The Importance of Actionable Reporting in BI & Reporting Best Practice IBCS

Business Intelligence (BI) is a powerful instrument that can help organizations make better decisions and improve the company’s performance. However, very often I encounter poor BI reports with little to no insight. The assumption in this article is that poor reporting does not stem from an intent to deceive or misinform the report’s target audience. Instead, it is usually due to a lack of understanding about how to create effective and actionable reports.

Someone may argue that there are numerous ways to interpret and display the same data through visualizations, however I disagree. I believe that there is a single most valuable insight and one best way to visualize that insight. While a company’s objectives and strategies may impact the relative significance of certain key performance indicators or categories, it does not alter the effect that these KPIs or categories have on each other.

This is why we need actionable reporting best practices that everyone follows. The current most complete best practice for this is IBCS, which stands for International Business Communication Standards. These standards incorporate the majority of previous work done in this area such as ideas from Stephen Few, Edward Tufte or Barbara Minto. Newer publications of standards in the area of information design for charts and tables are already included in the much more elaborate IBCS. E.g Dashboard Design Rules – OKVIZ, “The Data Visualization Society’s Ten Simple Rules for Better Figures” or “The Harvard Business Review’s Guide to Data Storytelling”

IBCS are a set of guidelines for creating effective and actionable reports. It provides a consistent and standardized approach to creating and presenting data, making it easier to understand and use. By following these over 100 rules, you can create reports that are easy to understand and provide clear insights. This will help to ensure that your reports are being used to drive decision-making and improve the company’s performance, rather than just being ignored. IBCS has proven its importance in everyday business already several times but also in a study conducted by blueforte at the Technischen Universität München (TUM) resulting in 61% less mistakes and being 46% faster when consuming reports. Management Summary

One of the key principles of IBCS is the use of a clear and consistent visual structure. This means that all elements of a report should be arranged in a logical and consistent manner, making it easy to understand and navigate. Additionally, IBCS emphasizes the use of clear and concise language, avoiding technical jargon and confusing terminology.

Another important aspect of actionable reporting is the use of the right visualizations. Choosing the right visualization for the data you are presenting is crucial for providing clear insights. For example, a line chart is a good choice for showing trends over time, while a bar chart is better for comparing values. IBCS provides guidelines for choosing the right visualization for different types of data.

To be even more precise the above mentioned rules are categorized into seven areas with the acronym SUCCESS to better memorize them. Putting the SUCCESS areas into a logical order:

I: Conceptual rules are guidelines that help to effectively communicate a message by using an appropriate narrative structure. They include:

1. Say: Convey the main message first and foremost.
2. Structure: Structure the information in a logical and coherent manner.

II: Perceptual rules are guidelines that help to effectively communicate a message through visual design. They include:

3. Express: Expressing the message through the use of appropriate visual elements. In very short there are two chart types covering the very biggest majority of the needs: multi-tier bar chart (table) for categories, multi-tier column chart for time. The combination of both should be than a small multiple multi-tier column chart or less often a multi-tier bar chart (table) with multiple previous period comparisons.
4. Simplify: Simplify the design to minimizing distractions and therefore avoid any unnecessary noise.
5. Condense: Once there is more space, the report author has the possibility to increase information density with adding additional elements. Condensing therefore means to utilize the limited space as effective as possible.
6. Check: Once more elements or charts are added, it is crucial to maintain visual integrity. In very short: “things which mean the same should look the same”. Among many other tasks, one is to check the scaling of the newly added visual elements.

III: Semantic rules are guidelines that help to effectively communicate a message through the use of a uniform notation system. This includes:

7. Unify: Unify all the above in a consistent manner and apply notation standards, such as through a notation manual or guide.

The very first area “Say” I would like to highlight specifically. Brent Dykes has published two great articles stating that one should not simply focus on the visualization part and also put a focus on the equally important data (analysis) and narrative (message) part. Elephant In The Room: Data Storytelling Is More Than Just Data Visualization

But in my opinion the focus on great visualization first is correct. Because like Brent correctly states in his “Insight Funnel” the dashboard/report is the frame for the analysis and consequent message which follows. Why Data Storytelling Requires a Mindset Shift

Yes you can convey a good insight with a pie chart if your analysis through other means and the message is the bomb. However my argument would be that you are much more efficient and effective with analysis and storytelling and the related message creation process if your storyframing / dashboarding is superb.

In conclusion, actionable reporting is essential for creating effective BI reports that provide clear and actionable insights. By following the guidelines provided by IBCS, you can ensure that your reports are easy to understand and provide the information that is needed to drive decision-making and improve performance.

Business intelligence will only reach its full potential if the concept of actionable reporting is applied, and IBCS is perfectly suited to help you do just that.