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Data is a fundamental part of modern decision-making, but also one of the most difficult topics to communicate.
In this article, I break down an essential ingredient you need to communicate numbers with clarity: context
What Not To Do
Here’s why context is important. Imagine you’re downloading a large file and your computer says:
“420 MB downloaded so far”
Wait. That’s not helpful. How much is left? How big is this file?
- If the file is 10,000 MB large and we’re only at 420 MB, you know you’ll be waiting a while.
- But if the file is 425 MB large and we’re at 420 MB, you know you’re almost there!
Another example. Imagine hearing this in a company financial meeting:
“We made 1.7 billion in revenue last year”
Sounds like a lot! But is it? How much did we make the year before that?
- If we made 10 billion in revenue 2 years ago and only 1.7 billion last year, something went horribly wrong…
- BUT if we made 1 billion in revenue 2 years ago and 1.7 billion last year, then we’re doing slightly better.
Numbers in isolation are therefore unhelpful. We need to give context – a target, a reference point – to help people see the full picture.
What To Do
Check out how Rosanne Werner, CEO of XcelerateIQ, uses data to describe global disengagement in the workforce today. You only need to watch about 1 minute from the video below to get a sense of Rosanne’s technique.
Notice how she doesn’t say “20 million professionals” are disengaged at work.
A number in isolation, again, doesn’t mean very much. Instead, Rosanne says the following:
“Hold your hands out show 10 fingers this represents people on your team. Now close eight so you have two standing. This represents global engagement in the world today. Only 20%”
Rosanne provides context: 20% of the global workforce is disengaged. Which is bad … because we want 100% engagement.
By framing her data point in relation to a target or reference (2 out of 10 or 20% out of 100%), she makes it clear what the number means and how you should feel about it.
Summary
Decision-making requires making comparisons. For every number you communicate, aim to give a past reference or future target so people understand where the number stands. Put your data in context.
If you’re looking for further guidance on how to differentiate your communication skills and stand out in the workplace, take my free self-assessment.
I’m writing a book on thinking quickly, speaking clearly, presenting convincingly, and supercharging your executive presence. Follow me on LinkedIn for more updates on the book and its release!
