topic 4.1 : visualising complexity

Question 1

why are accounting visualisations useful in decision making?

Answer 1

mgt decisions rarely made with complete, stable or unambiguous info. face time pressure, info overload and competing demands.
visualisations allow rapid pattern recognition and “at a glance” assessments.

Question 2

what do accounting visualisations do?

Answer 2

• compress complex & uncertain info into simplified patterns
• aid storytelling
• privilege certain issues while rendering others invisible
• visuals coordinate judgement across people
• help groups move forward even with uncertainty

Question 3

why are visuals persuasive under uncertainty?

Answer 3

• creates illusion of control
• colour coding & trends shortcut convince people (green = good)
• discourage questioning by signalling professionalism & competence
• create premature closure by making complexities more simple
• improves legibility of data

Question 4

why are accounting visualisations so powerful?

Answer 4

help address cognitive, social and emotional challenges that are faced when decision making

Question 5

what are some drawbacks of using accounting visualisations?

Answer 5

• risk of becomign victim of own visual practices
• danger of oversimplification
• visualisations hide things
• addictive focus on visuals
• do they shape discussions, or are they just decorative artwork?
• risk of using visuals as judgement substitution, so wrong strategy implemented
• easy to employ psychological techniques like colour coding or flow charts to lead users to specific conclusions