In 1966, Abraham Maslow famously wrote, “If the only tool you have is a hammer, you tend to see every problem as a nail.” This concept, known as Maslow’s Hammer, highlights the danger of relying on a single tool for every challenge. In local government finance, Microsoft Excel often becomes that hammer—applied to all problems despite its limitations.
Excel has long been the go-to tool for councils, used for budgeting, scenario modelling, and financial planning. While it’s familiar and versatile, Excel struggles under the weight of modern financial demands. Complex datasets, changing legislative requirements, and the need for transparency make it ill-suited to the intricate challenges councils face today. As a result, councils risk oversimplifying problems or making decisions that lack long-term sustainability—all because they’re stuck wielding the same hammer for every nail.
Imagine a council preparing for a revaluation year, where every property’s value needs reassessment and rates adjusted accordingly. Using Excel for this process may result in inconsistencies, formula errors, or overly simplistic solutions that fail to address the nuances of ratepayer impacts. Advanced financial modelling tools, such as Ibis Breeze and Rates Modelling, allow for detailed scenario testing, ensuring rate structures are equitable, compliant, and easy for councillors and stakeholders to understand.
The same applies to long-term planning. Unlike static spreadsheets, modern tools dynamically integrate inflation, capital projects, and workforce data, making them far more effective for anticipating and addressing future challenges. By moving beyond Maslow’s Hammer and adopting purpose-built solutions, councils can make informed decisions that serve their communities better.
If you can relate to this, contact us to see how Ibis can help improve your financial planning and empower your council with the right tools to succeed.
