Please wait while the page is being loaded Skip this advertisement >
Thursday | 4 December, 2008
CIO
Show Me The Numbers
While no business presentation is complete without its plethora of charts and graphics, very few people understand how truly meaningless numbers are unless their significance is clearly understood and they are effectively communicated to the people who rely on them for decision making.
Sue Bushell 05 April, 2006 16:17:48

Give a clear voice to the numbers that tell the story of your business.

In 1997, Edward R Tufte, one of the world's leading experts in the visual presentation of information, showed how poor data presentation helped contribute to the 1986 explosion of the space shuttle Challenger, which led to the deaths of seven astronauts. Tufte's argument was compelling: had the presentations to NASA officials about the potential risk of O-ring failure in cold temperatures been better designed, decision makers would have understood the extreme risk involved and surely would have postponed the launch.

"An avoidable tragedy occurred because of an information presentation that was misleading," adds Stephen Few, principal of US company Perceptual Edge and author of Show Me the Numbers. "Every day, just like the officials at NASA, you rely on good data to inform your decisions. Lives may not be at stake, but livelihoods certainly are."

Most data displays are time-consuming and difficult to read, Few says, packed with unnecessary information and visual fluff - and potentially misleading. Yet nothing is more critical to business or IT success than the numbers that measure what is going on. People at work hear information consumers plead: "Just show me the numbers!" every day. But when the numbers are almost universally communicated in tables and graphs that are painfully badly designed - often to the point of misinformation - they sometimes might as well remain invisible.

In 1954, a time of mounting public anxiety about deliberately deceptive uses of graphics, freelancer writer Darrell Huff published How to Lie with Statistics, a slim volume fated to become the most widely read statistics book in the history of the world.

Half a century later, Huff's book is still in print (the first Chinese edition was published by Shanghai University's Department of Economics in 2003) and that anxiety has not diminished, but it may be somewhat missing the point, and Few thinks his own book is now just as valuable. He believes if there are still plenty of people out there intentionally using statistics to mislead, there are many more unintentionally misleading through statistics.

"Businesses pay for this oversight in the form of bad investment decisions and flawed strategic choices," he says. And data presentation is just as fundamental to the successful use of information and hence to the success of information technology.

"Business intelligence [BI] is a hot topic today - and rightfully so," Few writes. "Through BI and its cousins and aliases - decision support, data warehousing and information management - we pay great attention to data acquisition, integration, cleansing, enrichment, access, analysis and reporting. We pay comparatively little attention to the design practices needed to present data effectively and efficiently. The cost to business is insidious, for it is rarely recognized."

Few says that however much information you provide through the use of BI technology, it is only worthwhile to the degree that those who analyze and pass it on to others succeed in presenting it effectively.

Lies, Damned Lies and Statistics

There are three kinds of lies, British statesman and author Benjamin Disraeli has often been quoted as saying: lies, damned lies and statistics. Few's efforts are dedicated to helping business learn how to use statistics to present essential truths.

After all, he points out, numbers are central to our understanding of business performance. We use them to measure success and identify emerging opportunities and we rely on them to help us make informed decisions. Key performance metrics, Balanced Scorecards, digital dashboards and other measures have become the lifeblood of business operations.

However, even while giving enormous, often excessive, credence to the messages these numbers convey, we routinely fail to consider how we should present them. Few claims inattention to the design of quantitative communication is creating huge hidden costs in most businesses, as executives waste time struggling to understand the meaning and significance of numbers - time that could have been devoted to doing something about them, or worse, as they misinterpret them and make fatally flawed decisions.

"There are many symptoms which all translate into loss of money for businesses," Few says. "One is that when data is presented in the way it typically is, people really struggle to make sense out of it and they end up spending a lot of time trying to figure out what a particular graph is trying to tell them. If the data was presented more effectively they would get the information immediately. So there's a lot of time wasted because of poor presentation."

Featured Whitepaper Sponsors
Market Place
 

Smart SOA World Tour

Discover how SOA can create smarter outcomes for your business.

Attend and learn:

  • How SOA is helping leading companies to become more agile
  • Where you should be applying SOA processes in your company
  • The top SOA implementation mistakes to avoid

Click here for more information.
  • +

    CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00

    Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00

    Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05

    Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    Virtually every Windows PC at risk, says Secunia 04 December, 2008 08:00:00

    Almost all PCs scanned by patch tool have an unpatched app; 46% have 11-plus.
    More than 98% of Windows computers harbor at least one unpatched application, and nearly half contain 11 or more programs at risk from attack, a Danish security company said Wednesday.
  • +

    US Open used Web filtering to prevent online gambling 03 December, 2008 07:44:00

    USTA took security measure to retain "squeaky clean" image
    The US Open tennis tournament provides network access for the players, guests and media, but this past summer the association running the event took an extra security step to make sure access wasn't too open.
  • +

    CBS website bitten by iFrame hack 02 December, 2008 07:30:00

    Russian malware distributors have launched another iFrame attack on a sub-domain of the cbs.com site.
    TV network CBS has become the latest big name to have it website used to host malware, a security company has reported.
  • +

    Excerpt: Counterterrorism Strategies for Corporations 27 November, 2008 12:36:00

    Mike Ackerman calls terrorism "the skunk at the globalization lawn party." His new book lays out 10 principles for how businesses can prepare and respond.
    Mike Ackerman calls terrorism "the skunk at the globalization lawn party." His new book lays out 10 principles for how businesses can prepare and respond.
  • +

    The 10 Ackerman Principles of Counterterrorism 27 November, 2008 12:43:00

    Consultant and author Mike Ackerman's 10 counterterrorism principles for business.
    Consultant and author Mike Ackerman's 10 counterterrorism principles for business.
CIO Webcast Innovation #8 - What are the biggest roadblocks to IT's involvement in innovation at your company?
Watch the latest latest edition of CIO Innovation which is now available for download.
Watch the webcast
Sign up to the CIO Innovation update email


CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II
Listen to the latest edition of CIO Live which is now available for download.
Listen to the podcast
Sign up to the CIO Live email
Whitepaper

Refresh your AUP: Top tips to ensure your acceptable use policy is fit for purpose

Your organisation may well have devised and implemented an Acceptable Use Policy (AUP) some time ago in order to guard against the risks of inappropriate use of computer systems by your workers, but are you confident that your AUP remains 'fit for purpose'? Read on to discover how you can enhance the effectiveness of your AUP.