Why has Huron's healthcare consulting practice seen a 15% drop in new client acquisitions over the past quarter?

Introduction

Huron's healthcare consulting practice has experienced a 15% drop in new client acquisitions over the past quarter, signaling a significant challenge that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications for the business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 15% drop been compared to the same quarter last year?

Why it matters: Seasonal variations could explain the drop and impact our solution approach. Expected answer: Yes, it has been compared and is still significant. Impact on approach: If seasonal, we'd focus on year-over-year strategies; if not, we'd investigate recent changes.

• Considering the metric specificity, I'm curious about the definition of "new client acquisitions." Has there been any recent change in how this metric is calculated or tracked?

Why it matters: Ensures we're comparing apples to apples and not dealing with a measurement issue. Expected answer: No changes in metric definition or tracking. Impact on approach: If changed, we'd need to recalibrate our analysis; if not, we proceed with investigating external and internal factors.

• Given the healthcare focus, I'm wondering if there have been any significant regulatory changes in the past quarter that might affect client decision-making?

Why it matters: Regulatory shifts can dramatically impact healthcare consulting demand. Expected answer: No major regulatory changes. Impact on approach: If yes, we'd focus on adapting our services; if no, we'd look more closely at internal factors and market dynamics.

• Thinking about our service offerings, have we made any significant changes to our consulting packages or pricing structure in the last 3-6 months?

Why it matters: Internal changes could be impacting our market appeal. Expected answer: Minor tweaks but no major changes. Impact on approach: If yes, we'd evaluate the impact of these changes; if no, we'd focus more on market positioning and competitor analysis.