It costs money to hold a meeting.
These "meeting costs" are seldom measured. (Heaven forbid!) |
The basic formula for meeting costs is:
The sum of the cost for each person.
- SUM [Hourly Ratex * Time in meetingy.]
- Hourly rate = Annual salary divided by 2000 (40 hours per week for 50 weeks)
Example - a one-hour meeting
| Attendee |
Hourly
rate** |
Arrival
time |
Departure
time |
Basic
Cost |
Comment |
| Person-A |
$40 |
9:30 |
11:15 |
$70.00 |
Office assistant arrives early to setup for the meeting |
| Person-B |
$70 |
9:45 |
11:15 |
$105.00 |
Meeting facilitator |
| Person-C |
$100 |
9:58 |
10:58 |
$100.00 |
Manufacturing manager |
| Person-D |
$80 |
9:55 |
11:00 |
$86.67 |
Shop supervisor |
| Person-E |
$120 |
10:00 |
11:00 |
$120.00 |
Software engineer |
| Person-F |
$180 |
10:08 |
10:58 |
$150.00 |
Project Manager |
| Person-G |
$320 |
9:45 |
10:15 |
$480.00 |
Visiting technical consultant |
| Total |
$1,111.67 |
Even if you do not count the outside consultant (as that cost is budgeted elsewhere), this one meeting costs over $500. If you doubled the number of attendees, the cost would be about twice that. And if there are lots of meetings scheduled every day .... |
| ** |
Hourly rates are "burdened" rates,
i.e., base salary rate
plus prorated cost of providing employee benefits, payroll taxes, office facilities, administrative costs, etc.
(For this illustration, the burdened rate is assumed to be twice the base rate.) |
A more complete formula includes terms for such things as:
- meeting preparation time,
- meeting materials,
- cost of meeting room,
- travel expenses, and, of course,
- the hour-rates for the people while they are traveling to and from the meeting.
As you can see, meeting costs can add up quickly. And, while they are a necessary part of doing business, they need to be managed prudently.
| 1. |
Does everyone understand why the meeting is being held?
-- To inform?
-- To exchange information?
-- To decide?
|
| 2. |
Is the style of the meeting known to all?
-- A presentation to subordinates
-- A presentation to superiors (e.g., status)
-- A working team meeting (What is the goal for today?)
|
| 3. |
Was an agenda published?
|
| 4. |
Are all of the required people invited?
|
| 5. |
Have the invitees been limited to those needed?
|
| 6. |
Does everyone arrive such that the meeting can start on time?
|
| 7. |
Does everyone come prepared?
|
| 8. |
Does everyone participate?
|
| 9. |
Does the meeting stay on track?
|
| 10. |
Does the meeting end on time?
(e.g.,to enable the next scheduled group to use the meeting facilities.)
|
|
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