I’ve been thinking a lot about regression to the mean.
When I first joined my current firm in 2018, business was solid. But over the next three years—including through COVID—business boomed. Staff grew by 50%, revenue doubled, bonuses were big.
And then—things slowed down.
It wasn’t as if thing went into a tailspin, but it wasn’t anything like the crazy growth we had been seeing.
What had happened?
There are reasons to offer, of course, but the biggest reason of all might be regression to the mean.
It doesn’t feel very insightful to suggest that a statistical reality played a role in taming our wild upward trajectory…but it may be pretty realistic.
Taylor Coe 