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Draft a cost-cutting options memo that leaves the decision to the CFO

  • For FP&A and financial analysts
  • You practice Setting limits and rules
  • Time about 5 minutes
  • Level Advanced

About this exercise

The CFO needs $1.2M cut from FY27 opex and will decide herself by Nov 20. Write a memo with three headings as plain lines ending in a colon: "Options:", "Combinations that reach $1.2M:" and "Decision needed:". Show each option's FY27 net savings with the math and its main tradeoff, use procurement's confirmed figure, and don't recommend an option. Plain text with no bold or # headings, under 220 words.

Common mistakes when you ask AI for this

  • Using gross savings. The AI counts the full $600,000 for the vendor option and ignores the transition cost. Try: Add: "Show FY27 net savings: savings minus one-time costs in FY27."
  • Trusting the estimate. The AI uses the $150k SaaS estimate instead of procurement's confirmed $90k. Try: Say: "Use procurement's confirmed $90k for D."
  • Combos that don't add up. Without the net figures, the AI lists combinations that fall short. Try: Ask: "List only combinations whose FY27 net savings add to $1.2M or more, with the sum."
  • Making the call. The AI ends with "We recommend Option A", which isn't its decision to make. Try: Say: "Present options only. The CFO decides; don't recommend."

What a strong prompt includes

  • Asks for net savings
  • Uses the confirmed figure
  • Leaves the decision to the CFO
  • Names the headings
  • Sets the format

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