Sankey charts are a powerful and flexible visualization tool that can be used to analyze complex interconnected systems and processes. These charts are particularly well-suited for visualizing the relationship between multiple input and output variables, and they can be a valuable tool for businesses, government organizations, and other organizations that need to understand the dynamics of their systems.
In this article, we will explore what a Sankey chart is, how to create a Sankey chart, and how to use Sankey charts to analyze complex interconnected systems.
What is a Sankey Chart?

A Sankey chart is a type of network chart that uses a series of interlocking rectangles that represent the flow of information or resources from one source to one sink. These rectangles are connected by a series of line segments, with the flow of information or resources represented by the height or thickness of the line segments at each intersection.
The key elements of a Sankey chart include:

• Intercellularly connected rectangles: These are rectangles that represent the various sources and sinks within a system.
• Flow lines between rectangles: These are line segments that connect rectangles, and they represent the flow of information or resources between the sources and sinks.
• Node labels: These are placed at the top and bottom of each rectangle and indicate the name of the source or sink.

How to Create a Sankey Chart

To create a Sankey chart, you will need to identify the various input and output sources and sinks within your system, determine the flow of information or resources between these sources and sinks, and connect these sources and sinks with flow lines. You will then need to plot these rectangles on a graph or dashboard to visualize the relationships between your system’s inputs and outputs.
As an example, let’s say you have a system that involves buying and selling stocks, and you want to visualize the flow of money between buyers and sellers.

Suppose you have the following table:
|Buyer| |Output| |Source| |Input|
|—|—|—|—|—|—|
|A| $10| B| $125| A| $20
|B| $125| C| $250| B| $75
|C| $250| D| $50| C| $25

This table shows that buyers can buy shares from A and B, who in turn can sell their shares to other buyers (e.g., C). Similarly, sellers can sell their shares to buyers A and C. The amount of money going from a source to a sink should be equal to the amount going from a sink to a source. Based on the above table, we can create a Sankey chart in Excel or other spreadsheet software, as follows:

| Buyer| Output| Source| Input |
|—|—|—|—|
|A| B| A| $20 |
|B| C| B| $75 |
|C| D| C| $25 |

In this example, the rectangles show the source and sink, and the flow lines show the flow of money between the sources and sinks.

Use of Sankey Charts

Sankey charts are particularly well-suited for analyzing complex interconnected systems and processes. They allow you to visualize the flow of information or resources between different sources and sinks, and they can help you identify the key drivers or influencers within a system. By examining the flow of information or resources in Sankey charts, you can gain a better understanding of the dynamics of your system and identify areas for improvement.
In conclusion, Sankey charts are a powerful and flexible visualization tool for understanding the dynamics of complex interconnected systems and processes. By identifying the sources, sinks, and flow from these sources to sinks in a Sankey chart, you can gain a better understanding of the relationships between your system’s inputs and outputs and identify areas for improvement.

SankeyMaster

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