story telling

storytellingAnadvancecopyofaforthcomingarticleinStrategy&Leadership.2005©COPYRIGHTMCBUPLTD:OCTOBER20051MasteringthedisciplineofbusinessnarrativeStephenDenningStephenDenningadvisesorganizationsworldwideonknowledgemanagementandorganizationalstorytelling(www.stevedenning.com).FormerlytheProgramDirector,KnowledgeManagement,attheWorldBank,heistheauthorofALeader’sGuideToStorytelling(Jossey-Bass,2005).(INTRO)Asmoreandmorefirmsgraspthatnarrativeiscentraltoaddressingmanyoftoday’skeyleadershipchallenges—forexample,articulatingtherisksandopportunitiesidentifiedbystrategicmanagementtoolslikestrategicplans,scenarioanalysis,anddilemmaresolution--thequestionbecomes:howisaCEOtomakeeffectiveuseofstorytelling?Whileleadingcompaniesincreasinglyrecognizetheneedtotrainleaderstouseartfulnarrativetoinspireandguidetheirorganizationtorespondeffectivelytothesestrategicchallenges,therealityisthatmostorganizationsneedhelptogetthefullbenefitsofusingstorytelling.ThedisciplineofbusinessnarrativeWhatmostfirmsdon’tknowwhentheyfirstembarkonemployingnarrativeintheirorganizationisthatthereisnosinglerightwaytotellastory.Narrative—alsoknownasstorytelling--comprisesanarrayoftools,eachsuitabletoadifferentbusinesspurpose,assummarizedinFigure1.Understandingthedifferencesbetweenthesepatternsiskeytotheeffectiveuseofstorytelling,andtoavoidingthemostfrequentmistakesthatorganizationsmake.Forinstance:Usingastorywithnegativetonalitywillgenerallyfailtosparkaction.“Burningplatform”stories–forexample,showingthatthecompanyisabouttogobankruptbecauseifitdoesn’tinnovatefaster–won’tbyitselfinspireinnovationintheaudience.Howeverusefulsuchastorymightbetogetpeople’sattentionorshareunderstanding,theyareit’sunlikelytoinspireandmovepeopleintoaction.Bycontrast,aspringboardstory–astorythatcommunicatesacomplexideaandspringspeopleintoaction–ispositiveintone.Suchstoriesareusuallyverybriefandtalkaboutachangethathasalreadyhappened,asintheZambiastorydiscussedbelow.Tellingapersonalnarrativeinthepatternofatraditional,“well-told”story(i.e.astorywithabeginning,amiddleandanend,ahero,aplotandaturningpoint,andalotofcontext)isalsounlikelytoinspirelistenerstoredirecttheiractionsinsupportofarevolutionarycorporategoal.Asuccessstorywilltypicallybeineffectiveatcommunicatingknowledgebecauseitlacksthenitty-grittydetailsofhowthingsactuallygetdoneintheworld.Knowledge-sharingstoriesaretypicallyaboutdifficultiesandtendtobenegativeintone.Futurescenarioscanbehelpfulinexploringalternativefutures.Butunlessthescenariosareilluminatedbynarrativesthatexplainwhyandhowthecompany’soperatingenvironmentwouldchangedrastically,andwhythesesalternativefuturesarebothpossibleandrelevanttoupcomingmanagementdecisions,thescenariosarelikelytobeignored.Masteringtheprinciplesofeffectivebusinessnarrativeisnotparticularlydifficult,butitdoesrequireashiftinmind-setandsometrainingbyspecialists.ThisisbecausemostPublicRelations/CorporateCommunicationsexecutivesandspeechwritershavelittlebackgroundinnarrative.Andfortheirpart,manyexecutivesarebetteratanalyticbusinessskillsthantheyareatusingnarrativeasacommunicationtool.Moreover,thosecompaniesthatarefortunatetohaveanaturalstorytelleratthehelmknowthatit’snotenoughtohaveoneleaderatthetop:inanymajorchangeprogram,leadershipisrequiredofpeopleatmanydifferentlevelsandfunctionsandgeographicalregionsacrossthewholeorganization.Andeventhoseexecutiveswhoarenaturallytalentedatnarrativealsoneedtolearntotargettheirapproachtotheparticularissuefacingthecompany.Todevelopthefullbenefitsofthebusinessnarrative,mostfirmswillinitiallyneedhelp.NarrativesthatsparkactionOneofthemostdifficultchallengesthatleadersfaceisgettingstakeholderbuy-intoafundamentallydifferentwayofdoingthings—anewbusinessmodel,achangeinculture,acriticalstrategicshift.Whileconventionalcommand-and-controlapproachestocommunicatingnewgoalsandnewbehaviorstendtobecounter-productive,springboardstoriesarewelladaptedtothechallenge.TheexamplethatIusemostfrequentlyisstillthestoryIfirsttoldin1996tosparkinterestinknowledgemanagementattheWorldBank.InJune1995,ahealthworkerinalittlevillageinZambiawenttotheWebsiteoftheCenterforDiseaseControlandgottheanswertoaquestionaboutthetreatmentofmalaria.RememberthatthisinZambia,oneofthepoorestcountriesintheworld,andittookplaceinatinyplace600kilometersfromthecapitalcity.Butthemoststrikingthingaboutthispicture,atleastforus,isthattheWorldBankisn’tinit.Despiteourknow-howonallkindsofpoverty-relatedissues,thatknowledgeisn’tavailabletothemillionsofpeoplewhocoulduseit.Imagineifitwere.Thinkwhatanorganizationwecouldbecome.Apparentlyblandanddeceptivelysimpleinform,thisstory,amongothers,helpedWorldBankstaffandmanagersenvisionadifferentkindoffuturefortheorganization,andinduecoursebecomeanacknowledgedworldleaderinknowledgemanagement.1Themostcommonrequestorganizationsmakeishowtomastertheunderlyingnarrativepatternofaspringboardstory,sothattheycansparktransformationalchangeintheirowncorporatesettings.Theprincipaltricktosuccessfullyusingthisnarrativepatternliesintellingthestoryinaminimalistfashion,i.e.withnoneofthesightsandsoundsandsmellsthatanentertainmentstorytellerwouldtypicallydwellon.Thereasonforthisisthatthestorythatistoldismuchlessimportantthanthenewstorythatlistenersimagineforthemselves.Aslistenersenvisionnewnarrativessetintheirowncontexts,theyunwittinglycraftactionplansforimplementationofthechangeprogram.Andbecausethestoriesarethelisteners’own,theytendtofindthembothbelievableandcompelling.Ineffect,theyarealreadyco-creatingthestrategicshift.StoriesthatcommunicatewhoyouareCompaniesarealsodiscoveringthatleaderscanusetheirownstoriestocommunicateimportantmessagestoothers.Forexample,EliLilly’sLillyResearchLaboratories(LRL)hasaprogramentitledInspirationalLeadershipfordirector-levelhigh-potentialleaders:oneofitskeycomponentsisfocusedonLeadershipStorytelling.ItistaughtbyseveralLRLseniorexecutives,alongwithKimBarnes,CEOofBarnes&ContiAssociates.2Makingeffectiveuseofthisnarrativeformmayhoweverentailexecutivesdoingsomethingthatmanywillinitiallyfindbothuncomfortableandcounter-intuitive:talkingabouttheirfailures.AsJackHarris,VPofGlobalmedicaloperationsatEliLilly,andBarnes,explain:“Self-disclosurethroughstorytellingisapowerfulmethodofengagingandinspiringothers.Asarespectedandadmiredleader,astorydisclosingafailurecanhavetheparadoxicaleffectofbuildingtrustandencouragingopenness…Suchadisclosure,toldwithhumorandconfidence,canstimulateadialogueaboutwhatyoucouldhavedonedifferentlyandopensthewayforotherstosharetheirstories.”3UsingnarrativetoenhancethebrandNarrativeisincreasinglyrecognizedascentralinbranding.DouglasHolt,theL’OrealChairofMarketingatOxfordUniversity,says,“Customersbuytheproducttoexperience(the)stories.Theproductissimplyaconduitthroughwhichcustomerscanexperiencethestoriesthatthebrandtells.WhenconsumerssipaCoke,CoronaorSnapple,theyaredrinkingmorethanabeverage.Rather,theyareimbibingidentitymythsanchoredinthesedrinks.Aneffectiveculturalstrategycreatesastoriedproduct,thatis,aproductthathasdistinctivebrandedfeatures(mark,design,etc)throughwhichcustomersexperienceidentitymyths.”4MarkMorris,founderofTheBrandConsultancysays:““Ifyou’reacompanythatunderstandstheroleofbrandnarrativeandacompanythathasadoptedthatparadigm,andarethinkingthatway,thenwhatyou’vereallybecomeisastorytellingorganization.Thestoriesresideinyouremployees,inyourcustomers,inyourvendors–theyallhavedifferentstoriesbecausetheyhavedifferentexperiencesrelativetotheorganization.But,it’sthestoriestheytellthatwillintheenddrivethevalueforthecompany.It’sthestoriesthatdeterminetheoutcome:aretheywillingtoyourproductsandservicesandhowmuchthey’llpayforthem.”5Therecognitionofthecentralityofnarrativetobrandinghowevergenerallyimpliesasignificantshiftinthefunctionofbrandmanagement.Inthepast,thejobofthebrandmanagerhasusuallybeenseenasoneof“adjectiveselection”,inordertooccupythelargestpossible“mindshare”oftheconsumer.Oftenthisactivityhasamountedtolittlemorethanthemanipulationofmeaninglessabstractions.Withthediscoveryofthecentralimportanceofnarrative,theroleofthebrandmanagerbecomesoneofcreating,extendingandcontinuallyreinventingthebrandnarrative,whilemakingsurethatthenarrativeactuallyreflectswhatthecompanyisdelivering.Unlessbrandmanagersbecomedirectlyinvolvedinthecompositionofthebrandnarrative,theydelegatetooutsidersthestrategicdirectionofthebrand.6FirmsliketheBrandConsultancycanhelpexecutivesunderstandandhandlethechallenge.SharingknowledgethroughcompellingstoriesWhereasstoriestosparkactionneedtobepositiveintoneandtoldinaminimalistfashionwithlittlecontext,storiestoshareknowledgeshouldbecrafteddifferently.Becausetheirobjectiveistogenerateunderstandingandnotaction,theytendtohighlightthepitfallsofignorance.Butinfact,theyhavelittletoholdtheinterestofanyoneexceptthoseclosetotheoften-esotericsubjectmatter.Whyaretheycompellingtothislimitedaudience?Becausethestoriesaredrivenforwardbyadetailedexplanationofthecause-and-effectrelationshipbetweenanactionanditsconsequence.TakethisexamplefromJulianOrr’sbookonwhatreallyhappenswhenphotocopyingmachinesarerepaired:You’vegotamalfunctioningcopymachinewithanE053errorcode,whichissupposedtomeanaprobleminthe24-voltInterlockPowerSupply.Butyoucouldchasethesourceofthat24-voltInterlockproblemforever,andyou'dnever,everfindoutwhatitis.Ifyou’reluckyenough,you’lleventuallygetanF066errorcode,whichindicatesthetruesourceofthemalfunction—namely,ashorteddicorotron.Apparently,thisishappeningbecausethecircuitryintheXERboardhasbeenchangedtopreventthedamagethatwouldotherwiseoccurwhenadicorotronshorted.Beforethechangeincircuitry,ashorteddicorotronwouldhavefriedthewholeXERboard.ChangingthecircuitryhaspreventeddamagetotheXERboard,butit’screatedadifferentissue.NowanE053errormessagedoesn’tgiveyouthetruesourceofthemachine’smalfunction.7Thisstory,paraphrasedhere,doesn’tjustdescribethetechnician’saccuratediagnosisofaproblem;italsorelateswhythingshappenedastheydid.Butifyouwanttomakethestoryinterestingtoawideraudience,itneedstobetransformedintoatraditional“well-told”story,withahumanhero,plotandaturningpoint.Generatingsuchnarrativeshowevertakestimeandeffort.“Inmycompany,”saysGaryKlein,ChiefScientistatKleinAssociatesInc.,8“wetrainpeopleformonths.Westartwithworkshopsandexercises,thenusuallyaprojecttocodeinterviewssomeoneelseconducted.Nextthetraineeassistsininterviewsbytakingnotes.Finallythetraineeleadsaninterview,withanexperiencedinterviewerwatching.Conductingausefulinterviewtakesmorethanmerelyfollowingprocedures.Interviewershavetobeabletorecognizewhereinanincidentexpertisecomesintoplay,sotheycanspendmostofthetimeprobingtherightareas.”9TransmittingvaluesthroughnarrativeTransmittingvaluesisachallengeforconventionalmanagementapproaches,sincevaluescommunicatedasabstractionsaretypically“deadonarrival.”Norarenarrativesillustratingeachcorporatevalueindividuallymuchmoresuccessful.Thekeytotheeffectiveuseofnarrativeincommunicatingvaluesliesinnarrativesthatrevealhowtheconflictsofvaluesgetresolved.ModelsforthesestoriescanbefoundintheparablesoftheBible.Butthesamenarrativepatterncanalsobeusedinacorporatecontext.ThusJimSinegal,CEOofCostco,showshow,withataleslikethefollowing,whichexplainshowCostcoresolvesthetensionbetweentwocompetingvalues:servingthecustomerandmakingaprofit.AstoldtoEvelynClarkinAroundtheCorporateCampfire,itgoesasfollows:“WeweresellingCalvinKleinjeansfor$29.99,andweweresellingeverypairwecouldgetourhandson.Onecompetitormatchedourprice,buttheyhadonlyfourorfivepairsineachstore,andwehad500or600pairsontheshelf.WeallofasuddengotourhandsonseveralmillionpairsofCalvinKleinjeansandweboughtthemataverygoodprice.Itmeantthat,withintheconstraintsofourmarkup,whichislimitedto14percentonanyitem,wehadtosellthemfor$22.99.Thatwas$7lowerthanwehadbeensellingeverysinglepairfor.“Ofcourse,weconcludedthatwecouldhavesoldallofthem(aboutfourmillionpairs)forthathigherpricealmostasquicklyaswesoldthemat$22.99,buttherewasnoquestionthatwewouldmarkthemat$22.99becausethat’sourphilosophy.“Iusethatasanexamplebecauseitwouldbesotemptingforabuyertogowiththehigherpriceforaveryquick$28millioninadditionalprofits,butoursdidn’t.That’sanexampleofhowwekeepfaithwiththecustomer.”10TamingthegrapevineAnotherlittle-understooduseofnarrativeistotamethegrapevine,i.e.tosatirizeuntruerumorsorbadnews,thatcanundermineafirm’soraperson’sreputation.BillClintonbecameamasterofthegenre,buthismasterydidn’toccuratbirth.Althoughhepossessedaprodigiousnaturaltalentfortellingstories,healsolearnedvaluablelessonsinusinghumorfromhisconsultant,MarkKatz.ThusClintonlearnedfromKatztocombinehisnaturalinclinationtostickittohispoliticalopponentswithasubtler,self-deprecatoryhumor.Bylaughingathimself,heshowedthathehadmasteredtheissue–ithadn’tmasteredhim.Betteryet,bydeprecatinghimself,heacquiredtherighttodeprecateothers.Forexample,ClintonspentmuchofhispresidencyunderinvestigationforarealestatematterinArkansasknownasWhitewater.Eventually,afteryearsofinvestigationandmanymillionsofdollarsspent,nowrongdoingbyClintonwaseverdiscovered.Howeverduringhispresidency,theWashingtonjournalistshadmade“Whitewater”ahouseholdword.Duringtheordeal,Clintonusedself-deprecatoryhumortoridiculethecriticism:"Iamdelightedtobeheretonight.Andifyoubelievethat,IhavesomelandinnorthwestArkansasI'dliketosellyou."Buthavingtakenhisself-administeredmedicine,Clintonthenclearlysavoredtheopportunitytodeliverabroadsideatthosewhohadspentthelastfewmonthsporingoverhisfinancialrecords:"Idon'twanttoalarmanyofyou,butit'sthreedaysbeforeApril15,andmostofyouhavespentmoretimewithmytaxesthanyourown."Andtheningentlytaunting,singsongvoice,hesaid,"Manyhappyreturns!"11FuturestoriesandscenariosAnimportantpartofaleader’sjobispreparingothersforwhatliesahead.Astorycaninprincipletakelistenersfromwheretheyarenowtowheretheyneedtobe,bygettingthemfamiliarandcomfortablewiththefutureintheirminds.Thepitfallthatexecutivesencounterhereishowdifficultitistocraftacrediblenarrativeaboutthefuturewhenthefutureisunknowable.Scenarios,forinstance,spelloutthelong-termimplicationseitheroftheactivitiesoftheorganizationortheexpectedcontextwithinwhichtheorganizationwillbeoperating.Multiplescenariosareusuallyneededtoreflecttheuncertaintyofthefuture.ThususingthescenariotechniquespioneeredatRoyalDutch/Shell,GlobalBusinessNetwork(GBN)workswithfirmstoevokethedifferentfuturesthatmightunfoldasaresultoftheinterplayofthesedynamictensionsintherapidlyevolvingglobaleconomy.ButGBNalsoplacesgreatimportanceonthestoriesthatcomeoutoftheirscenarioexercises,whichoftenhavemorevalueforcorporateexecutivesthanthescenariosperse.12Thustellingacompellingfuturestoryisinherentlydifficult.Tobesuccessful,afuturestoryneedstologicallyexplainapossiblealternativefuture—onethatisdistinctlydifferentfrombusinessasusual—andconvinceeachmemberofanaudiencetoimaginehowheorshewouldoperategiventhe“newrules”thatwouldgovernsuchabusinessenvironment.LearningtoperformthestoryCraftingtherightstoryishoweveronlyhalfthebattle.Themostperfectlycraftedstorywillbetotallyineffectiveifitisn’tperformedconvincingly.Thenon-verbalaspectsofperformancearecritical–thetoneofvoice,thefacialexpressionandtheaccompanyinggestures.Thewayastoryisperformedcanradicallychangeitsemotionaltoneinthemindofthelistener.Theartofperformingastorytoachieveabusinessresultishoweverquitedifferentfromtellingastoryforthepurposesofentertainment.Fortunatelytheskillcanbeenhancedwithguidedpractice.SaysSethKahan,aconsultantwhohelpsexecutivesandorganizationsimproveperformance:“InmyworkatNASA,Icoachedleadersonhowtotellstoriesthatacceleratepositivechange.Thefirstthingtheseleadersneededtorealizeisthattheirprimarygoalistomakechangehappen,nottobeseenasagoodstoryteller.It'simmaterialwhetherornotlistenersareawarethatastoryisbeingtold,muchlessthattheyadmirethestory.However,thelisteners'reactionsinresponsetothestoryarecritical.Wearelookingforchangesinbehaviorthatalignwiththeleaders'objectives.Whenthathappensyouhaveapowerfulchangeagentequippedwithapowerfultool.”ConclusionInincorporatingstorytellingintotheworldofbusiness,itneedstobekeptsteadilyinmindthatstorytellingisatooltoachievebusinesspurposes,notanendinitself.Whenintroducingstorytelling,therefore,asharpfocusneedstobekeptonthebusinesspurposebeingpursuedwiththetool,aswellasonthedifferentnarrativepatternsassociatedwithdifferentpurposes,asshowninFigure1.Inordertoharnessthefullpowerofstorytellingbychoosingtherightnarrativepatternforaparticularpurposeandperformingitintherightwaytoachieveorganizationaleffectiveness,manyorganizationswillneedhelp.Figure1EightdifferentnarrativepatternsIfyourobjectiveis:Youwillneedastorythat:Intellingit,youwillneedto:Yourstorywillinspiresuchphrasesas:Sparkingaction(springboardstories)Describeshowasuccessfulchangewasimplementedinthepast,butallowslistenerstoimaginehowitmightworkintheirsituation.Avoidexcessivedetailthatwilltaketheaudience’smindoffitsownchallenge.“Justimagine…”“Whatif…”CommunicatingwhoyouareProvidesaudience-engagingdramaandrevealssomestrengthorvulnerabilityfromyourpast.Providemeaningfuldetailsbutalsomakesuretheaudiencehasthetimeandinclinationtohearyourstory.“Ididn’tknowthatabouthim!”“NowIseewhatshe’sdrivingat!”TransmittingvaluesFeelsfamiliartotheaudienceandwillpromptdiscussionabouttheissuesraisedbythevaluebeingpromoted.Usebelievable(thoughperhapshypothetical)charactersandsituations,andneverforgetthatthestorymustbeconsistentwithyourownactions.“That’ssoright!”“Whydon’twedothatallthetime!”Communicatingwhothefirmis-brandingIsusuallytoldbytheproductorserviceitself,orbycustomerword-of-mouthorbyacrediblethirdparty.Besurethatthefirmisactuallydeliveringonthebrandpromise.“Wow!”“I’mgoingtotellmyfriendsaboutthis!”FosteringcollaborationMovinglyrecountsasituationthatlistenershavealsoexperiencedandthatpromptsthemtosharetheirownstoriesaboutthetopic.Ensurethatasetagendadoesn’tsquelchthisswappingofstories—andthatyouhaveanactionplanreadytotaptheenergyunleashedbythisnarrativechainreaction.“ThatremindsmeofthetimethatI…”“Hey,I’vegotastorylikethat.”TamingthegrapevineHighlights,oftenthroughtheuseofgentlehumor,someaspectofarumorthatrevealsittobeuntrueorunreasonable.Avoidthetemptationtobemean-spirited—andbesurethattherumorisindeedfalse!“Nokidding!”“I’dneverthoughtaboutitlikethatbefore!”SharingknowledgeFocusesonmistakesmadeandshows,insomedetail,howtheywerecorrected,withanexplanationofwhythesolutionworked.Solicitalternative—andpossiblybetter—solutions.“TherebutforthegraceofGod…”“Gosh!We’dbetterwatchoutforthatinfuture!”LeadingpeopleintothefutureEvokesthefutureyouwanttocreatewithoutprovidingexcessivedetailthatwillonlyturnouttobewrong.Besureofyourstorytellingskills.(Otherwise,useastoryinwhichthepastcanserveasaspringboardtothefuture.)“Whendowestart?”“Let’sdoit!”1Denning,S.:TheSpringboard:HowStorytellingIgnitesActioninKnowledge-EraOrganizations(Boston:Butterworth-Heinemann,2000).2JackHarris,M.D.isVPofGlobalmedicaloperationsatEliLillyandCo.Dr.Jack@lilly.com.KimBarnesisCEOofBarnes&ContiAssociates,aleadershipandODfirmandauthorofExercisingInfluence.www.barnesconti.com3Harris,J.andBarnes,K.:“LeadershipStorytelling:Learnhowtogetpeopletoconnectwithyou.”ExecutiveExcellence,April2005,Vol22,No.4..4Holt,D.:HowBrandsBecomeIcons:ThePrinciplesofCulturalBranding,(Boston:HarvardBusinessSchoolPress,2004).Page36.56Holt,D.:HowBrandsBecomeIcons:ThePrinciplesofCulturalBranding,(Boston:HarvardBusinessSchoolPress,2004).Page2197Orr,J.,TalkingAboutMachines.1990,Cornell:CornellUniversityPress89Klein,G.,SourcesofPower:HowPeopleMakeDecisions.1998,Cambridge:MITPress.Page193.10Clark,E.,AroundTheCorporateCampfire:HowGreatLeadersUseStoriesToInspireSuccess.2004:InsightPublishingCompany.Page63.11Katz,M.:ClintonandMe(2004)12Schwartz,P.,TheArtoftheLongView:PlanningfortheFutureinanUncertainWorld.1996:Currency.EamonnKelly:PowerfulTimes:RisingtotheChallengeofOurUncertainWorld,(WhartonSchoolPublishing:2005)