DO YOU HAVE A MEMORY LIKE A GOLDFISH? · 2018-12-20 · Better Use of Data. Better Insight Create an effective data visualization: Guide #1 Speak the same language as your recipients

DO YOU HAVE A MEMORY LIKE A GOLDFISH?

GET A BETTER INSIGHT WITH DATA VISUALIZATION

Better Use of Data. Better Insight

Create an effective data visualization: Guide

#1 Speak the same language as your recipients

#2 Create one version of the truth with: Data Storytelling

#3 Select the graph that best supports your purpose

#4 Avoid information overload in your Dashboard

#5 Create the right focus in your Dashboard

#6 Use color with care - from fully dressed to naked data

Content

Design Checklist

BETTER USE OF DATA.BETTER INSIGHT

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DATA VISUALIZATION

In order for a company to create as much value as possible, it is absolutely essential that these three levels share a common language and are fully aligned with one another. That way, the strategic focus generated at the bottom of the pyramid can be effectively communicated to the rest of the organization, so that all the underlying levels are able to optimally perform and prioritize their actions.

Simultaneously, the lower levels must be able to effectively communicate upwards in the hierarchy, so that the management has the proper insight necessary to make the most productive and strategic choices. A way in which the company can realize this communication and understanding across the different levels is by implementing a data-driven strategy, because strategic use of data makes a company capable of making factual and qualified decisions across multiple levels. But like so many other company strategies, the data-driven strategy alone can´t create successful results. The implementation of a BI-system with an associated strategy is only the first step towards becoming a data-driven company. Whether a company can become truly data-driven depends on the company's strategic, tactical and operational approach to data.

The data-driven company knows how to take note of its past, diagnose the present, and predict its future.

Research shows that data-driven companies perform 6 % better when it comes to revenue and are 5 % more productive than other company types. Better use of data results in overall better performance. But how exactly does a data-driven strategy improve performance?

Strategic

Opera�onal

Tac�cal

Think of the standard strategy pyramid, which divides a company into three levels; operational, tactical, and strategical. In the pyramid, strategy ranks at the top, tactic in the middle, and operation at the bottom of the hierarchy. The pyramid shows that having a strategy alone won't create successful results, since any strategy is dependent on support from the tactical level and can only be turned into reality through operational means.


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decisions possible using data visualization techniques.

Spreadsheet Syndrome 1. Problem2. Solu�on: Spreadsheet3. Bigger problem4. Solu�on: A bigger spreadsheet5. Go to 1.

Better use of data equals data visualization.

First and foremost, data visualization is an extremely effective form of communication because of the way in which the human brain processes information. Research shows that the human brain processes visual information 600.000 times faster than text, and that 90% of the information recorded by the brain is visual. Additionally, 65% of all people learn most effectively through visualization. Thus, the chance that the recipient, regardless of their level of comprehension, understands the message correctly and quickly is much greater when the company communicates visually rather than via spreadsheets and tables.

If a company only focuses on the strategy itself, without thinking about how data is used and presented to the managers and employees who actually use it, you have, in principle, only hit the tip of the iceberg of what can be achieved.

Data visualiza�onVisual communica�on for the purpose of crea�ng an understanding of a message based on data.

Therefore, a data-driven strategy must be operationalized, which is most effectively done through data visualization techniques.

Nevertheless, the value of data visualization is often overlooked by companies. We generally find that companies use data from tables and spreadsheets as their primary foundation for making decisions – it is even known as “Spreadsheet Syndrome”. That's why it requires tremendous courage to break free from old routines and think differently about the company's operational approach to data. However, you can save your company a lot of time and money by ensuring that employees and executives make the best


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Allow us to introduce to you the goldfish effect:

Research shows that the average human concentration is lower than that of a goldfish. As strange as it may sound, it's absolutely true. Humans have a concentration of about 8 seconds. In comparison, goldfish have a concentration of about 9 seconds.1.

1 The National Center for Biotechnology Information

Let's illustrate this with an example: Take a good look at the table below. What does this data tell you?

CountryUSNon-US

Jan1250

620

Feb1350

622

Mar1420

621

Apr1270

629

May1300

625

In less than 30 seconds, you should be able to see that there is a growing trend in US Sales. Now, let's see what happens if make use of data visualization instead.

In this case, you will be able to see the rising trend in US Sales, but in just a few seconds. You will also notice that there are seasonal variations. Now, consider the time you need to read the table and compare it with the time it took you to decode the visualization. The difference in time should be self-evident. But why is time important?


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Suddenly, the use of visualization seems more appealing, right? Some might even call it a game changer.

Create effective data visualization: Guide

You now know that data visualization is important for the realization of a data-driven strategy, and that data visualization can become a game changer for those who are used to making decisions based on spreadsheets. However, it is important to point out that data visualization may also contain some pitfalls, and that you should therefore think carefully about how you construct your visualization. An incorrect visualization can easily create a gap between the available information and the valuable insight.

Think of data visualization as a language. In language, some forms of communication are more effective than others in promoting comprehension. If done correctly, data visualization can guide the recipient's attention and help the recipient discover patterns and trends in the data.

But how do you know if data visualization is done right?

Now that we know that our brain is not "better" than that of a goldfish, and that we only have 8 seconds to achieve the insight that will make up our basis for decision, it is crucial how many seconds we need in order to understand a certain message. As a result, data visualization becomes a value-creating form of communication, because the recipient will be able to quickly gain insight.

The Goldfish EffectHow your short termconcentra�on capacitydestroys your produc�vity.

Still not completely convinced? Let's put it to the test with a small calculation. On average, the difference between reading a table and processing data visualization is 15-23 seconds. If you have a company with 50 employees, of which each one has to make 10 similar decisions a day, then a quick calculation shows that you waste 600 hours a year, which you could have spent on more value-creating tasks.2.

2 Targit : https://www.targit.com/en/blog/2014/04/data-visuali-zation-goldfish-effect


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Let's return to the goldfish effect. This is the perfect basic rule and the first important step in measuring the effectiveness of your data visualization. If the visualization cannot be understood in 8 seconds or less, it is not effective.

Additionally, knowledge of general visualization techniques and communicative tools can help you create effective visualization. In the following part, we will tell you how to create effective visualization based on 6 simple principles.


The purpose of visualization is for the recipient to use as little energy and time as possible to process, understand, and remember a given message. Effective visualization, like effective communication, is all about bringing a message from sender to receiver. Keep in mind that your output is the recipient's input, and their output is their actions.

If a guide is needed to understand the message, your visualiza�on is not effec�ve.

Therefore, make sure that your output is the same as the recipient's input, so that everyone speaks the same language. It is important that you know the recipients who eventually read and understand your message. For example, what do they care about, and to what extent. Your data visualization should easily create an overview and understanding with the recipient. In other words, if a guide is necessary for the recipient to understand the message, your visualization is not effective.

How: 1. Identify your recipients. 2. Identify what your recipients need to know. 3. Identify the degree of detail your recipients need.

#2 Create one version of the truth with: Data Storytelling

A common mistake is to believe that any type of data visualization tells a clear story, and that every graph communicates a clear, unique message. Unless you consciously think about how you want to direct your recipients' attention towards a specific insight or action, your visualization will not support your message.


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If you do not have a clear final destination for your recipients, you allow them to draw their own conclusions as well as their own versions of the truth, which are not necessarily the same as yours.

Did you know ...• A�er a presenta�on, 63% recalls the stories• Only 5% remember the sta�s�cs

Storytelling is an effective tool when it comes to making sure that you and your recipients work with the same version of truth, as narratives can provide the right context that makes your data meaningful and relevant to the recipient. By focusing on storytelling in your data visualization, you can effectively communicate your message and create one version of the truth, which is the same for all recipients across all organizational levels.

How: 1. Define your message. 2. Start your data story by providing the necessary and relevant background information. 3. Highlight de interessante data og findings 4. Support your story with relevant graphs and charts, until you have reached the climax (message).

5. Finish by providing recommendations based on the story.

Findings

Introduc�on = Background informa�on

Suppor�ng data

Conclusion = Ac�on

Climax = Message

Recommenda�ons


You have many different options when it comes to visualizing data, and it may seem like a jungle when you try to identify which graphs work most effectively for your purpose, story, and recipients. Let's illustrate this with one example: You will make a graph comparing your revenue for 2015 with 2016, but you are unsure of which graph to use. You will therefore typically experiment with different types of graphs, until you find the one that meets your needs. Alternatively, if you are pressed for time, you will typically choose the first and best option. However, this may result in the selection of a graph that cannot be easily read by your recipients.

But how can you easily and quickly select the most effective graph?


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A good tool to use is a "Chart Suggestor" showing which types of visualization are best suited for specific purposes.

Let's take a look at how to pick and choose the right type of graph based on your goal. This will allow you to quickly get an idea of what type of visualization is most effective in a given context.

How: 1. Define what your graph should show: Comparison, causality / relationship, distribution, or composition. 2. Use a Chart Suggestor to determine the correct graph.

“Which is the right graph for my situation? The easiest one for your recipients to read.”– Cole NussBaumer Knaflic


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#4 Avoid information overload on your Dashboard

After you have identified your recipients and created a storyline supported by effective visualizations, it's highly beneficial to assemble it all on a dashboard in order to give both the recipient and yourself a proper overview.

In general, however, we experience many errors in dashboard design. Usually there's a tendency for both employees and executives to fill their dashboards with too many graphs to ensure that their recipients have all the necessary information they need. Dashboard 1

Filling your dashboard with lots of graphs does not create comprehension and overview. On the contrary, it creates noise, as all the different elements will compete for the attention of the recipients.


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You can easily end up creating a form of "information overload," which will make your recipients struggle to understand your storyline and message, as large amounts of information require a long time to process. Far more time than 8 seconds. In order to avoid creating information overload on your dashboard, a good technique would be to expect that the work memory typically only comprises about 7/ + - 2 objects in adults. This means that dashboards should preferably not contain more than 7 rows and columns with graphs, and preferably less than 5.

Perfec�on is NOT when there is no more to add to your Dashboard, it is when there is no more to remove.

A good example is Dashboard 1 (illustration on previous page), which shows a dashboard that avoids information overload by only using 4 elements, while still showing enough information for the recipient to understand the sales figures. Aside from that, the user can also click on additional information, if needed.

How: 1. Customize your dashboard for your recipients. 2. Place only the KPIs and graphs in your dashboard which can help your recipient understand your message and guide their related actions. Keep in mind that less is more. 3. No more than 7 columns and rows, preferably less than 5.

#5 Create the right focus in your dashboard

One thing to keep in mind is that noise can create information overload for the receiver. Another thing to be aware of is that too much noise can make the recipient perform the wrong actions, as too many elements can also cause confusion as to which actions should be prioritized. As they say: When everything is a priority, nothing is a priority. This is comparable to dashboards - if everything is equally important, nothing becomes a priority.

A Dashboard works like a joke - it's not a good one if you need to explain it.


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When it comes to creating the right focus in a dashboard design, the golden triangle is a good concept to use. The golden triangle is where the attention of the recipients will be directed, and therefore also where the most important KPI should be placed. This concept is illustrated in the figure, which shows that your recipient's attention will first be guided towards point 1, then towards points 2, 3 and 4. Your recipient will look less at points 2, 3 and 4 than at point 1 on your dashboard.

Therefore, the KPIs and graphs placed after paragraph 1 should also be those which are less important in your strategic communication.

The top left corner is the spot where the recipient should focus his full attention.

As we know from the goldfish effect, we have limited concentration, and it is therefore important to figure out what is placed in point 1. For example, a classic mistake would be to put the company logo in the left-hand corner, thus giving the logo more attention than the main KPIs.

How: 1. Work by using the golden triangle. 2. Place the main KPI at the top left corner. 3. Logos should be placed in the bottom right corner or dropped completely.


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#6 Use color with care - from fully dressed to naked data

When designing your dashboard and your individual graphs, your choice of colors plays a crucial role. There is a tendency for both employees and executives to decorate their individual visualizations and dashboards with many colors. This often ends up creating more confusion than clarity. Let's illustrate this with an example. Look at the two graphs below and consider which one you are most easily able to understand and read.

Graph A

Graph B

When you look at graph A, your eyes struggle to figure out the message. Graph B is a completely different experience. The smaller variety of colors allows you to focus on the right information without being distracted. This is because our eyes are automatically attracted to strong colors, so if there are many strong colors in a visualization, it can be difficult to figure out what the actual message of the graph is.

Create focus and an overview with the right use of colors

The same principle applies if there are strong colors everywhere on a dashboard, which makes it difficult for the recipient to prioritize the importance of the different pieces of information. The use of colored elements that do not emphasize anything strategic will lead to bottlenecks in the brain. But you must not believe that the use of colors is necessarily a bad thing. By using colors, you can categorize and group the data that have the same purpose or are from the same geographical area.


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Using colors can also be effective in supporting your storyline and your intended message, mainly because colors help create focus. For example, if you want your recipient to focus on your performance in May and August, using a strong color will automatically guide your recipient's attention towards these two months, as illustrated in the graph on the right. Colors are therefore good for highlighting and creating focus. Some colors are better for specific purposes than others. The following color scheme gives you an overview of the colors that work best for specific purposes.

How: 1. Use colors to support your message. 2. Use primarily bright colors. 3. Use a single color in different gradings. 4. Use only dark and powerful colors if you want to highlight something.

Furthermore, certain colors, such as red and green, should always be avoided, as many of us are color blind and are therefore unable to distinguish between these colors. In fact, 1 out of 12 men, and 1 out of 200 women, are color blind.


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Design Checklist

Congratulation. You have now been guided through the 6 key principles for effective data visualization. When using these 6 principles to design your visualizations, you can ask these 6 questions along the way and use this checklist. 1. Who is my recipient? 2. What is my message and how can I most effectively communicate it? 3. Am I using a graph that supports my goal? 4. Is there enough / too much information on my dashboard to support my

message? 5. Do I have the most important information located in the upper left corner?

6. Are there too many different colors? Does my color palette support my message?

See the complete guide on the back.

Thanks for reading.

Contact us for more information:

E-mail:[email protected] og phone: +45 3211 1090.

Forfattere:Amalie KardelMikael Iuel-BrockdorffRedaktion: Karin Aaes-JørgensenJan Lambæk HansenMaria Irene Hald


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Principles

How


1. Identify your recipients.

2. Identify what your recipients need to know.

3. Identify the degree of detail your recipients need.

#2 Create one version of the truth with: Data

Storytelling

1. Define your message.

2. Start your data story by providing the necessary and relevant background information.

3. Highlight the interesting data and findings.

4. Support your story with relevant graphs and charts, until you have reached the climax (message).

5. Finish by providing recommendations based on the story.


1. Define what your graph should show: Comparison, causality / relationship, distribution, or composition.

2. Use a Chart Suggestor to determine the correct graph.

#4 Avoid information overload on your Dashboard

1. Customize your dashboard for your recipients.

2. Place only the KPIs and graphs in your dashboard which can help your recipient understand your message and guide their related actions. Keep in mind that less is more.

3. Brug maks 7 kolonner og rækker – gerne under 5.

#5 Create the right focus with your dashboard

1. Work by using the golden triangle

2. Place the main KPI at the top left corner

3. Logos should be placed in the bottom right corner or dropped completely.

#6 Use color with care - from fully dressed to naked

data

1. Use colors to support your message.

2. Use primarily bright colors.

3. Use a single color in different gradings.

4. Use only dark and powerful colors if you want to highlight something.

Documents

DO YOU HAVE A MEMORY LIKE A GOLDFISH? · 2018-12-20 · Better Use of Data. Better Insight Create an effective data visualization: Guide #1 Speak the same language as your recipients