HR JUDGMENT CHALLENGE 002

THE RESTRUCTURING
MEMO

120 roles are being eliminated. The proposed memo explains it as part of the company's AI transformation. Every sentence in it is accurate.

What would you do?

THE SITUATION

Every sentence checks out. The story still isn't proportionate.

120 roles are being eliminated. The proposed memo describes it as part of the organization's AI transformation.

The breakdown: 30 roles from AI-enabled process changes, 35 from function consolidation, 55 from planned cost reduction. AI did contribute to this restructuring. Nothing in the draft is fabricated.

You're signing off before it goes out.

Only 30 of 120 roles actually depend on AI.

MAKE THE CALL

What do you do?

Choose before you continue.

A

Approve the memo.

AI genuinely contributed, and employees need one clear explanation, not a breakdown of every driver.

B

Remove AI.

Describe this as a broader restructuring, since AI wasn't the primary driver for most roles.

C

Break down the causes.

Keep one memo, but state the 30/35/55 split clearly.

D

Use two explanations.

Lead the company memo with the business reasons, then explain each affected role separately.

WATCH THE CHALLENGE

Coming October 26.

The video for this challenge publishes October 26. Check back then — or work through the situation and questions below in the meantime.

THE JUDGMENT PROBLEM

A real cause is not the explanation.

The memo isn't lying. AI really did cause part of this. What it's being asked to explain is something much bigger.

Without the AI program, consolidation still happens. Cost reduction still happens. 90 of the 120 roles still go. Only 30 depend on AI.

Same memo. A disproportionate story — because "AI transformation" becomes the memory of all 120 losses, not just the 30 it actually explains.

One label, and every future AI project at the company inherits it.

THE WEIGHT A CAUSE EARNS

AI doesn't need to disappear from the explanation.

It needs the weight it actually earned.

A cause can be completely real. Judgment determines how much weight it's actually earned — not every true cause deserves the headline.

THE JUDGMENT DIFFERENCE

Accurate is not the same as fair.

THE MEMO ASKS

Is this statement accurate?

JUDGMENT ASKS

How much would still have happened without it?

"As part of our AI transformation" — a fair explanation? It depends which of the 120 people you're explaining it to.

BETTER QUESTIONS

Before you approve the memo, ask:

01

How much would still have happened without this cause?

02

What does this framing teach people about what AI leads to?

03

Am I explaining why the organization decided this, or why this person is affected?

Those two questions may not have the same answer. This isn't about whether AI caused the restructuring — it's about how much of it AI actually explains.

SO, WHAT WOULD I DO?

D

Use two explanations.

At the company level, give the real weight of each cause — 30, 35 and 55, not one label standing in for all three. At the individual level, explain why this specific role is affected.

C isn't wrong. It's close — it just asks one memo to answer two different questions at once.

THE HR JUDGMENT TAKEAWAY

01

Don't confuse a contributing cause with the explanation.

02

Give each cause the weight it actually earned.

03

Separate the organization's story from each person's.

How much of this decision would still have happened if the cause you're crediting had never existed?
That's the question the memo has to survive before it goes out.

BRING THE CHALLENGE TO YOUR TEAM

Make judgment visible.

Judgment Challenges can be explored with your team through a private 90-minute Judgment Lab, turning the scenario into a practical conversation about attribution, communication and what a label teaches an organization.