Shopify’s Meeting Cost Calculator: Transforming Meeting Culture for Efficiency and Savings
Meetings are a very common aspect of corporate life, whether they occur in person or virtually through various applications. Some meetings are indispensable, addressing significant issues and facilitating rapid communication. However, others tend to follow routine patterns, discussing matters that could be effectively conveyed via email, eliminating the need for employees to assemble physically or virtually. This can lead to time wastage and a decline in overall productivity. While this awareness has always been present, efforts to curtail unnecessary routine meetings were not significantly undertaken until recent times.
In early July 2023, Shopify, a Canadian e-commerce firm employing over 11,000 people worldwide, unveiled its Meeting Cost Calculator as an internal initiative aimed at promoting less congested schedules and reducing unnecessary meetings. The objective was to illustrate to employees the actual expenses incurred when numerous participants attend a meeting instead of resorting to a straightforward email exchange. This tool is available as a Chrome extension that is linked to an employees’ calendar app. It calculates meeting costs based on factors like the number of participants, meeting duration, and average compensation rates based on the roles of participants. The chief operating officer Kaz Nejatian developed the program.
According to an internal communication note shared by Shopify with CNN, a typical half-hour meeting involving three company employees incurs expenses ranging from $700 to $1600. Based on the company’s calculations, if each individual cancels just three meetings per week, it could lead to a 15% reduction in the company’s overall costs. The example calendar shared with the Fortune showed $2,115 as estimated cost of the meeting invite which included seven participants including two C-suit executives – Kaz and Tobi Lutke, the CEO.
Sources indicate that in January 2023, Shopify initiated its efforts to minimise regularly scheduled meetings involving three or more employees. They also introduced meeting-free Wednesdays and limited extensive meetings involving over 50 participants to a six-hour window on Thursdays. However, these initial measures proved inadequate.
In their internal communication, Shopify emphasised the value of time by stating, “Time is money, and it should be spent on helping our merchants succeed or having fun – meetings frequently do neither”. While the tool quantifies costs in monetary terms, Shopify’s primary focus is on the importance to reassess how time is utilised. The company expressed, “The meeting cost calculator is here to challenge the status quo, nudging us to reconsider meeting necessity and explore more creative collaboration methods.”
5 Strategies To Reduce Meetings
Implementing certain strategies can help organisations reduce the number of meetings, making each one count. This proactive approach not only enhances overall productivity but also fosters a corporate culture where time is valued as a precious resource, allocated thoughtfully to activities that genuinely contribute to success.
1. Implement Clear Meeting Policies: Establish strict guidelines for when and why meetings are necessary. Require organisers to provide clear agendas and objectives before scheduling a meeting. Encourage organisers to question whether a meeting is the most effective way to achieve their goals.
2. Use Technology Wisely: Leverage collaboration tools, project management software, and communication platforms to streamline information sharing and project updates. These tools can reduce the need for status meetings and provide a centralised space for team communication.
3. Set Meeting Time Limits: Cap meeting durations to a set time, such as 30 or 45 minutes. This encourages participants to focus on essential topics and avoid unnecessary discussions, ultimately increasing productivity.
4. Conduct Stand-Up Meetings: Standing meetings tend to be shorter and more focused. Consider adopting stand-up or walking meetings for quick status updates or brainstorming sessions to keep participants engaged and efficient.
5. Regularly Review Meeting Effectiveness: Periodically evaluate the necessity and productivity of recurring meetings. If a meeting consistently doesn’t yield valuable outcomes, consider discontinuing it or finding alternative ways to achieve its goals.
In conclusion, Shopify’s Meeting Cost Calendar has spurred a necessary shift in the approach to meetings. By adopting these strategies and reimagining the role of meetings in work lives, organisations can enhance productivity, foster a culture of efficient time management, and ultimately achieve greater success in their ventures. Time, after all, is a valuable currency, best spent on endeavours that truly matter.
