Unlocking the Secrets: 10 Tips to Extract Powerful Insights from Any Data

Clerissa Holm • January 13, 2025

Unlocking the Secrets: 10 Tips to Extract Powerful Insights from Any Data

In a recent webinar, Roger Knocker, CEO of KPI Management Solutions, shared invaluable insights on extracting meaningful analysis from any data set. These strategies, honed over years of practical experience, are universally applicable—whether you're working with financial data, fitness statistics, or sales figures. Supported by research and best practices, here’s a breakdown of the 10 tips Roger presented to enhance your data analysis skills:

Here is a list of the top 10 tips: 

1. Focus on Value Drivers

Action: Start by identifying the key value driver for your analysis. 

Whether it's 

  • Growth
  • Quality 
  • Speed
  • Risk

Ensure your analysis is centered on this focus. 

Research shows that companies that clearly define and concentrate on their value drivers—such as revenue growth, profit margins, or customer satisfaction—are better at aligning their strategic objectives with operational performance. 

This focus allows for more targeted insights, ensuring that your analysis remains relevant and impactful.


2. Target Comparisons

Action:   Always compare actual values to set targets. Understanding variances, whether positive or negative, helps in assessing performance effectively.

Research indicates that using visual aids like "rag" (Red, Amber, Green) indicators in charts can significantly enhance the understanding of performance metrics. A better decision can be made by identifying and addressing discrepancies between expected and actual outcomes using this method.

3. Monitor Growth

Action: Analyse the growth or decline between equivalent periods—be it monthly, yearly, or even hourly. 

Monitoring growth over time is essential for understanding business trends. Tools like bar charts and waterfall graphs are particularly effective in visualising these trends. 

Research emphasises the importance of comparing equivalent periods to account for seasonality and other temporal factors, which is crucial for accurate strategic planning and identifying areas of expansion or contraction.

4. Track Trends

Action: Keeping an eye on trends over multiple time horizons provides a deeper understanding of your data. 

Trend analysis, which involves examining data over different periods, is widely used in financial markets and business intelligence. By setting up charts that track daily, weekly, monthly, and yearly trends, you can uncover patterns that might otherwise go unnoticed. 

Research suggests that combining multiple time horizons provides a more comprehensive view, enabling more accurate forecasting and decision-making.

5. Data Ranking and Sorting

Action: To get the most out of your data, always rank and sort it from the most important to the least.

Research supports that sorting data by significance, rather than alphabetically, helps prioritise issues and focus on the most impactful areas. This approach is particularly useful in dashboards, where presenting the most critical information first can improve decision-making efficiency and help stakeholders quickly address key issues.

6. Understand the Mix

Action: Recognising the mix or composition of your data is crucial, especially in areas like sales analysis. 

Shifts in product or market mix can significantly impact overall performance. 

Research shows that stacked charts and treemaps are highly effective in visualising these changes, allowing analysts to quickly identify shifts in composition and their effects on performance. Understanding these shifts helps in making more informed decisions about product lines, market focus, and resource allocation.

7. Make Comparisons

Action: Comparing similar items—such as two sales reps in the same region—can reveal stories that explain performance differences. 

Comparative analysis is a fundamental technique in data analysis, often used to benchmark performance across different entities. 

Research indicates that visual comparison tools like butterfly bar charts and scatter plots enhance the ability to identify performance discrepancies and underlying causes, making this approach particularly valuable in competitive analysis.

8. Leverage the 80/20 Principle

Action: Analyse your data to identify the top 20% of factors driving 80% of your results, and prioritise these areas for focused improvement efforts.

The 80/20 rule, also known as the Pareto Principle, is a powerful tool in data analysis. This principle suggests that 80% of your results come from 20% of your efforts. 

Research validates its application across various domains. In data analysis, applying the 80/20 rule helps prioritise efforts and resources where they will have the most impact. By focusing on the critical 20%, you can quickly identify the most important areas to address, leading to significant performance improvements.

9. Correlate Data

Action: Analyse your data to uncover correlations, both positive and negative, that could reveal key insights and drive informed decision-making.

Correlation analysis is used to identify relationships between variables.
 

Research highlights the importance of identifying outliers during this process. These outliers often lead to unexpected insights, revealing relationships that might not be immediately apparent. Tools like correlation coefficients are useful for quantifying these relationships and guiding further investigation.

10. Analyse the Spread

Action: Don’t forget to look at the median, mode, and range of your data. 

Analysing the spread of data is crucial for understanding distribution patterns. 

Research shows that tools like histograms and box plots are effective for visualising data spread, helping analysts identify central tendencies and variations. This understanding is vital for making informed decisions, especially when dealing with skewed data or outliers. By examining the spread, you can gain deeper insights into the underlying structure of your data and identify areas for improvement.

In conclusion

No matter what tools you’re using—whether it’s Excel, Power BI, or something else—these tips are designed to work for you. By weaving these research-backed strategies into your data analysis process, you’ll be better equipped to uncover meaningful insights and make confident, well-informed decisions that move you closer to your goals.

The Power of Finance: Visualising Data for Impact

By Clerissa Holm • March 18, 2025
In the world of finance, numbers tell a story. However, that story is often buried beneath layers of spreadsheets and complex datasets. For financial professionals, the challenge is not just about understanding these numbers but also presenting them in a way that drives decision-making and inspires action. Enter data visualisation – the art of transforming data into clear, compelling visuals. Among the tools that have proven especially powerful are the line graph and the waterfall chart. These visuals help finance teams translate dry statistics into impactful narratives. In this article, we explore how these graphs can transform financial storytelling. The Importance of Data Visualisation in Finance Finance professionals are accustomed to handling vast amounts of data, from profit margins and revenue growth to expense tracking and risk assessments. Yet, presenting these figures effectively to stakeholders is a different ballgame. Visualisation simplifies this process, turning complex data sets into accessible insights. When done correctly, data visualisation: Enhances comprehension: Humans process visuals 60,000 times faster than text, making it easier for stakeholders to grasp key information quickly. Drives decision-making: Clear and compelling visuals help executives make informed decisions without wading through dense reports. Highlights trends and outliers: Visual tools can bring hidden trends and anomalies to light, prompting timely actions. Improves understanding and communication with business - Business doesn't always get what Finance is trying to communicate and good visualisations go a long way to bridging the gap. Better communication improves alignment to strategic financial goals. The line Graph: Unravelling Trends Over Time The line graph, also known as a stream graph or a stacked area graph, is a powerful tool for visualising changes in data over time. It is especially effective in showing how multiple categories contribute to an overall trend. In finance, line graphs can illustrate revenue streams, expense categories, or investment performance in a visually engaging manner. Use Case: Revenue Streams Analysis Imagine a financial report for a company with diverse revenue streams, such as product sales, services, and subscriptions. A line graph can display how each stream has evolved, highlighting peaks and troughs. The thickness of each ‘line’ represents the contribution of that revenue stream to the total, making it easy to spot which areas drive growth. Benefits of line Graphs: Trends Made Simple: Displays how multiple components evolve over time. Visual Impact: The fluid, organic design makes it easier to follow changes. Comparative Insight: Helps compare different categories intuitively. The Waterfall Chart: Bridging the Gap Between Figures Waterfall charts excel at breaking down the cumulative effect of sequential data points, making them ideal for financial analysis. They help bridge the gap between figures by showing how individual elements contribute to a total. Commonly used in profit and loss statements, budget analysis, and variance reports, these charts provide clarity in understanding how specific actions impact the bottom line. Use Case: Profit and Loss Analysis A financial analyst preparing a quarterly report might use a waterfall chart to demonstrate how various factors—like increased sales, higher marketing spend, and cost savings—impacted net profit. The chart’s structure, with its clear progression from starting figures to the final result, makes it easy for stakeholders to follow the financial narrative. Benefits of Waterfall Charts: Clarity: Simplifies complex financial data by showing individual contributions to total figures. Transparency: Clearly distinguishes between positive and negative impacts. Decision Support: Helps executives understand the key drivers of financial performance. Choosing the Right Visual for the Right Data Selecting the appropriate visual tool depends on the story you want to tell: Use line graphs for illustrating trends across multiple categories over time. Opt for waterfall charts when you need to detail the step-by-step impact of specific factors on an overall financial figure. By mastering these tools, finance professionals can enhance their storytelling, transforming raw data into insights that drive strategic decisions. Conclusion: From Data to Decisions The ability to visualise data effectively is a powerful advantage. The line graph and waterfall chart are more than just visual aids—they are essential tools for financial professionals looking to make data-driven decisions that resonate with stakeholders. By adopting these techniques, finance teams can turn numbers into narratives that not only inform but also inspire action. In the end, the power of finance lies not just in analysing data but in presenting it with impact.
Financial KPIs Every CFO Should Track in 2025

Financial KPIs Every CFO Should Track in 2025

By Clerissa Holm • February 17, 2025
In the ever-evolving financial landscape of 2025, CFOs are tasked with navigating complexities ranging from global economic shifts to technological advancements. The ability to track and analyse the right financial Key Performance Indicators (KPIs) is no longer a luxury but a necessity. These metrics not only provide insight into an organisation’s financial health but also support strategic decision-making. Here are the top financial KPIs every CFO should prioritise in 2025: 1. Revenue Growth Rate Revenue growth is a clear indicator of a company’s ability to generate sales over time. This KPI allows CFOs to evaluate the success of business strategies and identify trends in market demand. Formula: Revenue Growth Rate = [(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue] x 100 Why It Matters: Monitoring revenue growth helps CFOs assess performance against strategic goals and anticipate future cash flow needs. 2. Gross Profit Margin Gross profit margin measures the profitability of core business operations, excluding indirect costs like administrative expenses. Formula: Gross Profit Margin = [(Revenue - Cost of Goods Sold) / Revenue] x 100 Why It Matters: It reveals the efficiency of production processes and pricing strategies, enabling CFOs to identify areas for improvement. 3. Net Profit Margin While gross profit focuses on operational profitability, net profit margin considers all expenses, including taxes and interest. Formula: Net Profit Margin = (Net Income / Revenue) x 100 Why It Matters: A high net profit margin indicates strong financial health and the ability to manage expenses effectively. 4. Cash Conversion Cycle (CCC) The CCC measures how quickly a company can convert its investments in inventory and receivables into cash flow. Formula: CCC = Days Inventory Outstanding + Days Sales Outstanding - Days Payables Outstanding Why It Matters: In 2025, with supply chain disruptions and rising interest rates, efficient cash flow management is critical. The CCC helps CFOs identify bottlenecks and optimise working capital. 5. Operating Expense Ratio (OER) This KPI compares operating expenses to revenue, offering insights into cost management. Formula: OER = (Operating Expenses / Revenue) x 100 Why It Matters: Keeping operating expenses in check is vital for maintaining profitability, especially in uncertain economic climates. 6. Debt-to-Equity Ratio This KPI highlights the financial leverage of the company by comparing total liabilities to shareholder equity. Formula: Debt-to-Equity Ratio = Total Liabilities / Shareholder Equity Why It Matters: With interest rates fluctuating in 2025, maintaining a healthy balance between debt and equity is crucial to avoid over-leveraging. 7. Return on Equity (ROE) ROE measures the efficiency of a company in generating profits from shareholders' investments. Formula: ROE = (Net Income / Shareholder Equity) x 100 Why It Matters: A strong ROE signals to investors that the company is effectively using their capital, which is vital for securing future funding. 8. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) EBITDA provides a clear picture of operational profitability without the influence of financing and accounting decisions. F ormula: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortisation Why It Matters: CFOs use EBITDA to benchmark performance against competitors and industry standards, making it a key metric for strategic planning. 9. Customer Acquisition Cost (CAC) As businesses invest in growth strategies, understanding the cost of acquiring new customers becomes crucial. Formula: CAC = Total Sales and Marketing Expenses / Number of New Customers Acquired Why It Matters: Tracking CAC helps CFOs ensure marketing spend aligns with long-term profitability goals. 10. Economic Value Added (EVA) EVA measures the value a company generates beyond the required return of its shareholders. Formula: EVA = Net Operating Profit After Taxes (NOPAT) - (Capital Employed x Cost of Capital) Why It Matters: EVA provides a holistic view of financial performance, emphasising value creation over short-term profits. Final Thoughts In 2025, CFOs must adopt a forward-thinking approach, leveraging advanced analytics and real-time reporting tools to stay ahead. By focusing on these essential financial KPIs, CFOs can drive strategic growth, ensure resilience, and foster long-term success in an increasingly competitive landscape. Tracking these metrics isn’t just about numbers; it’s about enabling informed decisions that align with the company’s vision and goals.