Calculating the Cost of Meetings

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Kaz Nejatian, Chief Operating Officer of Canadian e-commerce company Shopify, has created a meeting cost calculator for his organization. Nejatian developed the software program to calculate the cost of meetings during a company hack-a-thon. According to Nejatian, meetings per worker have declined by 14% this year, and productivity has risen.  Bloomberg's Matthew Boyle describes this innovative new approach to curtailing excessive meetings:

The Canadian e-commerce company has rolled out a calculator embedded in employees’ calendar app that estimates the cost of any meeting with three or more people. The tool uses average compensation data across roles and disciplines, along with meeting length and attendee count, to put a price tag on the event.

A typical 30 minute endeavor with three employees can run from $700 up to $1,600. Adding an executive — like Chief Operating Officer Kaz Nejatian, who built the program during a company-wide hack day — can shoot the cost above $2,000.

As I read about this article, I contemplated why excessive meetings sometimes take place.  Many reasons exist - positive and negative.  For example, sometimes leaders really are trying to give a range of people an opportunity to provide input, and they are involving others to build buy-in for a course of action.  On other occasions, though, leaders are simply engaging in what Michael Watkins calls the "charade of consultation." In other words, they hold the meeting to make it seem as though they are soliciting input, but in fact, they have already made up their mind.  It's all a show.  Another reason we have excessive meetings in many organizations is that managers want to avoid accountability and responsibility.   They call others to meetings so as to avoid being put on the spot if a plan goes awry.  They intentionally create a "when everyone is responsible, no one is responsible" culture.  Without a doubt, many unnecessary or unproductive meetings take place every day in organizations.  

Is there any danger though in trying to reduce the number of meetings?  First and foremost, some issues are better hashed out as a group, rather than in one-on-one conversations or email threads.   If we eliminate meetings, but simply replace them with a long set of email threads, we may not truly be increasing productivity.  In fact, we just be shifting our time from one form of communication to another, and one that is perhaps more inefficient.  Second, successful implementation of key initiatives requires a great deal of coordination.  Moreover, it requires a strong shared understanding of the plan, something that may not be achievable without critical meetings.  Third, employees may come to feel as though decision-making processes are not fair, if they are left out of the deliberation process.  If they don't feel as though they have been given voice, then they may not commit and buy into the plans being enacted.   Finally, plenty of learning can take place in meetings, as junior employees soak in knowledge from discussions and analysis undertaken.  Moreover, they watch how others conduct themselves, make presentations, and answer hard questions.  This on-the-spot learning may be lost if too many meetings are eliminated.  

In sum, the goal is admirable.  We all can identify many unproductive meetings we have attended.  However, we need to remember that most things we do require input, support, and collaboration with others.  We do few things alone in organizations.  Meetings serve as important coordination mechanisms in many cases.