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7. Charts and Dashboards · Charts · 15 min

2. Choosing the Right Chart

Lesson 2 of 6
    Lesson theory

    First decide what the reader should see, and only then pick the chart type.

    QuestionChartExample
    What is bigger, what is smaller?Column, barrevenue by branch
    How did it change over time?Linemonthly sales over 2 years
    What is the whole made of?Pie, doughnut (up to 5–6 parts)structure of expenses
    How did the whole and its parts change?Stacked columnsales by channel per quarter
    Are two quantities related?Scatteradvertising and sales by week
    Two different measures in one pictureCombo: column + line on a secondary axisrevenue ($) and number of orders

    The rules of a good chart: a clear title that states the takeaway ("Sales have grown for three months running"), a value axis that starts at zero for column charts, no more than 5–6 colors, and no 3-D effects, which distort sizes.

    In Excel, Insert › Recommended Charts offers options, and Chart Design › Change Chart Type changes the type of a finished chart. For a combo chart, choose "Combo" and check "Secondary Axis" for the second series.

    Test yourself

    1. You need to show how revenue changed month by month over two years. What do you choose?
    2. The structure of expenses: 4 items for one month. What fits?
    3. You want to check whether sales rise together with advertising spend. What do you choose?
    4. Revenue is in millions of dollars, the number of orders is in the hundreds. How do you show them together?
    5. You need sales by quarter and the contribution of each channel. What do you choose?
    6. Why should you avoid 3-D charts?