Henri Fayol as strategist: a nineteenth century corporate turnaround

Abstract

Successful corporate turnarounds occur, thus avoiding liquidation, but historical examples are few. In late nineteenth century France Henri Fayol became managing director (CEO) of a vertically integrated iron and steel firm and made various decisions that retrieved the firm from the brink of liquidation. In examining his career, the competitive nature of the industry, and his decisions, it is suggested that he employed a deliberate and comprehensive corporate strategy to guide the firm toward its objectives. While he developed his theory of management from these experiences and claimed that its application was the primary cause of the turnaround, this paper suggests that there were several other factors at work.