Since their inception, analytics and business intelligence tools have been primarily

focused on business reporting, which provides information on the performance of the

business to managers and employees. Because there is so much emphasis placed on
automated reports and dashboards across these two data-related disciplines, people
have become engrained with a reporting mindset.

As psychologist Abraham Maslow once stated, “If all you have is a hammer, everything
looks like a nail.” Based on this cognitive bias known as Maslow’s hammer or the Law of
the Instrument principle, we humans often reach for a familiar tool even though it may
not be appropriate in all scenarios. I have seen this occur with data storytelling as well.
People assume they can approach it the same way they have approached reporting—in
fact, many feel storytelling can just be sprinkled into their reports or dashboards like
pixie dust. This is not true.

Having worked in both fields of analytics (Omniture/Adobe) and business intelligence

(Domo), I have built and deployed my fair share of reports and dashboards. Most of the
organizations I’ve consulted with have vast collections of reports and dashboards
spread across their businesses. I’ve seen organizations that are happy with the greater
transparency that reporting has provided their leaders and teams. However, I’ve also
seen many executives and teams deeply frustrated with poor reporting.

Recently, I’ve seen strong statements claiming that “dashboards are dead,” and some
people have even indicated that data stories will replace dashboards. While there are
many poorly designed dashboards that are filled with irrelevant data, part of problem
might also come from dashboards being used as hammers—for scenarios that they
aren’t well suited. A hammer is a very useful tool but not when you need to tighten a
loose screw or cut a piece of wood. Just like a carpenter, you need more than one tool in
your analytics toolbox to be effective.

Introducing the Insight Funnel

Rather than pitting dashboards and data stories against each other, I see them as
serving different purposes and being complementary—not conflicting. To help clarify
the relationship between reporting and data storytelling, I developed the following
Insight Funnel diagram.

At the top of the Insight Funnel, you will use reports and dashboards to extract relevant,
meaningful information from your raw data. From the metrics and dimensions that you
strategically choose to monitor in your reports, you begin to “frame” the potential
stories that can emerge from the data. At this Storyframing stage, the information is
more exploratory in nature as you can interact with the dashboard (filters, drilldowns) to
discover potential insights. Alternatively, when you make an interesting observation in a
report or dashboard, it may also spur you to do further analysis in other analytics tools
or across different parts of the organization to understand why something happened.

Once you uncover a meaningful insight in the data, you may be able to act on it
independently if no one else’s buy-in, support, or input is needed. In these situations, a
data story is not needed. However, when you have an insight or a set of insights that
require a decision or actions that will involve or impact other individuals or teams, that’s
when a data story often makes sense as a communication approach. Storytelling is
explanatory in nature as you’re helping others to understand the meaning and value of
the insight(s) you’re sharing.
Based on the Insight Funnel, dashboards and data stories are complementary. Yes, you
don’t necessarily need to start with a report or dashboard before you begin analyzing
data. However, often our analyses are triggered by something unusual or interesting we
spot in a report or dashboard, which then leads to questions and the need for further
discovery.

Reporting and Data Storytelling Comparison

Now that you understand the two stages of the Insight Funnel and where
reports/dashboards and data stories operate, I’d like to compare subtle variances in
their approaches. There are at least six ways in which reports/dashboards and data
stories are fundamentally different. As you recognize the tactical differences between
reporting and data storytelling, it becomes clearer why a reporting mindset will hamper
your ability to tell data stories effectively.

1. Focus

Reports and dashboards are primarily focused on describing what has happened or
what is about happen (forecasts). Typically, they won’t explain why certain things
happened or explore potential contributing factors. On the other hand, data stories are
entirely explanatory in nature and are focused on helping people understand the “why”
behind the “what.”

2. Scope

Reports and dashboards are usually designed to be comprehensive and provide

information on everything that happened. For example, they will provide results for all
five business units (regions, product lines, functional areas, etc.) regardless of whether
there is anything unusual or extraordinary in the data. In contrast, data stories are
fundamentally selective. A data story will focus on the specific metrics and reasons that
explain the underperforming business unit—and not include any details about the other
four business units that are operating as expected.

3. Depth

Due to their comprehensive coverage, reports and dashboards are primarily focused on
summarizing the results at a high level. Sometimes, you can drill into more detail
directly within them, but the breadth of the reporting often creates limits on how in-
depth you can go. In contrast, the targeted nature of a data story means it may start
high level in a specific area but then can go into greater detail to better explain what’s
happening.

4. Cadence

Reports and dashboards are typically delivered on a recurring cadence—a daily, weekly,
monthly, quarterly, or annual basis. Regardless of whether there’s anything compelling
to share, an update will be provided at each periodic interval. Meanwhile, data stories
are created on an ad-hoc basis whenever there’s an important insight to share. As a
result, you could have two data stories in the same week and then none over the next
four weeks. It completely depends on you what you find in the data and how urgent or
valuable it is to share the insights with others. Unlike dashboards that are constantly
refreshing with new data over time, data stories are curated and often limited to a single
use. While they can be archived for future reference, they have a limited shelf-life in
terms of their actionability.

5. Emotion
Reports and dashboards are designed to be factual without any emotion or potential
bias. As a result, the data is left to the audience to interpret for themselves without
external guidance. The information targets the head only, not the heart. In contrast,
data stories are meant to be persuasive and appeal to people’s logical and emotional
reasoning—they target both the head and the heart. With the help of narrative
elements, data stories engage audiences on a much deeper emotional level, which is an
influential aspect of decision-making.

6. Outcomes

Reports and dashboards are focused on providing information—not insights.

Psychologist and author Gary Klein defined an insight as an unexpected shift in the way
we understand something. Reporting will mostly generate interesting observations (e.g.,
our sales increased 200% last week) that can then lead to questions and curiosity about
why something happened. It’s extremely rare that a report or dashboard alone will
generate insights that “shift our understanding” without the need for deeper data
exploration.

On the other hand, data stories contain more than just observations. At the core of
every data story is at least one insight. An effective data story will ensure the audience
understands the insight and how they should move forward with it. The primary goal is
not just to inform the audience but influence a decision, drive action, and inspire
change—that’s where the combination of data, narrative, and visuals can be powerful.

If you want to become a better data storyteller, it’s important to recognize the
differences in the approach between reporting and data storytelling. While they’re
complementary, they require unique skills and distinct approaches. In Marshall
Goldsmith’s popular book, “What Got You Here Won’t Get You There,” he talks about
making adjustments to your professional style or approach in order to be successful at
the next level in your career. Similarly, what made you successful at building reports or
dashboards may hinder your ability to become a good data storyteller. Managing this
mindset shift will be critical to your future success with data storytelling.