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3 Envelopes Of Advice

Mr. Johnson had been chosen by the board of a large software company as CEO. On the first day he took office as CEO, Mr. Johnson received three numbered envelopes and a note from the former CEO. In the note, the former CEO wished his successor good luck in running the company. Furthermore, the former CEO explained that he left these three envelopes containing advice. Each envelope should only be opened in the event of a crisis the company would face for which the current CEO would find himself to resolve. The only condition was that each envelope should be opened according to the numbered sequence. Mr. Johnson thought nothing of the envelopes which he placed in his desk drawer.

After two months in office, Mr. Johnson faced the first crisis. There was a delay in the launching of the company's latest software and as a result, the stockmarket value of the company's shares went down. In desperation, Mr. Johnson took out the envelopes from his desk drawer and opened the envelope marked "1." The note in the envelope said "Blame your predecessor." So, Mr. Johnson called a press conference and subtly blamed his predecessor for the delay. He then went on to assure the media and the public that the newest would be in the market in thirty days. With this said, the crisis died down as the company was able to launch the software which proved to be a big hit. Mr. Johnson was able to keep his job.

After fifteen successive quarters of rising profit, the company then experienced a sudden dip in profits as recession was underway. Again Mr. Johnson took out the envelopes and opened the envelope marked "2." In the envelope was a note that said, "Reorganize." So Mr. Johnson embarked on a downsizing program that cut expenses for the company and restored profitability.

After five years since the recession was over, the company faced the gravest crisis that might put it out of business. A new upstart company was able to introduce into the market a new software that was much much better than the company's current product. As a result, the sales of the current product went down drastically and there were rumors that the company was a target for a hostile takeover. Mr. Johnson opened the last envelope in the hopes of finding a solution to the current crisis. However, the note in the last envelope simply said, "Prepare three envelopes."

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