## Cost of Meetings - Examples

Examples: Cost of Meetings

(For more information on the assumptions used in these calculations see Notes on calculations)

Three examples are give here:

•  Y2K Steering Committee (Health management)

•  Small Marketing company

•  Large Telecommunications company

Example 1: Y2K steering meeting

• 2 consultants

• 2 directors

• 7 VPs

• 1 hour meeting, once per week

(this becomes 1.5 - see note on meeting overheads)
A total of 11 people at a 1 hour meeting once a week means 11 x 1.5 = 16.5 hr

If we assume an average personnel cost of \$100/hr per person, this meeting costs:

• \$ 1650 per meeting hour or \$ 6600 per month or

• \$ 79,200 per year for one meeting per week!

Example 2: Small Marketing Co.

• 2 meetings per day, each day of the week
• 5 people per meeting
• 1 hr per meeting (this becomes 1.5 - see note on meeting overheads)

A total of (2 x 5 x 1.5)  = 15 person-hr consumed by meetings each day

If we assume an average personnel cost of \$80/hr per person this  meeting costs:

• Each day       \$1200
• Each week    \$6,000
• Each month   \$24,000
• Each year      \$288,000

Example 3:  Telecommunications company

• 4+ meetings per day, 5 days per week (somewhere on the campus)
• 6 - 10 people per meeting
• 1.5 hr per meeting

A total of (4 x 6 x 1.5) = 36 hr consumed by meetings each day (excluding preparation and follow-up - and the occasional overhead presentation preparation time!)

If we assume average personnel cost of \$90/hr per person, these meetings cost:

 Each day 36 hr or       \$3,240 Each 5 day week 1800 hr or       \$16,200 Each 4 week month 7,200 hr or       \$64,800 Each year 86,400 hr or       \$777,600 NOTE: For this last example we have assumed only 6 people attend the meeting and have excluded the estimate for time spent preparing for and following up on the meeting! These figures must underestimate the real costs!

Notes on calculations:

We suggest that for each hour attending a meeting, each person will spend an average of at least 30 minutes in preparation for, follow-up or "wind down from" the meeting. Some attendees will spend considerably more.

In the calculations above we have referred to these as ' meeting overheads'.

Having seen these startling figures (for the telecommunications company - three quarters of a million dollars, give or take a few) you may decide it's time to change the situation.

- Is it worth investing one tenth of those costs once, with the expectation of cutting them by one quarter each year? Cutting by one quarter means shaving off 15 minutes from each hour of each meeting - not an excessive claim?
For example, if present meetings costs are \$280,000pa

Invest (one tenth)   \$28,000 this year to

Save (at least one quarter) \$70,000 this year,

\$70,000 next year, and the next...

- Is there a high risk in trying the system to verify the potential savings? (Contact  LGA and let us discuss it with you).