How Dashboards & Visualizations can drive result-oriented decision making
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The document discusses best practices for dashboards and visualizations to drive performance-oriented decision making. It covers topics like metric selection, visualization techniques, dashboard design principles, and MindTree's approach. Key points include selecting a few key metrics to monitor performance, choosing visuals that clearly convey insights, providing interactive dashboards with drill-down capabilities, and balancing lagging and leading indicators for decision making. The document also outlines common mistakes to avoid, such as including too many reports or focusing only on aesthetics rather than insights.
How Dashboards & Visualizations can drive result-oriented decision making
- 1. How Dashboards & Visualizations can drive resultoriented decision making December2009 CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited © 2008 MindTree Li
- 2. Agenda Introduction Dashboard Best Practices MindTree Approach Metric Alignment Visualization Best Practices Design and Navigation Insights and Learnings Common Mistakes vs. Best Practices Approach to Performance Management MindTree’s Approach Success Factors CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited
- 3. Dashboard 1.Visual 2.Monitor Performance 3.Drill down to lower level 4.Actionable 5.Diagnostic CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 3
- 4. Definition of a Dashboard “Dashboards are much more than pretty data presentations. They are powerful, flexible business tools which allow for true information democracy – actively empowering business users at all levels to make better decisions every single day.” Hyperion White Paper Visual elements of performance management system both a process and a tool Few sets of indicators represent central performance areas Dashboard Focus on trends and patterns to monitor performance Diagnostic means of ascertaining what is working well and what needs attention “It is a well-established management principle that you cannot manage what you cannot measure. It is equally true, however, that you cannot manage well what you cannot monitor. That is where enterprise dashboards come in.” Business Case for Enterprise Dashboards, Dashboard Execution CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 4
- 5. Application of Dashboards ( the three 3’s) Strategy Information Management Strategic Dashboards / Scorecards Analysis Tactical/Interactive Dashboards Monitoring Operational/Static Dashboards Graphical, abstracted data with graphs, charts Summarized, dimensional data with hierarchies, slice and dice Operational, detailed data, process centric operational reports Data Implementation Sources: Wayne Eckerson 2005 CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 5
- 6. How Dashboards Help Static/ Operational Dashboard Monitoring Analysis Management Interactive/Tactical Dashboard Strategic Dashboard Dashboard BI Portal + Dashboard Scorecard Standard/Canned Reports OLAP Analysis Interactive reporting Advanced Visualization Scenario Modeling Statistical Models Planning Models Typically Not Available Alerts Workflow (Possibly) Strategy Maps Planning Models CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 6
- 7. ROI on Dashboards • Reduction/Elimination of effort for consolidation of disparate reports • Reduction in time for coordinating and monitoring complex processes Cost Savings • Reduction in time wasted in reviewing and assimilating overwhelming amounts of data and reports • Elimination of redundancies within organization in processing similar data • Reduction in effort for communicating progress and enforcing compliance Return On Investment • Better decision making with more current and live information • Better business insight due to improved data visibility through enhanced data visualization Business Benefits • Proactive and timely decision making through alerts and exception management • Greater democratization of information empowering frontline organization • Improved interactions with external stakeholders (customers, vendors) with transparent communication CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 7
- 8. How to Build a Dashboard Best Practices CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited © MindTree Limited © 20092008 MindTree Li
- 9. MindTree’s Approach Design & Navigation Guided Analytics (3 Analysis Levels) Dashboard design validation by usability specialist Metric Selection and benchmarking with Industry Metrics Balancing (Right blend of Lead and Lag indicators) MindTree’s Performance Management Approach Supply Related Analytical context Metrics Association “Right” Visual Construct Selection Focus on metrics action-ability (exceptions & alerts) CONFIDENTIAL: For limited circulation only Alignment Context Mapping with Metadata & Analysis notes © 2009 MindTree Limited Visualization
- 10. Alignment - Right Metric Key Learning from the story 1. Monitoring is important to directly controlling behavior and indirectly to performance - the speedometer reading impacts how hard or soft Tom pushes on the accelerator 2. A few key measurements will go a long way toward keeping a company on track towards achieving its improvement objectives - like those on a speedometer and fuel gauge. Actionable Common Interpretation Credible Data Transparent, Simple Calculation 3. Seemingly relevant, but cumbersome, measurements are of little use, and are possibly a hindrance, in helping to improve performance - like the Temp Gauge in the car. 4. Picking the wrong measures and leaving out important Perfect Metric ones could lead to situation like losing market share or having poor financial performance is - the way getting speeding tickets and running out of fuel is an expensive way to drive a car. CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 10
- 11. Alignment – Right Balance of Metric •Leading Indicators •Predictive •Actionable •Data Integrity Issues •Subjective •New eMetrics •Lower-Level Metrics •Small Audience Value •Lagging Indicators •Corporate Metrics •Reactive Cost • Financial Metrics Will Typically Be Quicker Hits • Ops & Quality Measures Typically Take More Time & Money • Predictive & Market Measures Can Be Game Changers CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 11
- 12. Alignment – Metric Association and Grouping Subject/Role-Based Dashboard Functional Dashboard Type Description User Enterprise Holistic view of the enterprise from consolidated data across divisions and business segments Senior Management Divisional Performance metrics for the division (E.g. Sales, HR, Finance, Purchasing) Divisional Heads, Operational Managers Process Monitor business processes or widespread activities Across multiple user profiles Application Specific metrics defined for transactional applications within which dashboard is embedded (E.g. Asset management) Users of the application Type Description User Vendor Metrics relevant to vendor Vendor Customer Outward facing dashboard with metrics relevant to customer Customer Employee Metrics relevant to employees Employee Reference: Shadan Malik - Enterprise Dashboards, CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 12
- 13. Visualization – Why it is Important A Simple Example: Your organization has grown leaps and bounds. ….The New York skyscrapers on the other hand would register the point very well. 1984 1989 1994 2000 2001 2002 11 30 130 300 400 600 2003 2004 2005 2006 2007 2008 1100 2300 3900 6000 7800 9500 10000 9000 8000 # of Employees You can use the below table to prove the point…… 7000 6000 5000 4000 3000 2000 Obviously, the table above has little impact….. 1000 0 1984 1989 1994 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year Representing data with right visual construct meets the objectives 1. 2. Makes it easy to comprehend data Amplifies the impact Reference: Vivek Singh – 14 tips to present awesome charts CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 13
- 14. Visualization - Which component to choose? CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited
- 15. Visualization - Choosing the right construct A bar graph showing shareholding pattern of a company A pie chart would have been a better choice A pie chart however is not a good choice when comparing the shareholding across multiple companies Co 1 Co 2 Co 3 A bar graph showing trend on sales and profitability…can it be better? A stacked chart would have served the purpose better Yes! When it is more than 15 data points and a trend, a line graph is more intuitive. Co 1 Co 2 CONFIDENTIAL: For limited circulation only Co 3 © 2009 MindTree Limited Slide 15
- 16. Visualization – MindTree’s Best Practices Framework Selecting the right visual construct makes analysis faster, clearer and more insightful Determine Enterprise Dashboard Information needs/KPIs Segregate dashboard information needs/KPIs by business processes and user groups CONFIDENTIAL: For limited circulation only Align KPIs with industry best practices © 2009 MindTree Limited Derive Analysis Scenarios (drill down paths, related reports, events, action s) Select the right visual construct for delivering insight
- 17. Design and Navigation - Essentials Timeliness, Aesthetic value, Mobility, Connectivity, Da ta detail, Data density, Interactivity, Collaborati on Structure can serve as a navigational mechanism for the user. It shows where to start, and where to go next. Form Structure Functionality Design Incorporate drill downs, filters, comparisons, alert s and the option to export or print CONFIDENTIAL: For limited circulation only Ensure compactness modularity, gradual reveal, guide attention, support casual use, lead to action & be customizable © 2009 MindTree Limited Slide 17
- 18. Design and Navigation – A good example Form FunctionalityAdvance Features Design Principle Structure CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 18
- 19. Design and Navigation - Key Elements Dashboard ASIA Quick Location Navigation Metrics Navigation Crisp Line ofSight Standardized Home Pages One Click Drill Downs Drill Downs Automatic “Alerts” E-Mail Notification CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 19
- 20. Insights and Learnings CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited © MindTree Limited © 20092008 MindTree Li
- 21. Common Mistakes vs. Best Practices Mistake Best Practice Pushing too many reports Templates refreshed on demand Focus on 1st generation data Focus on high value data Hard-code paths to shallow answers Free-form Drills, Sorts and Queries to Deep Data Focus on pretty pictures Focus on Visuals That Quickly Tell An Important Story Limiting the data model Wide, Deep and Fully-Integrated Data Models CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 21
- 22. Approach to Performance Management Change Management Intensive Step 4 Technology Intensive Step 3 Step 2 Step 1 Build Enterprise Data Warehouse Resolve the integration challenge by providing a central consolidated repository Automate critical functional & cross functional report Provide analytical reports for information driven insight CONFIDENTIAL: For limited circulation only Identify the right measurement / management methodology (e.g. Balanced Scorecard) Identify clearly the goals and objectives of the enterprise Identify Management framework best suited for the organization Identify and formulate KPI lineage, metric definition and strategy maps in alignment with the management methodology and the top line Vision and Strategy Identify and Implement the right Performance Management Platform Leverage on consolidated, cleansed and validated data from EDW to build a performance management system Implement the management framework, KPI lineage, strategy maps and plans identified at enterprise and function level Carry out a successful change project to align users to the new EPM framework Manage organizational change for new management initiative building a performance accountable organization Train users empowering them with the tools to help them manage their execution towards the companies goals and objectives Build scorecards and management cockpits enabling business modeling, what-if analysis etc. © 2009 MindTree Limited Slide 22
- 23. Therefore … MindTree’s 2-Staged Approach Strategy Framework “Consulting” Intensive Metrics Rationalization Best practice metrics Alignment of roles Tying metrics to action Change Management (EVA / BSC / ABC) Stage 2: Bolt EPM Platform on EDW “Plumbing” Intensive Data Integration Data quality Performance Scalability Large volume handling Stage 1: Build Enterprise Data Warehouse Transactional Systems CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Page 23
- 24. 13 Key Success Factors Executive sponsorship (Budget) Give the project a brand name Deploy incremental projects with a strategic approach – No Big Bang Start in the highest value areas of the organization Alignment of metrics to the top line strategy & consistency in metric definition 5-7 indicators on a dashboard is optimal Should be part of a comprehensive BI strategy Adopt a single integrated solution with shared, central database Attractive presentation with meaningful content Start simple and leverage existing investments Drive traffic to the solution (HR Benefits) Over-estimate your data integration needs Leverage the solution to provide external access to your information CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Page 24
- 25. CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited © MindTree Limited © 20092008 MindTree Li