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  • Say It With Charts - McKinsey-25

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    YONGXING CHEN
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    The document discusses how plotting percentage changes over time, such as average annual growth rates, can better tell the story compared to absolute values when analyzing the data of multiple companies. It provides an example comparing two companies, Company A and Company B, across metrics like sales, assets, employment, and net income. While Company A saw greater growth in sales, assets, and employment, the chart shows that Company B outperformed Company A based on its higher average annual growth rates, particularly for net income.

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    4. Say It With Charts - McKinsey-25

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    The document discusses how plotting percentage changes over time, such as average annual growth rates, can better tell the story compared to absolute values when analyzing the data of multiple companies. It provides an example comparing two companies, Company A and Company B, across metrics like sales, assets, employment, and net income. While Company A saw greater growth in sales, assets, and employment, the chart shows that Company B outperformed Company A based on its higher average annual growth rates, particularly for net income.

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    © All Rights Reserved
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    22 views4 pages

    Say It With Charts - McKinsey-25

    Uploaded by

    YONGXING CHEN
    The document discusses how plotting percentage changes over time, such as average annual growth rates, can better tell the story compared to absolute values when analyzing the data of multiple companies. It provides an example comparing two companies, Company A and Company B, across metrics like sales, assets, employment, and net income. While Company A saw greater growth in sales, assets, and employment, the chart shows that Company B outperformed Company A based on its higher average annual growth rates, particularly for net income.

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    © All Rights Reserved
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    of 4

    Different is better

    At times, in our effort to show all the data we've gathered,


    we plot the wrong figures. Here it's not so much the
    comparisons of the actual employment, assets, sales, and
    net income that tells the story, but their percentage change
    over time—in this case, the average annual growth rates.

    By plotting these growth rates, we more clearly and quickly


    see the reverse pattern mentioned in the message title.

    By the way, if showing the absolute values remains


    important, it's perfectly appropriate to include them in
    tabular form underneath their respective time periods
    as you see here at the bottom of the chart.

    92
    Employment, Thousands Total assets, $ Millions
    Company A Company B Company A Company B
    217.9 214.1
    15 .0
    40%
    12.0 13.7%
    27% 130.1
    9.5 6%

    5.7 75 .8

    Then Now Then Now Then Now Then Now

    Sales, $ Millions Net income, $ Millions


    Company A Company B Company A Company B
    263.7
    246.0 27.2

    24%
    33% 16%
    11.3
    119.9

    79 .5 6.1
    5.0
    4%

    Then Now Then Now Then Now Then Now

    IN SPITE OF COMPANY A'S GREATER GROWTH IN SALES, ASSETS


    AND EMPLOYMENT, COMPANY B OUTPERFORMED COMPANY A
    Sales Assets Employment Net income
    Average 40%
    annual
    growth
    rates 33%

    27%
    Co. A 24%

    16%
    14%
    Co. B

    6%
    4%

    Then Now Then Now Then Now Then Now


    $ Millions $ Millions $ Thousands $ Millions

    Co. A 79.5 246.0 75.8 27.9 5.7 15.0 5.0 6.1


    Co. B 119.9 263.7 130.4 214.1 9.5 12.0 11.3 27.2

    Gene’s solution 93
    This page intentionally left blank.
    EXTERNAL RESEARCH SUPPLIERS ARE USED HEAVILY
    IN ALL AREAS OF RESEARCH External research department
    Internal research department
    Relative frequency of use of inside versus external research
    Advertising research Product research Sales & market research

    100% 100% 100%

    33
    52 51 55 54
    63 62
    74 74
    86 88 84

    67
    48 49 45 46
    37 38
    26 26
    14 12 16

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