The Importance of Storytelling in Life and Business

Storytelling is one of the most valuable life skills, influencing our ability to impact others and achieve success. We are inherently drawn to stories; they are a central part of our lives. Think about it: How do you spend your free time? Many seek out stories in various forms—movies, Netflix series, books, YouTube videos, news articles, opinion pieces, presentations, e-books, gossip, or stories shared by family, friends, or even strangers. When we aren't absorbing stories from others, we're crafting our own.

?

Over the years of training my negotiation clients on the power of storytelling, I've come to believe that almost everything in life is a story. Consider this idea: we all have an internal narrative that shapes how we present ourselves, perform, and perceive our own worth. Even concepts like a country, such as France, or our currency, the USD, can be seen as collective stories we agree to believe in. The products and services we favor often captivate us with better, more compelling stories than those we ignore.

?

In business, the ability to tell a compelling story significantly impacts success. A well-told story can determine how resources are allocated, who hires you, who buys from you, who sells to you, and how business partners prioritize you.

?

For CEOs, storytelling is crucial; it influences investment in your ideas, capital costs, and the people you attract to your team. In today's era of social media, where there is a direct line to everyone, every executive must master the art of storytelling across all media types, both written and video. Corporate strategy is evolving from a mere page in an annual report to a compelling narrative vision shared directly with stakeholders via social media. The CEOs of tomorrow will not only excel in operations but also as world-class storytellers.

?

If you're still not convinced that storytelling is an essential skill, consider Elon Musk and Tesla. On the surface, Tesla might seem like a car company focusing on electric vehicles. However, the market perception tells a different story. On June 14th, 2024, Tesla was trading at 61 times expected earnings, while GM and Ford traded at 5 and 6 times expected earnings, respectively. Why the difference? The story that investors believe in is that Tesla isn't merely a traditional car company; it's a transformative force. The narrative that captivates them includes visions of self-driving autonomous robo-taxis and autonomous humanoid robots, positioning Tesla as a leader in technological innovation and future mobility.

?

For those who recognize the importance of storytelling and want to master this key skill, here's a formula for crafting a compelling story. Let's explore the seven elements of a compelling story.

?

Protagonist: Get clear about whose perspective we are telling the story from. Typically, it’s you.

?

Intention: What does the protagonist want?

?

Motivation: Why does the protagonist want it? What compels them to what what they want?

?

Obstacle: What’s preventing the protagonist from having what they want? This is where we build up tension in the story. To drive interest, the obstacle needs to seem insurmountable.

?

Stakes: What happens if the protagonist fails? This is where you clarify the consequences of not overcoming the obstacle. This is what keeps the audience engaged. If the stakes aren’t high, the audience loses interest.

?

Approach: How did the protagonist overcome the obstacle? What were all of the things that were tried before the eventual breakthrough?

?

Resolution: What were the effects of success or failure? What happened to the protagonist as a result of overcoming or not overcoming the obstacle?

?

Now that you understand the seven elements of a compelling narrative story, you can start honing your skills in influencing others. Mastering storytelling will not only enhance your personal and professional relationships but also help elevate yourself and your company to the next level.