Or, to give clarity to the phrase, the reality of life is that over centuries and decades, we have been subliminally conditioned to expect that the past will continue into the future!
According to psychologists, human beings have a craving for certainty – and the belief that the future will be a continuation of the past- in some way meets that need.
Broadly speaking, within the framework of our decisions and events that we can control, we know what is going to happen tomorrow!
Perhaps it’s more than subliminal conditioning , perhaps it is a need to deal with events in the modern world!
Of course, the reality of life in the 21st century is very different.
Significant natural events, Covid-19, declarations of war, October 10th in Israel, major tariff changes in respect of international trade, are all testimony to the fact that, at a moments notice, our lives can change dramatically.
In very recent days, scientists and theoretical physicists have been stunned – and completely baffled by the appearance of an interstellar object, named 3I/Atlas. At this time, the jury is still out!
They simply do not know what it is!
So, unless your name is Nostradamus, or in more recent times, Edgar Cayce, the noted American clairvoyant, what tools or methods can we use to “predict” the future in the context of corporate performance.
The good news is that they exist – yes, in the form of predictive, flexible financial models based on the comprehensive understanding of the key business drivers!
Correctly built according to international standards, they are a corporate compass!
Financial models, with relevant caveats about the construction, are undoubtedly extremely useful tools to predict the future financial performance of companies, or projects or new business strategies and have been – and are – used extensively in corporate financial planning and management.
Modelling is an international activity, and typically modellers default to one of the recognised international financial modelling standards.
Goalfix adopted the FAST standard, the first and most significant effort to bring a level of best practice and standardisation to modelling in 2014. Reference: http://www.fast-standard.org
Below is the summary of the Fast Standard recommendations and requirements.
FAST Modelling Standard – Key Recommendations
1. Fundamental Philosophy
The FAST Standard is built on four guiding principles that define best practice in financial model design:
F – Flexible: Models must be adaptable to change. A well-structured model allows easy modification to assumptions, time periods, and logic without breaking downstream calculations.
A – Appropriate: The model should suit its purpose. Complexity should match the project’s requirements – no more, no less. Avoid over-engineering.
S – Structured: Maintain a consistent and logical structure throughout. Every worksheet and formula should follow predictable rules that any trained modeller can follow instantly.
T – Transparent: Models should be clear and auditable. No hidden values, embedded constants, or unnecessary complexity. Each assumption and calculation must be visible and traceable.
2. Model Layout & Organisation
3. Formulas & Logic
4. Consistency & Formatting
5. Checks, Controls & Documentation
6. Transparency & Review
7. Flexibility & Scalability
8. Presentation & Communication
In addition to the above, Goalfix has also developed it’s own practical methods and standards.
Speaking as a businessman – not a dedicated financial modeller – if you don’t have an applicable, efficient model for your company or project, (unless it is ultra simplistic) you are doing yourself, your company and shareholders a disservice,
C Human CA(SA)
Goalfix Financial Modellers
