“ I would rather live with passion than die of boredom”
(Vincent van Gogh – modified))
What’s your passion? Do you have one? I certainly hope so!!
I suppose these questions are not new?
Probably something you have considered many times.
Your wife (husband), kids, house, car, health, golf, job, finances, religion, parents, – a random list, which no doubt omits key issues and where priorities are personal choices.
And is your life a placid stream – or are driven by your passion?
An interesting characteristic of passion is that it is a personal emotion or attribute.
Which is not to say that it is exclusive.
On the contrary, many people share the same passion – a fact illustrated by the broad support that we accord to our favorite rugby or football team – and something we often share with like minded friends.
Human (no pun intended) motivation – and in particular personal motivation – has for many years been of great interest to me. Not from an academic perspective, but as an indicator of performance and potential.
In my extensive and varied business career, I was blessed to be exposed to a wide variety of people. The people involved were of different ages, different nationalities, different religious and political affiliations and performed different roles in the different companies I directed.
So, was there a common motivation that drove them?
On the face of it, the answer is no.
But the truth is yes, and that common factor was “personal” motivation!
This may be a bold, even controversial statement – but, based on my close up and personal observations, the only “lasting” motivation is the one that is internalized – part of our psyche – even part of our DNA.
Now, I fully realise that I am not a qualified psychologist – nor have I ever studied psychology – or for that matter the topic of motivation – so my utterances are unqualified, unsupported and my own beliefs predicated on personal experience.
Irrespective of the accuracy – or otherwise – of my beliefs, the one indisputable fact is that passion drives determination and persistence – and they in turn drive success – even in the face of great challenges.
My personal passion, when it comes to business and optimizing business performance is of course financial modelling.
My passion for modelling is based again on personal experience – the benefits and advantages that I personally experienced during my long and varied business career.
And therein, lies one of its most significant characteristics – its flexibility – the ability to shape the model and mold it to fit the business circumstances.
As I have conveyed to the thousands of aspiring financial modellers that I have had the privilege of meeting and training, there are acknowledged and proven modelling protocols and methods, and provided one fully understands and business case, the model can be created to cater for all specific circumstances.
The fundamentals of modelling include:
- understanding the business case – in depth and comprehensive
- model structure – logical, sequential, and structured
- defining the time series
- essentials for effective models – utilizing one of the international standards – FAST standard
- input assumptions – determine model logic – need careful consideration and research
- flexibility – the ability to easily change key inputs and maintain model integrity
Of course, one of the advantages of modelling is that it is a process and as such the process can be learned, internalized and repeated.
If you have any interest or desire in building an effective, flexible tool to help manage and predict the future financial state of your company, or project, send us a mail and we will be delighted to engage with you.
Colin Human CA(SA)
Goalfix Financial Modellers