Friday, October 22, 2010

...can Napoleon Pete survive?

The story of three envelopes is a business classic for dysfunctional organizations. It starts with an incoming 'my way or the highway CEO' replacing a recently fired outgoing CEO.

Pete had just been hired as the new CEO of a large high tech corporation. The CEO who was stepping down met with him privately and presented him with three envelopes number 1, 2 and 3. "Open these if you run up against a problem you don't think you can solve," … “when things get really tough, open these one at a time." the departing CEO said.

Things went along pretty smoothly, but six months later, sales took a downturn and Pete was really catching a lot of heat. About at his wit's end, he remembered the envelopes. He went to his drawer and took out the first envelope. The message read, "Blame your predecessor." Pete called a press conference and tactfully laid the blame at the feet of the previous CEO. He concocts a story that pins the problems on the previous CEO and deftly sidesteps blame for the issue.

Satisfied with his comments, the press -- and Wall Street -- responded positively, sales began to pick up and the problem was soon behind him.

About a year later, the company was again experiencing a dip in sales, combined with serious product problems. Having learned from his previous experience, the CEO quickly opened the second envelope. The message read, "Reorganize!" …. “Blame your coworkers,” it advises. He does, and once again avoids taking the fall for a problem he caused.

This he did well (blaming others), and the company quickly rebounded.

After several consecutive profitable quarters, the company once again fell on difficult times. Pete went to his office, closed the door and opened the third envelope. The message said, "Prepare three envelopes." ...

A person’s character can be neatly judged when we see how they handle mistakes or tough times. We are all human; we all fail. When confronted with that failure, our next move paints a picture of how we handle responsibility and blame. Do you step up and really own the problem, or do you reach for an envelope?

Good people step up. They acknowledge the problem, accept the blame, and work hard to correct the problem. It is a sad commentary on our world today that most people are pleasantly surprised when you do this. While you may not be able to completely rectify the problem, you will earn some measure of respect by taking ownership of the issue. The problem may not be fixed, but your character is intact.

Bad people step away. They look to blame anyone except themselves, and will sacrifice anyone to protect themselves. Blaming predecessors and coworkers will work for a while, but you will eventually run out of envelopes. The problems remain, but you will not. And your character will be irreparably tarnished….or your nose will continue to grow like someone I (thought) I used to know…..

Sales drive the company mister!....not a predecessor on paper.

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