Marking up external costs when a client has the expectation that they are passed on at net.

While it may have been standard industry practice to mark up external costs as a 10% commission (or 11.1% mark up) this is no longer considered standard practice by most marketers and advertisers.

Many advertisers are surprised when they hear that their agency is adding a 10% "commssion" to their external costs. The tell tail sign in the estimate is a figure like $5,555, where $5,000 has been marked up 11.1% to create a 10% margin.
In fact in an age of retainers and project fees the expectation is usually that external costs are passed on at net to the client. That is the cost paid by the agency is the cost charged to the client, with no mark ups, commissions and any discounts or rebates passed to the client.

Many contracts have clauses that clearly state the expected practice is to pass costs on at net, in which case non-compliance is a breach of the contract.

Agencies need to also be careful that this clause can also mean that if an external cost is provided in a quote and the final supplier invoice is less than the original estimate, then the difference should be returned to the client, even if the agency practice is to bill to estimate only.

Author: Darren Woolley

Receiving undeclared kick backs, payments or commissions from "third party" suppliers.

Similar to the below, it is often seen as more insidious by advertisers because it often appears to be an elaborate grab for margin and profit. This practice includes undeclared volume discounts with third party suppliers that encourage the agency to recommend or select one preferred supplier rather than undertaking a tender process. It could also be considered a secret commission.

The other area of concern for advertisers is where companies within a group provide services to each other. As a collective of related bodies corporate, if one negotiates a volume discount on behalf of the group and then marks this up as they pass this on to a member of the group, this may not strictly be a breach of the external costs at net clause, but it is seen by most advertisers as outside the spirit of the relationship as they see that the benefits of the agency being part of a group is not being passed on to them as the client.

Author: Darren Woolley

Billing services provided under a different job even at the clients request.

There are times when a client may request the agency postpone billing or to pre-bill an amount to assist in the management of their budget. But when this extends to providing estimates and invoices for services onto other jobs or accounts, issues can arise.

This extends to the practice of "budget smoothing" where because one project has gone over budget, the client or agency add the excess to another job that is either under budget or has a more flexible budget. While the net result is the same for the advertiser, it defeats the purpose of the accounting process to be an accountable record of the costs and therefore the circumstances of each transaction.

While it might be seen as accommodating the client's needs, or even to do the client a favour in return for a favour in the future, the measure of the ethics of this behaviour is "Would you and the client feel comfortable if it was detected in a financial audit?" Increasingly advertisers are undertaking financial audits for probity and governance purposes.

In the short term it may seem as helping out the client, in the longer term when they have perhaps moved on and the audit detects this practice, it could be seen as suspicious accounting practices.

Author: Darren Woolley

Entering into agreements on the clients behalf without the authority.

Advertising agencies are still called agencies, but few contracts actually bestow the agency with the role of an "agent". Instead, agencies are often classified within contracts as contractors or suppliers with no legal right to enter into contracts or agreements with third parties on behalf of their client without specific written permission.

This means that if the agency enters into an agreement with talent or a film company or a photographer, where the third party supplier supplies a contract, the agency is in breach of the contract if they enter into the agreement on behalf of the advertiser without the specific written permission of the client.

A classic example of this is the standard SPAA agreement. Under the terms of the SPAA agreement the agency does not even have to sign the contract for it to be binding. In fact, just accepting the contract and commissioning the work makes it binding on the agency. Yet the cleint never sees the SPAA agreement. In fatc they are lucky to see the film company quote.

An agency may believe that the approval of the estimate is the permission they need, but if the client is unaware that a contract is being entered into on their behalf how can they provide that permission?

Author: Darren Woolley

Undertaking a tender process while providing an advantage to a preferred participant.

The expectation of most advertisers and their agency contracts state that the agency will procure the services of third party suppliers in a way that provides the best value for money.

Obviously the best value is not just the lowest price; it is also balanced by the less quantifiable attribute of quality.

For many, this would include an agreed process of tender for services over a minimum threshold.
Therefore, when the tender process is either ignored or corrupted through a lack of rigor and integrity to produce the result the agency wants, the client will often feel cheated or manipulated.

While obviously very hard to prove, the suspicion of this behaviour can significantly affect the relationship.

A prime example of this is the practice of "Check quoting" in television production, where the preferred production house is asked to quote and one or two others provide a falacious quote slightly higher to make the preferred quote look acceptable.

What is your experience with regards to agencies procuring third party suppliers? And what processes do you have in place to ensure this is undertaken in a professional and rigorous manner?

Author: Darren Woolley

Advertising agency conduct is governed by both the terms of the agreement with the advertiser and those set out in the law. Both are subject to interpretation and it is normally an interpretation that favours the agency rather than the advertiser.

Over the next five posts I will be desribing the top 5 no nos we have observed in agency / advertiser behaviour in the past year or so.

While this is in no way a legal viewpoint, it is certainly a reflection of the type of behaviour that many advertisers feel is at best "not in the spirit" of the relationship and at worst is seen as blatantly unethical.

Certainly in our experience, these are not wide spread practices, being confined to isolated cases that reflect badly on the industry as a whole.

Irrespective of any legal issues, all of these practices can, and do, have seriously implications on the level of trust between the agency and the advertiser. Without trust the relationship becomes difficult and unproductive with resources devoted to the mistrust rather than the fundamental purpose of the relationship, to produce great advertising!

I would really be interested in your feedback in regards to this behaviour. Is it more wide spread than we believe? What do you think about this behaviour? Have you been confronted by this type and behaviour and how did you deal with it? Let us know.

Author: Darren Woolley

While most agencies and many film companies will tell you that 35 mm is essential, we will briefly take you through the differences between these two formats and the cost implications.

35 mm film

35 mm is considered the optimum film format used for television commercials. The name indicates the size of the area on the film the image is exposed. It is generally considered that the greater the frame size the greater the image quality as there is more image information captured in each frame.

35 mm film is used to shoot most feature films seen at the cinema, but increasingly High Definition Video is becoming more popular (Think Miami Vice, Collateral and Star Wars Episode 1 - 3).

35 mm requires a significant number of specialist crew and the camera equipment is expensive to hire.

16 mm film

16 mm film is suitable for most jobs where 35 mm could be used.

16 mm film also provides nearly double the shot length for the same number of feet of film compared to 35 mm. This and the lower cost means that 16 mm is less than half the price of 35 mm to purchase and process.

Because of this lower cost, 16 mm film is the preferred alternative on jobs where lots of footage is required, such as shooting children, animals and vox pops, or for high speed filming where more film is used to shoot the subject in slow motion.

A 16 mm camera is smaller and lighter than 35 mm and is often used when the cameraman has to physically hold the camera for a length of time, or if the space for shooting is confined.

Generally the cost of hiring a 16 mm camera is half the cost of an equivalent 35 mm camera.

The limitation of 16 mm film is in achieving extreme product close ups and possibly the increased amount of frame float which needs to be removed for visual effect work.

Summary

Film formats are simply that - formats for capturing moving images. Each has its strengths and weaknesses. In the hands of skilled technicians high quality results can be achieved with both of these formats.

The choice of which format depends on the job at hand - the lighting, budget, location and subject matter.

Just as there is no reason to shoot everything on 35 mm, there is no need to shoot everything on 16 mm. A better approach is to select the format that will achieve the results required cost effectively. But increasingly High Definition Video is becoming the best alternative to both 35 mm and 16 mm film.
P3TV provide independent advice and recommendations on the right format for your shoot to ensure a cost effective result without compromising the quality of the final job.

Author: Darren Woolley

Having managed and facilitated a significant number of media and creative agency reviews, it is clear that the agencies that position themselves in the prospective client's mind are ahead of the rest when it comes to new business. But what does it mean to position your agency?
1. Become a brand
During a pitch, the client, due to lack of time, wanted to hold eight credentials meetings in one day. After eight 45-minute meetings, the client had trouble distinguishing one agency from the next. Company names were forgotten. Individual names were forgotten. Instead they resorted to using the physical attributes of members of the agency team. "The tall, bald guy with the stripe shirt, white collar and glasses" became the functional discriminator for one agency. However, one agency, that went on to win the business, had left the client with a clear brand positioning. The client kept referring to them as the "Challengers" because their presentation focused on how they were driven by taking on challenges and winning. Not a bad thing to be remembered for.
2. Consistent is more important than correct
In building and maintaining our database of agencies, we spend many hours talking with agencies about their philosophy, attributes and positioning. Most can spiel off a huge list of attributes but few can clearly articulate a philosophy or positioning. Some have just not spent any time thinking about such things, while others are suffering from analysis paralysis. It is like the agency Christmas card, party invitation and credentials document, everyone has an opinion about what is should be, yet no-one can agree and so there is no focus or single point of positioning. But consistent is more important than unique or correct. In a market category as undifferentiated as advertising, any positioning can be better than no positioning. And it must be a positioning, not simply a functional attribute.
3. Prove your positioning
If you have a positioning for your agency brand, then you need to develop the resources to help prove and substantiate that positioning. To take ownership of that positioning, which will most likely not be unique, you need to develop proof of concept. Do this through the collection of case studies with existing or past clients, through anecdotes and stories and through reference to business and industry trends, theories and developments. This process anchors your agency brand in reality, it is not just a theory or concept you made up one day. While a client can emotionally connect to your positioning, they will need to have proof of concept to justify their choice.
4. Talk to your audience about your brand
Just as the builder has the unfinished home renovation, companies in the communications business can be notoriously bad at communicating. Often agency principals will say that they focus on championing their clients, and that is noble. So here is the solution - make your agency brand one of your clients. Appoint a marketer and then service the business as you would a client. Channel planning is the hot attribute - so look at all the channels that impact your target audience and make sure you have a consistent brand expression in every channel. It makes a powerful argument that you understand brands and channel communications when your number one case study is yourself. Likewise, it is completely undermining when you don't practice what you preach.
5. Have brand champions
It is not just enough to decide on a positioning for your agency brand, you need to actually make it happen. The ideal way to do this is to develop and recruit brand champions within the agency and outside the agency from amongst your clients, the trade media and other industry connectors. These are people who develop and propagate your positioning through the market. Think of them as that elusive and much desired communication channel - WOM (word of mouth). Most advertisers know three agency brands - the one they are with, the one they left and the one they want to work with. Your job is to try and cement your brand into that position.

Author: Darren Woolley

It is amusing when discussing talent fees for television commercials that many in the industry represent these costs as if it is fixed and non negotiable. On top of this you have talent roll over fees of 100% of the original fee sprouted as if they are chiselled in stone.

What are the facts?

What the Union says...

On the Media, Entertainment and Arts Alliance website, you can download a pdf summary sheet for the Equity Rates Summary Sheet 2006 which provides an overview into the rates and conditions for actors appearing in television commercials in Australia.

The minimum rate for an actor is $109 for a four-hour call, which equates to just more than $200 for an eight hour day.

The payment of the hourly rate covers a minimum performance fee only. Any rights to be purchased by the producer are strictly negotiable. Fee levels are largely dictated by the market and an actor's agent will give a better indication of a performer's fee.

This area of work is highly competitive, and many factors influence an actor's decision to perform in a commercial.

Who sets the market rate?

Now, the interesting thing is who in the market sets the fee levels? Is it the actors? Their agents? The casting agents? Or the agency?

It certainly isn't the clients who pay these talent fees, as they are constantly amazed at the rates they are charged.

Naturally the talent agents have a vested interest in obtaining the highest possible fee for their clients as their cut is usually a percentage of the total. Creating an acceptance of higher fees makes it easier for them in the negotiation. Add to this an apparent lack of hard negotiation on the part of the film company and agency, who have no vested interest in the final cost, and there you have the resultant market rate.

Everything is negotiable...

But ultimately this is a negotiation and many actors want the work. Even the Alliance states that the area of work is highly competitive. The best way to get what you want from a talent agent is to have alternatives to your preferred talent.

Any agent that gets a hint that their client is the chosen one will go in hard. If you have more than one string to your bow you are the one that can go in hard and get a much more reasonable cost.

An agent that has to fight for a role for their client is far more considerate than one that knows they have what you want.

Guidelines are a starting point...

The bottom line is that while the Media, Entertainment and Arts Alliance supply guidelines for talent fees, these are negotiable. The issue for advertisers is ensuring your agency is working in your best interests to negotiate terms and rates to meet your needs, not just conform to the guidelines set down for the industry.

P3TV not only monitors and benchmarks the current talent fees being charged, but we also have strategies and processes to ensure you obtain more effective talent negotiations

Author: Darren Woolley

Six years ago when we started assisting clients with their agency selection process we would go to the Internet to find out about which agencies offered what services.

In the end we built our own secure online databases and invited agencies to provide the information we needed as most agency sites and directories were either incomplete or out-of-date.

Today those databases securely hold the essential confidential information of more than 500 advertising providers in Australia.
But if you want to undertake your own search process, here is what you should ook for in an agency web site.

1. Is it informative
There is a lot of information you need to know about an advertising agency before you would appointment them, like what core services they provide and what they outsource, who are they owned by and who are they affiliated with, who is their management team and who are their key personnel, how do they work, what is their philosophy and methodology, who they work for, what work they have done, what results they have achieved and the list goes on.
2. Is it newsworthy
Many agencies send us their credentials documents, which are often out of date within weeks or months. And it is the same with many agency websites. So instead of making the website newsworthy, many are simply tombstones online with either the sort of bland information that never goes out of date or information that is clearly out-of-date.
3. Is it accessible
I am a client in a big organization with many hundreds of PCs using Lotus Notes and an IT department that controls the applications loaded on those PCs. While searching the Internet for agencies that understand multiple channels like the Internet, I come to your site, which uses Flash. Firstly I don't have Flash so I can't see the content you spent some much time and money to create. Or if I do have Flash, I have to wait three, five, ten, fifteen seconds for each page to load. After five or six pages I give up and go on to the next agency website as while you might know about creative animation, you know bugger all about making the internet work for the end user.
4. Does it demonstrate their capabilities
Judging by the content of many agency websites, the core competency is the ability to create a nice TV ad, a funny press ad, or a visually strong poster. But what about strategic thinking, consumer or category research, channel planning, project management, or cost control? Some websites list these capabilities, but if you really want to convince someone that these are core competencies you need proof in the form of case studies, white papers, research papers, anecdotes and testimonials.
5. Is it visible
For an industry that is based on the use of advertising to build brands and sales, few agencies make it easy to find their website unless you know the name of the agency. I am talking here about search visibility. Try searching for "advertising agency" in Australia on any one of the popular search engines. The way you find most agencies is on directories, which will list a fairly comprehensive, but rarely complete list of agencies. The problem with directories is that there is usually very little information, beyond contact details that are often out-of-date or inaccurate.

Author: Darren Woolley

There is a saying that "possession is 9/10 of the law".

If this is the case, who has possession of your brand? Or more specifically, your brand assets?

Many marketers spend millions of dollars building the value of their brand, but spend little time or money ensuring the security of the brand assets.

What are your brand assets?

The brand assets are the visual expressions of your brand - logotypes, fonts, colours, illustrations, images, photography, layouts, designs, corporate identity, packaging and the like.

Each of these elements is an essential part of the brand expressions.

The Nike swoosh and line "Just do it" are as well known as the Cadbury "purple" and the "Glass and a half" illustration. These are valuable assets, which the companies who own them protect vigorously.

Who is holding your assets?

On reviewing many advertisers print processes, we find that brand assets often reside not with the advertiser, or their agency, but with a myriad of suppliers. Printers, packaging companies, design companies, public relation firms all have these brand assets in their possession.

One advertiser had taken steps to consolidate their brand assets with one supplier, only to have to pay that supplier a significant fee when they want a copy of the asset.

In another case, the advertiser's agency had placed all their brand assets with an external supplier, who subsequently went into receivership. The receivers then demanded payment to return those assets.

So how do you manage your brand assets?

With brand assets scattered across many different suppliers, managing the various versions becomes difficult, time consuming and in the case where a wrong version is used, costly. You could lock them away, but brand assets appreciate in value with use, not just time.

There are a number of ways to protect these assets, depending on the number of assets, how often they change and the number of stakeholders that need to access them.

The simplest way is to develop a brand asset kit that is shared with stakeholders and updated, through to an investment in one of the many Asset Management Systems available.

P3Print has the experience and expertise to help you define your brand assets, locate them and develop a system to manage and protect them.

Author: Darren Woolley

Copyright ownership and rights is an increasing issue in business, especially in terms of securing these rights. Yet often advertisers and their agencies often mistake copyright with talent rights fees.

Copyright in Australia is defined by the Copyright Act 1968 and applies to certain types of creations by a person or company, and provides a reward to the "creator" (the author), by way of money, recognition, and control. It requires permission to allow copying or performing in public or future alteration of a "creation".

It Applies to:
* Artworks, eg painting or photo or sculpture.
* Literature eg plays, books, and the spoken word arising there from.
* Music, and any subsequent re-arrangements / adaptations of the original.
* Choreography as in dance, calisthenics, acrobatics
* Theatrical shows - Copyright covers all items, such as the plot, words, music, songs, scenery, costumes, choreography.
* Recordings eg audiotape, cd, video, film. Represents several copyrights, one for the actual recording, others for music, for words or songs, and any physical artistic works.
* Printed versions of literature, music, songs. The book itself (typesetting, layout) is copyright, as well as the "creations" contained within (music, lyrics).
* Computer programs, web pages and designs, etc.
* TV and radio broadcasts.

Therefore, IP clauses within agency / advertiser contracts cover all IP where copyright, trademarks and patents are involved. This includes the tangible materials generated by the agency in developing the idea, through to the final materials such as photographs, typography and design if the print materials and the film, video or the final television commercial. It does not cover the "idea" as no copyright exists in the idea and it does not include the use of talent, such as actors or models.
Why?
Because the performance rights of the performer in the Copyright Act are superseded by industry agreements such as those outlined in the SPAA and MEAA agreements on performer rights.

These rights are negotiated based on media or channel, geography and duration. The Award offers guidelines only and the rate is open to complete negotiation. Therefore advertisers can negotiate the terms they require, including a total buy out coverage such as world-wide, all media and in perpetuity for an agreed amount.

For more information on copyright in Australia go to Australian Copyright Council who have extensive publications on the application of copyright in Australia. We would especially recommend Publication G022 on Performer's Rights.

For more information on talent negotiations and agreements check out this article we did for our e-new bulletin.

Author: Darren Woolley

Print and prepress have changed more in the last ten years than in the previous 150 years. The printing industry continues to evolve at such a rate that it is challenging even the owners of printing businesses. While many will fall, some will prosper.

Here, we will cover what you should be looking for in a print provider today?

We are constantly amazed by the way the print industry attempts to service its customers. It believes you constantly lay awake at night thinking of nothing else but their new eight-color press! When what you should be looking for from your printer is innovative ideas, top line service and quality print that represents your brand values to the customer.

So what does this printer look like? We believe you should be looking for the following three qualities in your approved print supplier.

1. Customer service

2. Established organization

3. Pre press

Customer Service

A great printer should spend time understanding your particular business requirements.

They should respond with a proposal not just a quote.

They should offer ideas and innovations to enhance your communications, not just produce more ink on paper.

Most of all, these people should earn your trust with true problem solving purpose in their business dealings with you. Has the M.D. or C.E.O. ever discussed "your" business with you?

Established Organisation

Look for a printer that has strong business planning, process, systems and procedures.

This organization should be prepared to invest in technology and innovation that helps its customers grow.

It should be prepared to educate its customers on how to work together and not ignore problems you may have with files and applications.

It has to be an organization that has figured you into its planning for the future.

A simple gauge is how much you value them. If you had to change to another printer, for whatever reason, would that be difficult? If the answer is yes, you are on the right track with your current supplier.
Pre-Press

Although a radically changing area, prepress can make or break producing business communications. A great printer should be doing this 'in house' or running full C.T.P. (computer to plate).

Smaller printers may choose strategic alliances with specific pre-press houses, which are fine, but this second supplier arrangement must be accountable. They should be competent at all applications you use in your business, Mac or PC.

The key to great pre-press is how well they assist you in helping them.

Do they have a pre-flight process that picks up mistakes before it is on the press and too late?

Do they offer some form of content management system that allows you to reuse images or files as you wish?

Do they have an education process to help you improve the preparation of files for them?
Around the world companies are evaluating the way they choose and value print suppliers. P3Print can help you choose a great print provider, that not just offers more products, but can offer you more business solutions - a great printer for the future.

Author: Darren Woolley

The objective between two parties entering into any long-term relationship is that both profit from the partnership.

The advertiser: increases sales through growth in their market share utilising effective advertising and marketing strategies.

The advertising agency: selling its knowledge and know-how in delivering these outcomes.

Therefore, the key question is what is a fair price to pay?

Any Remuneration Model must be fair to both parties, otherwise why would the agency do the work? There are varying ways to remunerate the Agency for work performed. One must pick the model that best suits both parties making sure that you achieve the objectives of the advertiser.

You can utilise any of the following or a combination thereof:

Fixed Retainer

With a fixed retainer the agency will ascertain and charge you for a perceived usage of their staff to deliver the work required.

Strength - one charge, consistent.

Weakness - cannot monitor performance and doesn't allow for low workload periods.

% Service Fee Charge

Favoured by primarily Media agencies, you will be charged as a percentage of spend.

Strength - consistent charge and therefore remuneration is in direct relation to spend trends, lower/higher.

Weakness - cannot monitor performance and gives rise to over remunerating for tasks that the agency had little or no input. Can also encourage agency to recommend more expensive options.

Head Hours Charge

You are charged for what you use.

Strength - You pay by project and utilisation and therefore remuneration is directly related to the size and number of tasks performed.

Weakness - Difficult to monitor efficiency and can in fact encourage agency to operate inefficiently to increase revenue.

Combination of the above

A combination approach can be utilised, with a cost effective mixture of fixed fee, variable rate per hour and external costs recharged at net for the service required.

In creating an effective Remuneration Strategy, the advertiser must undertake to achieve a combination of the following:

- No degradation of service and quality of advertising

- Creation of more effective communication strategies

- Lower cost per campaign

- Make the agency accountable for costs

P3Biz has assisted many advertisers to develop remuneration agreements using our benchmark models based on industry surveys and financial modelling.
What remuneration models have people had success with and even what are some of the short comings people have found?

Author: Darren Woolley

In attempts to measure and benchmark the effectiveness of their media planning and buying, many advertisers are using cost per thousand measurements. Some have even used this measure as the basis of their remuneration to their media agency. But how effective is this in determining media efficiency and effectiveness?

Defining the measure

As the name suggests CPM has two variables, cost and audience delivery. Cost is affected by supply and demand, with lower rating and less popular programs (and possible lesser quality environments) being offered at a lower cost by the networks.

Audience delivery is a measure of average viewing levels in thousands. Therefore, it is possible to reach an audience using lower cost and possibly lower quality programs to achieve a lower cost per thousand. But at what cost to the campaign?

Reach and frequency

In this discussion, many advertisers say they have strict reach and frequency objectives to be achieved, including both net or 1+ reach goals and so-called 'effective reach' goals such as 3+, 4+, etc..

But even within these parameters a buy can be planned that delivers this audience reach and frequency but reduces the CPM by up to 50% through the selection of lower cost programs. Off peak and low rating programs can be used to build reach but maintain low CPM by avoiding the premium rates associated with popular programs.

The problem is that this strategy will correspondingly increase your 10+ reach and therefore represents significant media wastage.

CPM based remuneration

Obviously if you are remunerating your media agency on CPM performance there is a huge incentive for them to use this strategy. So while the CPM measure was implemented to encourage greater efficiencies, it ends up providing the agency with the incentive to increase media wastage.

Rather than allowing the agency to provide you with the best possible media solution for your advertising, it provides a contrived and largely flawed measure of media efficiency and effectiveness.

Measuring media efficiency

While some have promoted CPM as a panacea for measuring media efficiency, it provides more limitations to achieving the goal than benefits. Instead, media efficiency should be measured against the media objectives and the market trends.

P3Media, with many years experience and the latest market intelligence can assist in providing process to guarantee the delivery of more effective media planning and buying more cost efficiently.

Author: Darren Woolley

Most marketers tell me that they are incredibly busy. In fact so busy they do not have time to review how to work more effectively with the agency because they are too busy working with the agency.

A bit like that saying "when you are up to your ass in alligators, it is difficult to remember that your initial objective was to drain the swamp."

In the book The Big Moo one of the stories questions "Is bigger better?". The writer argues that big organization have a problem and that is a group of two people need only one meeting to exchange information but fifty people need 1,225 one on one meetings to have a similar exchange. Things slow down.

Marketeers, with so many stakeholder groups seem to have more meetings than anyone else. One marketeer last week, when finally arriving 25 minutes late for a meeting said to me "I have had back to back meetings all day. Haven't even had time for lunch."

The Leading Edge found in their survey that in the United States, 42 percent cited procrastination, 39 percent picked lack of team communication and 35 percent chose ineffective meetings among the top time wasters.

The Ayres Group reports that there is some 25 million meetings take place in corporate America daily. Roughly half that time is wasted. Why so many unproductive meetings?

Among the most common problems with business meetings are that they:

* Try to accomplish too much. You can't do an information dump, solve problems, make decisions, plan for action, etc., all in one short meeting.

* Lack clear objectives and/or organization. If objectives have been identified, the agenda may not properly reflect them. [Not all meetings benefit from an agenda. If problem solving is the objective, for example, the nature of the problem(s) may not be apparent until the group meets, making an agenda premature and possibly a deterrent.] There may not be an established process to allow each person to contribute to meeting the objectives.

* Lack clearly defined roles for participants. Too often team members are asked to carve out valuable time for meetings in which they have no real role. "I talk, you listen" isn't a good format because no one listens. It's BlackBerry® time.

* Minimize differences of opinion and conflict. Emotion is given no place in American business - certainly not in decision making. We don't know how to handle strong emotions, so we suppress them in meetings. We even expect our meeting leaders to suppress them for us. Yet it's emotion that contains the passion and commitment we strive for.

But meetings do not have to be time wasters. Lorraine Pirihi of the Office Organiser provides 9 Ways to Improve Your Time Management by Having Super Productive Meetings

1. Ask yourself, is this meeting really necessary? Do you need a face-face meeting? A phone call, email or conference call might be a better solution.

2. Invite as few people as possible. Only have the necessary participants attend.

3. Have a written agenda with clear objectives. Ensure it is circulated well in advance to those attending. Indicate timeframes allowed to discuss each item.

4. Double check the meeting venue has been organised the day before. If refreshments are supplied include water and fruit. Ensure the meeting area is quiet with no distractions.

5. Start and finish on time. Respect your time and everyone else's.

6. Have an effective chairperson. Unsure who to choose? At the beginning of the meeting count up to three. At three, each participant points to the person they believe will keep the meeting on track.. The person with the most votes is elected.

7. Circulate the minutes within 48 hours. Ensure all actions have the appropriate person written next to them.

8. Stand up and stretch every 30 minutes. It's good for your mind and body.

9. Ensure all mobile phones and pagers are turned off. It's amazing - people have been known to survive without their phones and live to tell the tale.

I know that in almost seven years of consulting, I have only had company regularly set and send an agenda prior to the meeting and stick to it. And it appeared to work effectively for them.

There is another great book on time management called "The time trap", but if only you had enough time to read it.

Author: Darren Woolley