In this article, we will explore how popular Excel techniques and social media-driven methods might be viewed through the lens of management. Using a series of five examples, we’ll reframe common Excel practices into business contexts, while considering how they measure up to management requirements. This perspective will help us understand the value of these methods and highlight areas for potential improvement.
1. Christmas Expenses Allocation and Cross-Charging
Scenario:
A business is handling expenses across multiple projects. The costs are not being correctly allocated to the right project budgets, causing discrepancies. The company uses Power Query to unpivot data and apply sum functions to adjust these allocations. This is a popular Excel technique promoted on social media.
Management Perspective:
- Reframing the Problem: The CEO asks the Crack Team to evaluate the current method. They need to find a solution that not only works for three projects but could scale to hundreds or thousands.
- Evaluation: The CEO questions whether Power Query is the best solution, especially if the system needs to handle larger volumes of data in the future. Instead of relying on a cumbersome, manual solution, the goal is to automate the cross-charge journal adjustment process.
- A Further Solution Requirement: Rather than netting off adjustments in a single journal, the CEO suggests keeping individual journal entries for better audit tracking. Digital technologies allow us to retain more granular records without performance issues, and the system should accommodate future scalability.
2. Account Reconciliation with Power Query
Scenario:
The CEO notices that many employees are using Power Query to reconcile accounts, a task that could be done more simply using Excel’s basic functionality.
Management Perspective:
- Reframing the Problem: The CEO is concerned with the proliferation of Power Query tutorials that propose complex steps for tasks that have simpler solutions.
- Evaluation: After investigation, the Crack Team discovers that social media influencers recommend using Power Query for account reconciliation, despite simpler, more efficient methods available in Excel.
- Solution Proposal: The CEO asks why this convoluted method is being pushed, considering simpler options like reversing signs and matching items directly in Excel. The fundamental question is whether the Power Query method truly adds value or is simply a trendy, overcomplicated solution for social media engagement purposes.
3. Scaling Spreadsheets for Increased Sales Volume
Scenario:
The company has experienced massive sales growth, leading to the need for scaling its call handler spreadsheet system. Currently, the system uses cascading dropdowns that are manageable with one warehouse and one handler but would become unwieldy as the company scales. There now are 20 warehouses and 50 call handlers.
Management Perspective:
- Reframing the Problem: The CEO challenges the idea that spreadsheets can’t scale. The IT department suggests that a new system should be implemented, while social media influencers advocate for external solutions. The CEO, however, believes that a proper scaling strategy can optimize the existing Excel spreadsheet system.
- Evaluation: The CEO directs the Crack Team to investigate how the existing spreadsheet system can be scaled by centralizing data, eliminating the need for numerous point-to-point spreadsheet exchanges between warehouses and call handlers. 20 x 50 point-to-point spreadsheets = 1,000 every time a spreadsheet is updated!
- Solution Proposal: By adopting a client-server architecture and centralizing the data, the system can handle larger volumes without needing a completely new, expensive system. This solution would preserve the simplicity of the current process while allowing it to scale effectively.
4. Bill Jelen Podcast 2316 (2020)
TBA
5. Data Visualization and Spreadsheet Efficiency
Scenario:
The CEO notices that a popular data visualization technique has garnered over ten millions of views on social media. However, applying this technique at an enterprise level would create data silos and require constant spreadsheet exchanges.
Management Perspective:
- Reframing the Problem: The CEO wants to understand why this popular technique isn’t suited for enterprise use and whether a more scalable solution exists.
- Evaluation: The Crack Team suggests using Power Query to refresh a template from a centralized data source. However, the CEO points out that a more straightforward approach exists: simply importing data with a query that can respond to selected parameters. Centralizing the data in this way ensures it is updated continuously – eg. by the enterprise systems – and can be accessed by different departments’ processes as needed.
- Solution Proposal: By using a thin-client approach, the data remains centralized, and custom visualizations can be created based on parameters specific to each department’s needs. This method minimizes data silos and ensures that the most up-to-date information is always accessible automatically, from anywhere.
5. Excel’s Role in Enterprise Transformation
Scenario:
The CEO reflects on how spreadsheet practices have evolved over time. Many Excel users, especially those influenced by social media, construct complex spreadsheets without considering whether these methods align with enterprise requirements. The CEO seeks to understand how Excel can be leveraged more effectively in a business context.
Management Perspective:
- Reframing the Problem: The CEO asks the Crack Team to investigate why certain spreadsheet techniques, like those promoted on social media, are seen as essential, despite simpler alternatives existing.
- Evaluation: The Crack Team discovers that many influencers are advocating for overly complex solutions, while practical methods are overlooked. The CEO recognizes that spreadsheets, when used correctly, can be a valuable tool in an enterprise setting, but only if they are scaled appropriately and integrated into a larger system.
- Solution Proposal: Instead of relying on external ERP systems or cloud-based planning tools, the CEO advocates for an approach that builds on existing systems, scaling them appropriately by centralizing data and using client-server architectures. This ensures that the business can continue to use its existing tools effectively while avoiding unnecessary complexity and cost.
Conclusion: The CEO’s Management Viewpoint
The CEO’s perspective on spreadsheets and social media-driven Excel techniques revolves around the need for practicality, scalability, and cost-effectiveness. Many of the popular methods promoted by influencers fail to meet the demands of a growing business. By reframing these techniques within a business context, the CEO seeks to streamline processes, eliminate unnecessary complexity, and ensure that the organization’s Excel usage aligns with its long-term and wider end-to-end goals.
The ongoing dialogue between the CEO and the Crack Team serves as an iterative feedback loop, constantly reviewing and improving spreadsheet practices. This process highlights the need for enterprise-level understanding and the ability to scale simple solutions effectively. It also emphasizes the importance of providing proper training of ‘Excel in the Enterprise’ and ensuring that Excel remains a valuable tool for businesses, rather than being overwhelmed by external pressures and trendy but impractical techniques.
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