This series of articles will give you an overview of how to manage spreadsheet risk. These articles are written by Myles Arnott from Excel Audit
- Part 1: An Introduction to managing spreadsheet risk
- Part 2: How companies can manage their spreadsheet risk
- Part 3: Excel’s auditing functions
- Part 4: Using external software packages to manage your spreadsheet risk
In the first article in this series we highlighted the risks that poorly managed spreadsheet solutions can introduce to a business. In this article we will demonstrate how companies can manage this risk.
A formal governance framework
The first, and arguably most important step is to ensure that the senior management team buy into the need for a robust spreadsheet risk management framework, and that they define and effectively communicate their spreadsheet risk management policy.
Spreadsheets identified and catalogued
It is impossible to know the level of spreadsheet risk in an organization without first identifying and then risk assessing all of the spreadsheets. It is therefore necessary to create a catalog of all of the spreadsheets and then to gather the key information about each spreadsheet to enable a risk assessment to be carried out.
The two key factors for determining the spreadsheet risk are the probability of there being an error and the impact that that error could have.
Risk = Probability of an error X impact if an error were to occur
The probability of error is related to the complexity of the spreadsheet. Complexity attributes differ across companies but include:
- Spreadsheet size (Mbs)
- Spreadsheet design (hard coded numbers in formulae, poor model structuring etc)
- The number of users
- The use of complex formulae (particularly array formulae, nested formulae etc)
- The number of cells populated
- The number of internal and external links
- The use of VBA
The impact of the error is related to how critical the spreadsheet is within the business. Each company will have a slightly different definition of the impact levels of spreadsheets, but generally:
- A spreadsheet is low impact if it is not used as part of a critical business process and an error would not have a material impact on the business.
- A spreadsheet is medium impact if it contains confidential information and an error could have a material impact on the business.
- A spreadsheet is high impact if it contains highly confidential information and an error would have a significant impact on the business. Spreadsheets used within processes that fall under external regulation (such as Sarbanes-Oxley and Solvency II) are deemed to be of high impact.
Finally, the spreadsheets should be placed in order of risk. Those identified as business critical and high risk should be prioritized for detailed review and placed under control.
This is clearly an on-going process. As new spreadsheets are developed they will need to pass through the risk assessment process as defined by the company’s spreadsheet risk management policy. A periodic review should also be carried out to ensure that all spreadsheets have been correctly categorized.
A best practice standard
The company should define its own best practice spreadsheet development standard that is applied to spreadsheets deemed to be medium or high impact. The standard should clearly outline the standards and conventions to which a spreadsheet should be built. New developments can then be reviewed to ensure that they adhere to the standard.
We advocate the use of the Excel Best Practice Standard from the Spreadsheet Standards Review Board (‘SSRB’).
We also recommend that tailored schedules are added to the standard to reflect your specific design standards. For example this could be a specific color scheme, use of logo or the use of specific text within the header or footer (e.g. document security levels).
Testing
A fundamental, but often overlooked step in the Excel model development cycle is testing. All spreadsheets (but especially business critical spreadsheets) need to be first peer reviewed and then rigorously tested.
It helps to consider the steps that an IT department would take to ensure that something they deliver is correct. It will pass through stages of unit and system testing prior to quality assurance and finally user acceptance testing. So why should a spreadsheet being used for a critical process be any different?
The fact is that no matter how hard we try, humans make errors. The purpose of testing is to identify them and get them resolved before the model goes into the live environment.
Remember that in the first article we highlighted the fact that 94% of spreadsheets and 5% of all formulae within spreadsheets contain errors.
Here is Scott Adams’ view on spreadsheet testing in Dilbert
Training
All staff should be trained so that they have sufficient Excel knowledge for their role and to use the spreadsheets that they are responsible for. As part of the induction process all staff should also be taught the company’s best practice standard.
Whilst this sounds obvious, research has shown that few companies prioritize investment in spreadsheet training.
Documentation
A key risk with spreadsheets is that they are often built and used by one individual within a team (often referred to as a “key man dependency”). If this person is ill or leaves unexpectedly the other members are totally reliant on the documentation left behind. From experience this rarely exists.
Each spreadsheet that is used within a process should as a bare minimum have documentation stating:
- the purpose of the spreadsheet;
- how the spreadsheet fits within the process;
- the source of all inputs for the spreadsheet;
- all key assumptions and drivers;
- key calculations;
- distribution list for outputs.
Spreadsheets that are part of as critical business process should have detailed documentation. This should include a technical specification and user notes.
Security
All business critical and confidential spreadsheets should be subject to access control. Security controls can be implemented across three levels:
- Directory level: Only specific individuals have access to key directories
- File level: Confidential and critical spreadsheets should be password protected to restrict access
- Cell level: Non-input cells should be password protected
Change control, backups and archives
To minimize the risk of losing the current version of a spreadsheet and ensuring that the correct version is being used at all times, all business critical spreadsheets should be backed up, archived and subject to change control procedures.
So, in summary..,
the characteristics of a well-managed environment are:
- a formal governance framework, sponsored by the senior management team, is in place for all spreadsheet development;
- a catalog of spreadsheets is maintained and prioritized by risk profile;
- a best practice standard is applied to the development of all new spreadsheets;
- all new spreadsheets pass through a formal risk assessment, are peer reviewed and formally tested;
- staff are provided with sufficient training to carry out their roles;
- all spreadsheets and their associated processes are well documented;
- access to critical spreadsheets is subject to security controls;
- spreadsheets are subject to change control and are regularly backed up and archived.
What next?
In the next article we will look at the built in Excel functions that can help you to manage spreadsheet risk.
What about you?
How do you (or your company) manage spreadsheet risk? What best practices & guidelines you follow? Please share using comments.
Thank you Myles
Many thanks to Myles for writing this series. Your experience in this area is invaluable. If you enjoy this series, drop a note of thanks to Myles thru comments. You can also reach him at Excel Audit or his linkedin profile.
41 Responses to “Calculate Elapsed Time in Excel [Quick Tips]”
Hi Chandoo,
To calculate time lapses in excel I usually use the DATEDIF function. Even though is undocumented by MS there is a great explanation of its use in Chip Pearson's site :
http://www.cpearson.com/excel/datedif.aspx
Is pretty easy to use and has great flexibility.
See you and keep Excelling!!!
Another great article, I will be linking to it on my blog.
Oliver:
Yes, I think that DATEDIFF do it better.
Great post! This a fantastic tutorial on calculating elapsed time in Excel that could be helpful even to a novice user. Keep up the useful tips!
Also, the Office community on Facebook could really benefit from you knowledge! Check it out at http://www.facebook.com/office
Cheers,
Andy
MSFT Office Outreach Team
hi, Chandoo !!!
for elapsed time , we can use this unique formula either for hours, minutes or seconds : NOW()-A1)
but using respective special number formats
for hours : [h] ==> 46553
for minutes : [m] ==>2793212
for seconds : [s] ==> 167592763
We can also use mean duration for years (orbital period of the Earth around the Sun : i-e tropical year) which is : 365.25 days
and mean duration for month : 365.25/12 days
be Excelent !!!!
@Oliver... Thanks for the pointer to datediff(). I will update the post with information about this as well.
@Glen... thanks for the linklove 🙂
@Andy... Welcome. Thanks for telling us about the office community on FB.
@Modeste ... that is very cool. I will remember these formatting codes for an upcoming article on number formatting codes 🙂
Great tip Chandoo! I use the formula to calculate years elapsed all the time. It can seriously help save a ton of time with calculations. Also, NETWORKDAYS is one that helps and can seriously impress a boss. Keep up the great work here!
No problem! I will definitely be directing people with tough Excel questions to your blog. Keep up the great posts!
Andy
MSFT Office Outreach Team
Hi,
always great posts and a good way to start my day
but regarding the elapsed time calculations: have you never noticed that there is a result difference between using =TODAY()-A1 and using =NETWORKDAYS(A1,TODAY())?
try it for A1= a Monday such as 21sep09 and "today" is e.g. a Thursday; you get 3 or 4 respectively as a result, depending on the formula used; this is because formula =networkdays() always includes both the startdate and the end date and not only the time between these 2.
This is easily corrected/compensated bij always adding a -1 to the =networkdays() formula because the majority of us will count startday as day 0 and then the result will be consistent across the different formulas.
However, you then get into trouble if you calculate the networkdays for a date further in the past and where either the start or end date falls in a weekend.
just thought to point this out as to me these formula's are not interchangeable just like that!
have a great day!
Paul
=DATEDIF([DOJ],TODAY(),"Y") & " Y, " & DATEDIF([DOJ],TODAY(),"YM") & " M, " & DATEDIF([DOJ],TODAY(),"MD") & " D"
This will fix your 30 Days problem
I calculated the time diff between two date+ times by subtracting 2 cells & custom formatted it to "d hh:mm" format.
E.g.
Cell A1 04-Jan-12 6:00 PM
Cell A2 05-Jan-12 4:45 PM
Cell A3 0 22:45 (formula: =A1-A2)
Wat shud i do 2 not display the "zero" values i.e. no. of days in this case is zero hence the cell shud display " 22: 45" and not "0: 22: 45".
@Amol
Try the Custom Format code:
[
<1] hh:mm ; [>=1] d “d” hh:mmHi Chandoo,
If possible to compute the interval of time and date in one column.
In column C I would like to compute the total days and hours . What formula ? Please help
Example.
Column A Column B
2/13/12 3:30 AM 2/14/12 12:00 AM
In referenc to Elapsed time in months
To calculate the elapsed time in months, we can use the formula =(NOW()-A1)/30. This returns the value in 30 day months.
I use to apply formula =ROUND((TODAY()-A1)/30,0). Today, I faced a peculiar situation, A1 has date 01-Mar-2009, and today being 01-Mar-2012, it should be 36 months, but it is showing 37 months!!
Any suggestions to avoid such errors?
Regards,
Prasad DN
All I want to do is add up a series of times and receive a reply that gives me a total. What I used to do was subtrace the end time from the start time and format the result as [hh]:mm but this doesn't seem to work anymore. How has Bill Gates confounded me?
@Pete
I use Excel 2010 and it still works
The times must be entered as times in the format hh:mm:ss or hh:mm without seconds
Adding up times is as simple as =Sum(Range) or =Sum(A2:A10)
then using a Custom Number format as you have mentioned [h]:mm
If this isn't working, 2 ideas
1. Check your times are times and not text
2. Can you share your data or file with us?
My hospital tracks times from patient arrival to various procedures or treatments. When those times cross over midnight, the regular formulas (2nd time minus first time) don’t work because the result is negative and Excel (2007) won’t show a negative number in time format.
I couldn’t find a solution here (chandoo.org) but found one elsewhere that worked and it’s very simple. I would like to share it.
Assuming 1st time in A1 (column for patient arrival time) (11:00 PM), and 2nd time in B1 (column for x-ray given) (12:30 AM)). Should be 1:30 elapsed time.
=B1-A1+(B1<A1) [This comparison is the key to the solution.]
=12:30 AM – 11:00 PM + (12:30 AM < 11:00 PM)
=0.0208 – 0.9583 + (True)
=-0.9375 + (1) [This is the key! If it is false, Excel adds 0. If it’s true, Excel adds 1 and that is what corrects the negative number. Now Excel can interpret the number as a time.]
=0.0625
Converted to hh:mm = 1:30
I wrapped this formula inside an IFERROR one to alert my data entry person if she messed up and applied it to lots of different columns and it has worked wonderfully. No more complaints from the data entry person who just plugs in times from medical charts.
Very interesting solution. Thank you so much for sharing it with all of us.
HI,
I am working on a Xl application..
I want to capture time between two clicks.
Ex, in my application during run somewhere I press OK button and then I click Cancel.. I want to measure time between these two clicks... Is it possible??
Pls help on this...
@shashidhar
The answer is Yes
You will have to add an appropriate VBA event to start and stop a timer.
There are techniques which can time to the millisecond so maybe look those up on the net
WOW!!!!!! I truly love your excel time format program! WHOOOO! I am very interested in how the time formats "update" (manually on a physical keyboard) that "updates" the time into its respective decimal time formats, such as:
YYYY.yyyy, HH.hhh, etc...
How do those formulas or equations work if not in Excel mode? Example: TI calculators, Word, or any other computer language programming? Just wanted to see how it works. E-mail me at Ultra64848689Ti@gmail.com.
Thanks again for an EXCELLENT Excel program into decimal time formats!
Here's an idea: how about creating an APP for iOS and Android? Just wanted to point that out. =-D
Regarding the elapsed time in months:
I made this function to determine the time elapsed since a date using the number of days in each respective month. It's a simple subtraction and I think it works very well:((Year Today-Year A1)*12++(Month Today - Month A1)+(Day Today/Days in Month Today)-Days A1/Days in month A1)
Here's the function:
=((YEAR(TODAY())-YEAR(A1))*12)+(MONTH(TODAY())-MONTH(A1))+(DAY(TODAY())/DAY(DATE(YEAR(TODAY()),MONTH(TODAY())+1,0))-DAY(A1)/DAY(DATE(YEAR(A1),MONTH(A1)+1,0)))
Have a Merry Christmas everyone!!
I need the ability to calculate how much progress we have made between two dates and I want to represent that as a percentage.
I am thinking this would be a combination of today, networkdays & dividing the days elapsed vs the total days. Then it should be as easy as formatting my cell. Any help would be greatly appreciated.
@Christian
Your correct
dates are just numbers and so you can use simple math to derive the percentage
=(Date Now-Start Date)/(End date-Start date)
that will give you a number between 0 and 1
which you can format as a %'age
is there a way out to calculate the productivity for an employee
The day start is at 08:00 and day end is 20:00
The start date / time is recorded and end date / time is recorded
I want to calculate the timelapse taking into consideration the day begin and dayend time.
If the work begins and ends the same day, a simple formula b1-a1 would compute the productivity.
But if the process remains incomplete and is carried over to the next day, then timelines to be computed accordingly
to clarify,
if start time of an activity is 03/15/2015 18:00 hrs and end time is 03/16/2015 11:00 hrs, then the resultant formula should be 5 hrs (ie 18:00 to 20:00 hrs on day1 + 08:00 to 11:00 hrs on day2) ie 2+3
please guide.
Venkatesh, try (b1-a1)-0.5
This will subtract the fixed amount of time between shifts, 12 hours. If the time between shifts varies, then you could reference other cells that contain the variables.
Please help. when I use the networking days formula I get a date (2-may-00) I want actual number of days. I managing projects and I need to know how many days have passed since we received a project to the current date. Please help Thanks
@Aria: Just format the cell as general or number. that will fix the problem.
You rock! I looked at 17 other sites and they all did not work. Yours did. Thanks!
Hi folks ...
calculating age in years , months and days
=text(now()-a1,"yy")&" y " &text(now()-a1,"mm")-1 &" m "&text(now()-a1,"dd") & " d"
Hi, the Elapsed time in days [ =TODAY()-A1 ] works great however, if I do not have a date in A1, it shows 42157. Anyway to get it to display 0 or a Null value?
@Dan
=If(A1="",0,TODAY()-A1)
I get #NAME? and the formula does not work.
Hi Chandoo,
This might be a challenge - I am looking to calculate elapsed time between two columns
Start date Complete date
9/9/2015 7:21 10/2/2015 11:01
I need to take into account the following:
1) The employee works 7:00-3:15 pm each day
2) Std Work hours are 7hrs 45 min each day
3) Need to take into account all holidays in between start and end date
4) Work week is Mon through Friday.
Can you help?
Thanks!
Hi, i have a certain name (wilium) in column A and against this name i have 2 option, 1 Done and 2 Inprogress. i want that i count done again wilium and count inprogress against wilium separately. which formula will work for it??
Hi, i have a certain name (wilium) in column A and against this name i have 2 option, 1 Done and 2 Inprogress in column C. i want that i count done again wilium and count inprogress against wilium separately. which formula will work for it??
Year, month, day results for DoB.
The formulas I have found on the net and the datedif function do not work. This is what I came up with using a Microsoft support paper dated April 1997 with some modifications:
IF(OR(A2>$A$1,ISBLANK(A2)),"",IF(YEAR($A$1)=YEAR(A2),0,IF(MONTH($A$1)>=MONTH(A2),YEAR($A$1)-YEAR(A2),YEAR($A$1)-YEAR(A2)-1))&" years "&MONTH($A$1)-MONTH(A2)+IF(AND(MONTH($A$1)<=MONTH(A2),DAY($A$1)<DAY(A2)),11,IF(AND(MONTH($A$1)=DAY(A2)),12,IF(AND(MONTH($A$1)>MONTH(A2),DAY($A$1)=DAY(A2),ABS(DAY($A$1)-DAY(A2)),DAY(EOMONTH(A2,0))-DAY(A2)+DAY($A$1))&" days")
Check it out...
Hi, Augustin
what about :
calculating age in years , months and days
=YEAR(NOW()-DoB)-1900 & " y " & MONTH(NOW()-DoB)-1 & " m " & DAY(NOW()-DoB) & " d"
Hi Chandoo,
I am looking for help with the elapse time formula. I have a recruitment tracking sheet where we track the number of days the positions are opened, and when they are finally closed.
The opened positions will have a running turnaround time (TAT) formula and I am using this formula:
=NETWORKDAYS (start_date, TODAY (), Holidays2018)
Now, without disrupting the running TAT formula, how do I then get the TAT to stop when we have a final end date? All the information below is row:
- start_date --> Cell A
- TODAY () --> cell B
- end_date --> Cell C
Hope you are able to help. Thanks!
Interesting question. Try this:
Thank you for this helpful article. I was trying for days now to figure it out. Now the only issue I have is that if I do not have a value inputed for =TODAY()-[@[Date Precured]] Date Precured then it shows 44055. How can I get it to leave it blank if there is no data? Thanks again!!!