Why has Oliver Wyman's risk management consulting service seen a 15% decrease in client engagements over the past quarter?

Introduction

Oliver Wyman's risk management consulting service has experienced a 15% decrease in client engagements over the past quarter, raising concerns about the product's performance and market position. To address this issue, I'll employ a systematic approach to identify, validate, and address the root cause while considering both immediate 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% decrease been compared to the same quarter last year?

Why it matters: Seasonal fluctuations could explain the decrease without indicating a larger problem. Expected answer: Yes, it has been compared to the same quarter last year. Impact on approach: If it's not seasonal, we'll need to look deeper into internal and external factors.

• Considering the specificity of the decrease, I'm wondering about the overall market trends. Have our competitors experienced similar declines in their risk management consulting engagements?

Why it matters: This helps distinguish between company-specific issues and industry-wide challenges. Expected answer: Competitors have seen stable or slightly increased engagements. Impact on approach: If competitors aren't affected, we'll focus more on internal factors and competitive positioning.

• Given the nature of consulting services, I'm curious about client retention. Has there been a change in our client retention rate or are we seeing fewer new client acquisitions?

Why it matters: This helps pinpoint whether the issue is with existing clients or new business development. Expected answer: Client retention has remained stable, but new acquisitions have decreased. Impact on approach: We'll need to examine our sales and marketing strategies, as well as our value proposition for new clients.

• Thinking about recent changes, have there been any significant alterations to our risk management consulting offerings or pricing structure in the past six months?

Why it matters: Internal changes could be impacting client perception or decision-making. Expected answer: A new pricing model was introduced three months ago. Impact on approach: We'll need to evaluate the impact of the pricing change on client decisions and competitive positioning.