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Medium Operations Churn/Attrition Sales Channels

Heavy Attrition

#Healthcare
ProHub Comment

This is a brainstorming-focused case designed to test the candidate's ability to structure an ambiguous problem and develop hypotheses under uncertainty. The case rewards candidates who can quickly identify that incentive misalignment is likely the root cause and who build a MECE framework exploring product mix, territory assignment, and geographic factors. Success depends on driving the case forward and demonstrating confidence in reasoning by consistently referencing earlier analytical themes.

Estimated Time 26 minutes
Difficulty Medium
Source Chicago Booth
16 / 100
Our client has asked us to look into why there is such heavy attrition amongst the junior salespeople in the organization. Where do you think we should start?

Clarifying Information

  1. The average time a newly hired salesperson stays in the organization is less than one year. This is worrisome because it takes about 6 months for a new salesperson to learn how to do their job well and get up to speed.
  2. On the other hand, experienced salespersons (people who have been with the organization greater than 3 years) have almost no attrition.
  3. The organization is a fairly new medical devices company that has been operating for 10 years.
Mock Interview
Interviewer

Our client has asked us to look into why there is such heavy attrition amongst the junior salespeople in the organization. Where do you think we should start?

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
Practicing...
Score coming soon
Practice this case with AI Mock Interview

A medical device company with 10 years of operating history is experiencing heavy attrition among junior salespeople (average tenure <1 year), while senior salespeople (>3 years tenure) show almost no attrition. Candidates must diagnose root causes and recommend solutions to improve junior employee retention through incentive scheme improvements.

Key Insights:

  1. The stark contrast between junior (<1 year) and senior (>3 years) attrition rates is the key diagnostic signal pointing to differential incentive structures rather than general market factors
  2. Commission structure for salespeople depends on three primary variables: type of product sold, type of client/territory assigned, and distance to customer locations
  3. Poor incentive design can systematically disadvantage junior salespeople if they are restricted to lower-margin products, assigned to difficult territories with new customers, or given geographically dispersed accounts requiring excessive travel
  4. The case emphasizes hypothesis-driven problem solving and MECE framework building in the face of ambiguity, with the candidate expected to drive clarifying questions rather than passively receive information