LCD Consulting provides long$-$term IT implementation assistance to large corporate clients.$$ Its model is to deploy a team of consultants to each client; and that team is headed by a supervising consultant who both manages the project and performs billable hands$-$on work as well.

Nan Holt was assigned last year to the Remand account as the supervising consultant on a $4-$year project with six other junior consultants.$$ With planning completed and the project set to begin next week, Nan had come to realize that one team member, Consultant $$A$,$ would hurt the overall effort.$$ Consultant A$$s technical skills were weak and his client interactions were confrontational.$$

Nan knew that she could immediately hire Consultant $$W$$ from a competitor, whereupon Nan would fire Consultant $$A$.$ Consultant $$W$$ had better technical skills, was a team player, and would be much better with the clients.$$ Importantly, there was no doubt that LCD would earn the final year $($Year $4)$ $$125,000$ on$-$time completion bonus from Remand if $"$W$"$ were on board, and would definitely not earn it were $"$A$"$ to stay.