N° 5 - Flout modelling convention for serious strategy insights

using models

22 Mar

I don’t mean to ignore long-established rules that form the backbone of a good model. These are vital to create a well-orgnaised, elegant model that works coherently and efficiently.

But what I do propose is a control panel. For those needing to make strategic value decisions.

A control panel is a temporary single-location repository for a bespoke mixture of inputs and outputs that enable the user to get a feel for how the business reacts to specific changes. This means temporarily flouting the modelling convention of keeping inputs, calculations and outputs separate, but this must be done in way that does not endanger the structure and organisation of the underlying model.

The key aspect is that a control panel is a quick way of getting real strategic insights.

Find out how a control panel guides decision making.

#valuecreation #privateequity #makemodelwork #modelinsights #strategicthinking