Time to read: from 5 to 7 minutes.

Level: Fundamental.

Category: Information Note.

Best Practices for Corporate Communication of Graphics and Illustrations

Effective communication through graphics and illustrations is crucial for conveying information clearly and consistently. Here are some best practices to ensure visual coherence and enhance understanding:

Messages: Include a clear message on each page of the report or presentation.

• Titles: Maintain a consistent format for titles on each page.

• Time and Structure: Organize information along the horizontal and vertical axes for clarity.

• MECE Rule: Ensure that content is Mutually Exclusive and Collectively Exhaustive.

• Graphics: Prefer column, bar, or line charts over pie charts and gauges for better comprehension.

• Labels: Integrate labels within the graphics rather than separating them.

• Scenarios: Use a solid dark color for current data, gray for previous exercises, highlighting for budget or plan, and diagonal lines for estimates.

• Variations: Use green for positive variations and red for negative ones concerning a specific goal.

• Scale: Maintain correct and consistent scales for accurate comparisons; avoid cutting axes.

• Emphasis: Use unified indicators such as ellipses, trend arrows, and difference markers to accelerate understanding.

In addition to these practices, the IBCS® SUCCESS formula provides rules for conceptual, perceptual, and semantic design of reports and presentations. The IBCS Standards offer practical proposals for designing corporate communication, focusing on message structure, visual design, and semantic notation. Adhering to these rules ensures clarity and consistency in conveying information. The SUCCESS formula encompasses seven fundamental rules for effective corporate communication:

IBCS® SUCCESS Formula:

A. Conceptual Rules:

• SAY (explain): Communicate and transmit messages.

• STRUCTURE: Organize the content effectively.

B. Perceptual Rules:

• EXPRESS: Use expressive visual design.

• SIMPLIFY: Remove unnecessary elements.

• CONDENSE: Increase information density.

• CHECK: Verify visual integrity.

C. Semantic Rules:

• UNIFY: Apply standard notation for semantic clarity.

In the ever-evolving world of finance, the challenge of distilling complex market data into understandable insights persists. Investors, analysts, and traders grapple with the overwhelming task of deciphering copious information to make informed decisions. Traditional tools like tables and spreadsheets often fall short, failing to capture the nuanced relationships and trends within financial markets. Furthermore, the deluge of data makes it nearly impossible for investors to pinpoint key factors driving market movements. This is where the integration of graphs, visualizations, and cutting-edge artificial intelligence algorithms becomes indispensable. Both academia and industry professionals recognize the significance of harnessing graphical representations of financial data to comprehend market behavior.

In academia, significant research has been dedicated to artificial intelligence, market analysis, network theory, and graph theory applications in finance. These studies lay the groundwork for understanding the intricate interconnections among financial assets, market participants, and risk factors. Concurrently, industry practitioners have embraced data visualization tools and technologies, enabling the conversion of intricate financial datasets into intuitive, actionable graphical insights.

By incorporating graphs and visualizations into financial analysis, market participants can navigate the complexities of the financial landscape with enhanced precision. This fusion of academic research and practical applications empowers us to uncover the hidden intricacies of financial markets, unlocking new dimensions of understanding and opportunity.

References:

Hichert, Rolf, and Jürgen Faisst. SOLID | OUTLINED | HATCHED: Success with Consistent Business Charts. 2nd ed. Munich, Germany: HICHERT+FAISST IBCS Institute, 2019.

Hichert, Rolf, and Jürgen Faisst. International Business Communication Standards (IBCS): Conceptual, Perceptual, and Semantic Design of Comprehensible Business Reports, Presentations, and Dashboards. Paperback ed. Munich, Germany: HICHERT+FAISST IBCS Institute, 2022.

Recommended Readings:

1. Knaflic, Cole Nussbaumer. Storytelling with Data: A Data Visualization Guide for Business Professionals, 1st ed. Wiley, 2015.

2. Tufte, Edward R. The Visual Display of Quantitative Information, 2nd ed. Chicago: University of Chicago Press, 1997.

3. Minto, B. The Pyramid Principle, Logic in Writing and Thinking, Financial Times Prentice Hall, Londres, 2021.