A Beginner’s

Guide to
Business
Dashboards

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 What is a Business
Dashboard?
A business dashboard is an information
management tool that is used to track
KPIs, metrics, and other key data points
relevant to a business, department, or
specific process. Through the use of
data visualizations, dashboards simplify
complex data sets to provide users
with at a glance awareness of current
performance.

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Overview
Business dashboards take their name from automobile dashboards;
in fact, when you think about it, business dashboards are used in
A well designed
much the same way as automobile dashboards. Under the hood of
your vehicle, there may be hundreds of processes that impact the
dashboard is a
performance of your vehicle. Your dashboard summarizes these events remarkable
using visualizations so you have the peace of mind to concentrate on
safely operating your vehicle. information
In today’s business environment, the tendency is towards more data – management
so much so that we’ve come up with a new term to accurately describe
it: Big Data. Managing and extracting real value from all that data is a tool.
key challenge facing modern businesses. In seeking a way to simplify
data analysis and distribution, organizations often find themselves
quickly dealing with data overload.

A well-designed dashboard is a remarkable information management

tool. For drivers, dashboards allow them to focus on safely operating
their vehicle and navigating the various road hazards presented on a
daily commute. The same is true for business users: dashboards simplify
complex processes into manageable, digestible chunks of information so
they can focus on the day-to-day operation of the business.

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Business Case
Effective dashboard use can have a dramatic impact on business performance. Dashboards keep everyone on
the same page and put the most important facts about your business where they can have most impact. Here
are three common business cases for dashboards:

Getting more value out of your data

Data is one of the most valuable assets owned by your business. Putting this data to work, however, is often
more difficult in practice. A well-designed dashboard has the ability to inform users across the organization
and provide on-demand access to core business metrics. Everyone on your team can use a dashboard to run a
better business.

Consolidating and automating multiple data points

By their very nature, dashboards gather data from multiple data points to provide a single reporting interface.
This reduces the amount of time and effort compiling reports, signing into multiple analytics services, and
sharing data with everyone in the business. Dashboards offer an opportunity to expose metrics to a wider
audience within your organization.

Departmental alignment
As the saying goes, “data doesn’t lie.” When it comes to inter-departmental activities, dashboards provide an
objective view of current performance and can effectively serve as common ground for further dialogue. For
instance, sales and marketing need alignment over the customer acquisition process. Dashboards can surface
metrics that are relevant to each team in a way that is mutually understandable.

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Features of Dashboards
At the most basic level, business dashboards share certain common features. This section explores some of
these features and how they may impact your dashboard project.

Data visualizations
Selecting the right visualization for your dashboard is an important part of dashboard design. Data
visualizations are graphical representations of your data, and are used to simplify the transmission of
sometimes-complex information. It’s much easier for an end-user to spot trends in a chart rather than sifting
through a data file with hundreds, possibly thousands of entries.

Here’s a short guide with some information about the most common types of data visualizations in dashboard
design.

Tables Bar charts

Used to organize data into columns Used to plot values on a chart to show
and rows. Tables may contain other comparisons within the same category.
graphical elements such as bullet charts Bar charts can be stacked to show how
or sparklines. similar data sets relate.

Line charts Gauges

Used to plot values on a chart to show Used to show progress towards an
trends over time. Line charts may have objective. Gauge colour can be used to
multiple series to allow for comparisons. denote a target being achieved or not
achieved.

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Types of dashboards
Dashboards typically fall into two categories: operational dashboards and analytical dashboards. Choosing
which type of dashboard to build depends on the type of problem you are trying to solve and your audience.
You may end up building a dashboard that embodies characteristics of both operational and analytical.

Timeframe
Operational: Time sensitive | Analytical: Trends or deeper insights

Audience
Operational: Line of business managers, general workforce | Analytical: Executives, analysts

Objectives
Operational: Tactical, short- and medium-term objectives | Analytical: Strategy, long-term goals

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Dashboard software
Businesses today have a number of options for creating dashboards. Here’s an overview of the 3 main types
of dashboard software available.

On-premise
Software is installed directly on computer or network. Dashboards are managed
locally and typically pushed via printing or exporting as a PDF.

Cloud
Software is accessible on any computer with an internet connection. Dashboards are built
and designed using a web browser, and can be published across multiple devices.

Mobile
Software is accessible on any mobile device such as a smartphone or tablet. Dashboards may
be based on native application or be pushed out from a cloud environment.

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Building and Designing
An effective dashboard promotes action and changes behaviour. Before jumping into the design stage of your
dashboard project, you need to start with a plan that has clear objectives and a well-defined audience. Here
are some tips to guide you along the path of responsible dashboard design.

Define your audience

Your dashboard project starts and ends with your audience. At the outset, you need to understand who will
use your dashboard and how they will use the dashboard. Depending on your audience, you may be designing
dashboards for consumption on mobile devices, web browsers, or LCD TV monitors. At the end of the process,
you will integrate your audience’s feedback into future iterations of your dashboard design.

Identify the key metrics

Ask the question: “What problem am I trying to solve?” The type of dashboard you create depends on the
metrics and KPIs that you need to track. By identifying these metrics at the start of your project, you will
understand what you’re trying to accomplish. It will give you a clear roadmap for building your dashboard.

User context
When designing a dashboard, take into account the context in which the dashboard will be viewed. You’ve
already identified your audience, now it’s time to select visuals that are meaningful to them. A CEO will want
a compact dashboard with very clean, simple visualizations, while a business analyst will want to dive deeper
into the data using more sophisticated visualizations.

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Design for immediate action
A dashboard’s strength depends on providing your audience with the current status of key metrics. An
effective dashboard is designed to prompt a response from your audience, whether that means getting them
to sound the alarm for an “all-hands” response or bringing up the issue at your next board meeting. The key is
to establish and stick to a consistent design convention. To avoid confusion when using a myriad of prompts
and indicators, always choose fewer and symbols.

Test, evaluate, and tweak

As your team uses the dashboard, they will undoubtedly have input as to its use and effectiveness. User-
driven feedback allows you to make your dashboard as effective as possible, and address the specific
objectives of your audience. Don’t be afraid to ask your team for feedback.

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Dashboard Examples
Executive Dashboards Call Center Dashboards
Executives want information about their business Call centers need to be connected to the latest
in a way that is accessible, easy to understand and metrics and KPIs to monitor call volume and
accurate. deliver the highest quality service to customers.

Sales Dashboards Social Media Dashboards

Sales teams need information about their Social media marketing is about managing
performance presented in real time to allow them multiple profiles on different platforms to create
to capitalize on new opportunities. interest in your brand.

Marketing Dashboards Healthcare Dashboards

Marketing professionals use dashboards to Healthcare providers and administrators need
monitor their campaign performance so they can to manage costs, adjust services, achieve
connect with their audience and increase brand compliance, and reduce wait times for ER and
recognition. critical procedures.

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Don’t stop reading!
This is only one of our four-part series of eBooks on Dashboards and KPIs. Visit www.klipfolio.com for the
others in this series:

A Beginner’s Guide to KPIs

The Marketer’s Guide to KPIs

The Sales Leader’s Guide to KPIs

About Klipfolio
Klipfolio’s mission is to make it fast, easy and affordable ($20/user/month) for business users to build and share
real-time dashboards - enabling them to move from quarterly reflective management to continual performance
optimization.

Klipfolio has more than 3,500 customers including marketing agencies, financial services, retailers, educational
institutions, SaaS software companies and not-for-profits organizations. Find out more at klipfolio.com and follow
us on twitter.com/klipfolio.

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