1. May, 2002Off-Site Training DocumentFrom Data To Charts
2. This presentation stems from two useful books“Say it with Charts, The Executive’s Guide to Visual Communication.”, Fourth Edition, Gene Zelasny, McGraw-Hill, 2001
“Say it with Presentations, How to Design and Deliver Successful Business Presentations.”, Gene Zelasny, McGraw-Hill, 2000
3. AgendaSome healthy habits
Choosing charts
Using charts
Visual concepts and metaphors
4. Some Healthy Habits
5. Cash flow from operations is increasing fastCF OP: Cash flow from operations; CF INV: Cash flow from investing activities; CF Liability + CF Equity: Cash flow from financing activities
Source: A.T. Kearney AnalysisCash Flow Statement 2000 – 2010
- (in € thousand) -
6. Cash flow from operations is increasing fast€ ThousandYear
7. $8,100$11,980JapanIndustrialized SocialistDeveloping SocialistDeveloping CountriesFranceWest GermanyU.K.BrazilCanadaU.S.A.Projected market demand for our product, by country, 2001-2010
US$ millionsGrowth is mainly driven by developing countriesPercent Annual Growth4.43.53.46.60.71.71.51.02.99.06.54.03.5Other Western CountriesItaly
8. Growth is mainly within developing countriesPercentage Annual Growth, 2001-201096.66.53-4* Including Japan and Western Europe
9. Healthy habits checklistAvoid Information OverloadKeep charts simple: no anxious parade of knowledge
Use only one message per chart
Show your message, not your analytical process
10. DescriptionImpactProbabilityProximityCurrent demand forecasting methodology has some key weaknesses, which mean that the forecasts generated under-estimate the level of interest that the Promotion Campaign is expected to generateDDDPriorityHBroadband demand is higher than current forecasts indicate because:
The impact of advertising on demand does not scale with size and breadth of campaign
FOH and BOH estimates are underestimated
Level of underlying demand is not well understood because1) forecasts used for operations planning are ADSL specific while the campaign is broadband focused and2) demand is only forecast for ADSL enabled exchanges
If broadband demand is not confirmed and proposed P&A campaign adjusted to reflect this, underestimated demand at launch will result in:
Reduced customer satisfaction
Reduced customer service levels
Increased and unanticipated review of service delivery budgeting (e.g. call centre staffing and training)Context /ImpactRevise ADSL demand forecasting methodology to address key issues
Above the line impact advertising impact on market size
Below the line advertising forecasting
Agree new FOH and BOH enquiry/sales conversion ratios with service delivery team and incorporate into demand model
Once changes are incorporated, build in new reports to assess level of Broadband demand generated and to identify incremental impacts of proposed campaign
Develop a revised P&A campaign scope which:
Ensures size and breadth of promotion campaign in consistent with organisation capability to deliverMitigation StrategyTimeframe15 Sept
22 Sept
Resp.Star Tel Business Case Co-ordinator
Star Tel Business Case Co-ordinator, Star Tel FOH
Star Tel Business Case Co-ordinator, Star Tel Marketing Manager
Star Tel Marketing ManagerMitigation strategies took the following form
11. Minimum legible font size depends on screen width and distance from screenWidth of screenFont size6 ft8 ft12 ft16pt15 ft18 ft20 ft18pt23252720pt30354522pt35405024pt45506030pt50607032pt627080
12. Healthy habits checklistAvoid Information OverloadKeep charts simple: no anxious parade of knowledge
Use only one message per chart
Show your message, not your analytical processMake Charts For Presentations, not ReportsUse font size 16 or more!
Write short sentences with action verbs, no bedtime stories
Highlight key words (e.g., bold/ color)
18. Our company’s market share has improved since 1996Our CompanyCompetitor CCompetitor BCompetitor DCompetitor A96019601960196019601
19. 50%8
YesPercentage of Total: 100% = 16Results of recent opinion poll of 16 top management executives12.5%37.5%2
Undecided6
No“Should the political and social climate of developing countries influence our decision to expand into this market?Source: Recent opinion poll of 16 top management executives
20. Less is more!Number of charts
Density of informationConfusion
Boredom
Day-dreaming
21. Healthy habits checklistAvoid Information OverloadKeep charts simple: no anxious parade of knowledge
Use only one message per chart
Show your message, not your analytical processMake Charts For Presentations, not reportsUse font size 16 or more!
Write short sentences with action verbs, no bedtime stories
Highlight key words (e.g., bold/ color)Ensure Powerful CommunicationPick the right representation to highlight your message
Use meaningful leads
Remember than less is more
22. Meaningful leads checklistSentence (including verb) that describes the key message, not the data!
Example: “Our market share is growing”, not “Market share trends by company.”
Lead is one line long at maximum!
Lead explains the message from data, but does not fill data gaps!
23. Choosing Charts
24. There are 3 steps to choosing charts1. Determine Your Message2. Identify The Comparison3. Select The Chart Form
25. It is key to first be clear about the specific point you want to make1. Determine Your Message2. Identify The Comparison3. Select The Chart FormThe data does not determine the chart
Rather, it is your message, what you want to show, the specific point you want to make
26. Work Project 1On the following pages, you will find tabular data on the net sales, earnings before interest and taxes, and return on assets over 10 years for seven major U.S. book publishers. Assume Macmillan is our client.
On the next page, write a list of 10 possible messages the data might yield, based upon your analysis of the data. Don’t worry whether or not the messages are accurate. As you write the messages, keep in mind these word:Share
Rank
Trend
Distribution
Relationship
31. The second step is to identify the comparison included in the message1. Determine Your Message2. Identify The Comparison3. Select The Chart FormComponent
Item
Time series
Frequency distribution
Correlation
32. Definition of ComparisonExample of MessageAny message always leads to one of five basic kinds of comparisons (1 of 2)Time SeriesComponentItemShows the size of each parts as percentage of totalIn May, Product A accounted for the largest share of total company sales
Client share of market in 2001 is less than 10 percent of the industry
Two sources contributed almost half of total corporate fundsCompares how things rank; are they the same, more, or less than othersIn May, sales of Product A exceeded those of Products B and C
Client’s return on sales ranks fourth
Turnover rates in the six departments are about equalShows how things change over time, whether the trends are increasing, decreasing, fluctuating, or remaining constantSales have risen steadily since January
Return on investment has decreased sharply over the past five years
Interest rates have fluctuated over the past seven quarters
33. Definition of ComparisonExample of MessageAny message always leads to one of five basic kinds of comparisons (2 of 2)Frequency DistributionCorrelationShows how many items fall into a series of progressive numerical ranges; e.g., how many employees earn less than $30,000; how many people are between 10 and 20, 20 and 30, etc.In May, most sales were in the $1,000 to $2,000 range
The majority of shipments are delivered in five to six days
The age distribution of company employees differs sharply from that of our competitorShows whether the relationship between two variables does or does not follow a pattern you would normally expectSales performance in May shows no relationship between sales and the salesperson’s experience
Chief executive officer compensation does not vary with size of company
Size of policy increases with policyholder income
34. MeaningTypical KeywordsEach comparison usually involves a set of typical keywordsShare, percentage of total, accounts for X percent, half of total, …Percentage of a totalComponentRanks, larger than, smaller than, equal to, …Ranking of itemsItemTrend, change, grow, rise, decline, increase, decrease, fluctuate, …Changes over timeTime SeriesX to Y range, concentration, frequency, distribution, occurrence, center, …Items within rangesFrequency DistributionRelated to, increases with, decreases with, changes/varies with, correlated, …Relationship between variablesCorrelation
35. Work Project 2The messages shown on the next two pages are based on actual analysis of the publishing industry data.
Please identify the comparison – or dual comparison – indicated by each message.
36. In 1970, the top three companies generated 73% of total industry sales.
Macmillan accounted for 18% of total industry sales in 1980.
Macmillan sales have risen 41% since 1970.
The majority of companies are concentrated in the 10% to 20% share of sales range.
In 1970, Macmillan accounted for almost 16% of industry earnings; in 1980, it accounted for only 9%.
Since 1970, Macmillan’s return on assets has not kept pace with that of the industry as a whole.
________________
________________
________________
________________
________________
________________
MessagesComparisonsWork Project 2 (1 of 2)
37. 7. Macmillan had the lowest return on assets of any competitor in 1980.
There is no relationship between share of industry sales and return on assets in 1980.
In 1980, four of the seven companies had return on assets between 10% and 20%.
Macmillan’s earnings have not kept pace with the industry’s since 1978.
Macmillan and Houghton Mifflin were the two companies with earnings declines between 1979 and 1982.
In 1980, Macmillan accounted for 18% of total industry sales, but only 9% of earnings.
7. ________________
________________
________________
________________
________________
________________MessagesComparisonsWork Project 2 (2 of 2)
38. The final step is to select the right chart form1. Determine Your Message2. Identify The Comparison3. Select The Chart FormPie chart
Bar chart
Column chart
Line chart
Dot chart
39. There are five basic chart forms to plot dataThe Pie ChartThe Bar ChartThe Column ChartThe Line ChartThe Dot ChartEvery data chart is composed of one or more of the five basis chart form
40. All basic types of charts are frequently usedPie chart
Bar chart
Column chart
Line chart
Dot chart
CombinationsTypical Amount in a Presentation~ 5%
~ 25%
~ 10%
~ 10%~ 50%( Typically way overused!)
41. Each chart form is best equipped to illustrate one of five comparisonsKinds of ComparisonBasic Chart FormsComponentItemTime SeriesFrequencyCorrelationPieBarColumnLineDot
42. Using charts
43. How to chart different comparisonsComponent comparison
Item comparison
Time series comparison
Frequency distribution comparison
Correlation comparison
44. Company ACompany A has the smallest share of industry salesCompany BCompany CCompany DNo more than six components (use “others” category)
Position the most important component against the 12 o’clock line, or rank components by decreasing size clockwise
Emphasize most important component with color/ shading
45. DesignProduct design accounts for less than 10% of total costManufacturingSalesServiceBe creative to add emphasisDistribution
46. 10% of the employees under 30 years have postgraduate degreesTotal Employees
100%Use in conjunction with bar charts
Avoiding using too many pie chartsOver 30 yearsUnder 30 years100%High school graduateCollege graduatePost- graduate
47. Our label distribution is different from theirsWhen comparing components, definitely use bar charts rather than pie chartsusLabel CLabel BLabel AthemTotalLabel ALabel BLabel CLabel ALabel BLabel CPoorPreferredTotal usTotal them
48. How to chart different comparisonsComponent comparison
Item comparison
Time series comparison
Frequency distribution comparison
Correlation comparison
49. Client’s return on sales ranks fourthUse a scale or numbers, not both
Round-out figures
Use color to emphasize
50. There are six variations of the bar chart formA deviation bar chartdistinguishes the profit winners from the losersA sliding bar chartshows the different mix of two components,e.g., percentage of imports versus percentage of exportsA range bar chartshows the spread between low and high amounts, e.g., range of discountsA paired bar chartshows the correlation between two items,e.g., growth of market versus share of marketA grouped bar chartCompares various aspects of the same item, e.g., with and without discountA subdivided bar chartshows the components that make up the totalUse them!
51. Although total fringe benefits vary, profit sharing is the largest portion in all industriesProfit sharingOther benefits
52. Product mix varies by areaABCProducts
53. Our company is above the average in both categories of salesCategory ACategory BAverage
54. How to chart different comparisonsComponent comparison
Item comparison
Time series comparison
Frequency distribution comparison
Correlation comparison
55. Client’s return on sales ranks fourthUse column chart for small set of data points
if large set, use line chartMillions
56. There are five alternatives to column chartsThe deviation column chart distinguishes, say, the profit-making years from the losing oneThe range column chart shows the spread between low and high amounts, like the barometric performance of the stock marketThe grouped column chart, with columns either butting against one another or overlapping, compares two items at each point in time and shows how the relationships change over time, e.g., dollars with inflation and discounted for inflationThe subdivided column chart shows how the components contributing to the total vary over time, e.g., salary plus fringe benefits adding to total compensationThe step-column chart leaves no space between the columns and is best used to show data that change abruptly at irregular intervals, such as personnel ceilings or capacityUse them!
57. Projected growth appears unrealistic in light of performance over past 7 yearsWith too many data points, use line charts
Can add emphasis, such as area shadingMillionsProjected
58. When using line charts, avoid too many lines at onceThe Spaghetti ChartABCDEUntangling the MessABACADAE
59. Annual cash flow turns positive in 1998, allowing for break-even in 1999Use combination of lines and columns for comparisonsMillionsAnnualCumulative
60. How to chart different comparisonsComponent comparison
Item comparison
Time series comparison
Frequency distribution comparison
Correlation comparison
61. The majority of shipments are received in 5 to 6 daysUse histograms with relatively few buckets
Try different levels of precision to extract patternsNumbers of ordersDays
62. Most sales are between $30 and $50Use histographs with many data pointsNumbers of SalesSize of Sales
63. The age distribution of company employees differs sharply from that of the company’s competitorUse lines and columns for comparisonsNumbers of ordersAgeCompanyCompetitor
64. More employees in the higher salary brackets have degreesWith DegreesWithout DegreesTotal EmployeesSalary Grades
65. How to chart different comparisonsComponent comparison
Item comparison
Time series comparison
Frequency distribution comparison
Correlation comparison
66. Expected PatternThere is no relationship between discount and volume soldDiscountUnit Volume Sold
67. Expected PatternThere is a relationship between lower prices and increased volume soldPriceVolume Sold
68. In Plant B, employees with more education receive higher salariesWeekly WagesEducation LevelWith college
educationEmployees without
college education
69. There is a relationship between lower prices and increased volume sold1
2
3
4
5
6
7
8
9PriceVolumeSale
70. We are well positioned in the marketplaceMarket AttractiveCompany StrengthsProfit Contribution
$ Millions> 51 - 5< 1
71. One of our three business units has moved into a loss position199920002001Return on Spending0+––+0BReturn on AssetsReturn on Spending0+––+0CReturn on AssetsReturn on Spending0+––+0AReturn on Assets
72. Work Project 3On the following pages, you will find several sets of data drawn from the analyses of the publishing industry data. On the basis of the data, please sketch the appropriate charts. Don’t worry about accuracy — a quick sketch is sufficient.
Also, write the message title you would use to reinforce each chart in the upper-left-hand space of the page.
In every instance, be sure to identify the kind of comparison the message implies, and refer to the matrix to select the appropriate chart form.
73. Share of Industry Sales By Company, 1980
(Percent)Houghton Mifflin
Harper & Row
Prentice-Hall
Harcourt Brace
Grolier
McGraw-Hill
Macmillan5.3
5.6
11.5
16.4
10.2
32.6
18.4
100.0
3A. On the basis of the following data, sketch a chart to demonstrate Macmillan's share of publishing sales in 1980 compared with that of its competitors
74. (本页无文本内容)
75. Return on Assets, 1980
(Percent)Houghton Mifflin
Harper & Row
Prentice-Hall
Harcourt Brace
Grolier
McGraw-Hill
Macmillan14.4
11.3
21.7
14.9
10.2
22.8
8.03B. On the basis of these data, sketch a chart that demonstrates how Macmillan’s return on assets ranks in the industry in 1980
76. (本页无文本内容)
77. Share of Industry Sales, 1980 (Percent)Houghton Mifflin
Harper & Row
Prentice-Hall
Harcourt Brace
Grolier
McGraw-Hill
Macmillan
5.3
5.6
11.5
16.4
10.2
32.6
18.43C. On the basis of the data, sketch a chart that demonstrates whether or not a relationship exists between share of sales and return on assets in the publishing industry in 1980Return on Assets, 1980
(Percent)Houghton Mifflin
Harper & Row
Prentice-Hall
Harcourt Brace
Grolier
McGraw-Hill
Macmillan
14.4
11.3
21.7
14.9
10.2
22.8
8.0
78. (本页无文本内容)
79. Macmillan Net Sales3D. With this data, sketch a chart that demonstrates the trends – on an index basis – for Macmillan’s sales and earnings between 1970 and 1980, using 1970 as the base yearMacmillan Earnings1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980400.3
386.6
393.9
420.4
466.6
477.3
493.4
512.7
553.5
529.8
566.0
100
97
98
105
117
119
123
128
138
132
141$ millions1970 = 1001970
1971
1972
1973
1974
1975
1976
1977
1978
1979
198022.5
22.4
31.8
39.4
39.1
35.1
41.3
47.5
54.2
39.3
34.2
100
100
141
175
174
156
184
211
241
175
152$ millions1970 = 100
80. (本页无文本内容)
81. Share of Industry Sales by Company, 1980
(Percent)Grolier
Harcourt Brace
Harper & Row
Houghton Mifflin
Macmillan
McGraw-Hill
Prentice-Hall10.2
16.4
5.6
5.3
18.4
32.6
11.53E. On the basis of these data, sketch a chart that demonstrates that a majority of companies have a share of industry sales between 10 and 20 percent in 1980
82. (本页无文本内容)
83. Share of Industry Sales By Company, 1970 (Percent)Grolier
Harcourt Brace
Harper & Row
Houghton Mifflin
Macmillan
McGraw-Hill
Prentice-Hall16.4
9.5
4.4
4.2
28.4
28.0
9.1
100.03F. On the basis of the following data, sketch a chart that demonstrates the changing mix in share of industry sales from 1970 to 1980. Emphasize Macmillan’s shareShare of Industry Sales By Company, 1980 (Percent)Grolier
Harcourt Brace
Harper & Row
Houghton Mifflin
Macmillan
McGraw-Hill
Prentice-Hall
10.2
16.4
5.6
5.3
18.4
32.6
11.5
100.0
84. (本页无文本内容)
85. Earnings, 1979 ($ Millions)McGraw-Hill
Prentice-Hall
Harcourt Brace
Macmillan
Houghton Mifflin
Harper & Row
Grolier157.7
52.1
54.6
39.3
27.4
14.1
19.23G. With these data, sketch a chart that demonstrates the change in earnings between 1979 and 1980 for each of the seven companiesEarnings, 1980 ($ Millions)McGraw-Hill
Prentice-Hall
Harcourt Brace
Macmillan
Houghton Mifflin
Harper & Row
Grolier
179.0
64.3
55.8
34.2
19.5
15.5
29.4
86. (本页无文本内容)
87. Work Project 4On the following pages, you have six charts to sketch. In each case, the message title and the chart do not work together for one of three reasons:
The wrong chart has been selected to support the message title
The scales chosen do not stress the message
The chart is too complex and fails to communicate effectively
For each chart, identify the problem and sketch a new chart that demonstrates its message more quickly and clearly. Refer to the matrix where appropriate.
91. 4B. This chart was intended to show that the client has built share in acetic acid and vinyl acetate, remained constant in polyethylene, and lost share in ethanolChemicals Corp. Market Share Change
1981 to 1983Market Share, 1983Market Share, 1981DACBABCDAcetic Acid
Ethanol
Polyethylene
Vinyl Acetate
95. Comparison of Pain Relief Effectiveness
(Aspirin Vs. Bufferin)15304560120180240BAPain Relief Scores4D. This chart attempts to demonstrate that you should take Aspirin (A) instead of Bufferin (B) because it enters your bloodstream more quickly and has a more lasting effect. Taking note of the scales used, sketch a chart that demonstrates the comparison more convincingly
96. (本页无文本内容)
97. Construction Costs For Existing And New Urban Cable SystemsCost Per Subscriber
($)Total Construction Costs
($ Millions)4E. The intent of this chart was to demonstrate that the cost per subscriber would not increase in proportion to total construction costs. Sketch a chart that will show the relative increases more accurately
98. (本页无文本内容)
99. $2,311$505$493$365$405$265$415SmallLargeTotal, $ MillionsBackhoesGradersHydraulic ExcavatorsSmall Wheel LoadersCrawler LoadersSmall DozersOff-Highway TrucksScrapersLarge Wheel LoadersLarge DozersSmall Machines Account For Major Percentage of Sales In Seven Loading Markets4F. This chart form, while appropriate, is more complex than it needs to be to communicate its message. Sketch a new chart that will support the message title more quickly and clearly