University of Pennsylvania researchers report that the human retina processes data at approximately 10 million bits per second. That’s awfully fast compared to a typical adult reading rate of about 400 to 600 words per minute. There are many advantages to visualising data, aside from speed.
Most business people are familiar with the Pareto Principle, also known as the 80/20 rule. Simply put, it says that 20% of inputs generate 80% of outputs. It's a very simple concept, but many people struggle to use it. When it comes to communication, the practical application of the 80/20 rule is to listen 80% of the time.
FP&A professionals work in an environment that requires communicating with a wide variety of people. This requires us to be adaptable to communicate effectively with all these different audiences. There are some things we can do to ensure we are consistently and reliably on point by tailoring our communication to each audience.
Research shows that the human retina can transmit data to the brain about 60,000 times faster than it can transmit simple text! On top of processing visuals faster, people retain visual information at more than three times the rate of text alone.
The crux of the analytics movement is making better decisions and more organizations are moving towards a data-driven culture, but only about a third of organizations surveyed said they would describe their current culture as data-driven. So, where is the disconnect?
According to Google's Chief Economist, Dr. Hal Varian, "The ability to take data—to be able to understand it, to process it, to extract value from it, to visualize it, to communicate it— that’s going to be a hugely important skill in the next decades."
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Starting with the end in mind is one of the simplest ideas that is frequently ignored. I have seen so many analysts begin designing a financial model without having a clear understanding of the purpose of the model. In this article, you will find three types of models and some tips on how to design a good one.
When creating a driver-based model, it is important to produce one that is not overly detailed or complex but one that is accurate and actionable. Avoid complexity by adding variables if they do not provide analytical benefit. Starting with the chart of accounts is not a good idea. The model should focus on key performance drivers.
University of Pennsylvania researchers report that the human retina processes data at approximately 10 million bits per second. That’s awfully fast compared to a typical adult reading rate of about 400 to 600 words per minute. There are many advantages to visualising data, aside from speed.
Most business people are familiar with the Pareto Principle, also known as the 80/20 rule. Simply put, it says that 20% of inputs generate 80% of outputs. It's a very simple concept, but many people struggle to use it. When it comes to communication, the practical application of the 80/20 rule is to listen 80% of the time.