The departing CEO left 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.
Egon made a lot of changes, but six months later revenues had still not picked up and was in fact lower than when he was brought in. Egon was catching a lot of heat. Almost at his wit’s end, he suddenly remembered the envelopes. He opened the first one, it said: “Blame your predecessors.” Egon went all out on PR and tactfully laid the blame at the feet of the previous CEO and the previous board. Satisfied with his comments, the press, and Wall Street, responded positively, the stock price went up and the heat was soon off him.
About a year later, the ad revenues had still not picked up, and the company was facing serious backlash. Having learned from his previous experience, the CEO quickly opened the second envelope. The message read, “Blame the staff.” Egon went on a PR overdrive again, railing against his own employees and laying off 80% of his workforce. This reduced his operating expenses significantly and he was soon lauded as a visionary leader.
More quarters passed. The company was in its worst shape ever. Under pressure again, Egon turned to the third envelope.
It said: “Prepare three envelopes.”