Build only the dashboards you need – overcome the 7 biggest problems first

Photo Daan van Beek
Author: Daan van Beek
KPI dashboards specialist
Table of Contents

In an ideal world, we would have all the information we need at our fingertips to make well-informed decisions, tailored to the specific needs of our organization. However, reality tells a different story: consistently making data-driven decisions is a challenge for most organizations, despite all the talk about the importance of data-driven work. Research indicates that only 10 to 15% of organizations truly excel at this; the rest are simply struggling. Many create dashboard after dashboard, and report after report, hoping that more detailed insights will lead to better outcomes. But this often results in a never-ending cycle, turning into a massive reporting machine that wastes valuable resources. Simply adding more dashboards is not the answer—sometimes, “less is more.” We need to navigate with precision and focus. So, what does work? In this article, we explore the world of smart dashboards, effective management, meaningful KPIs, and data-driven practices, while highlighting the 7 biggest challenges in dashboarding and how to overcome them.

The difference between a bad (ineffective) and good (effective) dashboard

Before diving into the main challenges, let’s first distinguish between ‘bad’ and ‘good’ dashboards.

A 'bad' dashboard

A ‘bad’ dashboard might provide insights but fails to offer actionable steps for the user. It leaves users unsure of what actions to take based on the information presented. It may show trends over time or comparisons with other results, but without context, users can’t determine whether those results are positive or negative. A ‘bad’ dashboard is often built around hierarchies (like silos or departments) and focuses on justifying decisions, rather than revealing the actual performance of processes. It often presents only aggregated data, which is too abstract for effective management. For instance, knowing how many parking permits were issued in the last 12 months might be interesting, but at that strategic level, it’s more about budgets, opinions, and past results rather than actionable insights.

In short, a ‘bad’ dashboard is ultimately ineffective. Yet, many organizations continue to produce these in large quantities, believing that better decisions will somehow follow. It’s a misplaced faith in dashboards, ignoring the critical role of the human decision-maker who uses them daily or weekly.

A 'good' dashboard

A ‘good’ dashboard, on the other hand, not only provides insights but also suggests clear actions. It offers a perspective for action. For example, it might highlight that the stock of a particular item is rapidly depleting and recommends ordering an additional 10 units today, beyond the regular order, to restore stock levels. A ‘good’ dashboard is closely tied to the day-to-day or week-to-week decisions necessary for a process, helping the user look forward and plan accordingly.

Of course, we understand that in the early stages of Business Intelligence and dashboarding, you have to start somewhere. Often, this means beginning with the data and uncovering various insights. This is a valuable process because it showcases the potential of dashboards to users. But during this phase, it’s important to transition to smarter dashboards as quickly as possible. Below are some key challenges and solutions to help make that transition smooth and effective.

Problem #1: Lots of accountability but little direction

Organizations today are overwhelmed by the sheer volume of detailed information they must provide to demonstrate accountability. In the process, they often lose sight of how to effectively steer their operations, with dashboards and controls becoming cluttered by accountability data. As a result, they rely on external or top-down interventions, placing their fate in the hands of auditors and regulators rather than taking control themselves. For example, banks must comply with thousands of data submission requirements to regulators like the Federal Reserve and the Office of the Comptroller of the Currency (OCC), with new requirements added every year. Similarly, healthcare organizations must report hundreds of quality indicators that are costly to produce and offer little internal value.

Accountability, as it currently operates, is an outdated, rigid system—a relic from another era. In today’s environment, organizations need energy, commitment, inspired leadership, and sharp insight, not outdated practices that hinder progress. Moving away from hierarchical accountability and siloed reporting is essential. Reporting for the sake of reporting serves no purpose—after all, who’s actually reading all those reports?

Problem #2: Lack of clear, meaningful KPIs

Effective dashboards depend on the use of well-defined and meaningful KPIs. If everything is labeled as a KPI, dashboards quickly become cluttered with too many irrelevant metrics, leading to unnecessary complexity. This results in the creation of more dashboards than needed, diluting their effectiveness. Without focusing on genuine KPIs, organizations lose sight of what truly matters, making it difficult to differentiate between essential and non-essential data. At an organizational level, there are typically only two or three truly meaningful KPIs.

Too many dashboards signal a management issue.

When executives don’t understand which metrics to focus on in specific situations, they tend to overload dashboards with every available indicator. This adds unnecessary complexity to decision-making and complicates effective management. First, identify the key KPIs, evaluate them carefully, and align your dashboards around these priorities. To help select the right KPIs and establish effective performance management, consider consulting our SMART KPI Guide 2024. Remember, even with well-defined KPIs on your dashboard, success depends on whether people actually act on them.

Problem #3: Lack of standards and targets

Without clear standards and targets for your KPIs, managing performance effectively becomes impossible. Establishing, monitoring, and adjusting these benchmarks is essential for successful performance management and data-driven work. Without targets, discussions about performance with your team become meaningless and unproductive—just empty talk. You might try to hold yourself accountable, but without clear goals, it’s like trying to chase two rabbits—you’ll catch neither. This is the Achilles’ heel of KPIs and dashboarding.

Before building a dashboard, it’s critical to define target values for your KPIs. Failing to do so often leads to a flood of additional requests for more dashboards and insights—distractions that shift attention from what really matters.

Many managers tend to introduce new ideas or innovations when problems arise, but they often avoid addressing the underlying issues. However, continuous improvement—addressing root causes—is itself a form of innovation. To set meaningful standards and targets, you need to determine what a good benchmark looks like. Data analysis is the first step, as it reveals current performance. But avoid the trap of immediately building new dashboards; instead, focus on setting the right targets to guide your efforts effectively.

Problem #4: The business doesn’t understand BI and data-driven work

Many businesses still perceive Business Intelligence (BI) as merely a tool or something that belongs solely to the IT department. However, BI is far more than that—it’s a strategic asset. Changing this mindset requires building a strong bridge between business and IT, which takes time and effort. Both sides must understand the potential, core principles, and opportunities of data-driven work, AI, and BI, as well as what is required to succeed.

Business leaders need to grasp what happens behind the scenes to ensure that interactive dashboards function smoothly. At the same time, IT teams must develop a deeper understanding of how processes align with strategy through KPIs. This also means learning what it takes to lead teams and departments in a data-driven way, focusing on both the technical and human aspects, including the competencies necessary for successful dashboarding.

Data literacy needs to improve across the entire organization, at every level, from top to bottom and across departments. For more guidance, explore our white paper, ‘The 101 Steps to BI Success‘. This resource offers practical insights to help your organization fully embrace data-driven practices. Additionally, our Data Science Book is an essential read for any manager—especially those in IT.

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Problem #5: Decisions stay out of focus

When developing a dashboard, it’s common to ask prospective users, “What do you want to see?” or “What are you aiming for?” However, these questions assume that the user can clearly articulate what they need and, more importantly, how they will act on the information provided. This approach often results in an excessive number of dashboards, many of which offer little real value. To avoid this, it’s crucial to ask deeper questions, such as:

  • Why do you need this information?
  • What actions will you take based on this data?
  • What decisions will improve as a result?

By shifting the focus toward decision-making and process improvement, you naturally create fewer but more impactful dashboards. This approach ensures that dashboards contribute directly to better business outcomes and establishes the right tone for data-driven work. A significant underlying issue lies in the composition of many data teams, which often consist predominantly of technical roles—such as dashboard developers, data engineers, and data scientists. While these experts are essential, they alone cannot bridge the gap between data and effective decision-making. To create dashboards that lead to better decisions, organizations need senior business analysts and, in some cases, experienced business consultants who understand performance management, BI, and data-driven work. Ultimately, the key is to focus on well-defined use cases and ensure that the right subject-matter experts are involved in their development.

Problem #6: The tools allow too much freedom

Whether you’re using Tableau, Qlik, Power BI, or any other BI tool, they all provide users with excessive freedom to design dashboards. While flexibility can be an asset, it can also make it challenging to create effective data visualizations and well-structured dashboards. With so many customization options, it’s easy to get lost in the possibilities, ultimately complicating the process.

Focus on delivering insights that create meaningful impact, not on using every tool capability.

In many cases, actionable insights don’t require a complex or visually striking dashboard. Sometimes, a simple report with three columns can deliver more value than an elaborate dashboard filled with bright colors, intricate charts, animations, and other flashy design elements. While these dashboards may look modern and appealing, they often fail to provide the actionable information needed to make informed decisions. The key is to prioritize functionality over aesthetics.

Problem #7: Artificial Intelligence and Data Analytics are overlooked

The foundation of success in BI, data-driven work, and dashboarding lies in data analysis, as highlighted in our blog ‘Without data analysis, BI is pointless‘. Dashboarding is often mistaken for data-driven work. However, data-driven work simply isn’t possible without thorough data analysis. How can you determine the right actions to improve a KPI if you don’t uncover the root cause behind the KPI’s performance? Only by analyzing the underlying data can you make informed decisions to drive meaningful improvements. This is why investing in data analysis skills is essential.

With the rise of Artificial Intelligence, which increasingly automates data analysis, it’s equally important to explore how AI can be applied in your organization. By using AI effectively, you can reduce the need for manual dashboards. With AI, a single algorithm can eliminate the need for 100 reports or dashboards, providing insights more efficiently and automatically. Focusing on AI and data analysis not only enhances your organization’s decision-making capacity but also ensures you build only the dashboards that are truly necessary.

Conclusion

Addressing the challenges outlined above requires experienced consultants who understand not only the technology but also the business dynamics and the human side of performance management and data-driven work. Success hinges on several key elements:

  • clear, focused KPIs displayed on your dashboard
  • standards and targets aligned with those KPIs
  • a well-structured data analysis process that uncovers actionable insights
  • regular, meaningful discussions about the numbers—daily, weekly, and monthly

These conversations should focus on critical questions:

  1. What is going well?
  2. What can be improved?
  3. What is going wrong?
  4. How can we solve this sustainably?

Only by following this approach can you connect dashboarding to continuous improvement and extract maximum value from your dashboards. The goal is not to build as many dashboards as possible, but rather to create as few as necessary—each one meaningful and impactful. If you would like to explore how to implement these strategies effectively, our team is available to provide guidance tailored to your needs and share more about how our approach can support your goals.

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