Beyond the Metaphor: The Morphology of Organizational Decline and Turnaround

Abstract

The thesis of this study is that Vladimir Propp’s (1928/2001) theory of the folktale structure not only functions as a morphology of folktales but may also function as a structural, deep-level, model of any process that includes crisis and recovery. We essentially suggest that a corporate decline and turnaround process can also be emplotted into a folktale like structure that supports Propp's theory and thereby helps to uncover the deep level mechanisms governing the process. The developed model describes seven mechanisms that drive the organization from initial strategic harmony to disharmony and further to the construction of a new strategic harmony, thus creating a perspective for the interpretation of longterm organizational decline and turnaround processes. Theoretical and practical implications are offered.