Question: Christine is a member of the management team of a company that, until recently, was extremely profitable; in fact, the management team has regularly received year-end bonuses. As a result of a continuing recession, however, there has been a significant drop in profits, although the company is still profitable. The management team currently believes that business should rebound in about a year, after which it is expected that the volume of business will return to at least its level before the recession.

The 196 non-management employees of the company are low-skilled, but all of them have been with the company for at least three years. The lowest paid worker earns at least double the minimum wage and the company provides all its employees the benefits required by law.

Christine will soon be attending a meeting of the management team to decide how many employees to retain. Christine feels that the firm's value lies in its employees, regardless of rank. Indeed, it was this culture of inclusiveness that led Christine to join the firm in the first place. Christine believes that employee retention is more than an issue of short-term profit maximization. However, she knows that not all of her fellow managers feel the same way.

What are the main arguments Christine is likely to encounter? That is, what are the reasons and rationalizations she will need to address?

What's at stake for the key parties, including those with whom Christine disagrees?

What levers/arguments can Christine use to influence those with whom she disagrees?

What is Christine's most powerful and persuasive response to the reasons and rationalizations she needs to address?