The former CEO of a Fortune 100 company meets with the in-coming CEO who is young and energetic. The new CEO is glad for the meeting as he has lots of questions. But the former CEO says, "Look. You are going to find you will have some really rough times now and again. When you do, just open one of these envelopes." He then presents the new CEO with three white envelopes marked #1, #2, and #3. "But you must remember that you need to open them in numerical order and only when things get really bad at the company." He then wishes the new CEO good luck and strolls out the door.
So the new CEO places them in the top drawer of the desk and starts to work advancing the company. For the better part of two years, things are going great. But suddenly, the company isn't showing as great a profit and the stock holders start to grumble. Articles are written in the Journal and the CEO is now struggling. Just before the Board of Directors meeting for the 2nd quarter, he's thinking about what to do. Opening the top drawer, he sees the envelopes. At his wit's end, he pulls out the one marked #1 and opens it. Inside a a singe sheet of paper that has a printed statement on it that reads: "Blame the prior CEO."
The next day, the CEO goes into the BOD meeting and emphatically blames the prior CEO. The members of the Board nod their heads, articles are written with this quote and things stabilize. The company shows growth and things are right again.
About two years later, there is a slump in the economy and the company starts to waver once more. This time, the CEO recalls quickly the envelopes and opens up the one marked #2. Again he finds a single sheet of white paper that has a printed statement on it that reads: "Blame the economy." With confidence, he goes into the press conference that has been called for the next day and he blames the economy in strong language. Once again, the company stabilizes and growth and productivity is seen.
Approximately 18 months later, the company is again struggling with poor earnings and upset within the investor ranks. Again he goes to the top drawer and pulls out the envelope marked #3. Opening it, he finds another sheet of paper with the statement: "Prepare three envelopes."
[Reply]
