Composition Visuals: Column, Waterfall, Pie, Mondrian

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Visual Presentation of Data
Composition Visuals: Column,
Waterfall, Pie, Mondrian
20%
40%
60%
80%
100%

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In this deck, we will focus on the first Comparison Type—Composition
Composition Comparison Type
Composition
Item Comparison
Time Series
Frequency Distribution
Correlation
Rating
COMPARISON TYPE
BASIC GRAPH FORMS
Line Pie Bar/Column Dot Matrix Booz Ball
Item
Item
Item
Item
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The 100% Column Chart—AKA Stacked Columns—is a great way of
visualizing the relative contribution of various factors
Composition Visual – 100% Column Chart
OVERVIEW
100% columns (stacked
columns) are a great way of
understanding the relative
contribution of different factors
Where absolute comparisons
are not suitable or informative,
the 100% columns allows the
reader to understand the
relative impact of a number of
different factors
The 100% columns’ strength
lies in the comparison of one
area against another
TIPS
Most important segment goes at the bottom of the column (largest if
there is no other basis to choose)
Dashed lines between segments emphasize comparison
If there are more than 2-3 segments in the data, comparing more than 3
columns becomes difficult
State absolute value at the top of each bar
Highlight particular areas of focus for the presentation slide
USES
Cost drivers, profit drivers, product split over time, company split over
time
Comparing the relative impact of different factors across two different key
variables (e.g. turnover, profit)
Segmentation analysis and relative returns analysis
Relative importance of different segments
Investment/ resource/ spend analysis

Composition Visual – 100% Column Chart Example
EXAMPLE
0%
20%
40%
60%
80%
100%
Turnover Operating Profit
$4,200 $120
%ofTotal
Return on
sales (%)
0.8%
3.0%
7.9%
4.8%
Turnover and Operating Profit (2015)
Distribution
Agribusiness
Ingredients
Petfood

Composition Visual – Waterfall Chart
OVERVIEW
A waterfall chart is one of
the most graphic ways to
demonstrate the change
from one position to
another or to provide a
breakdown of an
aggregate number into its
components or to show a
change in position
It is most frequently used
as a descriptor of the
causes of financial
change. However, it can
be just as effective as a
conceptual representation
of any change
TIPS
First decide what measures you wish to have on the y-axes. This can be any
financial or non financial measure (e.g. ROI, CapEx, working capital,
headcount, number of grey walruses etc.).
Next, decide on the x-axis. This is nearly always a description of the key
drivers causing the change (but may be time or some other stepwise
measure).
Be careful not to overcomplicate the x-axis by having too many drivers or by
making the drivers too complex in themselves. Remember, you are trying to
describe the big issues to senior managers, so leave the detailed analysis to
the appendix
As ever, judicious use of shading should pick out the key message (singular)
which will reflected in the tagline message (singular).
USES
Any situation where it is necessary to numerically describe change or answer
the question “what’s the big issue here”
Reasons for change in revenue or profitability (e.g. is sales growth organic or
via acquisition)
Sources of costs saving or description of full-potential sources of value
Aspirational description of what is achievable (often in pursuit presentations)
As a driver of creative thinking during hypothesis forming

Composition Visual – Waterfall Chart Example 1 (Generic)
EXAMPLE
Change in Return on Assets (2012-15)
Return on Assets
(Basis Points )
31
-33
-30
50
110 128
-40
-20
0
20
40
60
80
100
120
140
2012 RoA
(Pre Tax)
Net
Interest
Income
Other
Income
OpEx Loan
Loss
Provision
2015 RoA
(Pre Tax)

Composition Visual – Waterfall Chart Example 2 (Generic)
EXAMPLE
Average OPEX Savings in the Year 1 For An Operator Who Has Done Full Outsourcing (% of Network OPEX)
23%
17%
16%
12%
100%
84%
1%6%
23%
4%
4%
9%
3%
Total Savings =
15-18%
Total Savings =
15-18%
Cost breakdown as a % of
Total Network OPEX
Cost savings as a % of Total
Network OPEX
The Network
Outsourcing
Arithmetic
Planning &
Optimisation
+Network
management
& Operations
+Maintenance
( field,
preventive
etc.)/Inventory
=Total Network
OPEX
-Planning &
Optimisation
Savings
-Network
management
& Operations
Savings
- Maintenance
(field,
preventive etc.)
/ Inventory
Savings
=Total
Network
OPEX after
outsourcing
+Leases(
sites,band
with etc.)
+License
fee/service
provider
support
+Other
costs
-License
fee/service
provider
support
savings
+Transition
Costs

Composition Visual – Waterfall Chart Example (Variations)
WATERFALL DOWN
Silver Premier, and AARP Drive Club Households
0
500
1,000
1,500
2,000
2,500
3,000
1993 Club Other Lexus Volvo AARP Silver,
Member- Third Premier
Party
Clubs
Client
House-
holds
(000)
title?
Allows focus on each segment in the data
Particularly effective if the elements in the data
reflect differences in location or time
WATERFALL DOWN
Inventory Reduction Opportunities Available in the Supply
Chain and at the Store
Allows focus on each segment in the data
Particularly effective if the elements in the data
reflect differences in location or time
Days
of
Inven-
tory
0
10
20
30
40
50
60
70
Work in Plant Transit Ware- Transit Distri- Transit Retailer
Progress house butor
title?

The Mondrian Graph—AKA Marimekko—adds another dimension to the
100% Column Chart—it is a great way to visualize an “universe”
Composition Visual – Mondrian Graph
OVERVIEW
A mondrian is a strikingly
visual method to provide a
single picture of the universe
under investigation, split
along two axes
It is effectively a set of 100%
bars which are then
stretched horizontally
Its strength lies in the visual
impact of the largest areas,
which represent the most
significant parts of the
universe
The mondrian is also known
as Marimekko chart
TIPS
To draw it:
−In PowerPoint, draw 100% bars for each main category (i.e. for each title
that lies on the x-axis)
−Draw a single horizontal 100% bar to represent the proportions of the
main categories. Place this above the vertical bars from Step 1
−Ungroup the graph from Step 1 and stretch the vertical bars horizontally
Order each bar by size: left-to-right and top-to-bottom (unless you are
grouping for a particular purpose)
State values at the top of each bar, and always state the total
Shade to highlight insight
USES
Market maps (e.g. by geography, product, company)
Post-merger portfolio analysis (e.g. overlap of brands, possible synergies,
geographies)
Trend analysis - by using pairs of mondrians to see change over time
Cost reduction prioritization (e.g. by process, by business group)
Labor analysis (e.g. split of necessary / inefficient / unnecessary labor)
Substitution analysis

Composition Visual – Mondrian Example
EXAMPLE
Energy Sources and Uses Breakdown
20%
40%
60%
80%
100%
20% 40% 60% 80% 100%
Electric power generated
for the public
Residential and
commercial
Industrial
Transportation

A Pie Chart can intuitively portray percentage shares of a whole—however,
use it with caution, as it is not appropriate for all types of data
Composition Visual – Pie Chart
OVERVIEW
Pie charts are an intuitive tool
for portraying percentage
shares of a whole
TIPS
Best for a single data series
Maximum 5-6 segments in the data, unless purpose is to show
fragmentation
Tends to focus attention on one segment in the data
Can use to compare two data series (e.g., year-over-year)
−Best if focusing on how one segment differs between the two pies
−Stacked column usually better for comparisons

Composition Visual – Pie Chart Example
EXAMPLE
The Traditional Motor Club Is Dominated by AAA
Total Current Market Size = $2.4 Billion
Shell
1%
Cross Country
2%
AAA
70%
Sears
3%
Amoco
7%
Allstate
6%
Chevron
2%
Wards
2%
Other
9%

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1
Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com

Composition Visuals: Column, Waterfall, Pie, Mondrian

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Composition Visuals: Column, Waterfall, Pie, Mondrian