After a high –level firing at Supertech, the top executives gathered for lunch to welcome the new Chief Executive Officer, Carl Martin, and say good-bye to the departing CEO, Dick Jackson.
Lunch was pretty well over when Jackson took his replacement aside and said: “Carl, it’s a jungle out there in the business world. If we graduate of Harvard Business School don’t stick up for one anther, who will? Nobody, that’s who.”
Jackson explained that a tradition the company’s CEOs had. The departing CEO left three numbered envelopes for the new CEO. He handed Martin three envelopes. “Open one if there’s a problem you can’t solve.”
Things went smoothly for Martin at first, but six months later sales took a downturn, and he was catching a lot of heat. At his wit’s end, he remembered the envelopes. He took from his desk the first envelope. The message read, “Blame your predecessor.”
Martin held a press conference and tactfully laid the blame at the feet of the previous CEO. The press—and Wall Street—reacted positively, sales picked up, and the problem was soon behind him.
A year later, the company was again experiencing a dip in sales, combined with serious product problems. The CEO opened the second envelope. The message read, “Recognize.”
This he did, and the company quickly rebounded.
After several consecutive profitable quarters, the company once again fell on difficult times. The CEO went to his office, closed the door and opened the third envelope. The meager read, “Prepare three envelopes.”
For Reference
1. They gathered for lunch to welcome the new Chief Executive Officer, Carl Martin, and say good-bye to the departing CEO, Dick Jackson.
2. The departing CEO left three numbered envelopes for the new CEO
3. The message read, “Blame your predecessor.” So, the new CEO held a press conference and tactfully laid the blame at the feet of the previous CEO.
4. The message read, “Recognize.” The new CEO did it, and the company quickly rebounded.
5. The meager said, “Prepare three envelopes.” It implied that it was time for Martin to leave and give three similar envelopes to the next CEO.
