Employee Contribution

  • By Srihari Prahalad

We have all heard about the 80-20 rule. One of the applications of that rule, is that only a very few employees contribute to the strategy of the firm, while others clock in and clock out. I have always wondered, regression to the mean, is such a non-intuitive concept, but the single most important statistical finding. It's, but, unavoidable, that when a group of people work towards a goal, you will have outliers. The point in context is, whether the mean is closer to the goal or is it closer to the outliers. At S&V, we strive very single day to achieve the shift, even if it's just a few basis points closer to the target.

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