Spreadsheets are one of the most useful tools an organisation can have.
They are inexpensive, flexible and familiar. For many teams, a
spreadsheet is exactly the right solution.
The problem starts when a spreadsheet becomes more than a spreadsheet.
If your team is using one file to manage customers, beneficiaries,
inventory, appointments, finances, staff records or operational
workflows, it may be time to consider a more structured system.
Spreadsheets work well when
A spreadsheet is usually a good choice when:
- The data set is relatively small.
- Only a few people need to edit the information.
- The workflow is simple.
- Most calculations are straightforward.
- There is little need for complex permissions.
- Users can understand the file without extensive training.
- The spreadsheet is mainly being used for analysis rather than as the
organisation's primary operational system.
For example, a small team might use Google Sheets to track monthly
expenses, maintain a simple contact list or prepare a project budget.
The warning signs
You should start evaluating alternatives when the spreadsheet becomes
difficult to control.
Common signs include:
1. Multiple copies of the same file exist.
2. People regularly overwrite each other's changes.
3. Important information is stored in comments, colours or cell
formatting.
4. Users have to copy data from one sheet to another.
5. The same information is entered repeatedly.
6. Staff spend significant time fixing spreadsheet errors.
7. You need different users to see different information.
8. You need an audit trail of who changed what.
9. Reports require manual preparation every month.
10. The spreadsheet has become essential to daily operations.
The last point is particularly important. A spreadsheet that has become
mission-critical deserves the same attention you would give to any other
business system.
The answer is not always "buy software"
Moving away from spreadsheets does not automatically mean purchasing a
large ERP.
Often, the better next step is a small database-backed application, a
structured Google Workspace workflow, or a simple internal web
application.
The goal should be to solve the actual problem rather than replace a
spreadsheet simply because it looks old-fashioned.
A practical decision rule
Ask three questions:
Is the data becoming difficult to control?
Is the workflow becoming difficult to manage?
*Is the cost of mistakes becoming greater than the cost of improving
the system?*
If the answer to two or more is yes, it is worth reviewing your options.
The bottom line
Spreadsheets are not bad systems. They are excellent tools when used for
the right job.
The problem is using a spreadsheet as a database, application, workflow
engine, reporting system and permission system all at once.
When that happens, the organisation has probably outgrown the
spreadsheet.
Trygg Montis helps organisations evaluate whether they should improve an
existing spreadsheet workflow, automate it, or move to a more structured
software solution.