I cant think of a better way to illustrate the benefits of best practice financial modelling. This Dilbert comic strip really says it all.
http://dilbert.com/strips/comic/2011-06-02/

“There might be an error or two in the spreadsheet”. Definitely not a good situation to be in but unfortunately this is the reality for many decision makers out there as well as the characters of this Dilbert comic strip. They just can’t be sure about the quality of the data in their models, and the complexity, the model design as well as the presentation make it difficult (sometimes even impossible) to check the figures.

Best practice modelling – the SMART way

Best practice financial modelling isn’t rocket science, it boils down to three things, or principles as we like to call it – transparency, flexibility and presentation. These three principles make all the difference. They will help you:

• Decrease modelling risk
• Increase the confidence of all stakeholders
• Increase modelling productivity

Corality works closely with clients across all industry sectors to assess financial modelling risk and enhance the integrity and robustness of financial models. In doing so we use our best practice modelling methodology SMART. We have developed the SMART modelling methodology to ensure it meets the needs of analysis, decision makers, financiers, management and financial stakeholders. We believe this to be key in helping you decrease model risk and increase the confidence of all users.

Implementing a best practice modelling methodology pays off!

To put it briefly – it pays off to assess the risk in your models and have your models reviewed or audited by an independent external provider. It also pays off to implement a best practice modelling methodology such as the SMART modelling methodology. Not only will you increase your/your teams modelling productivity, you will decease modelling risk and increase the confidence of all users including key stakeholders.

We feel for the characters of this Dilbert strip. With a best practice modelling methodology in place they wouldn’t need to poison the cafeteria…

For best practice modelling advice and handy tips and tricks, check our Corality’s SMART modelling methodology and our free online tutorials. All tutorials include Excel workbooks to illustrate topics covered and the SMART modelling methodology.

Corality also offers best practice modelling training courses.