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Admitting the truth right up front is perfect. The other person goes running to the project manager and Wally remains calm and claims this woman is out of her mind. Wally continues to state the obvious and report that his assistant is not producing results. If they do achieve the project, Wally gets at least 50% credit. If it fails, it was her fault. Flawless..........
How does Wally stay employed?
Ask that to PHB. He's the moron who should have figured out that he can't possibly get even one productive minute per day from Wally and should have fired Wally long long ago!