A Modern Parable for Managers: The Three Envelopes

Today I wanted to share a parable that every young manager should read: the story of The Three Envelopes.  I’ve heard multiple versions, but basically, it goes like this…

The Three Envelopes

Once upon a time, a young entrepreneur was brought in by the board of a company to replace an outgoing CEO.  The company was in trouble and all hopes were resting on the talent of this young man to set the company on the right path.

As the former CEO was on his way out, he handed his replacement three numbered envelopes and said, “When times get tough and you don’t know what to do, open an envelope.”  The young CEO thanked his predecessor, moved in and got to work.

A few months later, the company was still not growing like the board wanted.  Sales were lagging and expenses were running higher than ever.  The CEO was working hard, but just didn’t seem to be able to make the progress he had expected.

Exhausted, the young CEO remembered the three envelopes and decided to open the first one.  Inside, there was a note from his predecessor that said, “BLAME ME” with a list of all of the bad decisions the former CEO had made.  The young man immediately reversed all of the poor deals then held a press conference and explained how he was “righting the ship” by fixing all the mistakes of the past.

After that, things got a little better, but a year or so later, they eventually turned sour and the CEO found himself thinking about the envelopes again.

This time, the note inside said, “BLAME MY STAFF” with a list of the weaknesses of each member of the former CEO’s staff.  This time, the young CEO did a mass-reorganization of the company and fired most of the old staff, sure that this was the fix that the company needed.

But, in time, the young CEO found that his new staff was no better (or worse) than the staff he had fired or shifted around.  The company was still loosing ground compared to its competitors and the board was not happy.

A few years had gone by since he took over as CEO of the company.  The young CEO didn’t feel so young any longer and his hair was turning gray from worry.  In desperation, he finally decided it was time to open the third envelope.

The note inside read simply, “Prepare three envelopes…”

There are a lot of good messages here.  The main point I like to take away from this story is:  As a manager, you can blame everyone you want.  But at some point, you’ve got to blame yourself too.

If you want some practical advice, get a mirror, mount it behind your door, then put a sticker in one corner that says, “No Excuses.”  In another corner, place another sticker that says, “The buck stops here.”  If there are things amiss in your company, don’t blame others.  Blame yourself first, then take action.

What message do you get from this story?

photo credit, praeerica