Quick Tip for Making Data Visual & Actionable

Have you ever had to make a chart, graph, or presentation that was derived from raw data? If you have you can probably agree with me on a few points. The first, collecting data and extracting it from a business warehouse is simple. The second, presenting data within Excel or any other tool is simple. The third and final point, presenting the data so people can act on it and understand it from a glance is hard. Business Intelligence groups within corporations struggle with this dilemma. From first hand experience, I will provide insight to the key things you need to do to make your data understandable and most importantly actionable.

Take a close look at these two charts, both representing the same data set. Which one can you make sense of quickly? And, what is wrong with each chart?

Graph 1:

Graph 2:

Results:

If you thought both graphs were fine, here is why they’re not. The pie chart (graph 1) is misleading. When it comes to understanding it all blends together. You can’t decide which is larger by the human eye. You could probably add the dollar amounts inside, or outside but it’s still ineffective because the visual image is more overwhelming than the numbers. The bar graph (graph 2) is moving in the right direction. From first look you can tell which is larger and smaller. Studies have shown that people judge bar graphs better than pie charts because you can see the difference in lengths. In addition, the only thing that doesn’t help the bar graph is trying to make it colorful or pretty. What do those colors mean? They mean nothing, and that will confuse your audience. Make sure to keep colors to a minimum unless they have meaning. To enhance or create colorful designs is not the objective when making data visual and actionable.

Here is my suggestion on how the data should be represented.

This takes care of all the elements. You’ve got a bar graph that shows quickly the differences, consistent color shade, and easily readable headings. Next time you have to produce a report, think about how people will understand your data. Using Excel’s default settings could get your audience confused. Let me know your thoughts, suggestions, and comments on what has and has not worked for your reporting metrics.