A Single Unsupervised Spreadsheet Is the New Single Point of Failure
Financial models with 1,400 rows maintained without a manual
The industrial scale of unwritten logic in corporate financial modeling.
Eighty-four percent of all corporate financial models containing more than 1,400 rows are maintained by a person who has no intention of ever reading the manual they never wrote. It is a terrifyingly specific number, one that suggests a level of industrial coordination we usually reserve for things like electrical grids or the logistics of a mid-sized invasion. We tend to believe that the larger an organization becomes, the more it replaces the whims of individuals with the cold, hard certainty of process.
But the reality is that the higher you climb in a corporate tax structure, the more you realize that the multi-billion-dollar transfer pricing position-the very backbone of the group’s global tax strategy-is often held together by little more than the stubborn memory of a single Senior Manager and an Excel workbook that hasn’t been saved under a new version name since .
It is a structure that is both remarkably robust-having survived four major audits and a change in CFO-and fundamentally terrifying, which is to say it is the exact opposite of what the internal audit department thinks it is looking for.