What is “Data Storytelling”?
I know I’m getting older and grumpier, because when I hear the term “data storytelling” I immediately roll my eyes.
What do you mean, a “story”? Like, fiction? The hero’s journey?
Not sure this is a buzzword I can get behind.
All it really means is this: effectively communicating your findings so the company can take action.
Today, I’ll walk through a framework that has been really helpful for my clients…
The Three W’s
To build our “story,” we need three things:
- What happened? (the raw data)
- Why did it happen? (the context)
- What do we do next? (the insight)
An Example Story
1. What happened? (the raw data)
Our Accounts Receivable was high last month.
2. Why did it happen? (the context)
We didn’t collect from one of our largest accounts.
3. What do we do next? (the insight)
We need to speak to them.
That is your “story.”
It’s not the CEO gathering us around a fire reading Goodnight Moon.
Accountability: The Part Everyone Misses
How many times have you finished a meeting where everyone nods their heads, a few “sounds goods” are mumbled throughout, and then nothing gets done?
This happens because no one takes ownership or accountability for the next steps.
💡 Key Point: Someone actually needs to be in charge of the next step.
This was one of the biggest “culture changes” that we made in my Private Equity days: one specific person was in charge of an initiative and they were responsible for the result.
Yikes.
That accountability leads to action, and that’s the point here.
We actually have to do something with the data we just received.
Next Month
1. What happened? (the raw data)
Our Accounts Receivable was back to normal.
2. Why did it happen? (the context)
We collected from that large account.
3. What do we do next? (the insight)
[Person in charge] will call them three days after we send out an invoice.
Sounds simple, but I can’t tell you how many meetings I’ve sat through where the same stuff is mentioned over and over again with refrains of, “yeah we’ve gotta get on that.”
Conclusion
The one-pager above summarizes the process nicely:
- Tell the “story” (what, why, and what next…)
- Create action through accountability
Bonus: if you’re a true Excel nerd like me, each of these can be columns on a spreadsheet, and you’ve got yourself a tracker.
Try to implement this process in your next meeting, and see if you can get a few things to budge.
That’s it for today. See you next time.
— Chris
p.s., if you work in the middle-market…
…you might want to check out my Financial Modeling Education program.
It comes with several self-study courses designed specifically for the unique challenges of the middle-market.
You get lifetime access and a 100% moneyback guarantee, no strings attached.
Thanks as always for reading.
— Chris