How to Create Meaningful Narrative Dashboards

As analytics professionals, our mission is to simplify decision-making, presenting information in a straightforward, time-efficient, and clear manner. We strive to eliminate confusion and tell a compelling story with data. When creating reporting dashboards, it can be tempting to provide a deep dive into data sources. Still, it’s important to temper this impulse and focus on the most relevant and compelling information available. This medium gains a new ability to drive action from insights by injecting storytelling into dashboards. 

The Difference Between Analyzing and Reporting

Analyzing Data: Building Context and Insights

Analyzing data goes beyond looking at the numbers; it is about understanding the underlying patterns, trends, and anomalies that can inform decision-making. Data analysis builds a comprehensive picture from the numbers, uncovering actionable insights.

Throughout this analytical journey, the analyst constructs what can be termed as a Personal Information Context (P.I.C.). In short, a P.I.C. is a nuanced understanding of personal data, explaining observed trends, the relevance of certain data points, and the connections between information.

Reporting Data: Communicating Insights

Reporting, on the other hand, is about communicating the insights derived from data analysis to stakeholders in a clear, concise, and actionable manner. Reports can take various forms, but regardless, the goal remains to inform and guide decision-making.

Effective reporting distills complex data into key takeaways, selecting the most relevant data points, highlighting significant trends, and providing context for the findings. Unlike analysis' complexity, reporting demands simplicity and clarity to avoid overwhelming the audience with detail.

Bridging the Context Gap

While the analyst has a deep understanding of the data, the report's audience may not. Without the analyst’s context, report recipients may fill in gaps with their own interpretations, leading to misunderstandings that can cause potential risks and inefficiencies for the organization.

Therefore, the report must include sufficient background and context to make the findings understandable and actionable. Methods include translating technical details into plain language, using visual aids, and providing narrative explanations that connect the dots.

Designing for the Audience

Effective reports are tailored to their audience, understanding who the stakeholders are, their priorities and concerns, and how they prefer to receive information. While a report for senior executives might focus on high-level insights and strategic implications, a report for operational managers might delve into granular details and tactical recommendations. Knowing the audience ensures the report is relevant and impactful.

Reporting Tools and Techniques

There are various tools and techniques available for reporting, which should be picked in alignment with the report’s objectives and audience preferences.

·   Data visualization tools like Tableau and Power BI allow for the creation of interactive dashboards that can make data exploration more intuitive.

·   Presentation software like PowerPoint can create compelling visual narratives.

·   Written reports might include a combination of text, tables, and charts to convey information. 

The Critical Interplay Between Analysis and Reporting

Analyzing and reporting are complementary processes. While analysis goes into depth with data to uncover insights, reporting brings those insights to the surface in a form that can be readily understood and acted upon.

It’s crucial that the transition from analysis to reporting does not compromise the accuracy or clarity of the insights to avoid misinterpretation. Therefore, analysts and report creators must work closely together to ensure the final report faithfully represents the analysis insights.

Finally, there should be a feedback loop between analysis and reporting to continuously improve reporting effectiveness and analysis quality. Additionally, this feedback helps analysts refine their approach by focusing on areas of greatest interest or concern.

The Power of Storytelling

To bridge analysis and reporting efforts, analysts must master the art of storytelling. A well-crafted narrative can guide the audience through the data, highlighting key insights, and explaining the significance of each finding. This narrative approach aims to ensure that the data is interpreted correctly and that the intended message is conveyed.

Components of Effective Storytelling in Data Reporting

1. Objectives
2. Contextual Background
3. Logical Flow
4. Visual Aids
5. Focused Insights
6. Actionable Recommendations

Storytelling in data reporting transforms raw data into a meaningful narrative that bridges the context gap and minimizes misinterpretation.

The Typical Dashboard

Consider a standard dashboard:

At first glance, it’s not always clear what story the data is telling. Non-operational staff may struggle to understand without additional context.

Introducing Meta-Analytics Dashboards

To bridge this gap, we propose a novel approach: Meta-Analytics Dashboards. Here is how to create them:

1. Objective

The objective is the foundation of your dashboard. Where traditional dashboards may simply state the purpose of the dashboard itself, Meta-Analytics Dashboards should clearly define the company’s overarching goal that the dashboard supports.

Detailed Steps:

• Specific and Tangible: Ensure the objective is specific and tangible: instead of saying "increase value," specify to "reduce churn" or "increase sales."
• Easy to Understand: Avoid jargon and use straightforward language.
• Linked to Company Goals: Clearly explain how these objectives tie into the company's larger goals.

2. Dashboard Certainty

This metric assesses how reliable and trusted the dashboard is based on user feedback, ensuring actionable insights users can depend on for making decisions.

Detailed Steps:

• User Feedback: Collect feedback from users every time they interact with the dashboard. Ask two key questions: “Did you make a decision based on this dashboard?” and “Was the insight correct?”
• Calculate Certainty: Use the responses to calculate a certainty score: if 100 users said they made a decision and 90 of those decisions were correct, the dashboard certainty would be 90%.
• Continuous Improvement: Use the certainty score to identify areas for improvement. A low score indicates that the dashboard may need adjustments to enhance accuracy and reliability.

3. Story Stream

The story stream is the structured narrative that the dashboard follows. It is like a plot in a novel, guiding users through the data in a logical and compelling way.

Detailed Steps:

• Plan the Narrative: Identify the key points: the setting (current state), the plot (data trends), the conflict (issues or opportunities), and the resolution (actions to take).
• Create a Flow: Each section should naturally lead to the next, helping users understand the context and implications of the data.
• Flexibility: The narrative should remain relevant and informative even as the data changes.

4. Story Widget Title

Each widget in the dashboard should have a title that poses a specific question, making it clear what aspect of the data it addresses.

Detailed Steps:

• Question-Based Titles: Replace generic titles like “Sales per Month,” with questions such as “How did our sales perform this month?”
• Clarity and Relevance: Ensure the questions are clear and directly relevant to the dashboard’s objectives and goals. This helps users grasp each widget’s purpose.
• Encourage Insight: The question format encourages users to think critically about the data and its implications.

5. Widget

Widgets are the visual representations of your data. They must be designed to clearly answer the questions posed by their titles.

Detailed Steps:

• Data Visualization: Choose the right type of visualization for the data. For example, use line charts for trends over time, bar charts for comparisons, and pie charts for proportions.
• Test with Non-Experts: Share the dashboard with individuals who are not familiar with the data to ensure the widgets are easily understood.
• User Feedback: Gather feedback to improve the clarity and effectiveness of the widgets.

6. Note

Notes provide additional context and help build the narrative. They are short, informative messages that enhance the understanding of the data.

Detailed Steps:

• Editable Field: Include an editable field where analysts can add context. This can be used to explain anomalies, provide background information, or highlight important insights.
• Brevity and Clarity: Keep notes concise, like a tweet. They should connect the various parts of the story without overwhelming with information.
• Dynamic Updates: Ensure that notes can be easily updated as new data comes in and the story evolves.

7. Source

Each widget should reference its data source, providing a link or citation for further analysis if needed.

Detailed Steps:

• Transparency: Clearly indicate where the data comes from, which offers credibility and verifiability.
• Link to Sources: Whenever possible, include links to the original data sources.
• Consistency: Ensure all sources are consistently referenced throughout the dashboard.

Transforming Insights into Actions

By following these steps, you will create dashboards that not only present data but tell a compelling story, driving informed decisions and impactful actions. Embrace the power of storytelling in your dashboards to elevate your data reporting and truly become a master of analytics.

Juan Damia, CEO – CSA Latam