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

In today's world, information is the key to success. It is 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 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 is like a dictionary for your organization, in which all terms and KPIs are clearly described, together with the formulas used to calculate them. This ensures uniformity and clarity within the organization, so that everyone can quickly and easily look up the meaning and the underlying calculations of data.

Central storage of definitions

In many companies, definitions are stored in several 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. Think of productivity figures, sickness absence, continuous absence and exactly how the margin is calculated. At many companies, only a few experts know exactly how these things are calculated. The other employees make assumptions about how it should be calculated or keep their own Excel lists with their own calculations on the side. This in turn causes 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 the underlying calculations of terms. Moreover, the whole company becomes involved in defining and refining these definitions, which leads to valuable discussions and new insights from diverse 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 is one data owner per domain, such as HR or Finance. Once this list is complete, you can take the next step of storing data centrally.

Want to know more?

Does this sound like a valuable step for your company? Then do not hesitate to get in touch with us for more information and guidance. Together we can efficiently walk the road to data-driven success.