Riding the wrong wave: Organizational failure as a failed turnaround

This article proposes that a failing organization goes through a sequence of four stages before finally landing in the morass of death. A four-stage model is proposed to describe this journey, which can lead to failure or to turnaround. By categorizing the elements of failure or turnaround, the model explains how the elements germane to each stage, when combined, facilitate the progression of an organization from crippling deterioration in performance to eventual death or to re-stabilizing survival. To support our contention, we focus on the Canadian retail industry, and specifically on the story of the once very successful but now extinct merchandising icon T. Eaton Co. Ltd., contrasting its fortunes with those of fellow Canadian retail survivors Hudson's Bay Company and Canadian Tire.