Why Metrics Matter in MDM

Organizations can no longer afford to make decisions based on incomplete, inconsistent, or outdated master data. That’s why MDM quality metrics have become mission-critical, not just for IT teams, but for every function that relies on accurate information to operate efficiently.

Whether you’re managing a global supply chain, tracking equipment maintenance, or forecasting demand, bad master data is a silent threat that distorts decisions and drives up costs. What’s worse? Most businesses don’t realize the extent of the problem because they’re not measuring it.

Tracking the right MDM KPIs doesn’t just shine a light on data issues; it gives you a roadmap to solve them. This article breaks down the most essential MDM quality metrics, how to align them with your business goals, and what mistakes to avoid if you want to improve data trust and operational performance.

What Are MDM Quality Metrics?

MDM quality metrics are measurable indicators that show how healthy, accurate, and usable your master data is. They help you evaluate:

• Consistency across systems
• Accuracy and completeness of records
• Frequency of duplicates or obsolete entries
• Overall trustworthiness of your data

Without these metrics, you’re flying blind. With them, you’re steering your data and your business in the right direction.

Roles and Responsibilities for effective Master Data Management (MDM) | Codasol

Top 5 Mistakes in Tracking MDM KPIs

Even well-intentioned MDM teams fall into traps when it comes to tracking data quality metrics. Avoid these common mistakes to ensure your KPIs actually drive improvement:

1. Tracking Too Many Metrics at Once

Having 20+ KPIs might sound thorough, but it usually leads to data fatigue. Focus on a core set of metrics that map directly to business goals.

2. Choosing Vanity Metrics

Some teams obsess over metrics that look good but don’t improve outcomes. For example, measuring total record count without considering accuracy or completeness offers no real insight.

3. Lack of Ownership

KPIs fail when no one is accountable. Assign specific KPIs to data stewards, domain experts, or department heads to ensure follow-through.

4. Not Benchmarking or Setting Targets

Without a target, a KPI is just a number. Define clear thresholds (e.g., <2% duplication rate) to assess success or flag issues.

5. Measuring Without Action

Perhaps the biggest mistake: collecting metrics but taking no corrective steps. A good KPI dashboard should trigger process changes, training, or system fixes when thresholds are breached.

MDM KPIs are not just for reporting; they’re tools for continuous improvement.

Key MDM KPIs You Should Be Tracking

Here are the most critical KPIs that matter across industries like Oil & Gas, Manufacturing, EPC, Utilities, and more:

Metric	What It Measures	Why It Matters
Data Accuracy Rate	% of correct and verified entries	Reduces maintenance delays & supply chain issues
Data Completeness Score	% of fields populated correctly	Enables automation and smarter decision-making
Duplicate Rate	% of duplicate entries in material/vendor master	Leads to procurement waste and inventory bloat
Time to Approve/Create Master	Avg time to process new entries	Affects business agility and system usability
Data Standardization Score	% of entries following defined naming conventions	Improves searchability and interdepartmental use
Data Usage Rate	How often a data field is accessed/used	Unused fields = poor design or irrelevance
Master Data Change Success Rate	% of error-free change requests	Indicates governance efficiency

How to Choose the Right MDM KPIs for Your Business

Not all metrics are equal. Your business priorities should drive which KPIs to focus on.

Here’s how to align your KPIs with outcomes:

1. If you’re in Oil & Gas or EPC → Track Data Accuracy Rate and Change Success Rate to reduce safety risks and shutdowns.
2. If you’re in Manufacturing → Focus on Duplicate Rate and Standardization Score to streamline procurement and BOM creation.
3. If you’re in Healthcare or Government → Emphasize Completeness and Approval Time to meet compliance and audit needs.

Pro tip: Don’t track too many metrics at once. Start with 3–5 that tie directly to business pain points.

How to choose the right MDM solution for your business

What Poor Metrics Can Cost You

Let’s say you manage procurement in a steel plant with 100,000 material line items.
After a data audit, you find that 12% of the materials are duplicates.

Here’s the math:

• Inventory value = $28,000,000
• 12% duplication = $3,360,000 tied up in redundant stock
• Payback period for fixing it (with a data quality solution): 6 months
• ROI = 3.36x within the first year

Now imagine running procurement without knowing this.
That’s the cost of not measuring your data health.

How to Track and Improve MDM KPIs

Use this simple framework:

1. Define Your Metrics

Start with a focused list of 5–7 KPIs aligned with your department’s goals.

2. Set Benchmarks

Use internal baselines or industry references. Example:

• Best-in-class duplicate rate = <2%
• Average material data completeness = 85%

3. Implement Monitoring Tools

Use MDM platforms that offer:

• Automated quality checks
• Dashboard-based KPI tracking
• Alerts for anomalies

CODASOL’s PROSOL platform offers out-of-the-box tracking for all these KPIs, integrating seamlessly with SAP, Maximo, and Oracle.

4. Govern With Accountability

Assign metric ownership:

• Procurement → Duplicate rate
• Engineering → Change success rate
• IT → Standardization and completeness

5. Review Monthly or Quarterly

Treat data health reviews like financial reviews because they’re that critical.

MDM KPI Dashboard Template

If you’re just starting out, here’s a simple dashboard layout that works for most industries:

KPI	Current Value	Target	Trend	Owner	Action Required
Data Accuracy Rate	92%	≥ 98%	⬆ Improving	QA Lead	Continue validation audits
Duplicate Rate	8%	≤ 2%	➡ Flat	Procurement	De-duplication project needed
Completeness Score	76%	≥ 90%	⬇ Declining	IT/Data Team	Form redesign, user training
Approval Time (Avg Days)	6.5	≤ 3	⬆ Worsening	Master Data Team	Workflow automation review
Change Success Rate	88%	≥ 95%	➡ Stable	Engineering	Manual errors to be audited

This dashboard helps teams quickly see what’s working, what’s not, and where to focus effort.

The Role of E-E-A-T in MDM Quality

To build trust in your data:

• Ensure expert validation of business-critical entries
• Document your data sourcing and cleansing rules
• Involve domain experts in naming conventions and classification

This ensures Experience, Expertise, Authoritativeness, and Trust; not just in your MDM content, but in your data itself.

Frequently Asked Questions

1. What are the top KPIs for Master Data Management?

The most important include: data accuracy, completeness, duplicate rate, time to approve/create, and change success rate.

2. How often should I measure my MDM quality metrics?

Ideally monthly, and at minimum quarterly. For high-impact industries like Oil & Gas or Aviation, real-time monitoring is recommended.

3. What is a good duplicate rate benchmark?

Under 2% is considered world-class. Anything above 5% indicates a need for immediate intervention.

4. Can I automate KPI tracking?

Yes, modern MDM platforms like PROSOL offer built-in dashboards, alerts, and trend analytics for real-time insights.

5. What if I don’t know where to start?

Begin with a free MDM assessment to uncover your baseline and work your way up with tailored KPIs.

6. How do I start tracking MDM KPIs with no tool in place?

You can begin with Excel or Google Sheets, using manual inputs from key teams. Define 3–5 high-impact KPIs and start simple.

7. What’s the biggest challenge in implementing MDM KPIs?

Getting buy-in across departments. MDM isn’t just an IT issue; it requires alignment across procurement, engineering, finance, and operations.

8. Can KPIs evolve over time?

Absolutely. As your data matures or your priorities shift (e.g., from cleansing to governance), your KPIs should adapt accordingly.

Final Word

You wouldn’t drive a car without a dashboard.
Why manage business-critical data without one?

Start tracking your MDM quality metrics now, and turn your data into a strategic asset, not a silent liability.