A simple drop-down list restricts the use of inputs to a specific data array, and more importantly in best practice financial modelling it is an effective approach to increasing spreadsheet controls around data inputs. Additionally, the dependent drop-down list takes this one step further; it’s array of data is determined by the value selected from a precendent drop-down list, which provides a further layer added value to a best practice financial model.

A company’s preparedness to deal with such future uncertainty is a very valuable and powerful sales pitch in favour of a best-practice financial model, strategic plan. It could mean the difference in a company stealing the march on its competitors in future years.

Following on from the earlier insights shared in the first part; this blog will explore further angles of how the strategic plan can be of value to your Company. The importance for complete stakeholder buy-in during the life cycle of the Strategic Plan is vital. Whilst a discounted cash flow (DCF) analysis is a further value-adding tool, which can further help to demystify your Company’s future uncertainty.

The creation of a best practice financial model for a strategic plan is often viewed for a sole purpose. However there are many other circumstances, where the strategic plan can be of vital and immense value to a company.

The current financial and economic uncertainty faced by businesses in the world poses a variety of strategic challenges to professional managers. One tool that can help to demystify or temper these strategic challenges is the application of a strategic plan across a company, its business units, assets and projects.

Gone are the days when important commercial contracts were agreed upon on the “back on an envelope”. The genesis of the spreadsheet has ushered in a more robust, accountable and best practice approach to the modelling of commercial contracts.