For each KPI on a given dashboard you should decide if you want to provide supporting analytics and, if so, what type of information would be needed to support analysis of that KPI. For instance, in the case of a KPI reporting on aging receivables, you might want to provide the user a list of accounts due with balances past 90 days. In this case when a user sees that the aging KPI is trending in the wrong direction he/she could click on a supporting analytics icon to bring up a table of accounts due sorted by balance outstanding. This information would then support the user in his/her ability to decide what, if any, action needed to be taken in relationship to the condition of the KPI.

Choosing the Correct KPI Visualization Components

For KPIs there are five common visualizations used in most dashboard solutions. The following lists each component’s relative merits and common usage scenario.

1. Alert Icons: The simplest visualization is perhaps an alert icon, which can be a geometric shape that is either color-coded or shaded various patterns based on its state. Potentially, the most recognizable alert icon is a green, yellow or red circle, whereby the color represents a more or less desirable condition for the KPI.

When to use: These types of visualizations are best used when they are placed in the context of other supporting information, or when you need a dense cluster of indicators that are clearly labeled. Traditional business scorecard dashboards that are laid out in table like format can benefit from this visualization, whereby other adjacent columns of information can be analyzed depending on the state of the alert icon. These types of icons are also useful in reporting on system state, such as whether a machine or application is online or not. Be cautious of using icons that depend exclusively on color to differentiate state, as 10 percent of the male population and 1 percent of the female population is color-blind; consider using shapes in conjunction with color to differentiate state.

2. Traffic Light Icons: The traffic light is a simple extension of the alert icon, and has little advantage over the alert icon in terms of data visualization. Like the alert icon, this component only offers one dimension of information, but it requires 300 percent of the screen real estate. The one advantage of the traffic light icon is that it is a more widely recognized symbol of communicating a “good state”, “warning state” or “bad state.”

When to use: In most cases a simple alert icon is a more efficient visualization, but in situations where your dashboard is being used by a wide audience on a less frequent basis, a traffic light component will allow users to more quickly assimilate the alert information due to their familiarity with the traffic light symbol from real world experience.

3. Trend Icons: A trend icon represents how a key performance indicator or metric is behaving over a period of time. It can be in one of three states: moving toward a target, away from a target, or static. Various symbols may be used to represent these states, including arrows or numbers. Trend icons can be combined with alert icons to display two dimensions of information within the same visual space. This can be accomplished by placing the trend icon within a color- or shape-coded alert icon.

When to use: Trend icons can be used by themselves in the same situation you would use an alert icon, or to supplement another more complex KPI visualization when you want to provide a reference to the KPI’s movement over time.