The Meshing of Technology and Human Interaction

It’s Time to End Spreadsheet Culture – Here’s How

The investment banking front office needs technology partners that offer flexible solutions rather than “one-stop-shop” platforms.

By: Dean McIntyre

Bad technology breeds frustration and dissatisfaction at work. Nearly two-thirds of employees (62%) report the software they use at work prevents them from reaching their full potential, while one in eight say they have left a previous job over a software mismatch.

For the front-office workforce, “spreadsheet culture” — the proliferation of manual spreadsheets — is a symptom of software mismatch. It’s a sign the platforms employees are using aren’t flexible enough to handle all the tasks they need to accomplish, resulting in lost hours spent managing spreadsheets.

At a time when employers are reassessing how and where employees work, you need to reevaluate your technology solutions to retain talent and remain competitive. Rather than relying on clunky one-size-fits-all systems and myriad spreadsheets, look to flexible analytics solutions and open workflows to level-up your operating processes. 

Intelligent technology can streamline workflows across your organization, eliminate mundane tasks, and increase collaboration between teams — delivering measurable improvements in both account performance and workplace culture.

A spreadsheet culture is a culture of disorganization and confusion

A lot of our work wouldn’t get done without spreadsheets, and they’ll always have a place in the office. They’re infinitely customizable, allowing us to analyze data to solve ever-evolving work challenges. However, spreadsheets’ inherent flexibility – the reason we love and rely on them so much — is also their Achilles’ heel.

But let’s back up — what led to spreadsheet culture in the first place? Financial technology and data companies love to tout “one-stop shop” platforms that can do it all. And to be fair, you need an easy-to-use tool that doesn’t cost too much, so you sign the contract. But then you have a few years of growth and suddenly realize your asset and portfolio managers are drowning in Excel documents because that “full-service” solution couldn’t keep up. It does most of what you need, but it leaves you on your own to fill in the gaps. Enter spreadsheets.

Unfortunately, spreadsheets don’t have built-in safeguards to flag errors, making it easy for small mistakes to balloon, especially in situations where you’re creating new spreadsheets based on bad data from old files. Similarly, human errors — copy-and-paste mistakes, typos, accidentally deleted cells — are unavoidable in high-pressure, fast-paced industries like asset management, even for your star performers. As time goes on, it becomes impossible to backtrack and figure out where things went wrong.

Spreadsheets have a negative impact on company culture, too. Most people don’t want to work in spreadsheets all day for the reasons listed above. Spreadsheet culture slows productivity, limits transparency, and hinders collaboration. Creating and maintaining spreadsheets is a labor-intensive process, and everyone has their own method. As a result, it’s difficult for team members to open a document and take over if needed, leaving individual contributors and teams feeling siloed.

Break free of spreadsheet culture to build a happier, healthier, and more productive organization

When you have the right tools and processes in place, getting work done isn’t a struggle — it’s motivating.  The change happens when you replace compartmentalized tech products in the front office with advanced workflow solutions that allow you to rely less on spreadsheets and share information seamlessly. The result is big-picture decision-making, more time for strategic thinking, and a workplace characterized by collaboration. 

Here are four tips to help you get there:

• Hire a COO who is technically minded. The hedge fund and investment world needs to be quicker to adopt technologies that can support complex trading operations. Stay ahead of the curve by hiring a COO who keeps abreast of emerging technologies and has the vision to recognize their value. Implementing intelligent, adaptable tools early will boost efficiencies and collaboration in the front office, which in turn will enhance your reputation among clients.
• Think about your future needs. Whether you’re starting a new venture or you’ve outgrown your current platforms, begin your search for a new data and analytics partner by asking yourself several questions: Where is your company headed? What are your goals? Are the technology vendors you’re considering able to meet your needs two, three, four years down the road? Are they willing to be a true partner who will adapt and grow alongside your business, helping you build the ecosystem you need? The point is that you need to avoid locking yourself into a path that won’t meet your business needs several years from now. 
• Find a tech partner willing to work with the “coopetition.” As we’ve discussed, tech solutions are never one-size-fits-all. You need a partner who will remain flexible while still delivering a fully auditable service. So, prioritize tech partners who invest in APIs and interoperability. Truly scalable solutions can integrate with your other data providers, allowing you to build out a customized solution that provides a holistic view of your unique assets.
• Prioritize automation and personalization. Multi-asset trade automation eliminates many high-touch processes (and the associated spreadsheets), freeing up time for collaboration and more rewarding technical and analytical work. The most advanced systems can make personalized trade recommendations, similar to the way Netflix provides movie suggestions based on your viewing history. This type of forward-thinking technology improves results and efficiency, giving you a leg-up on the competition while eliminating tedious tasks from the front office’s to-do list.

Intelligent technology sets teams up for success

Everyone knows technology platforms impact team culture and work performance. That’s why it’s important to future-proof your organization with flexible, forward-thinking trade lifecycle workflows so you don’t fall into the spreadsheet culture trap. 

Ultimately, technologies that support open workflows, interoperability, and automation will make your firm more productive and profitable — and free up your front office team’s time for more strategic and fulfilling work.

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