Chapter 13 – Transformational Leadership Through Effective Internal Communication
13-8
HADWIT
Interoffice Memorandum
Date: December 9, 2013
From: Damon Murillo, CEO, HADWIT
To: Management Team, HADWIT
Subject: Meeting to discuss strategy for temporary cuts
I am writing this memo to ask you to meet with me on Tuesday, December 10, 2013. The
purpose of the meeting is to discuss our current financial situation and the need to take
immediate actions to ensure that we make it through these difficult times.
Cash Flow
We are experiencing the greatest negative cash flows in our history. Profits are down 25%
this quarter and are expected to fall by 50% in the first quarter of 2014. Although these
Necessary Measures
To remain competitive, we have had to reduce our cash outflows to compensate for the
substantial decrease in cash inflows. These cuts, including those of employee benefits and
the closing of our foreign offices, are only temporary. I am fully aware that HADWIT’s
external circumstances, and they will be in effect only until better times inevitably come.
Management’s Commitment
We must stay unified through these difficult times. I understand that many of you are
frustrated with the recent measures I have undertaken to reduce costs. You must,