHS trusts, and even universities can be held back by outdated IT systems that don’t enable easy sharing of information or streamline administrative tasks.

Why it matters: Effective digital transformation isn’t just about technology, it’s about improving service delivery, increasing productivity and reducing costs. However, systems transformation involves substantial investment, not only in the technology itself but in the skills, training, and change management necessary to embed it within the organisation’s culture.

Public-purpose organisations, especially those in sectors such as health and education, must prioritise investments in digital infrastructure to keep pace with evolving public expectations and the increasing demand for more accessible and efficient services. Digital systems, when implemented well, can enhance decision-making, improve service delivery and make the organisation more responsive to public needs.

2. Data security and information sharing

Data security is arguably the most critical aspect of digital governance. As public-purpose organisations collect vast amounts of sensitive data — from personal health information to financial records — safeguarding this data against breaches or misuse is non-negotiable. Mismanagement or neglect can lead to significant legal, financial, and reputational consequences, as evidenced by several high-profile breaches in public institutions.

But while data security is paramount, there is also the matter of information sharing. As organisations become more digitally connected, the ability to share information securely and efficiently across departments and even with other public agencies is key to improving service delivery and decision-making. However, balancing openness and security is complex.

Why it matters: A robust data governance framework ensures the protection of sensitive data, while facilitating effective information sharing across departments and, when appropriate, with external partners. This balance is crucial for improving collaboration between public bodies, driving innovation, and delivering integrated services.

The General Data Protection Regulation (GDPR) and other relevant data protection laws further underline the importance of secure data management, making it clear that organisations must implement strict policies and measures to ensure compliance.

3. Ethical use of data and technology

Digital governance is not only about securing data but using it responsibly. Public sector organisations have a unique responsibility to ensure that technology and data are used in ways that are ethical and in the public interest. For instance, AI and machine learning algorithms are increasingly used to make decisions about funding, education, healthcare, and policing. Without clear governance frameworks, these technologies could perpetuate biases or make opaque decisions that harm vulnerable populations.

Why it matters: Ethical issues surrounding algorithmic transparency, bias in data and the right to explanation are of growing concern. Public sector organisations must ensure that their digital systems are designed to be fair, transparent and accountable. This means having clear governance structures in place that oversee the ethical use of emerging technologies and ensuring that staff are properly trained to identify and mitigate bias or unethical practices.

Why good digital governance is important

Digital governance is critical for several reasons. Firstly, it provides the transparency and accountability needed for public trust. With greater scrutiny of public organisations, particularly in the digital realm, it is essential that decisions around data management, security, and system changes are made openly and are subject to public oversight.

Secondly, digital governance helps public organisations mitigate risks related to cybersecurity, compliance, and reputational damage. With cyber threats and data breaches becoming more sophisticated, having clear governance policies in place can prevent costly mistakes.

Finally, it enables innovation. Digital governance isn't just about protection and regulation — it also empowers organisations to innovate, knowing that their digital initiatives are underpinned by strong policies, procedures, and ethical frameworks. With proper governance, public organisations can take calculated risks and explore new ways to deliver services and drive societal change.

The board’s role in digital governance

Boards play a critical role in ensuring that digital governance is robust and aligned with the organisation's broader goals. They must take ultimate responsibility for the organisation’s digital strategy and governance, ensuring that appropriate systems, policies, and frameworks are in place to manage digital risks.

• Setting the strategic direction: The board must ensure that the digital strategy aligns with the organisation’s mission and public purpose. They should be actively involved in setting the vision for how technology and data can improve service delivery and outcomes for the public.
• Risk oversight: The board must be aware of the risks associated with digital transformation — whether those risks are cyber threats, data breaches, or the ethical implications of new technologies. The board should ensure that risks are adequately assessed and managed through regular reporting and governance structures.
• Compliance and accountability: As organisations handle more data, boards must ensure that proper compliance frameworks are in place, including adherence to data protection laws like GDPR. They are also responsible for ensuring that appropriate systems of accountability are in place for those involved in handling and using digital tools.
• Fostering a culture of digital competence: Boards should promote a culture where digital literacy is embedded at all levels of the organisation. This includes ensuring that staff receive the training and resources they need to manage digital tools effectively and ethically.

Good practice in digital governance

To achieve effective digital governance, there are a number of best practices that public sector boards can follow:

1. Develop a clear digital strategy: Define the organisation’s digital vision, strategic objectives, and how digital technologies will be used to enhance services and operations. This should be a living document that adapts to changing needs and technologies.
2. Ensure strong data protection policies: Implement comprehensive data security policies, conduct regular audits, and invest in training to ensure that employees understand the importance of data security and their role in protecting it.
3. Establish a digital governance committee: A dedicated committee can oversee the implementation of the digital strategy, monitor digital risks, and ensure alignment with broader governance policies.
4. Foster cross-sector collaboration: Digital governance isn’t confined to one organisation or department. Public organisations should engage with others in their sector to share best practices and learn from collective experiences.
5. Be transparent with the public: Public organisations should be transparent about how they collect, store, and use data. This builds public trust and ensures that digital initiatives serve the community’s best interests.

Are you ready?

As digital transformation continues to reshape the public sector, robust digital governance is essential to ensure that technologies, data, and systems are used ethically, securely, and in ways that benefit the public. From setting strategic direction to ensuring compliance, boards must play an active role in guiding digital governance.

By investing in the right infrastructure, adhering to data protection principles, and fostering a culture of transparency, public purpose organisations can thrive in the digital age while maintaining the trust and confidence of the people they serve.

It’s time to ask yourself a question: is your board on top of digital governance? GGI’s board development workshops can empower you with the knowledge and skills you need to govern effectively through the challenges and opportunities of the digital age. Contact us today to start planning a tailored session.