Luck is one of five factors that define a salesperson’s success, a concept I introduced in a post discussing why you should assess luck’s influence when interpreting sales results. In this post, I’ll explain how to quantify luck’s influence.
How lucky is my top salesperson? The idea of quantifying luck’s impact on performance is a well-researched area, with contributions from Tom Tango and others. One way to apply these ideas is to gather data on performance across many salespeople, measure the variance and then subtract out the variance you would expect if the results were totally driven by luck.