David Goldstein, President Mekko GraphicsJune 10, 2014david@mekkographics.com

Choosing the Right Strategy Chart

FOR THE BOSS, THE BOARD OR THE SENIOR MANAGEMENT TEAM

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Agenda• Three types of charts• Drill down into each chart type

• The best charts for each• Tips to make your charts deliver your message

• A handy table• Questions

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3 Chart Types• Categorization charts

• Questions answered• How much does each product line contribute to revenue?• How much cost can be attributed to each region and country?• How many hours were billed for each service offering in each office?

• Measure by dimension(s)• Measure

• Number, quantity• Examples—revenue, cost, profit margin, units sold, horsepower

• Dimension• Category for the measure• Examples—Product line, geography, competitor, cost category, plant

• Trend charts• Use different charts when one dimension is time• Track growth or mix changes in the other dimension(s) along one or more

measures over time• Change charts

• Show the impact of actual or proposed changes over one or more time periods

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Simplest Categorization Chart:1 Dimension and 1 Measure

Revenue by Vertical

Financial Services 22%

Public Sector 20%

Manufacturing 19%

Communications 9%

Retail 9%

Services 7%Utilities 5%

Transporation 4%Healthcare 4%

$3,304M

Agriculture, Mining and Construction 1%

80% of revenue comes from the 5 largest verticals.

• What are the key verticals in which I compete? (revenue by segment)

• How can I best break down division costs? (cost by division)

• Use 100% stacked bar or pie chart to show a measure along a relevant dimension

• Tips:• Make sure the dimension categories are

“MECE”—Mutually Exclusive and Collectively Exhaustive.

• If there are more than 10 categories, group the smaller ones in “Other.”

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Add an ‘Explosion’ to Drill DownOur software sells into 6 major verticals. The manufacturing vertical can be dived into 4 key segments, with high tech as a small but significant segment.

0

20

40

60

80

100%

Revenue by Vertical

Vertical Markets

Financial Services $730M

Public Sector $651M

Manufacturing $617M

Communications $292M

Retail $303M

Services $248M

Other Verticals $464M

$3,304M

Manufacturing Market Breakdown

Aeronautics $212M

Automotive $147M

High Tech $98M

Machinery $72M

Other Manufacturing $88M

$617M

Tip: add an action title and a tagline to each slide.

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Use a Cascade to Build a CategoryIf you have a mix of positive values use a cascade chart. Stacked bar charts and pie charts require all values to be positive.

0

50

100

150

$200B

Profit by Division

Division1

$90B

Division2

$70B

Division3

$40B

Division4

-$10B

Total

$190B

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Use a Marimekko to Add a 2nd DimensionOur market is highly fragmented. Most large players do not compete across multiple segments.

0

20

40

60

80

100%

Percent of revenues

Segment1

Single1

Single2

Single3

Multi1

Single4

Single5

Single6

Other

$5B

Segment2

Our Company

Single7

Single8

Single9

Single10

Other

$3B

Segment3

Multi2

Single11

Single12

Single13

Single14

Other

$5B

Segment4

Single15

Multi1

Single16

Single17

Single18

Single19

Single23Single24

Multi3Single25

Other

$9B

Segment5

Single26

Multi1

Multi3

Single27Multi2Multi4

Other

$9B

Multi4Single31

Other

$2B

Other Segments

Single32

Single33

Multi2

Multi1

Single34

Other

$2B Total = $34.8B

Segment6

Tip: use color to highlight specific segments or series.

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Other Marimekko Chart UsesMeasure Dimension

1Dimension

2Example

Revenue Region Product Line

Opportunities to expand a specific product line into new regions

Cost Plants Product Line

Identify high cost plants for specific products

Sales Region Country Break down sales into regions and major markets in each region

Sales Pipeline Stage

Opportunity

Sales pipeline summary for senior management

Hours Billed

Service Offering

Office Professional services firm summary of work done in the previous week

Revenue Channel Competitor Analysis of channel effectiveness

Purchases

Product Line

Supplier Supply chain rationalization analysis

Number of Servers

Operating System

Department

Computer hardware consolidation analysis

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Use a Bar Mekko When 1 Measure is Absolute and the Other is a PercentageWhile manufacturing is our largest vertical, it also has the lowest growth.

Tips: add a data row to highlight segment size and an average line to contrast market segment growth with overall growth.

0.0

1.0

2.0

3.0%

Projected Growth Rate Years 1-4

Average Growth 1.3%

2.5%

1.5%

1.1%

Public Sector

0.8%

Retail

0.5%

Manufacturing

0.4%

Average Growth 1.3%

Financial Services

Services

2.3%

Comms Other

$120M $40M $90M $160M $140M $70M $200MMarket Size

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Categorize 1 Dimension Along 3 Measures with a Bubble ChartLower horsepower vehicles sell much better than higher horsepower, even at a similar price point.

Tips: Change the size of the reference bubble to increase/reduce bubble sizes. Use a log scale to bring in outlier data.

10,000

15,000

20,000

25,000

$30,000

100 150 200 250 300 350

50,000 Units Sold

MSRP

Fusion 181,668

Focus 151,549

Taurus 49,886

Mustang 48,879

Fiesta 45,831

C-Max 23,040

50,000 Units Sold

Horsepower

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Trend Charts: Track Growth in 1 Measure and 1 Dimension Over TimeOverall market growth was 4.7% with the medical segment having the highest growth.

0.0

1.0

2.0

3.0

4.0

$5.0B

Total Market Size ($B)

2003

$3.2B

2004

$3.3B

2005

$3.4B

2006

$3.6B

2007

$3.8B

2008

$3.9B

2009

$4.1B

2010

$4.3B

2011

$4.5B

2012

$4.8B

2013

$5.0B+4.7%

5%

8%

14%

3%

Auto

Industrial Machinery

Medical

Other

+4.7%

2003-2013

CAGR

Tips: add a growth line and a CAGR column to quantify changes over time.

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Track Mix Changes in One Measure Across 1 Dimension Over TimeSwitching the previous chart to a 100% stacked bar and adding linking lines between the series shows changes in mix of sales by vertical over time.

0

20

40

60

80

100%

Total Market Size ($B)

2003

$3.2B

2004

$3.3B

2005

$3.4B

2006

$3.6B

2007

$3.8B

2008

$3.9B

2009

$4.1B

2010

$4.3B

2011

$4.5B

2012

$4.8B

2013

$5.0B

5%

8%

14%

3%

2003-2013CAGR

Auto

Industrial Machinery

Medical

Other

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Skipping Years Highlights Mix ChangesThe three major segments have shown above average growth over the last 10 years with medical leading auto and industrial machinery.

0

20

40

60

80

100%

Total Market Size ($B)

2003

$3.2B

2008

$3.9B

2013

$5.0B

5%

8%

14%

3%

2003-2013CAGR

Auto

Industrial Machinery

Medical

Other

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Track Trends Across Many Time PeriodsArea and 100% area charts work best with 12+ time periods.

0.0

1.0

2.0

3.0

4.0

$5.0B

Total Market Size ($B)

Other

Medical

Industrial Machinery

Auto

1992 1995 1998 2001 2004 2007 2010 2013

5%

8%

14%

3%

1992-2013

CAGR

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Show the Impact of Changes with a Cascade Chart The proposed financial services campaign in year 2 and marketing campaign in year 3 will add $33M to company profits.

Tip: Use an axis break to focus attention on changes.

0

320

330

340

350

360

$370M

Projected Profit

Year1 Profit

$314M

Projected Growth

$12M

Financial Services

Campaign

$15M

Year2 Profit

$341M

Projected Growth

$14M

Marketing Campaign

$8M

Year3 Profit

$363M

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‘Which Chart to Use’ Summary SheetChart Type Use Case Examples Best

ChartsTips

Categorization

Categorize one measure and dimension

Revenue by business unit or by product lineCosts by business unit or by plantProfit by division

100% stacked bar (1 bar)Pie, Cascade

Add 2nd bar to 100% stacked to explode a key segmentUse cascade if some values are negative

Categorize one measure along 2 dimensions

Revenue by product line and regionCost by plant and product lineHours billed by service line and region

Marimekko

Use color to highlight key segmentGroup smaller segments into ‘other’ category

Categorize one dimension along two measures

Market size versus market growth by product

Bar MekkoScatter

Use Bar Mekko if one measure is percentage

Categorize one measure along 3 dimensions

Price versus product performance and revenue

Bubble Use revenue or cost as bubble sizeUse log scale(s) to bring in outlier data

Trend Track growth trends in one measure and dimension

Revenue or cost by business unit by year

Stacked bar or area

Use area for 12+ time periodsAdd a growth line or CAGR column

Track mix trends in one measure and dimension

Revenue by product line by year 100% stacked bar or 100% area

Use comparison lines to highlight mix shifts

Track trends in multiple measures

Revenue and costs by year Line Use dashed lines for projected years

Change Show impact of proposed changes

Impact of marketing campaigns or product line extensions on profit

Cascade Add axis break to focus on relative changes