Presentation on theme: "1 Thinking Visually. 2 Introduction Thinking visually seeks to enlarge your capacity to process vast quantities of data that you possess. You need informative."— Presentation transcript:
1 Thinking Visually
2 Introduction Thinking visually seeks to enlarge your capacity to process vast quantities of data that you possess. You need informative and eye-appealing charts and graphs to make data meaningful. So you can see in graphic form what is not so clear before.
3 Focused measurements Focused measurements draw attention to important and highly relevant data by presenting them in a clear and uncluttered manner. By using focused measurements companies can move both quickly and assuredly in order to seize new opportunities. When management have a framework within which to measure and implement change, then these focused measurements put change in perspective. Focused measurements are often best displayed using charts and graphs.
4 Charts and graphics can be used to: –Improve efficiency and effectiveness –Improve quality –Solve problems –Plan –Monitor processes Depending on the subject matter, charts and graphs can be clearer and easier to comprehend than writing text. Focused measurements
5 Tools used These charts and graphs can easily be put together using electronic tools such as Microsoft’s PowerPoint, Excel and Visio. Some people find a blackboard and chalk or pen and paper more comfortable to work with, but have the disadvantage of being difficult to store or distribute on a large scale. The decision of which chart to use is often more difficult than the end production of the chart.
6 Visual Tool: Tracking Tracking is used to monitor fundamental financial concepts such as sales, cash flow, and income statements. The following diagrams show the progression from a basic Sales and Margin Vs. Time Chart to a more useful form.
8 Sales and Margin Vs. Time Figure 1 In the previous slide monthly sales and gross margin data are displayed. Gross margin is equal to sales minus the cost of goods sold. Although the numbers are accurate, there is no real analysis or information for management behind these figures.
10 Sales and Margin Vs. Time Figure 2 By combining the sales and gross margin dollars into quarterly data, and by adding gross margin percent, suddenly our figures have relative meaning. Gross margin is equal to gross margin percent.
12 Sales and Margin Vs. Time Figure 3 This chart is better still, since it shows graphically at a glance, how well the group is doing.
14 Sales and Margin Vs. Time Figure 4 This chart is even clearer. There is a lot going on; we have added a caption, or key takeaway box, highlighting the most significant aspect of the improvement. A key takeaway box answers the question “What does this mean?”
15 Overall The spreadsheet in figure 1 has matured in to a graph in figure 4. The most important point about the transition is not to force your audience to think when you should be thinking for them.
16 Variance and Comparisons These charts display the relative difference between groups or elements. The main diagrams for variance and comparisons are: –Deviation graph –Side – by Side Column Graph –Side – by Side Bar Graph –Radar Chart
17 Deviation graph A deviation graph displays the differences between data series and some known reference, such as a budget, industry standard, or prior year’s results. Deviation graphs are often used to display performance to standard cost, performance to schedule, performance to cost reduction goals, or performance to departmental budgets.
18 Figure 5 Budget
19 Figure 6
20 Figure 5 vs.Figure 6 Figure 5 shows actual data with the budget of 5 million euro displayed as a constant broken line. Figure 6 is the deviation graph, since it shows the difference between actual profit and budget. When the actual profit value is above budget, the difference is denoted as positive; when profit is below budget, the difference appears as negative; and when profit is equal to budget, the deviation is zero.
21 Side – by Side Column Graph A side by side column graph is a column graph with two or more data series plotted side by side for comparison purposes. The columns for a given data series are always in the same position in each group throughout the given graph.
23 Side – by Side Column Graph Figure 7 In figure 7, each plant makes the same product, and the vertical axis displays percent of total cost. The information for Plant A is always at the left of each group, followed by the information for Plant B and C. Each data series is a different colour, shade or pattern.
24 Side – by Side Bar Graph A side-by-side bar graph is a bar graph with two or more data series plotted side-by-side for comparison purposes. The bars for a given data series are always in the same position for each group throughout a given graph.
26 Side – by Side Bar Graph Figure 8 In figure 8, the information for Plant A is always at the top of each group, followed by the information for Plants B and C. Each data series is a different colour, shade, or pattern.
27 Radar Chart A radar chart is a circular chart is used primarily as a comparative tool. For example the nutritional content of two different foods might be compared based on the percentage of recommended daily allowances of five different vitamins that each contains.