Contrary to popular belief, spreadsheets are not free.
I’ll admit it. I’m not exactly an early adopter of new technology. I may like thinking about future devices, but when it comes to learning how to use them and incorporating them into my daily routine, I’m a technical slacker.
And yes, I’m a person who has resisted moving on from Microsoft Excel. I’ve used spreadsheets for the last 20 years and for the most part, they’ve met my needs. However, as I work more and more in the cloud, I realize that spreadsheets are so 2005 – and they are costing us in terms of productivity and accuracy. Here are some of the problems.
Spreadsheets Are Single-Occupancy Only
When you use a spreadsheet for team projects, you either have to email copies of the file to team members, or post the file on a shared drive. Only one person can access the file at a time and you risk overwriting the original file if you don’t back it up properly.
Spreadsheets Require Lots Of Busywork
After all of your team members have had input, you’ll need to consolidate that new information into the master. Not only is this process very time-consuming, but it is also prone to error. As a project manager, your focus should be on deliverables and results, not on a simple, administrative process. Managing the spreadsheet shouldn’t be anyone’s full time job.
Spreadsheets Interrupt Workflow
Projects are becoming more complex, but spreadsheet technology hasn’t kept up. At a time when tasks are being automated and team members need to be alerted in real-time when it’s time to engage, you can’t afford to be held up by your spreadsheet. And because spreadsheets aren’t equipped with activity-based triggers or alarms, the onus is on the project manager to make sure it is updated and that tasks are moving along.
Spreadsheets Shut Out Partners
In order to access spreadsheets hosted on a network drive, remote team members will either have to VPN in (i.e. access via a virtual private network) or wait for someone to email the document to them. Posting to a shared drive may also lock out extended team members such as external vendors, partners, or customers.
Spreadsheets Don’t Transfer Easily
Have you ever tried to email a 100MB spreadsheet? It usually doesn’t work. A 100MB spreadsheet won’t upload to an online document collaboration application too easily either. Project managers are often faced with the dilemma of having to reduce the size of the spreadsheet or split it up into mini-spreadsheets. And lest we forget, large spreadsheets take forever to download.
Spreadsheets Cause Undetectable Errors
According to financial modeling training firm F1F9, as many as 88 percent of all spreadsheets contain errors, while 50 percent of spreadsheets used by large companies have material defects. If your team members modify the spreadsheet to suit their own unique data needs, they could potentially create hidden formula inaccuracies in subsequent iterations. Version control errors often result in conflicting data, leading to missed deadlines and poor business decisions. And suddenly, this free technology isn’t so free after all.
What is your biggest complaint about using spreadsheets to manage your work?
Business & Finance Articles on Business 2 Community