Team Exercise
The Downside of Downsizing
The Situation
A moderate-sized consulting company is going through tough times after losing a major contract. As a result, the leadership team is asking managers to make two budget cut proposals for their departments: a 15 percent budget cut that will likely be implemented, and a 30 percent cut that may be implemented depending on the big picture. One of the managers has come to you for advice. She is new to her position and has little experience to draw from. However, it is obvious to her that 90 percent of her budget is personnel and the other 10 percent is overhead and other fixed costs that really can’t be cut in the short term. The members of her team are as follows:
Tony Jones: white male, 10 years ...
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