Most finance transformations begin with a clear sense of direction. There is usually a well-defined roadmap, supported by executive sponsorship, budget approval, and a shared belief that modern systems and standardized processes will finally simplify how the organization operates. New platforms are selected, data initiatives are launched, and teams move forward with confidence that the hardest work lies ahead—but that it is at least well understood.
Then, somewhere in the middle of the journey, progress starts to feel heavier than expected.
It doesn’t stop outright. Deadlines aren’t missed in dramatic fashion. Instead, everything slows just enough to be noticeable. Questions that once had quick answers now require additional validation. Numbers that should reconcile cleanly need manual explanation. Teams begin to build parallel checks, not because they don’t trust the systems, but because experience has taught them to be cautious.
What’s happening in that moment is rarely a failure of technology or effort. It’s the emergence of something that was always there, but never fully accounted for.
When the real logic surfaces
As transformations mature, many finance leaders encounter a realization that is both familiar and unsettling: a significant portion of the organization’s operational logic was never fully embedded in core systems. Instead, it lives in spreadsheets that evolved gradually over years, shaped by business realities that systems could not easily accommodate at the time.
Pricing adjustments, reconciliations, allocations, and reporting nuances often sit in Excel not because anyone planned it that way, but because Excel was flexible enough to handle what systems could not. Over time, these workbooks accumulated institutional knowledge. They encoded decisions, assumptions, and exceptions that became critical to how the business actually runs.
By the time transformation initiatives encounter them, these spreadsheets are no longer peripheral artifacts. They are central, operational, and deeply intertwined with day-to-day execution.
The Excel layer no one planned for
This is rarely about a small number of files. It’s about hundreds or thousands of spreadsheets scattered across shared drives, SharePoint sites, email attachments, and personal folders. Many began as temporary solutions—quick fixes to bridge a gap or test a scenario—but quietly became permanent as the organization moved on.
Ownership is often unclear. Documentation is inconsistent or nonexistent. Versions multiply as files are copied, modified, and reused by different teams for slightly different purposes. What once felt manageable now appears opaque, especially when viewed through the lens of a large-scale transformation.
At this point, teams often attempt to regain control by taking inventory. They catalogue files, identify duplicates, and try to establish basic governance. While these steps are necessary, they rarely provide the clarity leaders are actually seeking.
Why knowing where files are isn’t enough
The most difficult questions aren’t about storage or naming conventions. They’re about understanding behavior.
Which spreadsheets are fundamentally doing the same thing?
Where did logic diverge, and was that divergence intentional or accidental?
Which models are genuinely risky, and which simply look complex on the surface?
Which files are essential to operations, and which persist largely out of habit?
Answers to those questions don’t live in folder structures. They live inside the spreadsheets themselves—in formulas, tables, links, macros, and the subtle ways logic has changed over time.
Without that visibility, decision-making becomes constrained. Governance feels risky because no one is certain what might break. Modernization feels premature because the full scope of logic isn’t clear. Replacement feels dangerous because too much knowledge is embedded in places no one fully understands.
When Excel becomes the scapegoat
At this stage, frustration often gets misdirected. Excel becomes the convenient target, blamed for complexity that is, in reality, the result of unmanaged evolution rather than the tool itself.
But Excel isn’t the root problem. Lack of visibility is.
Spreadsheets didn’t slow transformation down on their own. They surfaced a layer of logic that had never been formally examined, documented, or rationalized at scale. Once that layer comes into view, it becomes clear that moving forward requires more than technical upgrades—it requires understanding.
What changes when visibility arrives
When teams can finally see the Excel layer clearly, something important shifts. Not everything becomes easy, but it becomes navigable.
Patterns emerge. Groups of spreadsheets reveal themselves as variations of a small number of core models. Outliers stand out more clearly. Risk concentrates in specific places rather than feeling diffuse and overwhelming. Conversations move from speculation to evidence.
With that understanding, choices become possible again. Some models clearly belong in governed Excel workflows rather than being replaced outright. Others are ready to be modernized and integrated into systems. Many can simply be consolidated or retired, reducing noise and operational drag.
Transformation regains momentum—not because Excel has been eliminated, but because it has been acknowledged and understood.
A phase worth anticipating
Finance transformation doesn’t fail because of Excel. It stalls because this phase—the moment when spreadsheet logic surfaces as a first-class concern—often arrives unplanned and underestimated.
Organizations that move through it successfully aren’t the ones that rush to eradicate spreadsheets. They are the ones that recognize this moment for what it is: a necessary step between ambition and execution.
By treating Excel not as an obstacle but as a source of insight into how the business really works, teams give themselves the clarity they need to move forward with confidence.
And in many cases, that clarity is what allows transformation to continue.
See the Platform in Action
If you're exploring how AI can elevate your financial workflows, a personalized walkthrough of the Coherent platform can show you what's possible with your own spreadsheet estate.
