The Largest Cost that Goes Unaccounted

 

The Largest Cost that Goes Unaccounted

                In an entrepreneurship class, you may learn that many entrepreneurs forget to consider their own time as a cost. In the class I was attending, nearly 70% of the aspiring entrepreneurs forgot to account their own time as a cost. This is an important consideration! Never forget your time!

Okay, if you are not an entrepreneur, but a working individual, chances are you’ve been to a meeting. The same concept applies, don’t waste your time (or anyone else’s for that matter).

                I’d argue that in many businesses, the largest unaccounted cost is the cost of meetings. The actual cost and the opportunity costs. When hosting a meeting it is important to consider the cost and compare it to the return on investment. Is the meeting worth it?

·         Meetings are for collaboration, if you’re not collaborating, then don’t have a meeting

o   Meetings are for discussion, don’t have a meeting without discussion

·         Meetings cost actual and opportunity

o   Actual cost is how much the meeting costs, including wages paid for hours and any additional costs like bringing in lunch

o   Opportunity costs include the consumption of resources, both people and places or machines. Think about the last time you were in a worthless meeting and all of the other things you could have gotten done instead!

·         Return on investment

o   Considering the costs

o   Consider the benefits – collaboration

o   Could the collaboration create return on investment? Is it worth it?

o   If yes, then host the meeting!

So, what does a bad (ineffective) meeting look like:

·         Waste of time

·         No results, outcomes, actions

·         No discussion, one person talks, people hold back from stating their truth

What does a good (effective) meeting look like:

·         Collaboration (increase team cohesion)

·         Include the team. If you’re the leader, will you make the decision (leader-centered) or will the team make the decision (team-centered).

o   Use team centered approach when time allows, its better for everyone and will create a better result

·         Get results, outcomes, actions… and assign owners and due dates

o   Go into a meeting with a clear purpose and agenda and share that with meeting members ahead of time

Today’s business:

Face to face or over the phone (Skype, Teams, etc.)? What is most effective?

·         For everyday business between long distance teams, over the phone is fine

·         However, for challenging or high-stakes subjects, where there may be disagreement, in-person meetings are a must (University of Michigan, n.d.)

DON’T LET YOUR MEETING GO UNACCOUNTED FOR!

References

University of Michigan. (n.d.). Guidelines for Discussing Difficult or High-Stakes Topics | CRLT. https://crlt.umich.edu/publinks/generalguidelines