Charlie had just landed the position of CEO of the multinational corporation. The CEO who was stepping down, Harrison, met with him privately and presented him with three envelopes, numbered 1, 2, and 3.
“Open these if you run up against a problem you don’t think you can solve,” the departing CEO said.
The first six months went smoothly for Charlie , but then sales took a massive downturn. Having tried every avenue and catching lots of flak for his company’s poor performance, Charlie decided to open the first envelope.
“Blame your predecessor,” it said, and Charlie immediately called for a press conference where he firmly (but tactfully) highlighted how all the missteps of Harrison were to blame for the company’s current woes. The press and shareholders were satisfied with his comments, the company’s performance picked up soon after, and all was well again.
A year later, an issue in the product department necessitated the recall of millions of stocks, costing the company untold amounts in losses. Charlie went straight to envelope number 2.
It had just the one word this time: “Reorganize.” Which Charlie set about doing immediately, and the company quickly rebounded.
Unfortunately, a couple of years later, an economic downturn saw the company hit rough waters again. Charlie didn’t even bother doing anything else this time, immediately going for envelope number 3.
“Prepare three envelopes.”