The lag problem: By the time revenue from a client drops, the relationship deteriorated months ago. Revenue is lagging. Health is leading.
When consulting firms track client metrics, they usually focus on revenue. How much did we bill? What's the trend? Where are growth accounts?
Revenue is important. But it's a lagging indicator.
The Lag Problem
TIMELINE OF CLIENT LOSSMonth 1-2: Enthusiasm wanes (invisible) Month 3-4: Stops responding to expansion emails Month 5-6: Doesn't mention you to peers Month 7-8: Current project ends, no next one ready Month 9: Revenue drops 50% └──▶ YOU NOTICE HERE (too late)
The client was unhappy for months. They were professional, fulfilled obligations, work continued. But their enthusiasm waned. And you had no warning—if you were only watching revenue.
What Client Health Actually Measures
Building a Health Score
A useful score combines objective and subjective signals:
- Days since last interaction
- Project health across portfolio
- Response time to comms
- Number of active contacts
- Account owner's gut feel
- Stakeholder satisfaction
- Risk flags from project teams
- Expansion potential
Neither type is sufficient alone. Objective signals miss nuance. Subjective miss patterns. Together, they give you early warning.
From Monitoring to Action
| Health | What It Means | Action |
|---|---|---|
| ● Green | Relationship strong | Maintain rhythm, look for expansion |
| ● Yellow | Something's off | Investigate. Schedule relationship check-in. |
| ● Red | At risk | Partner-level attention. Honest conversation. Possibly a reset. |
The goal isn't to never have yellow or red clients. Relationships fluctuate. The goal is to catch declines early, when intervention is still possible.
Continuous, Not Periodic
Too slow. By the time you review, the problem has compounded for 3 months.
Living score that updates as signals change. Score drops → right person notified → investigate → act. The quarterly review becomes confirmation, not discovery.
Revenue tells you where you've been. Health tells you where you're going. Firms that manage leading indicators grow faster and retain better—not because they're better at consulting, but because they catch problems earlier and respond faster.