The Ambiguous Memo
A manager sends the following memo to her team: "Due to budget constraints, we need to cut travel expenses by 20% next quarter. Please limit all non-essential travel. Essential travel must be approved by me in advance. Also, remember that client meetings are our top priority, but we must also cut costs. I trust you to make the right decisions." The team has three members: Alex, who has a crucial client meeting in another city that could bring in $500,000 in revenue; Blake, who has a scheduled internal training session that costs $2,000 to attend but is not mandatory; and Casey, who has a recurring weekly meeting with a local client that could be done via video conference. The current quarterly travel budget is $50,000. The team must decide how to allocate the 20% cut.
1. Identify the ambiguities in the manager's memo. What are the potential conflicting instructions?
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Ambiguities: 1) "Non-essential" is not defined. What counts as essential? 2) "Client meetings are our top priority" conflicts with "cut travel expenses by 20%" because client meetings may require travel. 3) "Essential travel must be approved by me in advance" but the manager also says "I trust you to make the right decisions," which could imply team autonomy. 4) The 20% cut is a specific number, but the instruction to "limit all non-essential travel" is qualitative; it's unclear how to achieve the 20% quantitatively. 5) No guidance on how to handle trade-offs between cost and revenue (e.g., Alex's meeting could bring $500k but costs travel). Conflicting instructions: prioritize client meetings vs. cut costs; approval required vs. trust in team decisions.
2. As a team member, how would you interpret the memo to make decisions about Alex, Blake, and Casey's travel? What additional information would you seek from the manager?
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Interpretation: Alex's client meeting is likely essential because it's a client meeting (top priority) and has high revenue potential. The travel cost is probably justified. Blake's training is non-essential because it's internal, not mandatory, and not client-facing. Casey's meeting can be done remotely, so travel is non-essential. To achieve the 20% cut ($10,000), we could eliminate Blake's $2,000 and Casey's travel (unknown cost, but likely small), but that may not reach $10,000. We might need to cut other travel. Additional information needed: definition of essential travel, the cost of each trip, whether Alex's meeting could be done remotely, the total travel spend breakdown, and whether the 20% cut is a hard target or a guideline. Also, clarify approval process: does Alex need pre-approval? Since the manager said "approved by me in advance," Alex should seek approval. The team should propose a plan and get manager's sign-off.