"It’s not difficult to see that while spreadsheets will always remain useful, forward-thinking intermediary firms really need to move beyond them."
In a recent article discussing the best tools for data analysis, Forbes stated: “The biggest barriers to benefiting from advanced analytics are certainly now organisational, rather than technological.” This added that more than 90% of spreadsheets contain serious errors, yet more than 90% of spreadsheet users are convinced that their models are error-free.
This is a compelling argument. As previously alluded to, I don’t want to disparage spreadsheets. They are a tool which have survived decades of tech innovation and can still serve a valuable purpose. Having said that, there are some important disadvantages to consider if they form the backbone of your business and are the main framework behind how you manage client records.
The most fundamental thing to consider here is that they were never really intended to hold client information. The limitations of a spreadsheet have become more evident in recent times as various departments within firms are called upon to provide easier access to ‘on-demand’ data and play a much more strategic role in driving critical business decisions. This was the subject of an article late last year on the Financial Director website from Mark Bodger, Director at ICit Business Intelligence, and I’d like to highlight a passage from this which outlines some of the issues surrounding spreadsheets far more eloquently and simply than I ever could.
He said: “The problem is when the software is pushed beyond its single-user limitations. Spreadsheets are highly limited as “quasi-databases” because the information contained within will not necessarily be accurate and up-to-date. In fact, it may never have been accurate, as human error has a way of creeping into data entry. Spreadsheet errors are now the stuff of legend—causing billions in losses and countless red-faced finance teams over the years.
“Spreadsheets are also a poor fit for current working practices. UK employers predict that around a quarter (23 percent) of staff will work from home in two years’ time, with a further 41 percent following a hybrid working model. That makes syncing, sharing and collaborating via spreadsheets even more challenging. We see that managing multiple versions of spreadsheets hugely impacts the time which finance team members may otherwise use more productively on high value tasks.”
Portals, platforms and CRM solutions have been built to eclipse the performance of spreadsheets. We speak to brokers every day who still operate from spreadsheets but when you outline the benefits of using a system which is safer, faster, more efficient, has greater storage capacity, offers easier access to relevant information for anyone within the business, vastly reduces the need to re-key information and is still cost-effective then it’s not difficult to see that while spreadsheets will always remain useful, forward-thinking intermediary firms really need to move beyond them.
