This is an excellent training material on developing financial models. This presentation includes the following content
1. Introduction
2. Model development process
3. Planning
4. Business logic design
5. Spreadsheet design
6. Data gathering
7. Testing and developing insight
8. Communicating
9. Managing & Coaching
10. Case excercise
11. Sample financial model (in excel)
This presentation combines several approaches to help you become a more effective engagement leader on financial modeling efforts.
• Perspectives on value of financial modeling for strategists
• Lessons learned shared with the group
• Advice for managing a financial modeling effort
A Sample business model Excel attached with this material
This document also delves into the critical qualities that define a well-developed financial model, emphasizing the importance of high-impact insights that drive strategic decisions. It categorizes the impact of financial models based on their ability to guide business improvements and strategic decisions, highlighting the conditions under which these models are most valuable. This approach ensures that the models are not just tools for analysis, but pivotal in shaping broad strategic directions.
The presentation outlines a comprehensive seven-step process for financial model development, starting from planning and analysis to managing and coaching. Each step is meticulously detailed, providing a clear roadmap for developing robust financial models. It stresses the importance of integrating business logic design and spreadsheet design with data gathering and testing, ensuring that the models are both accurate and insightful. This structured approach facilitates a thorough understanding of the business drivers and enhances decision-making capabilities.
Moreover, the document addresses common challenges in financial modeling, such as the difficulty in "selling" the need for models and the frequent oversight of their potential benefits. It offers practical advice on how to coach clients to recognize the value of financial models, thereby improving communication and decision-making. The inclusion of scenario-based models and sensitivity testing techniques, like tornado charts, further enriches the toolkit for financial analysts, making this presentation an indispensable resource for those aiming to excel in financial modeling.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Financial Modeling PowerPoint Slides: Dynamic Business Modeling PowerPoint (PPT) Presentation Slide Deck, Documents & Files
This PPT slide outlines a structured approach to financial modeling, presented as a seven-step process. Each step is crucial for developing a robust financial model that can effectively support decision-making.
The first step, "Planning and Analysis," emphasizes the importance of laying a solid foundation. This involves understanding the business context and defining objectives. Following this, "Business Logic Design" focuses on creating a framework that aligns financial assumptions with business realities. This step is critical for ensuring that the model reflects the actual operational dynamics of the organization.
Next is "Spreadsheet Design," which involves organizing data in a user-friendly manner. The design should facilitate easy navigation and comprehension, reducing the risk of errors. "Data Gathering" comes next, highlighting the need for accurate and relevant data to feed into the model. This step is essential for ensuring the integrity of the analysis.
The fifth step, "Testing & Developing Insights," is where the model is validated. It involves running scenarios and stress tests to ensure reliability. This phase is vital for uncovering insights that can drive strategic decisions.
"Communicating" is the sixth step, focusing on how findings will be presented to stakeholders. Clear communication is key to ensuring that insights are understood and actionable. Finally, "Managing and Coaching" wraps up the process. This step involves overseeing the entire modeling effort, providing guidance, and ensuring that the team remains aligned with the objectives.
Overall, this slide serves as a roadmap for organizations looking to enhance their financial modeling capabilities, ensuring a comprehensive and methodical approach to model development.
Financial Modeling Consulting Frameworks Business Case Development Business Case Example Growth Strategy Strategy Development Consulting Training Strategy Frameworks NDA Contract Porter's Five Forces Strategy Deployment & Execution Hoshin Kanri Strategic Planning Problem Solving Hypothesis Generation PMI PowerPoint Diagrams Compilation Process Improvement Process Analysis Breakout Strategy Henry Mintzberg Chief Strategy Officer Business Plan Development Organizational Design Gap Analysis
![]() |
Download our FREE Strategy & Transformation Framework Templates
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more. |