Recently Towers Watson, a global professional services firm, surveyed the CFOs of life insurance companies and discovered two thirds thought their financial modelling could be improved. The survey looked at both the financial modelling itself, and how the results of this modelling were used. Two thirds of respondents were most concerned with how long the financial modelling took to run and another third were very concerned about how long it took to interpret the results. All respondents wanted to prioritise the run time as a way to improve their business processes.
So what can construction management take away from the results?
We face many of the same challenges. No financial model is ever going to be perfect – predicting any future trends, be they meteorological, financial, or otherwise, involves too many variables to get them all right. Getting as close to perfect as we can is important and this is a time-consuming task.
In the construction management sector, we have even more pressure on efficiency than the targets of the Towers Watson survey as construction in Australia is becoming increasingly volatile. While building remains strong in some areas, the worry created by the downward trend in mining applications means as construction managers we must seek efficiency from our financial models. This requires us to be up-to-date with the latest developments and invest in the latest software.
Author: Michael Grochowski