Why has Kearney's strategic sourcing service seen a 15% drop in client retention over the past quarter?

Introduction

Kearney's strategic sourcing service has experienced a concerning 15% drop in client retention over the past quarter. This issue requires a thorough investigation to identify the root cause and develop effective solutions. I'll approach this analysis systematically, examining both internal and external factors that could contribute to this decline.

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 fluctuations could explain the retention drop. Expected answer: Yes, it's been compared and is still significant. Impact on approach: If seasonal, we'd focus on year-over-year trends rather than quarter-over-quarter.

• Considering the metric specifics, I'm curious about the definition of client retention. Has there been any change in how we measure or define client retention recently?

Why it matters: Changes in measurement could artificially inflate the drop. Expected answer: No changes in definition or measurement. Impact on approach: If changed, we'd need to recalculate using consistent metrics.

• Thinking about recent changes, have there been any significant updates to the strategic sourcing service offering in the last 3-6 months?

Why it matters: Product changes could impact client satisfaction and retention. Expected answer: Some minor updates, but nothing major. Impact on approach: If major changes occurred, we'd focus on their impact on client experience.

• Considering client segments, is this 15% drop consistent across all client types, or is it more pronounced in certain segments?

Why it matters: Helps identify if the issue is global or segment-specific. Expected answer: The drop is more significant in mid-sized enterprises. Impact on approach: We'd tailor our investigation and solutions to the most affected segments.