The hallmark of a good model is that it is clearly laid out and easy to understand, so minimising the possibility of errors such as that mentioned above. Some key steps to achieving this are:

• Design, then develop, then test
• Separate the inputs from the calculations
• Use only one formula per row
• Avoid balancing figures
• Use protection and locking

Read the rest of this entry »

There are many issues that can present a challenge in modelling. Discussion of these can be found at some of the websites listed on our Links page, and there are also many books covering spreadsheet software packages, although these tend to focus on technical points rather than quality and business issues.

Some of the most frequently encountered issues are:

• Circular formulas
• Interest calculations
• Currency and inflation
• Mixed time periods
• Large models
• Visual Basic^TM for Excel^TM

Read the rest of this entry »

Mike worked at KPMG from 1982 until 1999, initially as a tax specialist and then as a financial modelling consultant. From 1996 to 1999 he was a Principal Consultant responsible for developing KPMG’s London-based financial modelling service.During this time he wrote a Financial Modelling Handbook which set out the standards for KPMG’s financial modelling work, and he was also involved in re-designing and presenting training courses in financial modelling, both within KPMG and to external clients.

In 1999 Mike left KPMG to fulfil a longstanding ambition to travel around the world. On his return to the UK in 2000 he then set up his own financial modelling consultancy, TheModelAnswer.

You can download a printable version of Mike’s CV in MS Word 6.0 format (right-click then click on ‘Save Target As’ or ‘Save Link As’).

Following are examples of some spreadsheet models developed by Mike over the course of his career:

• Trading terms evaluation
• Pricing decision support
• Transport franchise bid
• Power generation industry
• Debt restructuring
• Payroll and tax grossing-up
• Lease evaluation and rental adjustment
• Management accounting and consolidation

Read the rest of this entry »

Mike has also been responsible for a wide variety of other modelling and decision support work:

• Planning and valuation model
• Corporate restructuring model
• Investment appraisal workshop
• Rail transport model (in PC Express)
• Executive information system (in Holos)
• Multi-dimensional planning model (in Holos and C)

Read the rest of this entry »