Why Is Excel So Hard to Quit?

Excel, Microsoft's 40-year-old spreadsheet application, has become a staple in the business world but is increasingly viewed as a barrier to efficient digital workflows and advanced data management. While it remains widely used—two-thirds of office workers reportedly engage with it every hour—issues such as data fragility, lack of proper documentation, and reliance on outdated macros pose significant risks. As businesses explore new technologies, the challenge lies in transitioning from Excel to more robust data management solutions without losing the benefits that made Excel popular in the first place.

Last updated: 30 October 2023 (BST)

What’s happening now

As organisations re-evaluate their reliance on Microsoft Excel, the conversation is shifting towards more integrated and secure data management systems. Recent incidents, including data mishaps within Health New Zealand and chaotic recruitment processes for anaesthetists in the UK, have highlighted the potential pitfalls of using Excel as a primary data management tool. Consequently, companies are attempting to transition to custom software solutions that incorporate advanced features, such as automation and artificial intelligence, to enhance workflow and data integrity.

Key takeaways

• Excel is still widely used but may hinder more advanced data processes.
• Data management issues arise from outdated macros and poor documentation.
• Companies are exploring custom solutions to improve data integration and analysis.

Timeline: how we got here

The evolution of Excel and its role in business data management has been significant over the past four decades. Key milestones include:

• 1985: Excel is first released by Microsoft.
• 1990s: Excel becomes a dominant spreadsheet tool in business environments.
• 2023: Various reports emerge about data issues linked to Excel, prompting a reevaluation of its use in critical operations.

What’s new vs what’s known

New today/this week

Reports have surfaced detailing how organisations are beginning to phase out Excel in favour of more sophisticated data management systems. For instance, companies are integrating custom planning software that automates data processes and enhances collaboration across departments.

What was already established

Excel's long-standing presence in the workplace has made it a go-to tool for many employees. However, the flawed reliance on macros, coupled with inadequate documentation, has been a known issue, leading to significant data management challenges.

Impact for the UK

Consumers and households

The increasing complexity of data management means that consumers may experience improved services. For example, charities and small businesses that switch from Excel to more dynamic systems can see cost savings and efficiency gains. The long-term goal is to improve service delivery through better data integrity.

Businesses and jobs

For businesses, the transition from Excel can lead to smoother supply chains and enhanced job roles focused on data analysis rather than data entry. This shift can help reduce costs associated with data errors and misalignment, as evidenced by Telus's expectation to save millions by streamlining their data processes.

Policy and regulation

As organisations grapple with data governance issues linked to Excel, regulatory bodies may impose stricter guidelines on data management practices. This could lead to increased scrutiny of how companies handle sensitive data, especially in sectors like healthcare and finance.

Numbers that matter

• 66% of office workers reportedly use Excel at least once every hour.
• Health New Zealand's reliance on an Excel spreadsheet led to significant operational challenges.
• Telus anticipates saving C$42 million (£23 million) annually by moving away from Excel.
• One charity saved over £6,000 a year by switching from Excel to an online accounting package.

Definitions and jargon buster

• Macro: A set of automated commands in Excel that simplifies repetitive tasks.
• AI: Artificial Intelligence, technology that simulates human intelligence processes.
• Data management: The process of collecting, storing, and using data in an efficient and secure manner.

How to think about the next steps

Near term (0–4 weeks)

Organisations should begin assessing their current data management systems and identifying areas where Excel is being misused. Early steps could involve training staff on new tools and documenting existing processes.

Medium term (1–6 months)

Companies should implement custom solutions that align with their specific data needs while phasing out Excel. This could involve migrating data to new systems and ensuring that all employees are trained and comfortable with the transition.

Signals to watch

• Increased reports of data mishaps attributed to Excel.
• Organisations adopting new data management systems and sharing success stories.
• Changes in regulatory guidelines regarding data management practices.

Practical guidance

Do

• Evaluate current data workflows and identify inefficiencies.
• Invest in training for new data management systems.
• Ensure that documentation is maintained for all data processes.

Don’t

• Don’t assume that Excel is the best tool for all data tasks.
• Don’t overlook the importance of data security and integrity.
• Don’t allow Excel to coexist with new systems without proper transition plans.

Checklist

• Identify key datasets and assess how they are currently managed.
• Determine training needs for staff on new tools.
• Establish a timeline for phasing out Excel.
• Document processes during the transition to new systems.
• Communicate changes clearly to all stakeholders involved.

Risks, caveats, and uncertainties

Transitioning away from Excel is not without risks. Companies could face resistance from employees who are accustomed to the tool and may be reluctant to change. Additionally, the loss of custom macros or automation built into existing Excel files may lead to temporary disruptions in workflow until new systems are fully operational. There is also the potential for data loss or corruption during the migration process, making it crucial to have robust backup and recovery plans in place.

Bottom line

While Microsoft Excel has been a reliable tool for data management over the years, its limitations are becoming increasingly apparent. As organisations strive for greater efficiency and data integrity, the challenge will be to encourage a cultural shift away from traditional spreadsheet reliance and towards integrated data solutions. This transition is essential for leveraging the full potential of digital transformation in the modern workplace.

FAQs

Why is Excel still so popular in the workplace?

Excel remains popular due to its ease of use, familiarity among workers, and its capability for quick data analysis and visualisation.

What are some risks associated with using Excel for data management?

Risks include data fragility, lack of documentation, and reliance on outdated macros, which can lead to errors and inconsistencies.

How can businesses transition away from Excel effectively?

Businesses can transition by assessing current workflows, investing in training for new tools, and ensuring proper documentation and backup during the migration process.