TheLeadersGuidetoStorytelling:MasteringtheArtandDisciplineofBusinessNarrative StephenDenning Storytellingandleadershiparebothperformanceartsandlikeallperformancearts,they involveatleastasmuchdoingasthinking. Intersectionofleadershipandstorytelling. Only10%ofallpubliclytradedcompanieshaveprovedthemselvesabletosustainfor morethanafewyearsagrowthtrajectorythatcreatesaboveaverageshareholder returns. Mergersandacquisitionsonlysucceedintermsofaddingvaluetotheacquiring companyof15%. Whatifyourairlinesflightsonlyarrived1015%oftime?Orifsurgicalprocedureswas onlysuccessful1015%oftime. Managersthushavelittlereasontobecomplacentabouttheircurrentmodeofgetting results. Thechoiceisnotaboutusingstorytellingornot.

t.Butrathertouseunwittinglyand clumsilyorintelligentlyandskillfully. Storytellingisasizablepartoftheeconomy.Persuasionconstitutesmorethanofthe USGNP.IFstorytellingishalfofpersuasion,thatamountsto14%ofGNP,ormorethan atrillion$s. Differentnarrativepatternsareusefulforthedifferentpurposesofleadership. Learningtotellstoriesisnotsomuchataskoflearningsomethingasitisreminding ourselvesofsomethingwealreadyknowhowtodo. Storytellingismorethanonetool:itsawholearrayoftoolstoolsthatcouldhelp achievemultiplepurposessuchassparkingpeopleintoaction,communicatingwhoyou areorwhoourcompanyis,transmittingvalues,sharingknowledge,tamingthe grapevineandleadingintothefuture. Disciplineofstorytellingdealswithleadershipmorethanmanagement.Leadership dealsmorewiththeendsthanthemeans.Concernsissueswherethereisno agreementonunderlyingassumptionsandgoalsorwherethereisabroadagreement, buttheassumptionsandgoalsareheadingforfailure. Leadershipisessentiallyastaskofpersuasionofwinningpeoplesheartsandminds. Adifferentkindofleader Thecaseismade,stepbystep,thatifyouconsistentlyusethenarrativetoolsdescribed, youwillacquirenewcapabilities.Youcommunicatewhoyouareandwhatyoustand for,otherscometoknowyouandrespectyouforthat.Becauseyouareattentivetothe worldasitis,yourideasaresound.Youspeakthetruth,youarebelieved.Youmake yourvaluesexplicitandyouractionsareconsistentwiththosevalues,yourvalues becomecontagiousandothersstarttosharethem.Youlistentotheworldandthe worldlistenstoyou.Youareopentoinnovationandhappyaccidentshappen. NarrativepatternscanbelearnedbyanyonewhowantstoleadthemCEO,middle management,onthefrontlinesofanorganizationoroutsideanyorganizations altogetheranyonewhoseesabetterwaytodothingsandwantstheorganizationto change. 1TellingtheRightStory Analysismightexcitethemind,butithardlyoffersaroutetotheheart.

Eightdifferentstorypatterns: o Sparkingactiondescribeshowasuccessfulchangewasimplementedinthe past,butallowslistenerstoimaginehowitmightworkintheirsituation.Avoid excessivedetail.justimagine,Whatif o Communicatingwhoyouareprovidesaudienceengagingdramaandreveals somestrengthorvulnerabilityfromyourpast.Providesomedetails;ensure audiencehastimeandinclinationtohearyourstory.Ididntknowthatabout him!,NowIseewhatshesdrivingat. o Transmittingvaluesfeelsfamiliartotheaudienceandwillpromptdiscussion abouttheissuesraisedbythevaluebeingpromoted.Usebelievablecharacters andsituationsandensurethestoryisconsistentw/youractions.Thatsso right!Whydontwedothatallthetime? o CommunicatingyourbrandIsusuallytoldbytheproductorserviceitself,or thecustomerwordofmouthorbyacrediblethirdparty.Besurethebrand deliversonthepromise.Wow!Ivegottotellsomeoneaboutthat. o FosteringcollaborationRecountsasituationthatlistenershavealso experiencedandpromptsthemtosharetheirownstoriesaboutthetopic. Ensurethatasetagendadoesntsquelchthisswappingofstoriesandthatyou haveanactionplanreadytotaptheenergyunleashedbythisnarrativechain reaction.ThatremindsmeofthetimeIvegotastorylikethat. o TamingthegrapevineHighlightsthroughgentlehumorsomeaspectofa rumorthatrevealsittobeuntrueorunreasonable.Avoidsthetemptationtobe meanspirited.Nokidding!Idneverthoughtaboutitlikethatbefore. o SharingknowledgeFocusesonproblemsandshows,insomedetail,howthey werecorrected,withanexplanationofwhythesolutionworked.Solicit alternativeandpossiblybettersolutions.Gosh!Wedbetterwatchoutfor thatinthefuture. o LeadingpeopleintothefutureEvokesthefutureyouwanttocreatewithout providingexcessivedetailthatwillprovetobewrong.Besureofyour storytellingskills.Wheredowestart?Letsdoit! Differentcombinationsofstorycanbewoventogetherasanintegrativenarrative tapestry. TheROIofstorytelling.Oftentherequesttoquantifybenefitsismerelyapretextfor takingnoaction,orapolitewayofmakinganegativestatement. MintzergsclassicNatureofManagerialWork,showedthattalkingcomprises78%ofa managerstime. Whenstorytellinggetsthemessageacrossmoreeffectively,itsincrementalcostis zeroorclosetozero,andsoitsROIismassive. Mostchangeprogramsunsuccessful.Studyof40companiesinvolvedinmajorchange. Eachprojectinitiatedbyseniormgt,e.g.,SixSigma,businessprocessrevamps. Remarkablehowlittlesuccessthecompanieshadwiththeirchangeprograms.Key findings: o 58%ofcompaniesfailedtomeettargets; o 20%capturedonlya1/3rdorlessofwhatwasexpected. o 42%whoweresuccessfulnotonlygainedexpectedreturns,insomecases exceededthemby200300%. o Storytellingwasakeysuccessfactor.Withoutastorytellingcapacity,the chancesofsuccessweresignificantlylower.

Thereisnosimplecauseandeffectrelationshipbetweenintroducingamanagement techniqueandgettinganimprovedbusinessresult. 2TellingtheStoryRight Fourkeyelementsinstorytelling: StyleTellthestoryasifyourweretalkingtoasingleindividual.Avoidhedges.Dont givealternatepointsofview.Keepthestorysimple,focusedandclear.Presentthe storyassomethingvaluableinitself.LouGerstner,cleartohimandtomanyothers. Beyourself. TruthDontwastertimewithgrindingpersuasion.Offerlistenersanunobstructed viewofthetruthandlistenerswillseeitandrecognizeitforwhatitis.Anyreasonable personwouldhavetoagree.Dontargue,present.Makethestorytellingexperiencea sprint,notamarathon. PreparationBerehearsedbutnotspontaneous.Choosetheshapeofyourstoryand sticktoit.Showonlythefinalcut,likeamoviedirector. Deliverya1973findingatonly7%ofthemeaningofacommunicationcamefromthe contentofthewordsspoken,while93%ofmeaningcomesfromnonverbal communication. Toconnectwithyouraudience,youapproachthetaskofstorytellinginteractivelyand modelyourbehaviorontheconceptfconversationadialoguebetweenequals.You proceedonthebasisthattherelationshipbetweenyouandyourlistenersis symmetrical.Youtalkasifthelistenerscouldtakethenextturnintheconversation. 3MotivateOtherstoAction Leadershipiscentrallyaboutinspiringpeopletoimplementnewideasinthefuture. Andnotjustgrudginglybutenthusiastically,becausetheybelieveinit. Itsnotjustanystorythatresultsinpeoplebuyingintomajorchange. MainElementsoftheSpringboardstory. o Changeideabehindthestoryiscrystalclear. o Storyisbasedonanactualexamplewherethechangewassuccessfully implementedthatis,itsatruestory. o Storyistoldfromthepointofviewofasingleprotagonist. o Theprotagonististypicaloftheaudience. o Thestorygivesthedateandplacewhereithappened. o Thestorymakesclearwhatwouldhavehappenedwithoutthechangeidea. o Storyistoldwithlittledetailinminimalistfashion. o Storyhasapositivetoneithastohaveanauthenticallyhappyending. o Storyislinkedtothepurposetobeachievedintellingit. ClearPurpose.Thefirststepisgettingclearonthechangeideathatyouaretryingto getacross. Foreachoftheotherstepsintheprocess,ask:isthispartofthestoryrelevantto communicatingmypurpose?Ifthestorytellerisntclearonthepurpose,thestory usuallyfails.Thechangeideahastobespecificenoughsothatpeoplecoldseewhether theyaremakingprogresstoimplementitornot.Ifyourehavingpersistentdifficultyin comingupwithastorytocommunicateachangeidea,checktheclarityofthechange idea.Putyourchangeideainwriting,preferablyasinglesentence. Thesecondstepintheprocessistothinkofanincidentwherethechangeideahas alreadyhappened.

Foraspringboardstory,statethedateandplacewheretheeventhappened.Theright way,thenormalway,tosignalthatyouaretellingatruestoryistogivethedateand place. Whoisthesingleprotagonistofyourstory?Theheroorheroine?Notagroup,ateam, acompany,acountry.Asingleperson. Youtellthestoryfromtheperspectiveofsomeonewhowillinspireyouraudienceto say,Iknowthatsituation!Ivebeenthere!Ivehadthatproblem!Andsothey identifywiththeprotagonist.INeffect,theystarttoliveasimilarstoryfor themselves.Theymaybelisteningtothestorythatyouaretelling.Buttheyre startingtotellthemselvesanewstoryinwhichtheybecometheprotagonist,inwhich theyundertaketheherosjourney,inwhichtheyencounterandovercomeobstacles, andinwhichtheyattainthegoal.(WipeoutBenistheprotagonistletthereader alsobetheprotagonist) Invitetheaudiencetomakelargeandrapidleapsofimagination.Inabusinesssetting, stripoutallunnecessarydetail.Theminimaliststyleleavesplentyofspaceforthe audiencetoimagineanewstoryintheirowncontext. Foreachmemberoftheaudience,youactuallyhavetwolisteners.Theresthephysical personyouseeinfrontofyouandtheresalsoasecondlistenerknownasthelittle voiceinthehead. Whatmakestheminimaliststorysopowerfulisthatisresolvesafundamental conundrumoftransformation.Transformationmustbebothpersonaltoallparticipants andcentrallydirectedinordertobecoherent. Aspringboardstorytoldinaminimalistfashionresolvestheparadoxbycreatinga vehiclethatencouragesalllistenerstocraftsimilarstories,eachofwhichisstillthe listenersownstory.Theresultispersonalizedcoherenceacrosslargenumbersof people. Inastoryaimedatsparkingaction,youhavetohaveahappyending. Howtogiveenoughguidancebutnottoomuch?UsethemagicphrasesofWhatif andJustthink Negativestoriesgetpeoplesattention,buttheydontsparkaction.Theactioncomes fromapositivestorythatshowsthewayforward.Sousethenegativeknowledge sharingstorytoconveythemessagethatthesituationisindeedgrim,butfollowitwith thepositivespringboardstorythatshowshowtosolvetheproblem. Twowaystogettheaudiencesattention.Oneistotalkabouttheaudiencesproblems. Talkabouttheissuesthatarekeepingthemawakeatnight.Theotherwayistotell themwhoyouare.Tellthemastorythatcanbegintogeneratetheinterestandtrust youwillneedasaplatformtospringthemintothefuture. TemplateforSpringboardstoryp.75. 4BuildTrustinYou Thefirstreasonyoutellastoryistoshowpeoplewhoyouaretostopbeinga stranger. Youruniquenessasanindividualyourveryidentitydoesntlieintherolesyoufillor theabstractvaluesyouclaimtohave.Itresidesintheoneofakindpersonthatyou havebecomeasaresultoftheexperience4syouhavehad. HowtoTellYourStory Astorythatcommunicateskeychoicesyouhavemadeinyourlife.

Formostofus,ourownhopesandfearstendtogetinthewayofrealisticassessmentof whoweare. Oneoftheunderlyingprinciplesofmostpsychotherapy:Creatingasituationthat requirespersonalstorytelling,participantsseemtodiscoveradegreeofcoherencethat wasnttherebefore. Peoplelookforsomeonewithaselfimagethatislargelyconsistent.Itistherefore importantforyouasaleadertohaveaclearviewofapersonallifestorythatisaligned withthefactorsofyourlife.NewtGingrichasanexampleduringBillClintonpresidency. Ittakescouragetotellastrongpersonalstory,becausethestoryimpliescertainvalues thatyouwillholdtoeveniftheworldchanges. Afruitfulsourceofstoriesofwhoyouareconcernstoriesaboutturningpointsinlife, momentsofdisruptionwhenyourworldasitappearsonthesurfaceisdisturbedby someincidentthatgivesaglimpseoftheseregionsofdeeperfeelingandhowthey affectedyou. Makingsuretheaudiencewantstohearyourstory: o Firstencounter o Adifficultdecision o Coachingorcounselingdecisions TemplateforWhoYouArestoryonp.99. 5BuildTrustInYourCompany Tellingthestoryofyourbrand. 6TransmitYourvalues Distinguishingthedifferenttypesofvalues o 1.Valuesoftherobberbaronsbarefacedgreed; o 2.Valuesofthehardballstrategistsstepawayfromrobberbarons.The heirsofMachiavelli;theyliveinanamoralworldandhavenoworthwhilevalues totransmit; o 3.ValuesofthepragmatistsCostcoexample. o 4.GenuinelyethicalvaluesStarbucksandSouthwest; Somecompaniesfaceavaluesbankruptcyeventhoughfromafiscalstandpoint,they aresolvent. Althoughitmaynotbeclearwhethergoodenvironmentalandsocialpracticesalways createvalueforshareholders,itisnowevidentthatbadonescandestroyit.Sincethe brandisoftenthemostvaluableassetonthebalancesheet,firmsareparticularly vulnerabletobadnewsabouttheirvalues. Peoleoftenhavedifficultinansweringquestionslikethese: o Sotellmewhatyourvaluesare? o Onaonetofivescale,doyouvaluethis?Orthat? Valuesliveintheactionsthatpeopleengageinandthestoriesthattheytellaboutthese actionstotrytomakesenseofthem. Herearetopicsthatcanbeusedtopromptstoriesthatrevealvalues: o Occasionswhereyoufacedadversity; o Timeswhentwovaluesconflicted; o Whatyoufindmostsatisfyinginworkingwithyourfirm; o Somethingthatshowedyouwhatyourorganizationisreallygoodat; o Theworstthingthateverhappenedtoyouinyourorganization;

Howaclientwasbadlytreatedbutiteventuallyturnedoutwell; Yourhappiestdayatwork; Somethingthatyourorganizationisgoodatbutfewpeopleknowabout; Somethingthatshowedyouwhatyouhavetodotogetaheadinyour organization; Sometimestoomuchtoaskapersontotellastoryaboutthemselves.Soaskthemto shareastoryaboutsomeonewhomadeadifferenceintheirlife.Couldbeabout: o Someonetheyknewwhentheyweregrowingup; o Someoneintheorganizationwhohasmeantalottothem; o Thepersontheyadmiremostinyourorganization; o Thepersonwhoisclosesttothemintheorganization; o Someonewhodidbetterintheorganizationthananyoneexpected; o Someonewhoreallytaughtthemtheropesattheorganization; 7GetOthersWorkingTogether:UsingNarrativetoGetThingsDoneCollaboratively Workgroupsarethetraditionalsubunitsinanorganization:departmentsordivisions. Theyentailpeopleworkingonthesamesubjectandsometimesinthesamespace. Teamsareorganizationalgroupingsofpeoplewhoareinterdependent,whoshare commongoals,whocoordinatetheiractivitiestoaccomplishthesegoals,andwhoshare responsibilityfortheperformanceofthecollectivity. Whileworkgroups,teamsandcommunitiesareconceptuallydistinct,inpracticethey tendtooverlap. CollaborationRestsonSharedvalues Oftenthebasicsarentinplacetoenableteamworktohappen. Theresadeeperrootcausecollaborationrestsonvalues.Andtheespousedvaluesof collaborationandtheoperationalvaluesatworkoftenexistonoppositesidesofadeep gap. Growingnumbersofpeopleareinterestedinmovingfromaworldofmetoaworldof we. Theviabilityofahigherperformanceteamorcommunityisgoingtodependonits members.Forthemtogettofirstbase,theymusthaveaminimumdegreeof understandingofthenatureoftheentitytheyarecreating. Highperformanceteamsarerareandtheirnonhierarchical,passionatemodusoperandi anddistributedleadershipruncountertothepervasivehierarchicalthinkingin organizationstoday. 12ADifferentKindofLeader Implicitinallthisisadifferentideaofwhatitmeanstobealeader.Theinteractive, Tolstoyanleaderworkswiththeworld,ratherthanagainstit.Interactiveleadership bothaddsandsubtractselementsfromtheleadershippalette. Interactiveleadershipbuildsonpersonalintegrityandauthenticity.Becauseyoucan communicatewhoyouareandwhatyoustandfor,otherscometoknowyouand respectyourforthat.Becauseyouareattentivetotheworldasitis,yourideasare sound.Becauseyouspeakforthetruth,youarebelieved.Becauseyoutreatothersas endsinthemselves,notmerelyasmeanstoyourownends,peopletrustyou.Because youmakeyourvaluesexplicitandactinaccordwiththosevalues,yourvaluesbecome contagiousandothersstarttosharethem.Becauseyouareopentoinnovation,happy accidentshappen.Youbringmeaningintotheworldofwork;youareabletoget superiorresults.Interactiveleadershipdoesntdependonthepossessionofhierarchical authority. o o o o

LeadershipThatParticipates Onceleadersadopttheinteractivemodeofthinkingandbehaving,theworldisno longerseparate.Theyescapefromtheillusionofpassionlessobjectivity,whichmayaim atclaritybutinevitablyendsupdistortingtheworldbystrippingawaythedimensionof humanviewpoints,emotionsandgoals. Ifyouaretoachieveappropriateconnectednesswiththepeopleyoulead,youneed preciselythosecapacitiesforunderstanding,trustandrespectthattheNapoleonic modeofmanagementsuppresses.Choosingtofeedcompassioninsteadofdetachment isoftenridiculedinbusinessasbeinginsufficientlyhardinsufficientlyfirm,hard nosed,toughminded,aggressiveandultimatelyhardhearted. Inmostleadershipsituations,trustrespectandcollaborationaresimplymoreeffective thanpreemptivedomination. Fortheinteractiveleader,thesituationisverydifferent.Theinteractiveleadercomes withamessageandanagenda,butalsoseekstointeractwiththeaudienceandlearn fromtheirviewpoints.Forthispurpose,storytellingisanextraordinarilysuitabletoo. Sinceallgoodstorytellingbeginsandendsinlistening,thesessionisinherently participativeandinteractive. Evenbeforethepresentationhasbegun,theinteractiveleadersshowanappropriate rapportattheoutsettoenhancethechancesoftheaudiencebeingresponsive.Thus theleadermightwelcometheaudienceindividually,shakinghandsorotherwise physicallyacknowledgingtheirpresence.Theinteractiveleaderdoesthisbecauseits difficulttobeutterlyunresponsivetosomeonewhoisactivelysignalingresponsiveness andreciprocity. Sotheinteractiveleaderusesastoryandtheresponsivenessoftheaudiencetothe storyiscontagious. Theinteractiveapproachtoleadershipismodeledontheconceptofconversationa dialoguebetweenequals.Itsnotimpossibletomaintainaconversationofequalswhen dealingwithsomeonewhoadoptsasuperiorhierarchicalposition,butitisnteasy thereisaninherenttendencytoslideintoanadversarialrelationshipofeither submissionorrebellion. ArethereCEOstodaywhoarerunningrealcompanieswithinteractiveleadership?A casecanbemadethatLouGerstneratIBMwassometimesinthismode.BillBrattonof theNYCpolice,TomChappellofTomsofMaine,BillGeorgeofMedtronic,SteveJobsof AppleComputer,HerbKelleherofSouthwest,AnitaRoddiceofTheBodyShop.The40 orsoideapractitionersTomDavenportandLarryPrusakciteinWhatstheBigIdea? Thereslittletointhecollectivepsychethatmakesiteasyforpeopletounderstandand slideintothismodeofoperating.Thismaybepartoftheproblem:societyistryingto givebirthtoanewtypeofthehumanpsychethatwouldactuallyencouragegood peopleandinnovationandstillsurviveandflourish.Likeanythingworthwhile,thebirth pangsarenotpainlessoreasy.Neverthelesstheneedisthere. InteractiveLeadershipThatIsNotforEveryone Theinteractiveleadershipapproachwillnotappealtoeveryone.Tothosewhoare comfortableinthecommandandcontrolmode,tohosewhoaretherobberbarons,the hardballstrategies,theupwardlymobilelackeys,fawningaidesdecamp,commercial mercenaries,paidforpoliticiansorschemingdemagogues.Suchpeoplehaveused inauthenticnarrativeasatoolofmanipulationandcontrol. Thesepropelledwillgoonpracticingtheircounterfeitleadershipinoffices,danglingthe threatoflayoffsorotherdisastersoverpeoplesheadswhileincreasingthepaceand

intensityofthework.Theywillgoonusingpseudoempiricalstudiescraftedtocontain creativepeopleincagesofquietdesperation.Theywillspendtheirtimespeakingto thosewhoobey,orinordertoforceobedience,ortoseducenewcomerswith duplicitiousmaneuvers. LeadershipthatIsRelativelyFreeofEgo Theinteractiveapproachtoleadershipisnotconcernedmerelywithmakingthedeal. Thisiskey,becauseifwhoyouaregetsdefinedaccordingtothecurrentrateof exchangeinamarketplace,thentheaccommodationyoumakewiththeworldwill distractyou,onedegreeatatime,fromwhatmatters.Thisishowthecommercialized versionofwhatitmeanstobeapersonbringspeopleunderitsspell. Byremovingegofromthegame,youchangethenatureofthegame,sincetheprincipal leverofthoseinthecontrolmodeiseliminated. Beingrelativelyfreeofegomeansneverexactingrevenge.Youropponentsare oppressedbyalargerfoetheirownfear. LeadershipThatisLikeJudo Whenyoutakeontheroleoftheinteractiveleader,awareofwhoyouare,confidentof yourvalues,assuredofthesoundnessofyourmissionandcompetenttocommunicate itthroughastory,youwillacquiresupporters.Youdontfightyouropponents:you invalidatethem.Thosewhobearthetrappingsofpowerdontnecessarilyhavemuch authority. Bestingmeansnotfencingpeopleinyouleavethemroomtochangetheirminds.You behaveasifyouropponentsareyourallies,demonstratingyourtrustinthemandgiving themstrengthtodotherightthing.Yougivethemthecouragetochangebycreating heroicexpectationsforthem.Thebiggertheexpectations,thehardertheywilltryto achievethem.Achangeinrelationsoccursasallparticipantsrecognizetheneedfor change. LeadershipthatHasFeeling Interactiveleadershipinvolvespassionanotheringredientthatismissingfrom commandandcontrolleadership. Anotherreasonwhytheinteractiveleaderresortstostorytellingisitsauralcharacter. Theearenjoysaprivilegedpassagewaytotheheart,asmaybeseenintheemotional impactofmusic. Theinteractivemodeofleadershipisntsimplyaboutbeingemotionallyintelligent;its aboutactingwithemotionalintelligence.Ifyouareemotionallyintelligentonlyinyour thoughtswhileyouremaininthecontrolmode,regulatingandoptimizing,thenyouare unlikelytobesuccessfulinengagingtheemotionsofothers.Itisgenerallythrough narrativethatyouactivatepassionandchannelthepassioninothersforconstructive purposes.Toachievetheproperbalanceinherentinwelltargetedandwelldeployed emotion,youalsoneedtoavoidbeingtoomuchinlovewithorder. Thecontrolmodeofmanagementisdeadening.Youcanrecognizeitinthegrayfeeling thatcomesoveryouwhenyouparticipateinadepartmentalmeeting,listeningtothe voicethatdronesonwiththeannouncementsofnewfindingsthatcouldhardlybe morebanal,orthelatestreorganization.Thesearestagnantwatersinwhichnoliving thingflourishes.Thedrearinessofthemodernworkplace.