Cause Way—Consulting Actuaries
Organisations call Cause Way when they have a big decision to make. They ask us to do what we’re good at – analyse the history and the context, and forecast their future financial outcomes. We project not only “best-estimate” outcomes, but also the full range of possible outcomes, applying financial mathematics, statistics, economics and data analytics techniques. These future projections inform the big decisions today, and different decisions are run through our models to test the possible futures that could emerge in each case.
- Sometimes the decision is “How should we price this product / service?” Or “How should we set prices across our range of products / services – what is the best pricing strategy?”
- Sometimes it is “How much financial capital (or cash) do we really need – what adverse events should we be prepared for?”
- Recently, a new question has been emerging – “How can we measure and build our relational capital?” – and we are now applying our numerical and analytical skills and understanding of organisations to relational capital, using a tool called Relational Analytics.Read more
We believe that good strategy involves “balance-sheet thinking” rather than P&L thinking. The strategy that looks like the winner in terms of profit (or outcomes for a not-for-profit) over the next three years, will often not be the best strategy, because it achieves that profit by drawing down on relational capital, human capital or other capitals, weakening the organisation’s value and health over time. This is why we saw the need to bring relational capital into strategy conversations, and why we also welcome the current global movement towards Integrated Reporting, and its role in developing more sophisticated and rounded strategic decision-making that builds value for all stakeholders.