Ted insists that communication is important in any relationship, with friends or with company employees. He greets one employee, Debbie, and tries to communicate with her, but she insists that she isn't prepared to talk with him. She asks him to send him his ideas and scurries off. That leaves memos. However, a memo comes out saying that employees must "now use offensive language" instead of "not use offensive language." He shows the memory to Veronica and Linda, and worries that people blindly follow all the company memos. Ted goes to fix the problem, much to Veronica's amusement. However, she notes that she seems to be feeling an emotion because of the memos. Linda tries to pin it down and Veronica admits it reminds her of a memo when she was promoted five years ago, and she was up against a man named Walter Palmer. Her promotion was announced in a memo, but Veronica has always wondered if it was for her or Walter. Linda points out that she's probably feeling guilt, and suggests Veronica talk to Walter.
Ted talks to the HR representative, Janet, who says they won't look into the matter because the company doesn't make mistakes. Ever. She wants to tell people what she really thinks.
At the next meeting, Ted realizes there's a new problem. Phil and Lem never read their memos, so have no idea why people are insulting them. Linda joins in to insult the people insulting them, and Phil wonders what is going on. Linda shows them the memo but Ted insists they're not going to insult people in his meetings.
Veronica goes to the basement with a cake and a jar of herring for Walter. He's glad to see her and is surprised that she's there. Walter admits he regretted mocking her after she got the promotion, and Veronica offers to buy him something. He feels guilty himself and asks to take her out of a drink. Veronica refuses until Walter feels more guilty than ever.
After the meeting, Linda admits that she's happy to hear people speaking their mind. Even Debbie spoke up and presented an idea. Linda thinks that Ted is a control freak and doesn't like the chaos, but she thinks chaos can be a good thing sometime.
Phil and Lem go back and read all their memos. They find the offensive language memo and Lem steps up to the occasion. Phil admits that he isn't able to come up with very good comebacks, and Lem promises to help him.
Ted takes Linda's advice, dressing more casually. Linda isn't impressed and insults him for real. Veronica comes in and admits that her "date" with Walter went horribly. She blames Ted, who questioned memos and brought up her guilt. It turns out that after he lost his promotion, Walter's wife left him and he lost his house. Now he lives in his parents' basement. Veronica felt so guilt she let Walter kiss her and feel her up. Despite that, she still feels guilt. Walter comes over and says he had a great time, and invites her to dinner again. Veronica offers to buy him a boat instead, but he explains that would just make him feel guilty. Veronica reluctantly agrees to go on the date.
When Debbie gets in the elevator with Phil and Lem, Lem coaches Phil in insulting. It doesn't go well.
Ted begins the next meeting about their MRE development project and explains that he's no longer intimidating, and wants to hear everyone's ideas. Phil tries to insult him without much luck. When Linda insults Ted, Ted finally snaps and starts insulting everyone right back. People finally start talking about their feelings and Ted writes everything down.
Veronica finally comes to see Linda and ask for help. She wants Walter to run screaming from her life, because if she drops him, Walter will realize she feels guilty. Linda suggests that she say "futures," "babies," and "commitment" in heavy rotation, and Veronica realizes the terror they can inspire.
Phil decides to create his own insults and creates a mathematical formula. Lem reviews it and makes an improvement or two, and they try it out on a fellow worker. It actually goes pretty well.
Veronica goes to see Walter and drops the three magic words. Unfortunately, she does it randomly but she still manages to startle Walter… until he agrees to have as many babies as she wants.
Ted takes everyone's ideas and ends up with a MRE… 2' square. Veronica stops by and tells Ted that her plan didn't work as planned, but he isn't interested. He goes to find Phil and Lem in the lab. However, they're busy trying their insult formula on workers throughout the company. Unfortunately, Phil insults a water deliveryman and realizes too late he's made a mistake. Ted opens the elevator and finds Phil and Lem soaked in water. As they leave early, Ted says that the insults have to end. He goes to see Janet, but she insists that there's nothing she can do because the company won't make a mistake. Ted suggests they make a new memo to counteract the old policy, and Janet is briefly turned on. Ted sets her back on course and they come up with a plan that will let Veridian change their policy based on a groundswell and feel good about themselves.
Later, the new memo comes out saying that they don't have to swear because of a "groundsmell." Ted admits that he put everything in the MRE because he cared about Linda's opinion. They got one good idea from Debbie: Ethiopian stew shoes. Veronica comes in and Ted tells her that he found her promotion memo, which confirms that Veronica was who they intended to promote all along. She goes to scrape Walter off her shoe, noting he put a hickey on her belly.
Veronica crushes Walter by breaking up with him, but then gives him an above-ground office.
Phil and Lem apologize to the water guy.
Ted thanks Debbie for her work on the MRE and tells her he's open to any ideas she has. When she says they should go out and he can do whatever he wants with her, he beats a hasty exit.