Mark Hussey: Hey Kevin, I’m going to add one thing to what John said, which is well articulated. And that is the change we made in our incentive plan in 2022, which for the first time broke out part of the bonus compensation to be tied to margin and improvement. And so, it’s changed to some degree the culture around, pricing around contribution margins and just the tightening up of the business in many different areas. And that is a tailwind that I think will benefit us as we come into the year. That really is not clearly reflected in what John said. So we think that gives us great confidence in our ability to achieve our EBITDA margin guidance.
Kevin Steinke: Okay. Great. Thank you. I just also wanted to ask about — I’m sorry if I missed it earlier, but is there — is this a significant spike in the utilization rate on the consulting site in the fourth quarter and you called out there an improvement in utilization being a driver of margin expansion this year. It looks like Digital still has room to come up, but just what kind of led to that spike on the consulting side? And does that kind of more normalize in the 70s, or is that rate more sustainable?
John Kelly: So that spike that you saw in the fourth quarter really came from two primary areas, they came from our performance improvement consulting area within healthcare and then from the financial advisory area really across the business. So that’s what really drove it. I think from a longer-term perspective, it’s probably reasonable to think about it, on the consulting side is more in the upper 70s. The reality is though we weren’t operating there the full year. So we’re looking at the opportunity to expand margins on a full year basis that remains a significant opportunity for us. On the Digital side, the US utilization on the Digital team was actually in the upper-70s during the fourth quarter. And the overall metric was brought lower by our global resources and particularly kind of at the more junior levels there.
And what that reflects is the investments we’ve been making in the back half of the year. So we’ve been onboarding, a significant number of junior consultants in our global operations that we expect to become big enablers of margin expansion in 2023, but it was a little bit of a headwind to the metric and to margins in 2022.
Kevin Steinke: Okay. Great. And then, just lastly I wanted to ask about pricing. And I know there’s, been some inflationary headwinds in terms of compensation but, just your ability to mitigate that with price increases? And is that also a factor in your ability to improve margins going forward?
John Kelly: Yeah. Kevin, it’s John again. From an inflation perspective, I’d say, we saw the most pressure in 2021. And I think that that began to normalize throughout 2022. And we expect that to continue into 2023, even with some of the pressure that we saw in 2021 and residual pressure thereafter we have been successful at passing that through in terms of our rates and our projects. So we feel good about that. I think some of the challenges we had in 2021 and earlier in 2022 was really just sometimes the timing lag between, client pricing and the labor impact. But I think that we’re expecting that to be from an inflationary perspective more of a neutral in 2023. If you look at that margin guide and you look towards the upper-end, I think there is opportunity from a pricing perspective even beyond, kind of the inflation aspect of things and that’s something that we’re working on and where we think that there’s potential for upside.
And if we look back at the end of the year, we were able to deliver more at the upper-end of that range. I get a feeling pricing, would be something that contributed to that improvement.
