Sunday, August 28, 2016
Wins and Payroll
?Nice job by Craig in giving us the update.
I say this all the time, so I'll say it again. Talent is the causative agent to wins. Well, talent plus random variation.
Talent is the causative agent to payroll. Well, talent, plus service time, plus some inefficiency.
So, when you try to correlate wins and payroll, you aren't correlating a cause-and-effect. Indeed, you can't even say that more wins leads to higher payroll, or higher payroll leads to more wins. Both are effects of the main causative agent: talent.
In order to take the next step, you really need to talk about the central point: talent. Then you need to talk about the second important point: service time.
Craig has indeed touched upon these ideas in the past, so, he's well positioned to take these next steps.
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