How CIOs Can Use Data Storytelling to Drive Business Value

As a CIO, you’re responsible for leveraging technology to create business value, enhancing decision-making, and ensuring data is a strategic asset, not just an IT byproduct. However, data without context is just noise—and dashboards without a clear narrative can lead to misinterpretation, inaction, and wasted resources.

Data storytelling bridges the gap between raw data and business decisions, helping leaders see not just what is happening, but why it matters and what actions to take next. It’s the combination of human connection and hard data. Data storytelling is an incredibly effective way of demonstrating ideas. It’s been proven that humans are better at interpreting visuals than they are at spreadsheets or numbers. The human brain processes images 60,000 times faster than text. A study performed by researchers from the University of Minnesota in 1986 found that presentations using visual aids were found to be 43% more persuasive than unaided presentations. Data storytelling, with the aid of data visualization, is a great way to explain, analyze, and interpret data.

A strong data storytelling strategy can empower your organization to:

• Align IT investments with business goals by ensuring data insights drive strategic decisions.
• Optimize efficiency and reduce waste by eliminating ineffective reporting and unnecessary dashboards.
• Enable faster, more informed decision-making by delivering clear, actionable insights.
• Strengthen executive buy-in for data initiatives by telling compelling stories with measurable impact.

But how do you ensure your data storytelling efforts deliver real business value? Let’s break it down.

1. Set the Foundation: Define the Business Question First

Before building a visualization, ask yourself: What key question are we trying to answer? CIOs often face a common challenge—stakeholders requesting dashboards without a clear understanding of what they need to do with the data.

To avoid wasted time and effort, align with stakeholders on:

• The decision they need to make
• The specific metrics that matter
• What actions will follow from the insights

Pro Tip: If a stakeholder requests a visualization, ask, “If I show you this data, what decision will it help you make?” If they don’t have an answer, the request may need refinement.

2. Address the Common Pitfalls of Data Storytelling

Many organizations invest in sophisticated dashboards and visualizations only to find that their teams struggle to interpret them or fail to act on insights. Here are the most common mistakes and how to avoid them:

• Assuming Data Fluency: Not every stakeholder is data-literate. IT and analytics teams often assume a higher level of data fluency than exists, leading to misinterpretation or lack of engagement.
  • Solution: Make data accessible. Use simple language, define key terms, and consider offering data literacy training, like Airbnb’s “Data University” for non-technical employees.
• Overemphasizing Aesthetics Over Functionality: A sleek, interactive dashboard is useless if it doesn’t quickly and clearly answer business questions.
  • Solution: Prioritize readability, clarity, and usability. Only invest in aesthetics if it enhances comprehension.
• The “Fun Facts Factory” Trap: Executives sometimes request dashboards that show interesting data but drive no action. If insights don’t lead to change, they are wasted effort.
  • Solution: Ensure every visualization is tied to a business decision or KPI. If no action follows, reconsider whether the report is needed.

3. Build With the End User in Mind

While creating your visualization, keep the audience at the center of the process:

• Simplify whenever possible. If a visualization isn’t adding clarity, remove it.
• Follow an iterative approach. Gather stakeholder feedback throughout development, focusing on functionality and insights—not just design preferences.
• Tableau says use “Big A** Numbers” (BANs). Make the most critical KPIs immediately visible and prominent. Tableau’s eye-tracking study found that dashboards with large, bold numbers improved user focus and comprehension.
• Choose charts wisely. Bar charts are often the most effective choice, while pie charts are difficult to interpret at a glance.
• Be intentional with color. Overuse of color can overwhelm and confuse viewers—stick to one or two highlight colors to emphasize key insights.

4. Validate and Deliver Insights Effectively

Before launching a new dashboard or visualization, take these final steps:

• Test with a neutral third party. A fresh set of eyes can help ensure clarity and usability.
• Anticipate stakeholder questions. Especially if delivering unexpected or negative results, be prepared to explain the insights in a way that drives constructive action.
• Ensure the insights are actionable. If no business change will follow, revisit the purpose of the visualization.

Final Thoughts: How CIOs Can Lead a Data-Driven Culture

CIOs are in a unique position to bridge technology and business strategy—and data storytelling is a key tool for driving that alignment. The best IT leaders go beyond providing dashboards—they enable real business impact by ensuring data is presented in a way that drives decisions and actions.

Need help implementing a data storytelling strategy that delivers measurable business value? Connect with one of our consultants today to learn how we help CIOs turn data into decisions.