5 Questions Project Managers should ask to build better dashboards

Ever wondered if your dashboard is truly serving its purpose?

Whether you’re tracking real-time operations or planning long-term strategies, the type of dashboard you use can make or break your decision-making process.

Let’s break down the essential questions you should be asking to improve your design and strategy.

Is my dashboard operational or strategic?

There are really only two types of dashboards that can be made. Either they are operational or they are strategic.

• Operational dashboards monitor the operational status and provide perspective and guidance to improve performance.
• Strategic dashboards track KPIs associated with the strategy in order to evaluate the effectiveness of a long-term plan.

I’m going to use navigation dashboards as an example for the rest of this article to help you to understand this more clearly.

If operational, how would my operation change based on the dashboard?

Operational dashboards are designed to provide real-time data and insights that help you make immediate decisions and adjustments. Think of them like the navigation system in your car:

• Immediate Feedback: You’ll see your current speed, next turn, and any immediate obstacles like construction or police activity. This allows you to adjust your driving on the spot to ensure you stay on the best path.
• Performance Monitoring: It helps you track your operational performance continuously, allowing for quick responses to any issues or inefficiencies that arise.
• Guidance and Alerts: By providing real-time alerts and guidance, operational dashboards help you maintain optimal performance and avoid potential problems before they escalate.

In essence, an operational dashboard changes your operation by offering up-to-the-minute information and insights that drive immediate action and improvement.

Example operational dashboard - This would be the navigational dashboard that you would see as you are driving. Your next turn, your speed, and any police or construction activity that may be in front of you.

If strategic, how would my long-term plans change based on the dashboard?

Strategic dashboards focus on long-term goals and key performance indicators (KPIs) to help guide your overarching plans and strategies. Here's how they influence your long-term plans:

• Route Planning: Just like choosing the best route on a navigation app before a trip, a strategic dashboard analyzes various paths you could take to achieve your long-term objectives. It evaluates options, timelines, and potential obstacles.
• Decision Making: By providing insights into different scenarios and outcomes, it helps you make informed decisions about the direction of your business or project.
• Performance Tracking: It tracks progress towards your strategic goals over time, allowing you to adjust your plans based on what’s working and what’s not.
• Resource Allocation: It helps you allocate resources more effectively by showing which areas need more focus and investment to achieve your long-term goals.

A strategic dashboard changes your long-term plans by providing a comprehensive view of your strategy, helping you navigate the best path forward, make informed decisions, and adjust your plans to stay on course towards your ultimate objectives.

Example strategic dashboard - This is the dashboard that you see in your navigation app before you select your direction. It analyzes the different routes you could go, the time it takes to get there, and whether you refer to avoid tolls. It helps you to make a decision on direction.

What are the data sources and their recency? How frequently are they updated?

The older your data is, the less useful it is.

Understanding the data sources, their recency, and update frequency is crucial for evaluating the reliability and relevance of the information on your dashboard. Here’s why these aspects matter:

• Data Sources: The origin of the data can significantly impact its credibility. Data can come from various sources such as internal systems, external databases, surveys, or third-party providers. Knowing where your data comes from helps assess its reliability and relevance to your specific needs.
• Recency: The age of the data, or how up-to-date it is, affects its usefulness. For operational dashboards, real-time or near-real-time data is essential for making immediate decisions. For strategic dashboards, slightly older data might be acceptable, but more recent data is generally preferred to ensure decisions are based on the most current information available.
• Update Frequency: How often the data is refreshed or updated plays a role in maintaining its accuracy and relevance. Operational dashboards typically require frequent updates, often in real-time or at regular short intervals, to reflect the current state of operations. Strategic dashboards might be updated less frequently, such as weekly, monthly, or quarterly, depending on the nature of the metrics being tracked.

Operational dashboards are best powered by the most up-to-date possible. Think back to our navigational dashboard. If that cop sitting shooting radar was from yesterday, then you are unnecessarily alert when you drive past that spot.

Strategic dashboards can have data that is a little bit older, but recent data is always the preference. There’s a lot that I can learn to set my direction based on historical data. Don’t get caught in the trap of your teams believing that data needs to be close to real-time to set strategic direction. That’s a common tactic for delaying decisions.

What is the quality of the underlying data? How are the measures defined?

My insistence on the importance of quality and definitions comes from the many years of working within an auditing firm. But there is no sooner way to destroy credibility than to have bad data in your dashboards.

The quality of the data and the clarity of measure definitions are crucial for the effectiveness of any dashboard. Here's why they matter:

• Data Quality: High-quality data is accurate, reliable, and timely. Poor quality data can lead to incorrect insights, misguided decisions, and loss of credibility. Ensuring data quality involves regular checks and validation processes to maintain its accuracy and reliability.
• Measure Definitions: Clear and agreed-upon definitions of measures ensure that everyone understands exactly what is being tracked and reported. This includes how each metric is calculated, what data sources are used, and what the metrics represent. Without clear definitions, there can be misunderstandings and misinterpretations of the data.

In essence, good data quality and clear measure definitions are foundational to creating dashboards that provide meaningful and actionable insights. They ensure that the information presented is accurate and that everyone interprets it in the same way.