We are continuing our series of five tips for creating compelling dashboards today. Last time we wrote about the importance of knowing what you want to say. This time we are highlighting the importance of setting clear goals.

2. Measure Performance Against Clear Goals

In the previous examples, we saw sample dashboards dealing with sales performance. However, even in the “good” example, there is still something missing: By looking at the dashboard, a viewer has no way of knowing if the performance is good, bad, or middling. The data does not instill a sense of urgency or, alternatively, praise.

Look at how this small change can add a wealth of meaning to the dashboard:

With the company sales target added to the line graph on the left, viewers have a whole new understanding of the numbers. It is clear that the company has only been above target for two of the seven months charted. This insight drastically changes the way a consumer interprets and scrutinizes the rest of the dashboard.

The addition of clear targets or goals serves multiple functions. First, as we see, it provides a key to interpreting the rest of the data. All consumers of the data are on the same page in regards to whether performance is good or bad, and there is no ambiguity. Secondly, this evaluation against company targets provokes viewers to consider actions that could lead to better performance. The target is ingrained into the minds of the users, particularly if they had a hand in target creation in the first place. This is a key step in creating a metrics-driven business.

Tips for setting company targets:

• Make sure people are aware of the metrics that judge their performance.
• Set targets that are challenging but attainable.
• Get buy-in from colleagues before setting targets.
• Keep current results public so people always understand the current situation with respect to the targets.