The Value of Time
Back in my Corporate America days, one of the Lead Partners I had the privilege to work with taught me about cost opportunity. It opened my eyes to how I view time and how my schedule can impact others.
Although this is primarily a focus from a business perspective, I believe it has a large impact into our personal time schedules as well.
5 Minutes Late Costs You What?
So here is the basic concept of Cost Opportunity. Your time is valued at some dollar amount, whether you are an hourly employee or a highly billable Partner. Even as a stay-at-home parent, you could legitimately put a value on your time by the hour.
Here’s an example of what running 5 minutes late to a meeting would cost you and the others you are impacting:
The meeting is for 8 Executives who bill out at $500 per hour to their clients. This is time they are responsible for executing and charging on a daily basis. One Executive is running 5 minutes late to the meeting. The other 7 Exec’s are present and ready to start. The 5 minutes is approximately 10% of the meeting time which would flesh out to $50 per executive for that time. So, that 5 minute late start not only set everyone back on their schedules but cost the organization $400 in revenue. Imagine how that magnifies when that happens at 10 minutes late and for several meetings during the day.
Take that example and apply it to your life and job. What is your value assessed at? How does it impact you when someone meets you late or doesn’t show?
Flip that and think about how your running late impacts others time.
It does boil down to respect for others time and acknowledging that their time is valuable (and vice versa), as well as, what the cost impact is to running late.
Next time you think it is not a big deal to show up late for a meeting or to another commitment you have made, think about the cost and value you are giving to the other person.