Guidelines:
- These guidelines are based on academic research and practical experience
Specifically, we've developed these guidelines based on:
- Extensive practical knowledge from building, testing, and using spreadsheets.
- Decades of consulting experience offering modelling and analysis services globally.
- A review of the academic literature about spreadsheet practices, especially spreadsheet risks.
What we know
Yes, there really is an academic literature about spreadsheets. That shouldn't be surprising, given the importance of spreadsheets.
Research into spreadsheets, reinforced by our experience, has concluded that:
- We are overconfident about the quality of our spreadsheets.
- We make errors in 1% to 5% of the simple tasks we perform.
- In most spreadsheets, calculations cascade through a series of cells so errors accumulate.
- Consequently, 95% of spreadsheets have errors – often in their bottom line results.
- The issue is not whether there are errors, but their quantity and seriousness.
- Spreadsheets are essential to many organizations, often being used for mission critical tasks.
- As a result, spreadsheet errors have real and substantial impacts.
- The problem is not spreadsheets as such, but rather our spreadsheet practices.
- Most users have little or no training in how to develop good spreadsheets.
- Managers typically do not recognize, or do anything about, spreadsheet risk.
- Being aware of the risks, through training and applying good practices, leads to better spreadsheets.
These guidelines expand on those conclusions, supplying detailed insights and examples to help you make better spreadsheets.
