Start Up Blog

The real cost of meetings

Posted in entrepreneurship by Steve Sammartino on June 11, 2010

Why we still have so many of them is beyond me. We know they waste a lot of time. We know they probably cost us more revenue than they generate. So what if we actually tried to quantify the real cost of meetings. Especially those with a cast of thousands, or say 5-10 people. Let me break it down.

Cost of meeting with 10 people in it:

10 people with an average annual salary of $100,000

Total salary of human resources = $1,000,000

Weekly cost of the salaries = $19,231

Cost of $480 an hour. So a 4 hour meeting costs just under $2000 to conduct in pure wages. Not to mention the cost of stuff not getting done while the meeting is happening. Or the cost of another weeks wages while people go away and think about it, before returing next week with the same 10 people to make the final decision.

Here’s an idea. Put the $2000 in the middle of the table (the cost of the meeting in wages). If it finishes in half the time split 50% of the money between the participants. If it finishes in a quarter of that time, split 75% of the funds amonst the participants….

Startupblog says: the best decisions are those that get made. The decisions which have a chance of being wrong so we can cross them off the list. Having expensive meetings just elongates the process. Avoid them where possible.

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3 Responses

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  1. Jussi Pasanen said, on June 11, 2010 at 10:31 am

    Hey Steve, you’ve just brought up a pet hate of mine, unnecessary and unproductive meetings. A couple of things worth looking into:

    Volkside: Reinvent your meetings

    Seth Godin: Getting serious about your meeting problem

    Seth Godin: iPad killer app #2: fixing meetings

    Meeting Ticker

    Meet or Die

    I hope these might help people struggling with their endless meetings…

    Cheers, Jussi

    • Steve Sammartino said, on June 11, 2010 at 12:41 pm

      Actually – Seth really changed my thinking about meetings forever. he’s got some ripper ways to tear these time wasters apart.

      Thanks for sharing Jussi,
      Steve.


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