SMART financial modelling methodology

SMART – Navigator’s best practice financial modelling methodology – meets the needs of decision-makers and financiers across all major project finance industries. It is a set of best practice guidelines, internationally applauded for effective and professional financial modelling. The SMART approach to modelling decreases model risk and increases the confidence of all users – it helps people build better models.

SMART will

Increase user and management confidence
Reduce model risk
Increase modelling productivity
Allow model audits to be performed on time and cost effectively

Best practice modelling methodology

By applying the SMART methodology model developers can ensure best practice guidelines are followed and achieve user transparency, user friendliness and user flexibility. This practice will decrease model risk and increase the confidence of all users. This is what Navigator strives for and why we have decided to name our methodology SMART– it is just that! This is also why we want to share it with other model developers. The SMART methodology works – it will increase modelling productivity, save you time and money, and help you build better models!

Usability focus

Navigator believes that usability is the key attribute of a successful project finance model; the SMART approach to modelling is therefore practical, rather than theoretical. It aims to accommodate the needs of a wide range of users, each with their own objectives and priorities. SMART improves the efficiency and confidence of all users – from model developers, managers, debt financiers, equity investors and model auditors to the CFO.

The SMART approach - transparency, flexibility and presentation

The SMART modelling methodology emphasises transparency, flexibility and presentation and introduces rules that underpin how Excel can be used to achieve this. When followed, these rules ensure you follow best practice modelling guidelines and develop robust and flexible financial models that achieve not just their design objectives but the objectives of all users.

Attaining SMART accreditation for your team

Its imperative for all organisations to have a well defined modelling methodology. This will:

Reduce model risk
Increase user confidence
Ensure modelling productivity and professionalism

By adopting SMART, an organisation gets SMART accreditation, and can refer to the SMART best practice modelling guidelines when presenting their financial models. Organisations interested in adopting a modelling methodology should contact us - we can assist with everything from implementation strategies to SMART modelling training.