This happens every now and then -- I come across organizations (like yours?) where people are manipulating and ‘analysing’ data in Excel. In many cases, they’re doing this even though other, much better, tools are available.
When I see what some of them have accomplished, I must admit it’s astonishing. They build extremely complex Excel sheets full of formulas, v-lookups and macros that do their tricks. But when I start asking questions, it quickly becomes clear that even though Excel does the things they want it to do, the time and effort it takes far outweighs the business value they get in return.
This is what I like to call ‘the hell of Excel’ -- a lot of people are experiencing it (and some don’t even know they’re in it).
Using Excel might have worked in the past, but it won’t suffice in the future. Here are some of the Excel problems companies are facing:
- Team members who aren’t as Excel proficient as they say (or think) they are.
- Complex, fragile spreadsheets that no one dares to touch.
- No version control - multiple versions of the truth.
- Performance issues, errors and unexpected ‘stopped working’ messages.
- Fear and uncertainty caused by hidden issues popping up, delaying critical reports and mucking up your team’s reputation.
And when things go wrong with your Excel reports, the potential losses are huge, both internally and externally:
- Monetary loss (loss of share value, investor confidence and, possibly, your career).
- Low motivation and high stress.
- Loss of scarce and precious time.
- Lost credibility.
- Exposure to a public audit.
- Regulatory sanctions.
I’m sure you can think of many more items to add to either of these lists, but if you’re not convinced, check out EuSpRiG (European Spreadsheet Risks Interests Group). On th EuSpRiG website, you’ll find a running list of spreadsheet horror stories.
If your organization isn’t thinking about a data strategy, it’s important to realize that not having one is hurting your bottom line. If you’re using Excel, you’re using your data, which is good start. But if you’re not looking beyond Excel to creating a true data strategy, it’s costing your organization now – and will have a devastating impact on your company’s future.
If you want to ensure that your business is here to stay and will survive the digital disruption (and even use it to your advantage), you must build a future proof data strategy.
In the next part of this series, I’ll discuss the ‘how’ of building and executing a data strategy in more detail, and give some examples of quick wins. So stay tuned!
In the meantime, please share your ideas and experience so that we can have an open dialogue.