Causal

The newest feature in the Standard Model is the ability to use the model with a Causal model. Causal creates probabilistic forecasts that allow you to create inputs based on distribution ranges, and then show the results of the model as a distribution. This allows you to understand forecasts at a deeper level than a single point estimate, and understand the range and probability of outcomes based on your inputs. ¹

I wrote an update on how to use Causal to create financial models and Causal’s spreadsheet UI at Using Causal to create spreadsheets.

How to use

You can create a model in Causal - for example, creating your custom growth and revenue model using Causal’s web app - and then export the results into Excel. Simply copy that export sheet into the Standard Model (in Excel or Google Sheets) using Causal’s options to export to Excel or Google Sheets, and link into any Foresight model through Forecast and Hooks.

This linkage is prebuilt into Hooks in the external data section at the bottom, and it uses a couple inputs:

• Input the name of the sheet that you imported
• In Column B define the name of the metric from Causal
• In Column C select from the dropdown the matching metric in the Standard Model

The Foresight model will then automatically pull in the data and insert them into Forecast for the appropriate periods and metrics. In this way, you can create probabilistic models in Causal, perhaps for your growth forecast, and then use Foresight for your revenues, expenses, funding, and consolidated financial and management reporting and analysis

*Want to get started using Causal? Create a free account at Causal →

How it works

Visit Causal for all documentation regarding how Causal works.

Inputs

All inputs involved in creating a Causal model would be in Causal itself. The export - to Excel or Google Sheets - is used as a data source inside the Standard Model, and then linked in through Hooks.

Common Modifications

All modifications involved in building and shaping a Causal model are within the Causal web app itself.