A CEO is taking over in a large manufacturing plant. The former CEO hands him three envelopes, marked 1, 2, and 3, and tells him each time he gets in over his head to open an envelope.

All is well for about a year, but eventually the bottom drops out. Sales and stocks are down. In fear of losing his job, he opens the first envelope and it says "Blame the previous CEO". He goes to the board and stockholders and explains that the downward trend was due to momentum from the previous administration, and the turnaround point should be soon. It works. With restored confidence from stockholders, things soon turn, and profits are better than ever before.

After another year and a half, things turn downward again. He gets desperate and finally opens the second envelope. It says "Re-structure". He tries it.

He calls in the officers, and re-organizes everything from the ground up.

It works. New worker morale helps cut costs, and increase productivity.

For the next two years, things are better than ever before.

But, of course, cycles come and go, and the next one hits. Things become worse and worse, until in his greatest moment of desperation, he opens the third envelope.

It starts out "Prepare three envelopes..."