an executive perspective
I’ve had a few great discussions lately centered around communicating data to executives. The conversations have been about how much context to include, when and how to simplify complex information, and strategies for influencing those in positions of power. There isn’t a simple solution to any of this, but it got me thinking about how I’ve struggled with this scenario as well. In my former life as an analyst, I found execs to generally be intimidating and strapped for time, which made me classify the majority of interactions with senior leaders as high-stakes. Today, I no longer hold the title of analyst, but my role at SWD puts me in a unique position to explore some of these challenges deeper and get a better understanding of ways to tackle some of these common concerns.
I reached out to a former executive of mine, Paul, to learn about his experiences with communicating data in business. Paul Guyardo is the President & CEO of Petplan and a former executive at DIRECTV and Discovery. He is a data-savvy, strong presenter who relies heavily on his internal analytics team to help make daily informed business decisions. I’ve shared our short chat below. I hope that if you frequently communicate to executives or find this audience challenging, you may learn something useful from our conversation.
Keep reading to learn about Paul’s introduction to the data field, personal preferences in communicating data, and how he encourages a data-forward culture with his team.
Alex: What was your path to learning about the data visualization field?
Paul: I stumbled on it back in 1996. I had just joined HSN as EVP of Marketing. The company had primary data on millions of shoppers but was doing nothing with it. I lucked out to work with a few early adopters on my team who saw the value of mining the data and recommended we do so. All I provided was my support and the resources they needed to do their jobs. Within a year, we were using data for targeted promotional offers, and shortly thereafter, we launched highly-profitable upsell programs and continuity businesses. I was hooked! Data has been the key to profitably growing every company I’ve worked at for the past 23 years.
Alex: What’s the best example you’ve seen of effective communication with data in a business setting? What made that example work?
Paul: In a direct-to-consumer subscription business like DIRECTV or Petplan, “churn” is a very difficult concept for employees to grasp because it’s often presented as a percentage. Team members will hear that the company is churning at 1.5% a month and think that’s a very small number. But when you have 20 million subscribers like we did at DIRECTV, 1.5% churn translates into losing 300,000 customers a month. That’s huge! That’s why it’s important to bring that percentage (i.e. 1.5%) to life visually. At DIRECTV, we did it by showing employees pictures of MetLife Stadium at full capacity (it seats about 83,000 people). Then we’d explain that 1.5% churn per month is equivalent to filling that stadium almost four times! A visual like that does it every time.
Alex: How do you encourage a culture that supports effective data visualization? What have you seen work well and not so well?
Paul: I start by trying to set a good example in how I present data to others… but candidly, it’s very time-consuming—both when I do it myself and work with others. I would welcome a more efficient approach.
Alex: Effective communication—with or without data—takes time. What can leadership teams do to encourage employees to allocate time to their data communications?
Paul: Lead by example. Be there for guidance and support. Be patient when employees don’t get it right the first time…and try, try and try again until it catches on.
Alex: What are your thoughts on how dashboards are typically used in a business setting?
Paul: I see too many dashboards that explain the “what”, but not the “why” or the “indicated action.” For example, I’ll see a dashboard that shows we’re doing well in one sales channel or doing poorly in another…but why? Dashboards that bring to life the “why” are critically important to move a business forward.
Alex: One piece of advice we give is to consider using standard charts (like bar charts and line charts) since audiences already know how to read them. As someone who is on the receiving end, do you agree with this advice? Would you prefer a sexy-but-complex chart or a common-yet-simple chart on your desk?
Paul: I’ll take common-yet-simple every time. Using visuals like bar charts that audiences already know is absolutely the right way to do it. Just make sure your chart provides an explanation of what’s going on (i.e. the why) …and leads to an indicated action.
Thanks, Paul! I can see now why my approach for communicating to senior leadership was met with mixed results. I wanted to impress executives with my technical skills and used unfamiliar visuals that looked cool, sharing all of the data I analyzed. Paul’s responses confirm that high-stakes doesn’t always mean more complicated, but rather highlights the importance of the need to spend ample time and work to make the message clear.
Paul made a great point about explaining the why or the indicated action. It’s sometimes intimidating to tell your audience—especially executives—why something matters or suggest an action they should take, but it’s important. Don’t assume your audience will figure it out independently; if it requires too much work they may move on to something else. Empower yourself to start these conversations and if you feel uncomfortable, remember that Paul—and many other leaders—are craving this!
The ultimate lesson here is to consider your audience’s specific concerns and preferences, so you can communicate in a way that will resonate with them. Any time spent thinking through this will set you up for success. When it comes to executives, remember that they are strapped for time, so don’t make anything more difficult than it has to be. Say what you mean! Actually, you should do this for all audiences!
Do you have a different executive perspective? What audiences do you find most challenging, and why? How might you go about better understanding your specific audience? Leave your thoughts in the comments below or jump to the community and continue this conversation.