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Introduction
A core competence of Corporate Excel Training relates to the building of complex corporate financial models. This activity has been at the heart of the company's activities for many years and collectively the model developers have more than 100 years of modelling experience spanning a wide variety of industries. Successful financial modelling requires a unique blend of corporate financial and accounting knowledge, combined with advanced Excel spreadsheet skills. A knowledge of the particular industry is clearly helpful, but this can be overcome using a comprehensive model specification. To this end, and derived from previous model building activities, Corporate Excel Training has developed a proprietary generic model specification which serves as a guide in client discussions when scoping the model. All models contain a detailed user guide, comprehensive index, model diagram and are tested rigorously for integrity using an advanced model auditing tool, Spreadsheet Professional. (website:- www.auditexcel.co.za) Model Design and Development Process
1. Scoping
The initial phase of model construction involves scoping the assignment and assessing the skills that will be required.
This involves visiting the client and discussing in detail the model structure, purpose and uses. A proprietary model specification framework is utilised in this process.
2. Initial Planning Stage
The single most important aspect of model development is the planning and design stage.
At this point it must be established what the inputs will be, what calculations are required and what outputs or reports will be required. At the same time it is important to understand how the model will be used (how many people, time period etc). After preliminary meetings and discussions, a draft model specification is presented which requires client feedback and approval.
3. Development Stage
Once the planning is complete to the client satisfaction the model is developed.
The model development process focuses on simplicity and ensures the spreadsheet is as transparent and easy to understand as possible. The concepts we adhere to are based on consistency, separation and integrity. Depending on the requirements of the client it is possible to build in stages so that the client is aware of the look and feel of the model as spreadsheet development progresses. This is often an iterative process and sometimes is combined with the testing stage that follows.
4. Testing Stage
Once model development is complete, detailed testing is performed.
Spreadsheet Professional, an advanced spreadsheet auditing tool is used to ensure the accuracy of the model. Client participation, and in particular the actual end user, is required in this process to ensure that the model meets the clients needs and the end user has a working knowledge of the inner workings of the model.
5. Feedback and Client Interface
Feedback is essential during the entire process of model development.
The better the communication, the better the final solution.
6. Handover and Training
The model is formally handed over together with the agreed upon level of documentation and training.
Generic Model Specification
The main menu of the generic specification is displayed below.
Costs
Costs are based on the agreed specification, which is quantified into development hours. Fees are charged on a rate per hour, or a fixed fee can be proposed. If the rate per hour method is used, clients are provided with weekly reports detailing progress and time spent.
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