Dashboards For TOP-managers
Dashboards For TOP-managers
DASHBOARDS FOR
TOP-MANAGERS
2020
1. WHAT IS A DASHBOARD
WHERE DASHBOARDS
ORIGINATES FROM
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come on. They remind you to add oil or check the engine.
When you receive information from the dashboard, you run
a business like you run a car: you monitor the status
of devices and immediately respond to fault signals.
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Thus, look at the dashboard, created in the Qlikview, which
was the hottest new trend in the early 2010s.
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WHAT IS A DASHBOARD TODAY
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WHAT DASHBOARD IS MADE OF
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Here is another version of the same dashboard. So now it
all falls into place: most essential indicators are at the top,
then there are charts and graphs of revenue, and in the
lower half of the report there are tables with details on sales
pipelines and regions. The whole picture seems to be
divided into invisible, but logical components.
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There are three such components or levels:
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There are exceptions however, when a talented designer
arranges the blocks in a different order, so it still looks
appealing and clear. But only a few will succeed here, so
I recommend this rule of thumb — «top-down, 1-2-3.» It’s
tried and true as a hammer.
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2. REQUIREMENTS
SPECIFICATION
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TECHNICAL DESIGN ON THE NAPKIN
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hemisphere, associative thinking. The customer himself, his
findings, and decisions are beyond the report scope. Let us
take a closer look at the «left hemisphere».
KEY FIGURES
DIMENSIONS
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to filter transactions by client type, but there is no such
category in the database. So you either fill out this field
in the data source or make an aggregate intermediate
calculation.
CUSTOMER
CONCLUSIONS
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conversion into information, but not yet decision-making
itself.
DECISIONS
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CASE STUDY: COST STRUCTURE
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Let us move to the right-associative half. What
conclusion should he draw? It’s very simple — who is
to blame for exceeding self-cost. There are several cost
items, but they can be divided into two groups: factory-liable
and finished costs, including marketing, logistics, and other
business support services.
This layout helps to keep the eye on the ball and evade
submerging in minor details validation. From this scenario
you can sketch basic visual ideas «on the back of the
napkin»:
— horizontal waterfall chart, which shows intermediate
production costs and the total including all associated
expenses;
— top factories self-cost;
— plan/actual monthly dynamic.
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The final design is slightly different from the sketch, but
the content is the same. We may immediately see the key
figures of self-cost deviation. The regulatory standard is
exceeded, and therefore the cost overrun is red, but
production keeps within the limits according to its budget
lines, so the economy cut is green.
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A factory can count on bonuses if there is an asset for it,
of course. We remember that the dashboard provides
information, a basic scenario, but the final decision is for the
customer to make.
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3. KEY PERFORMANCE
INDICATORS
WHAT IS KPI
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KPI in classical definition means a plan or target that
affects employee bonuses. For example, if the sales manager
has account receivables KPI, this means that part of his
bonus directly depends on the amount of the receivables per
month. But this is the theory, and in reality, it is next
to impossible to adequately calculate each factor
contributing to the manager’s bonus. For example, customer
outflow may occur due to competitors’ strengthening,
political environment, and more.
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This scheme means that key indicators are selected
among metrics or calculated on its basis, and the same
metrics are calculated based on raw data. That is incorrect
when top management invents innovative KPIs and do not
analyze efficient data collection process.
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HOW TO USE KPI CARDS ON
DASHBOARD
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You might think: «But you do need a chart to compare
two numbers!» No. CEO would not want to calculate the
difference between the bars in his mind or compare the bars
«by sight». Write down on the card changes in data. You can
specify the absolute value of the deviation or percentage,
but do not duplicate the information.
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The mistake is that the diagrams make no sense at level
2. All five indicator types are different, one of them even
measured in different units, which is revenue per head. We
do not compare them along the horizontal bar length. these
figures simply fill the space and the numerical item itself is
lost against their background.
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INCLUDE AT MOST 6 KPI IN THE REPORT
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We return to the key indicators selection screen
to correct it. We have left six most important indicators
as the second option instead of 15: turnover, market
share, promotional products change, store expansion,
average check, and traffic. This is the priority data CEO
needs.
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We also have removed the secondary data from the
workspace — so there are not any tables at level 1 and level
2 — turnover flow charts, sales promotion data, traffic
statistics, and average check concerning the formats.
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There is no crucial information on the pie chart. It
indicates the ticket rate and the number of overdue and
remaining tickets — 19 and 81%. It is clear what does
19 and 100% mean, therefore, 81% sector takes up a lot
of space, though it is enough to focus on the main figure —
overdue tickets rate.
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As a result, we highlighted level 1 cards, block diagram
on level 2, and a table with open ticket details on level 3.
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What is to be done? All indicators are equally important
so it won’t work if you leave only five or six of them as well
as pull them together on some diagram, as their types are
different. Enhancing each row with three histogram bars
containing a plan and two facts means major visual sense
complications. Here is an alternative option:
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We decided to focus on the current fact, to show
deviations alone instead of showing absolute values of the
plan and the fact of the past. We moved units of measure
to the card header from its single bar.
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4. TARGET AUDIENCE
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REPORT LAYOUTS
PROGRESS REPORT
ANALYTICAL REPORT
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making decisions or a subject matter expert: logistics expert,
supply chain specialist, marketing expert, a financial expert.
Interactive processing which defines dashboards includes
visualization of a large data volume, displaying unobvious
relationship, filtering, and switching indicators.
STRATEGY REPORT
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It is important to understand how the end customer is
going to use your report. Here are the stories that students
told me about their employers, or rather company owners.
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case, and we turned the deep analytics into a concise
strategic slide in the second case.
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check in the progress report. The head of the sales has no
time to scroll through the list. He wants to see the whole
picture: account base structure, the number of key accounts
and sales, transitions between categories. The manager
needs another type of report — an analytical report.
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information for the manager, the latter shows details for the
specialist. We do not develop one report instead of another,
we develop them both together. The analytical report
answers 80% of the questions. If that is not enough - we
open the progress report and look through the details.
You can see that the actual profit is $4360K, given the
plan had been $5800K. Why did this happen? Due to the
production growth, profit increased by $970K — this column
upscales from the original plan level. The shading is green
because this indicator is satisfactory. Profit decreased due
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to the cut in prices so this red column is falling from the
volume factor rising level. And so forth until the final actual
value.
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kind of presentation to the company owners. It needs an
explanation. The deputy did not know that the report was
intended for the company owners, not for the COO.
Of course, they do not need detailed analytics, but a simple
comprehensive picture.
We’ve just visualized the first table and did not add
anything to it. The finance deputy did not see any point
in this. He already understands everything in the table,
because he processed this data. But owners, who look at
these figures once a quarter, need visualization, the data
represented in graphs.
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There are cargo-carrying details on the second slide. We
applied the idea of a waterfall chart by expanding it
horizontally. There is an overall picture of the grouped key
factors on the left, and then there is the fleet vehicles and
mileage increase details on a secondary waterfall.
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