Dashboards: A Study into the nexus between KPI's, Metrics and Data points in Microsoft Excel

Source: Dev.to

Learning is a never‑ending adventure. My recent curiosity led me to explore dashboards—centralized, visual interfaces that display metrics, data points, and key performance indicators (KPIs) in real‑time to support decision‑making.

Importance of Dashboards

• Enables continuous monitoring and analysis of insights.
• Supports informed decision‑making by business executives.
• Helps identify patterns and trends, facilitating strategic planning and risk management.

What is a Data Point?

A data point is an individual observation within a data series, often visualized as a slice, dot, or bar. It can also represent outliers that merit further investigation.

What is a Key Performance Indicator (KPI)?

A KPI is a quantitative measure that reflects the performance of a specific business objective. It is not a textual label or an arbitrary column in a dataset.

Not KPIs

• CustomerID
• OrderNumber
• CostOfProduction

Examples of KPIs

• Lead time (in days)
• Average revenue
• Discount (%)
• Net sales (volumes)

Key Considerations

1. Clarity over quantity – Too many KPIs create confusion.
2. Purpose – KPIs answer “how” something is performing, while metrics explain “why.”
   • KPI example: Net profits increased.
   • Metric example: The number of goods sold rose, variable costs decreased, and product pricing remained competitive.
3. Evolution – KPIs should evolve as business goals change.

What is a Metric?

Metrics are quantitative measurements that provide context for KPIs. They help answer why a KPI has changed.

• Why?
  • The number of goods sold rose.
  • Variable costs decreased significantly.
  • Our product prices were favorable compared to competitors.

Using Slicers to Amplify KPIs

Slicers allow users to filter data dynamically. When a slicer changes, it validates whether the KPI remains relevant and responsive to different data views.

Storytelling with Dashboards

An interactive dashboard tells a clear story, enabling quicker analysis and faster implementation of decisions. By shifting the view from mere rows and columns to a performance‑measurement tool, dashboards become powerful storytelling assets.

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Reflection:
What are your metrics and data points?
What are your KPIs?
Are they helping you conduct a proper analysis, or are they hindering insight?

The study quest continues 🚀