All Great Leaders Are Great Storytellers. Here’s the Formula for Great Storytelling

Every leader knows (or should know) that storytelling is important. In an age as data-rich as ours, many leaders’ natural inclination is to tell stories in terms of the numbers–total addressable market, up-and-to-the-right graphs, and other KPIs.

Numbers may tell a story. But without humans, numbers are meaningless. Particularly in a business context, the numerical side of the story will always matter. But from a leadership perspective, the most compelling stories start with people.

Storytelling is the great unifier. It makes different people feel connected to the same overarching missions; it helps people see their own objectives in the dreams of their companies and leaders. There are proven ways to do it powerfully–and powerful upside for those who do.

Why storytelling is so important for leaders

Stories create meaning. There was a great anthropological study involving two researchers who tried to sell objects worth pennies for as much as possible. To do this, they made up stories about each object–including cups, medallions, and even a tiny rhino. Ultimately, they were able to sell the pieces (which cost $1.25 on average) for more than $8,000 total. The study is a prime example of how meaning isn’t inherent–it comes from the stories we tell. Meaning is only imparted, and the primary means of imparting meaning is through stories. The same is true in a corporate environment. Through stories, leaders have an opportunity to give meaning to the activities that every member of a team does on a day-to-day basis.

Stories unite people. Once you’ve articulated your meaning in a story, it allows people inside and outside of your company–employees and customers–to unite around the common purpose. It tells employees that their actions contribute to the well-being of a broader collective, and it tells customers that every time they interact with you, they’re really contributing to a movement.

Stories humanize brands. The cliche that all corporations fight against is that they’re impersonal, faceless institutions that care only about their bottom lines. In other words, that they’re inhuman. Nobody wants to buy anything from an inhuman brand. People want to feel that their purchases, in some small way, contribute to the health of a human endeavor. By putting your mission in terms of a human-first story, you give your brand a face and a pulse.

Basic principles of compelling stories

You can go very deep on the principles of great storytelling (and if you want to, I recommend reading this interview with screenwriting lecturer Robert McKee). But here’s a very brief overview of focus areas for great stories.

Mechanical elements. Think back to those middle-school writing classes: All stories need characters to root for, settings in which the action takes place, structures (the five-act structure is most common), and calls to action. It’s easy to forget these basic elements when you get absorbed in your own story; make it a checklist that all your stories have to abide by.

Human-first. Start with a micro-level version of your story. What specific impact do you hope to have on what specific type of person? How can you trace the influence of your collective effort down to the most singular human level? For example, Amazon told the story of AWS–which powers about a third of the multibillion-dollar public cloud market–in terms of a kid in their dorm room. They wanted a college student with a good idea for a software application to be able to run with their idea, and not to be creatively inhibited by money or database constraints. There is no business more far-reaching than the cloud, and no story more localized than that.

Broaden with statistics. Once people understand the granular human impact of your initiative, then you can generalize with an overarching statistical picture. Illustrate the breadth of potential impact, showing your audience the size of the opportunity–and the number of people like the one in your story for whom your solution can be meaningful.