Do you know the two most important questions to ask yourself BEFORE you start developing Excel models? And how can you avoid wasting precious time when you develop your next Excel model?
This short presentation provides you the answers, and enables you to spend time on perfecting your next model when and if it is really required.
Based on the book "The Aspiring Advisor - Strategies and Tools for a Successful Consulting Career", the number 1 handbook for consulting career starters.
More info: www.AspiringAdvisor.com
5. What is the purpose of the model?
Oftentimes, the model will be simple and used only for
some quick analysis. A core data set, simple formulae
(e.g., VLOOKUP), and pivot tables might suffice.
Photo Credit: Greg Rakozy
6. Who is your client?
Consider both formatting and usability of the model depending on your
client. If it is for your own use (i.e., other people will not see it) or you are
asked to “come up with a number,” then nothing fancy is required.
If the output is to be formally handed over to an external client, then a
top-notch model is what you will want to go for.
Photo Credit: Anders Jildén
11. Build your Excel models based on…
Intended
User
Complexity
Needed
+
12. Build your Excel models based on…
Intended
User
Complexity
Needed
Required
Protection
+ +
13. Build your Excel models based on…
Intended
User
The Ultimate Objective
Complexity
Needed
Required
Protection
+ +
14. Level 1
…is intended for your own use. Nobody else will work
with the model.
The focus is on getting the analysis right. No bells and
whistles. But you might need to update the model in the
future, so apply modeling standards wherever possible.
16. Level 2
…is to be used by an internal client. Most consultants
know how to deal with Excel.
Accordingly, the focus here is not so much on ease of
use, but on being able to review and validate the
accuracy of the analysis.
18. Level 3
…is to be used by an external client who might not be
particularly experienced using Excel.
Accordingly, make the model as easy to navigate as
possible by using consistent formatting, color-coding,
and annotations, and ensure that it is impossible to
break the model itself.
22. CONSULTANT & AUTHOR
MORITZ DRESSEL
Moritz Dressel is the author of The Aspiring
Advisor - Strategies and Tools for a Successful Consulting
Career.
He can be reached via Twitter @MoritzDressel
or at his blog www.MoritzDressel.com
He is also a management consultant specializing
in post-merger integration, joint ventures and
strategic alliances.