For a system consisting of two interacting subsystems, effective Hamil
tonians for one subsystem are usually constructed by integrating out t
he degrees of freedom of the second subsystem. In contrast to usual tr
eatments, our method for deriving effective Hamiltonians is based on t
he introduction of cumulants. Cumulants guarantee size consistency, a
property that is not always evident in other approaches. The formalism
applies for any temperature. Our method is based on a matrix formulat
ion in the framework of a recently introduced cumulant-projection meth
od. This method allows the treatment of strongly correlated systems, w
here conventional diagrammatic techniques are difficult to apply. The
relation with perturbation theory is also shown. As a simple applicati
on we discuss the small polaron problem. Evaluating the one-electron d
ispersion relation in the strong-coupling case shows good agreement wi
th recent results from exact Lanczos diagonalization. Our method has s
ubstantial advantages over perturbation theory.