One version of the truth: the importance of a Definition Dictionary

In today's world, information is the key to success. It's therefore crucial to have one version of the truth within your company. But what does that actually mean? And how do you achieve one version of the truth? The answer to that question is the Definition Dictionary. Business Intelligence consultant Mark de Boer tells you more about exactly what that is in this blog.

What does one version of the truth mean?

It means that all employees within your organization always look at the same data, resulting in clarity and more effective strategic choices. Achieving this one version of the truth starts with a Definition Dictionary.

What is a Definition Dictionary?

A definition dictionary is an essential tool for achieving one version of the truth. It's like a kind of dictionary for your organization, in which all terms and KPIs are clearly described, along with the formulas used to calculate them. This ensures uniformity and clarity within the organization, so everyone can quickly and easily look up the meaning and underlying calculations of data.

Central storage of definitions

In many companies, definitions are often kept in different places, which can lead to confusion and inconsistency. A transparent Definition Dictionary offers a solution here. All definitions can be managed in one central place.

Practical benefits and applications

A concrete example of the power of a Definition Dictionary can be found in the practice of various business domains. Such as productivity figures, absenteeism, ongoing sick leave, and exactly how margin is calculated. At many companies, often only a few experts know exactly how these things are calculated. Other employees make assumptions about how it should be calculated, or start keeping their own Excel lists with their own calculations alongside it. Which in turn leads to a lot of miscommunication within your company.

Company-wide collaboration and improvement

The usefulness of a Definition Dictionary is broad and extends across various essential business areas. It can put an end to confusion and inconsistency. And it can enable everyone to quickly and easily look up the meaning and underlying calculations of terms. Moreover, the whole company gets involved in defining and refining these definitions, which leads to valuable discussions and new insights from various perspectives.

Where do you start?

Do you recognize the importance of a Definition Dictionary and would you like to create one for your company too? Then start by collecting all definitions in a central SharePoint file and assign owners to each definition. Make sure there's one data owner per domain, such as HR or Finance. Once this list is complete, you can take the next step in centrally storing your data.

Written by Mark de Boer
Business Intelligence Consultant
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