The calculation example
Let’s take a company of twelve people as an example. On average, everyone spends six hours a week in internal meetings. That’s 72 meeting hours, and that’s the denominator. Eighteen of those hours result in a decision specifying the person responsible, the date and the amount. Twelve hours result in a decision with a decision-maker and a date but no amount, so those count as half: six hours. That makes a total of 24 hours with a decision, so the denominator is 72 minus 24, or 48 hours. The ratio is 48 divided by 72, rounded to 0.67. Multiply those 48 hours by your internal hourly rate. At 75 euros per hour, that’s 3,600 euros per week and just over 165,000 euros over 46 working weeks.
Run the numbers with the leadership team of a scale-up at 4 million ARR: twelve people, from VP Sales to Head of Customer Success. Pipeline review, roadmap sync, forecast call: six hours per person per week on average. That makes 72 meeting hours, the denominator. Eighteen hours end in a decision with owner, date and amount. Twelve hours produce an owner and a date but no amount, so they count half: six hours. Together 24 hours with a decision, so the numerator is 72 minus 24, or 48 hours. The ratio is 48 divided by 72, rounded 0.67. Multiply 48 hours by your internal hourly cost. At 90 euros as a placeholder, that is 4,320 euros a week and almost 199,000 euros over 46 working weeks, straight off your runway.
Work it through with a haulier running sixty trucks and twelve people in the office: planners, sales, finance and the workshop manager. Each spends six hours a week in morning briefings, weekly meetings and rate meetings. That is 72 hours, the denominator. Eighteen end in a decision with owner, date and amount. Twelve give owner and date but no amount and count half: six. Together 24 hours with a decision, so the numerator is 72 minus 24: 48. The ratio is 48 divided by 72, rounded 0.67. At 75 euros internal cost per hour as a placeholder, that is 3,600 euros a week and over 165,000 euros across 46 working weeks.
Work it through with a software house of sixteen people. Between stand-ups, sprint reviews, resource planning and account meetings, everyone spends six hours a week in internal meetings. That is 96 meeting hours, the denominator. 24 of those hours end in a decision with an owner, a date and an amount. Another 24 produce an owner and a date but no amount; they count half, so twelve. Together 36 hours with a decision, so the numerator is 96 minus 36, which is 60 hours. The ratio is 60 divided by 96, rounded 0.63. Multiply those 60 hours by your internal hourly cost. With 85 euros as a placeholder that is 5,100 euros a week and over 234,000 euros across 46 working weeks, in hours that appear on no invoice.
Work it through for a machine builder with 180 people. Ten managers, from engineering to service, each spend nine hours a week in project meetings, reviews and planning rounds. That is 90 meeting hours: the denominator. Thirty hours end in a decision with an owner, a date and an amount. Twenty hours produce an owner and a date but no amount, so they count half: ten hours. Together 40 hours with a decision, so the numerator is 90 minus 40, which is 50 hours. The ratio is 50 divided by 90, rounded 0.56. At 95 euros internal hourly cost as a placeholder, that is 4,750 euros a week and over 218,000 euros across 46 working weeks.