The Danger of Too Much Information

Note from the editor:  This is the fourth in our series of BI-focused blog posts.  Thanks again to Bob Johansen for sharing his expertise as the head of the Deltek BI Affinity group.  If you want to learn more about BI & Vision Performance Management, please register for this on-demand demonstration or read this whitepaper.

*************************

If you have been reading my posts you know that the science of Business Intelligence is all about analysis and trending. It is visualizing data to make good decisions about what the data is telling you. A good dashboard helps you know what actions to take next, having seen the information. But how do you know what metrics you should be looking at? How many metrics do you need to run the company?

Ask any ten data analysts to tell you how many metrics are the ideal number to be looking at on your dashboard and, likely, you will get ten different answers. Some opt for a small number, say three or four, while others will advocate for a much higher number. I have been reading Malcolm Gladwell’s book “Blink” lately and, although it is about unconscious thinking, there is a lesson in there for us. In chapter 4, Gladwell writes about the dangers of having too much information. You see, some information is good as long as it is the right information. The persnickety problem about having the “right” information is that you might not know what the “right” information is. In lieu of having the “right” information, the temptation is to measure everything and throw it all onto a dashboard. If it is all on there, then you have it covered, right? Probably not. The main issue, according to Gladwell, is that our brains are easily confused by information that we think is important, but just might not be important. To relate this to a BI dashboard, too many metrics only serve to confuse us and make us uncertain of what is truly important.

Ah, but can you know what is truly important? Is it even possible? Of course. It all comes back to your business strategy. Let your business strategy tell you what is most important. Then build ways to track the important stuff. Your dashboard should display only the things that are important to you. Anything else and you risk having too much information. As they say, if everything is a priority, then nothing is.

Are there interesting metrics your firm is tracking? Please let me know in the comments.

Advertisements

About Bob Johansen

Bob is passionate about the use of Deltek Vision, coordinating the Vision Power User Group from 2008-2013, and currently leading the Deltek Business Intelligence Affinity Group. (To learn more about the Deltek BI Affinity Group email sweetbobbyj@gmail.com). He most recently served as Director of Information Analytics for LEO A DALY, responsible for the development of business intelligence strategy, and previously as financial manager for the southeast region and Vision System Manager. Bob holds a Bachelor of Arts degree in English from The Florida State University and a Master of Business Administration degree from Brenau University.
This entry was posted in BI and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s