How can we explain the unexpected 20% decline in sales of SHL's Remote Assessment and Proctoring solution compared to the same period last year?

Introduction

The unexpected 20% decline in sales of SHL's Remote Assessment and Proctoring solution compared to the same period last year is a critical issue that demands immediate attention. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonality at play. Has there been any change in the typical sales cycle or customer purchasing patterns?

Why it matters: Understanding cyclical trends helps differentiate between normal fluctuations and genuine problems. Expected answer: No significant changes in seasonality or purchasing patterns. Impact on approach: If confirmed, we'll focus on other factors causing the decline.

• Considering the competitive landscape, I'm wondering if there have been any new entrants or significant product updates from existing competitors?

Why it matters: External market forces could explain the sales decline. Expected answer: Some new players have entered the market with competitive offerings. Impact on approach: We'll need to analyze our product's differentiation and market positioning.

• Thinking about our product, have there been any recent changes or updates to the Remote Assessment and Proctoring solution?

Why it matters: Internal changes could have unintended consequences on user experience or performance. Expected answer: A major update was released two months ago. Impact on approach: We'll need to investigate the impact of these changes on user satisfaction and adoption.

• Regarding our sales process, has there been any restructuring of the sales team or changes in our go-to-market strategy?

Why it matters: Changes in sales approach could directly impact our ability to close deals. Expected answer: No significant changes in the sales team or strategy. Impact on approach: We'll focus more on product and market factors rather than sales execution.

• Considering data integrity, has there been any change in how we measure or report sales, or any known issues with our tracking systems?

Why it matters: Ensuring data accuracy is crucial for proper analysis and decision-making. Expected answer: No changes in measurement or known issues with tracking systems. Impact on approach: We can proceed with confidence in the reported 20% decline figure.