There’s a term in network technology called ‘latency’ which refers to the delay between the execution of a command and the instruction given by the user. You’ll hear it most often in the world of high-speed training where a slight increase in latency (to the effect of a couple of milliseconds) can have a drastic negative impact on speed and thus performance.
As most of us realise, there is useful data and not-so-useful data. And merely having it at your disposal doesn’t necessarily mean that you’re able to discern between these two camps. It’s often only in the processing phase where we dig into the data and look for insights that we discover whether the data we’ve collected can actually drive us forward, rather than remaining a red herring.
Critics of financial modelling will always tell you that there are simply too many moving parts and interdependencies within a company to arrive at an accurate prediction of the future. They’ll point to how easy it is to adjust an input assumption and completely change the entire scope of what the model outputs. And to a certain extent – they’re right.
Much has been written about how changing tides, rapid disruption, and global trends impact the customer-facing side of business today. You can open any business publication of your choice and hear stories of how technology has completely changed how they think about their offering and their messaging to the market.
We’ve come a long way in terms of sustainability and whether it’s social pressure, regulatory intervention, or a combination of both – companies worldwide are starting to grapple with their impact on our environment. Specifically, there’s a push to reduce carbon emissions and lower carbon footprints to arrive at more sustainable business practices.
Liz Truss has had a remarkably tumultuous start to her tenure as prime minister. Just a few days into taking office, the country lost its longest reigning monarch Queen Elizabeth II which certainly rocked morale as the entire United Kingdom grieved.
Russia’s recent decision to block access to its highly important gas line has caused tremendous distress across Europe due to the radical impact it has on the continent’s ability to produce power for its people. As winter approaches, this is likely to cause widespread energy shortages that will take their toll on citizens across multiple countries in a crisis that might be one of the most severe seen in recent memory.
In the world of financial planning and analysis, we’ve long been hamstrung by financial products and tools that, while powerful, can be somewhat clunky to use. Traditionally they’ve taken lots of time and training to move through the learning curve and the sheer complexity has meant that the user experience has been deprioritised and the functionality has been front and center.
If you were to chart the changes in accounting and financial reporting regulation over the past 20 years, you would see a staggering increase in complexity. In what was already a highly-regulated industry, we’ve seen further administrative and structural obstacles placed in front of large corporations that are supposedly there to protect the integrity and accuracy of financial information – for the good of the stakeholders.
There’s a famous quote from Mike Tyson that says: “Everyone has a plan until they get punched in the mouth.” This is often how we feel when we try to make plans for our business. It looks great on paper and everyone thinks that they’ve built in enough margin for error – and then the circumstances change again and you’re back at square one. It can be very frustrating, we know, but there are ways to mitigate this risk and to improve the overall accuracy of your planning endeavours.