The Failure of Just Summarizing Performance
The challenge is that in a world of too much data, with lots more on the way, there is a deep desire among executives to get “summarized data,” to get “just a snapshot,” or to get the “top-line view.” This is understandable of course. But this summarization, snapshotting and toplining on your part does not actually change the business because of one foundational problem:
People who are closest to the data, the complexity, who’ve actually done lots of great analysis, are only providing data. They don’t provide insights and recommendations.
People who are receiving the summarized snapshot top-lined have zero capacity to understand the complexity, will never actually do analysis and hence are in no position to know what to do with the summarized snapshot they see.
The end result? Nothing.
Standstill. Gut based decision making. No real appreciation of the delicious opportunity in front of every single company on the planet right now to have a huger impact with data.
So what’s missing from this picture that will transform numbers into action?
The solution is multi-fold (and when is it not? : )). We need to stop calling everything a dashboard. We need to create two categories of dashboards. For both categories, especially the valuable second kind of dashboards, we need words – lots of words and way fewer numbers.
Be aware that the implication of that last part is that you are going to become a lot more influential, and indispensable, to your organization. Not everyone is ready for that, but if you are this is going to be a fun ride!
The Solution: Text (Wisdom)
In order to make smart decisions about the data you need four things:
- You need access to data
- The ability to analyze (slice, dice, drill-up, drill-down, drill-around) interesting data points that your performance throws up
- Ability to understand what caused the performance (often by understanding who did, what and where in other parts of the organization)
- The power to make decisions
Here’s a link to some great best practices: www.kaushik.net/avinash/digital-dashboards-strategic-tactical-best-practices-tips-examples/