Are your meetings draining your bank account?
“I have too many meetings in my calendar,” is a common complaint in the corporate world. Yet even those who complain do not realize the true cost of these meetings. Let us calculate that.
Imagine having 6 people whose time is worth 100 dollars an hour to a 30 min meeting.
The time cost of that meeting is 300 dollars.
Assume your firm targets 20% post tax profitability and the tax rate is 30%.
Then the value out of that meeting has to be 535 dollars. (535*0.7) = 375 is the post tax revenue
(375 – 300)/375 = 20% post tax profit.
So the topic that you are addressing in that meeting has to add at least 535 dollars worth of value.
No wonder Thomas Sowell once said, “The least productive people are usually the ones who are most in favor of holding meetings.”
Think of this before you send out a meeting request to discuss a small topic.
Don’t let meetings be a financial sinkhole for your company.
