Sales Modelling: Double Pyramids

Update 22 May 2020
Refresher based on my experience working back in the office. Double pyramids basically two explain a contradictory concept, e.g Food vs Environment, Capitalism vs Justice. Although its not entirely correct it can explain the connection of Project vs Resources or Sales vs Profit. We must focus on Project and we must focus on Sales.

Imagine we have an office of consultant. One day we would like to measure the performance of the consultant.

First Test: Technical Test e.g CFA/TOEFL/IELTS test, the result would be distributed in normal Gauss distribution. Some of consultant is very smart, some of consultant is so so. In average it represent normal distribution, just like IQ. So it is like 68% is medium, 22% is low and 10% is high

Second Test: Revenue measurement, the result would be distributed in Pareto distribution. 20% of consultant generated 80% revenue of the firm. Power Law or Pareto Distribution. Variable Invariance

I start to realized that as mention by Juran which named after Vilfredo Pareto that “80% of your sales come from 20% of your clients”. So I am making simple model how a sales person should work in the consulting firm, which would follow this distribution principles.

“IQ is distributed gaussian, but income/wealth are distributed as a power law (pareto)”

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