Inspiring Action with Data
Data is a powerful tool that can inspire action and aid in decision-making. However, it is often presented in ways that make it difficult to extract meaningful insights or draw conclusions.
What’s the difference between a data analysis that leaves you saying, “so what?” and an analysis that inspires action? Let’s explore that question by examining two scenarios:
Scenario 1: Socks on the Beach
It is mid-July and you are barefoot on the beach. You feel the warm tide rush across your toes as the thought pops into your head, “I should buy more socks.” You continue your seaside stroll and think to yourself, “I need to apply more sunscreen.”
Scenario 2: Snowy Lake Tahoe
It is mid-February and you are leaving for 6 days in snowy Lake Tahoe on Saturday. You take inventory of your wool socks to discover that you only have two pair.
In which scenario are you more likely to buy more socks?
In Scenario 1, you may lack the motivation in the moment to take action because there are no apparent consequences for not having wool socks in July, especially when you’re barefoot on the beach.
Conversely, in Scenario 2, you can easily quantify the difference between what you have and what you need, allowing you to identify the action you need to take. It also becomes a time-sensitive issue that you need to address.
The Importance of Timeframes
Analyzing data from different timeframes allow you to develop a deeper understanding of where you’ve been, where you are, and where you want to go.
As you saw in Scenario 2, present data was more effective at prompting at inspiring action when paired with future data.
Past, present, and future data refer to different timeframes in which data is collected and analyzed. Let’s take a deeper look at each timeframe below and what they encompass.
Past data: Historical Insights
Past data, also referred to as historical data, is information that has been collected around prior circumstances, reflecting a previous state. Past data can represent a snapshot in time, such as a single day, or span the course of several months or years.
Present data: Real-Time Information
Present data is information that is reflective of the current state. Depending on the analysis objective, present data is not limited to a single day in which the data is being analyzed. Instead, it can also span a relatively broad range of time, such as a week, month, or even year.
Future data: Projections and Planning
Since the future hasn't happened yet, we must take a different approach to determining Future data. In that case, Future data refers to a projected, estimated, or targeted state that is likely based on assumptions or models.
For data to tell a compelling story, you need to pair the current state, or present, with either past or future information. Or, for a thorough picture, include all three states: past, present, and future.
When data is juxtaposed against a moment in time, a story is formed and insights become more actionable. This approach not only helps in identifying trends and patterns but also in making informed decisions that can drive progress and success.
The next time that you’re preparing an analysis, I encourage you to consider:
What action do I want to inspire with this analysis?
What story am I telling with this data?
Which combination of data timeframes will help me write that story?
Past and Present
Present and Future
Past, Present, and Future
