The Parable of the 3 Blacksmiths


During a time long ago and in a kingdom far away, there once lived three blacksmiths.

All three blacksmiths worked under their lordship, Sir Tuda.

Sir Tuda was a benevolent lord. He wanted his blacksmiths to be as productive as possible, both so they and the kingdom could prosper.

Sir Tuda knew the old adage  – “a kingdom is never better than its blacksmiths” – and he took it to heart.

Unfortunately, Sir Tuda was not schooled in public policy, so instead of issuing a proclamation on his own, he wisely approached his top blacksmiths and asked them how to increase production.

“Tell me what you need from me, and I will make it so,” he told the blacksmiths.

The first blacksmith said: “I need autonomy! If you give me the freedom to run my shop the way I desire, I will increase production!”

Sir Tuda said: “Well then it is so.”

The second blacksmith, wanting to outdo the first blacksmith, said: “I need autonomy too! But I also need a board of directors to guide me!”

Sir Tuda said: “Well then it is so.”

The third blacksmith was actually not yet a full blacksmith. She was only an apprentice and she would not have even been invited to this meeting but for the fact that her boss was sick with the plague.

She like both of the requests that had already been mentioned, but what she really wanted was to start her own blacksmith shop.

So she said: “I want autonomy! And I want a board of directors to guide me! But I also want a charter to open up my own blacksmith shop!”

Sir Tuda said: “Well then it is so.”

Five years then passed and much changed, including the death of Sir Tuda, who was killed by the Kingdom of the Strategic Inconsistency, which had a long history of invading kingdoms, even those run by great lords.

So what happened to our blacksmiths?

The first blacksmith, who had asked for autonomy, did see a spike in production for two years, but when Sir Tuda died, the new Lord took away the autonomy and production decreased back to its previous levels.

The second blacksmith, who asked for autonomy and a board of directors, increased his production a modest but statistically significant amount; moreover, his board of directors protected him from the new Lord, so he was able to maintain his production increase.

The third blacksmith, who asked to be able to start a new blacksmith shop, gain autonomy, and be overseen by a board of directors, saw her production skyrocket. The young blacksmith had been experimenting with a new innovative method of blacksmithing, and it was only once she got her  own shop that he was able to implement his new method. And, like the second blacksmith, her board of directors protected her from the new Lord’s top-down blacksmith policies.

Lastly, and oddly enough, the new Lord kept on trying to prevent the third blacksmith from expanding even though her shop was so successful. The new Lord kept on muttering, “you’re stealing from me” even though all the blacksmith shops equally benefited the health of the kingdom.

But, by organizing and mobilizing her consumers, the third blacksmith was able eventually open up ten more highly effective blacksmith shops, which made the kingdom the number one in production in the world, even surpassing the Kingdom of Finland (I swear it’s true).

Wise readers will see the moral of this story.

Blacksmith autonomy is useful but fleeting.

Blacksmith autonomy coupled with non-profit governance will lead to modest but important improvements.

Blacksmith autonomy coupled with non-profit governance coupled with entrepreneurship can transform the kingdom.

3 thoughts on “The Parable of the 3 Blacksmiths

  1. JC

    Why did you insert the words “non-profit” before governance? There was no indication the blacksmiths weren’t making money or motivated to do so. Why do you (or the parable writer) believe non-profit governance is better than for-profit governance? The are exceptional examples of both on a good and bad basis. Even as it relates to schooling I’d suggest the word “good” instead of “non-profit”. If we are measuring anything it should be outcomes and cost.


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