I was recently talking with a colleague from an extremely large corporation. We were discussing the relative cost of building smart phone applications. He went on to tell me how much they paid for the app after he gave me a demo on his phone. He then asked the price it should have cost to build it. I told him it should only be cost 5-10% of the price they paid.
Flummoxed he asked some advice on how to get things built for this much lower clip. Here is what I told him - Remove your logo from your business card before you get the quote. He laughed and asked if I was serious. I was very serious.
Sometimes the simplest advice is the hardest to take.
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.