Does Spreadsheet and Excel Dependency Ruin Your Business?

2024/04/24
Does Spreadsheet and Excel Dependency Ruin Your Business?

When I was in charge of marketing at a startup, I intentionally avoided using spreadsheets for workflow management. It was partly instinctual, but managing everything via spreadsheets simply wasn’t a future I wanted to deal with. If you rely on spreadsheets too heavily, it diminishes the value of tools like CRMs and marketing automation platforms.

Of course, spreadsheets have their appropriate uses. They’re great for lightweight data analysis, sharing information, and quick presentations.
However, building workflows around spreadsheets can end up slowing down your business in the long run.

In this article, I want to explore the hidden inefficiencies that arise when spreadsheets are deeply embedded into workflows.

How Excessive Spreadsheet Use Can Hinder Your Business

As your datasets grow, collaboration increases, and mission-critical workflows expand, the usefulness of spreadsheets diminishes.
In fact, overreliance on spreadsheets can actively harm your business.

Let’s look at the risks involved:

Risk 1: Increase in Manual Processes

Embedding spreadsheets into your workflows often leads to more manual processes—more copy-pasting, more redundant work. You can quickly find yourself trapped in “spreadsheet hell.”

Routine spreadsheet tasks increase the risk of costly errors, create fragmented data, and reduce productivity across all departments.

Automating workflows across the business saves time and resources while providing a comprehensive view to support better decision-making.

Risk 2: Spreadsheets Don’t Scale

Spreadsheets don’t scale well. As soon as you start thinking about input validation, user access control, or custom logic, you’ll hit roadblocks.

For example, securely exchanging information between companies—especially when personal data is involved—can be difficult to implement in spreadsheets in a compliant way.

Risk 3: They Hinder Collaboration

When multiple stakeholders need to update or edit spreadsheets—and also understand the underlying logic—it becomes complex and stressful.

Unless everyone involved is already familiar with the workflow, collaboration costs go up. The result? Poor collaboration and a growing reliance on a few key individuals (a.k.a. knowledge silos).

Risk 4: Compliance Risks

Managing user access in spreadsheets is notoriously messy. Yes, it’s technically possible—but it’s time-consuming and places a burden on external collaborators.

If access controls are weak, data sharing becomes risky. This often leads to careless handling of sensitive information.

When handling employee data or other confidential information, manual work and human error introduce potential compliance issues.

Risk 5: Poor Performance with Large Datasets

Spreadsheets aren’t ideal for analyzing large datasets. Complex calculations and large volumes of data cause slowdowns and frequent crashes.

Thinking About Rebuilding Your Workflow or Improving Efficiency?

Spreadsheets are versatile—but when your organization requires a solid platform, it’s time to explore better options for data management, visualization, collaboration, and system integration.

At FLOURISH, we support not just efficiency, but also human well-being and psychological comfort in the workplace.
If you’re considering a digital transformation (DX), we’d love to help. Feel free to contact us anytime.

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