Tuesday, November 24, 2009

Meetings are expensive... very expensive

It might not occur to most people, but meetings are expensive, very expensive. I am not talking about room rental, equipment rental, the cost of the tea and the chocolate biscuits that Doris the tea lady brings in to the meeting room (although add this in later if you really want), nope I am in fact talking about the cost of the time wasted in the vast majority of meetings.

Although you may think that meetings are just part and parcel of the way your business operates and therefore should not be subjected to criticism, I must tell you that the cost of most meetings is easily calculated, and absurdly large and underestimated.

Let’s imagine that Mr. Director of company X would like to call an internal meeting to discuss the launch of the company’s wonderful new product. The next afternoon all 50 employees shuffle into the large meeting room to hear the Director talk about the new product. The presentation is quite awful, it is poorly structured, conveys little to no information and does little to clear up uncertainties about what the new product will mean for various employees’ roles.

Let’s imagine that this presentation droned on for an hour, a very reasonable estimate. That was very much a completely wasted hour for each employee in attendance, 50 working hours are now firmly down the drain. If you were even more adventurous with your analysis of this meeting you could try and put a financial costing to it. Assuming that the average per-hour wage of the employees is €30 (very conservative here) that meeting has cost the company €1,500 in potential working hours and has given the audience little or no real value or information.

The lesson to be learnt here is that presentations are often an inappropriate form of communication. The Director could have chosen to send around a Word document in this situation describing the details and consequences of the launch. Or, if the Director was hell bent on making a presentation out of it, he could have at least practised out his presentation several times, been clear on the facts and trimmed the presentation down to a reasonable timeframe.

While this might go unnoticed in internal situations, the same will not be true for external meetings. People don’t like having their time and money wasted, so calculate the value of your next presentation (time x people x average wage per hour) – is it worth it? Have you worked hard enough to deliver real value and information? If not… START WORKING ON IT

3 comments:

Manuel said...

Fair points but your analysis relies on the assumption that the director does not know how to manage time very efficiently (a possible scenario). Another possible scenario is that if the director sends around a word doc (should really be a pdf!) that people may go, ah here this can't be that important, not wasting my time with this.

Though I would agree that time mismanagement is most likely one of the greatest risks facing most companies these days.

Ed said...

Well of course I have made certain assumptions, I am obviously only reffering to those who can't conduct meetings in a timely manner.

This post is for them!

sHaH said...

Very informative discussion and i learn more. Thanks for sharing dear.