A Dynamic Financial Analysis Application Linked to Corporate Strategy

In this paper the authors describe how to link the technical aspects of the Dynamic Financial Analysis (DFA) modeling process with the ultimate purpose of that process, the enlightenment of senior management for the purposes of strategic thinking. The authors desire to enlighten both the model user and the senior executive by describing the elements that connect the merits of a rigorous quantitative analysis to fundamental strategic issues. A case study is described for a workers compensation carrier relative to its corporate vision. This is intended to be a non-technical paper. The technical aspects of the modeling process are described only to the extent they are useful in describing the management education process.