How to Make a Tornado Diagram To Resolve Conflict

Managers have a critical responsibility to make decisions. Data is vital for any decision, whether it’s a short-term one for a project, or a long-term one for achieving a company goal.
Managers often get into arguments about decisions. Data is often inefficiently or scarcely available in real life. Decisions may not always be clear-cut. A good manager is able to organize data and make the best decision.
The tornado diagram is one of the most powerful tools for resolving conflicts that result from decisions. This is a type of bar graph that organizes data in a neat way. This graph makes it easy to make the best decision in any situation.
A PMP(r), which certifies a qualified manager’s superior decision-making abilities, can be obtained. The PMP(r), along with other qualities, tests a manager’s decision-making abilities. ExamsPM’s free Project Management Training course is recommended. This class will provide all the information you need in order to pass your PMP(r). You will also receive exclusive tips and a study program to help you prepare for your exam in just six week!
What is a Tornado Diagram and how does it work?
A tornado diagram, as we’ve already said, is a specific type of bar graph. It is an alternative format for sensitivity analysis.
A tornado diagram is also known as a tornado plot, tornado chart, or butterfly chart. A tornado diagram is different from a standard bar graph in that data categories are listed vertically. Data categories are usually listed horizontally in a standard bar graph.
The data categories are also arranged in descending order. The class with the longest bars goes at the top. The second-longest bar is placed right below the first. The graph is half a tornado.
Each category is assigned a “high” and a “low”, respectively, for sensitivity analysis. Each bar represents the class’s range. The graph takes the form of a tornado when the bars are arranged in descending order.
When should you use a tornado diagram?
For sensitive analysis, Tornado Diagrams can be useful. Many factors affect the overall performance of products.
All factors are not equal. Some factors have a greater impact on the company than others. It is important to identify which factors managers prioritize when making decisions. A tornado diagram can help you identify the most important factors. These factors will help you make better decisions.
Although tornado analysis is best used for decision-making using sensitivity analysis, it can also be used for regular comparisons. It is a modified bar chart. It can also serve as a general bar diagram.
Data is a great way to avoid conflict in the workplace. Your co-workers will be more likely agree to your choices if you show them your data analysis with a tornado diagram. It is a good idea for any data-based decision in the workplace to use tornado analysis.
Examples
Managers can use tornado diagrams in various scenarios. One of the most popular uses is to locate your most important budgetary items.
Let’s suppose your company has 100 budgetary items. It would be difficult to visually represent the ten essential items using a standard bar chart. A tornado diagram would arrange the items in descending order. You can therefore work with the ten longest bars.
Let’s say that you want to identify the most important factors that determine a product’s worth. You can put each factor’s influence in a table and create a tornado diagram.
The diagram shows that market share is the most important, while launch costs and COGS per unit are the shortest.

Author: Victoria