The document outlines a systematic approach to developing Excel models, emphasizing the importance of understanding the model's purpose and intended user. It categorizes models into three maturity levels based on user complexity: Level 1 for personal use, Level 2 for internal clients, and Level 3 for external clients, with each level having distinct requirements for usability and protection. The author, Moritz Dressel, offers insights for creating efficient models tailored to the needs of different users.

1. Excel Models: 3 Essential Types
A Systematic Approach to Developing
Fit-for-Purpose Excel Models

2. How much time do you spend
on creating Excel models?

3. Most people spend too much time
on perfecting their work.

4. Start EVERY Model
by answering 2 key questions.

5. What is the purpose of the model?
Oftentimes, the model will be simple and used only for
some quick analysis. A core data set, simple formulae
(e.g., VLOOKUP), and pivot tables might suffice.
Photo Credit: Greg Rakozy

6. Who is your client?
Consider both formatting and usability of the model depending on your
client. If it is for your own use (i.e., other people will not see it) or you are
asked to “come up with a number,” then nothing fancy is required.
If the output is to be formally handed over to an external client, then a
top-notch model is what you will want to go for.
Photo Credit: Anders Jildén

7. Then you will know
where to go next.

8. It really is: horses for courses.
Photo Credit: Bethany Legg

9. Essential
Excel Model
Maturity Levels.3

10. Build your Excel models based on…
Intended
User

11. Build your Excel models based on…
Intended
User
Complexity
Needed
+

12. Build your Excel models based on…
Intended
User
Complexity
Needed
Required
Protection
+ +

13. Build your Excel models based on…
Intended
User
The Ultimate Objective
Complexity
Needed
Required
Protection
+ +

14. Level 1
…is intended for your own use. Nobody else will work
with the model.
The focus is on getting the analysis right. No bells and
whistles. But you might need to update the model in the
future, so apply modeling standards wherever possible.

15. Level 1
Intended User:
Objective:
Complexity:
Workbook Protection:
You, or peer-level colleagues
Accurate data
Low/Medium
Low

16. Level 2
…is to be used by an internal client. Most consultants
know how to deal with Excel.
Accordingly, the focus here is not so much on ease of
use, but on being able to review and validate the
accuracy of the analysis.

17. Level 2
Intended User:
Objective:
Complexity:
Workbook Protection:
Internal clients (e.g. manager)
Easy to review
Medium
Low/Medium

18. Level 3
…is to be used by an external client who might not be
particularly experienced using Excel.
Accordingly, make the model as easy to navigate as
possible by using consistent formatting, color-coding,
and annotations, and ensure that it is impossible to
break the model itself.

19. Level 3
Intended User:
Objective:
Complexity:
Workbook Protection:
External clients
Easy to use
High
Medium/High

20. Do you want to learn more
about how to get things done in
a fast-paced work environment like consulting?
Get started with…

21. The Aspiring Advisor
Strategies and Tools for a Successful Consulting Career
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22. CONSULTANT & AUTHOR
MORITZ DRESSEL
Moritz Dressel is the author of The Aspiring
Advisor - Strategies and Tools for a Successful Consulting
Career.
He can be reached via Twitter @MoritzDressel
or at his blog www.MoritzDressel.com
He is also a management consultant specializing
in post-merger integration, joint ventures and
strategic alliances.