Building Better KPIs: Visualizing "One Big Number"

Visualizing Key Performance Indicators (KPIs) effectively is crucial to conveying information in a clear and impactful manner. While it may be tempting to include all relevant details, simplicity is key to ensuring the KPI's message remains the focal point. Here are three rules to achieve simplicity in KPI visualization:

1. Identify the Most Important Message

When visualizing a KPI, it is essential to identify the most critical message you want to convey. Common dimensions include the big number over time or in a time-series format, the distribution of events, and rank order comparisons. However, attempting to combine multiple dimensions in a single visualization can lead to confusion and hinder understanding. Therefore, it is best to stick to one primary dimension and maintain clarity.

For instance, when tracking sales performance, choosing between visualizing the time dimension (e.g., sales over months) and rank order (e.g., individual sales associates' positions) is crucial. Trying to incorporate both dimensions can overwhelm the audience and diminish the impact of the KPI. Instead, opt for a simpler approach, like presenting rank order data within a single timebox.

2. Determine the Focal Point

In any visualization, there should be one key element that pulls focus and conveys the primary message. This focal point should be visually emphasized, making it easy for the audience to grasp the essential information at a glance. Other details can be presented as secondary elements, supporting the main message without causing visual clutter.

By highlighting the most critical aspect of the KPI, you draw the audience's attention to the information that truly matters, ensuring a more impactful presentation.

3. Prioritize Audience Comprehension

When designing KPI visualizations, consider the audience's perspective and familiarity with data. The goal should be to create visualizations that can be understood within a short timeframe, ideally under 10 seconds. If you, as the presenter, cannot read and interpret the metric in under 3 seconds, it is unlikely that your audience will be able to do so in a reasonable timeframe.

Embracing the simplicity of the "one big number" approach can be highly effective in KPI visualizations. While some may question how much information a single number can convey, it serves as a powerful tool to get the main message across quickly and efficiently. Many KPIs would benefit from adopting this straightforward and impactful method.

Simplicity is key when visualizing KPIs. By adhering to the three rules of identifying the most important message, determining the focal point, and prioritizing audience comprehension, you can create powerful and easily digestible visualizations. The "one big number" approach, though sometimes underestimated, can be a valuable asset in ensuring that KPIs effectively communicate their essential insights to stakeholders.

By simplifying your visualizations with the "one big number" approach, you ensure that your KPIs communicate their core messages clearly and concisely. Remember, simplicity empowers your stakeholders to absorb vital information at a glance, fostering a data-driven culture in your organization.

Catch Up With Other Posts in This Series:

‍The Flaws of KPIs

‍Customizing KPIs for the Audience

‍The Imperative of Regularly Updating your KPIs

‍KPIs Need Action Plans