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The right approach

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The right approach to modelling is a holistic one taking into account all of the issues surrounding the modelling problem – financial, technical and human – and not just some of the financial and technical ones.

The approach I propose in this book covers the following areas:

Financial & legal – dealing with the theoretical financial, commercial and legal issues, and solutions:

 the project characteristics and legal entities involved

 the industry characteristics

 the macro economy

 the government

 strategic or operating solutions

 seeding the future with the past

 the relative importance of cash and accounting.

Technical:

 using Excel

 using a computer

 using other software (the minimum required).

Human:

 managing the build

 managing model control

 managing model delivery

 checking the model for errors.

This approach is illustrated in Figure 1.

See-Through Modelling

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