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Leadership
How good story telling can transform your business
Published August 19, 2025 in Leadership • 11 min read • 
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Inspirational tales remove the fear of change and pave the way for a successful corporate transformation. Here are ways to add sparkle to your narrative.
Does this scenario sound familiar? Your company is embarking on a transformation to recalibrate its offer for a changed world. There has been much fanfare, task forces, and presentations, but the journey hasn’t started well. Employees are confused by all the jargon and don’t see where they fit in with the plans. The C-suite struggles to inspire its workers about the roles they need to play in this new story. This disconnect leads to a lack of buy-in; disillusionment spreads, and trust is eroded. Many factors are to blame: competing interests, skepticism, and fear of the new. Before you know it, the new strategy is consigned to the scrapheap and heads roll. It’s back to the drawing board.
Why do corporate transformations fall flat and fail to resonate with employees? The problem frequently lies in management’s inability to convey their vision, leaving employees struggling to grasp its significance or how it is meant to play out. Leaders need to be compelling storytellers, not just expert strategists or managers.
Here, we explore why storytelling can be a potent tool for leading successful change initiatives and offer a method to empower leaders to turn their strategic visions into compelling stories that inspire their teams.
Before we get started, however, be mindful that storytelling, while a powerful and practical way to influence people, always requires an ethically sound foundation. A compelling narrative can be harmful: demagogues and autocrats spin baseless propaganda, and even the most bizarre conspiracy theories will find a following. Effective storytellers use their powers carefully.
Why storytelling supports transformation
Stories reflect how we experience life: characters encounter and navigate change, tackle conflict, and emerge transformed. Crucially, stories address the processing of change – a vital part of transformation.
Stories simulate experience
When navigating uncharted waters, managers want experienced and motivated employees. Here’s the dilemma: individuals typically resist changing their behavior until they have experienced the new, but they can’t experience the new until they have changed their behavior. What if you could transfer experience instantly and without cost? Harvard psychologist Dan Gilbert calls the brain an “experience simulator”. Thankfully, storytelling removes the dilemma of what to do first (change behavior or experience the new) because it models both simultaneously (action and result). Stories allow us to experience situations vicariously.
Subconsciously, we cannot fully distinguish between reality and fantasy. That’s why we get tense watching a thriller, even while fully aware that we are sitting safely on the sofa. Our brains respond similarly to direct and indirect experiences. Physiological reactions, like adrenaline production, don’t fully differentiate between the real and the imagined. As a result, stories shape our thoughts, feelings, and actions.
Stories can communicate a new strategy and help execution effectively by making the abstract tangible and actionable. If desired behavior is modeled in a story, employees will likely follow suit because they can grasp the idea (thinking) and relate to it (feeling). They will have enacted the behavior along with the story’s character (acting), paving the way for real-world application.
Stress management
Change can mean uncertainty, a steep learning curve, and new decision-making principles. All of these can be stressful. Stories help by making new concepts and ideas understandable while also providing a sense of being understood. Both enable clearer thinking as fear, confusion, and uncertainty inhibit rationality.
Furthermore, “experiencing” conflict in a story activates the stress hormone cortisol, and the feeling of catharsis as the narrative tension resolves triggers an endorphin release that helps manage stress.
What makes a good story?
Impactful narratives transport us, stir our emotions, and engage our senses. But what elements should leaders focus on to make stories compelling for business transformations?
- Powerful stories are personal and connect. They involve people who have achieved something special and reveal where they plan to go next. The listeners can relate to, and may even know, these people. In this way, stories can forge or strengthen bonds.
- They resonate and engage, capturing and maintaining attention, inviting the listeners to co-create the narrative. This encourages relational exchanges as people learn from each other and make sense of developments together. Well-crafted stories foster a sense of ownership and commitment to a shared future, engaging everyone in a collaborative process of shaping what lies ahead.
- They captivate the audience by offering insights into past events and stoking curiosity about the future. They articulate the need for change, the path ahead, and what’s attractive about the destination.
- Successful stories provide powerful imagery as mental anchors. They employ metaphors that inspire dreams and foster yearning for something better. These metaphors simplify complexity and make the message accessible, creating a concise shared vocabulary.
- They offer new interpretive frameworks to help listeners make sense of their surroundings, akin to how superstitious narratives explain natural phenomena. Sensemaking cannot be foisted upon individuals. These frameworks assist them in their quest for meaning, as understanding unfolds gradually through daily experiences.
- Compelling stories create unity in diversity, crafting a vision that provides direction, appears desirable, and fosters solidarity.
Concise yet rich, an effective transformation story distills several narrative threads into a coherent whole. The question then arises: where and how do we find these stories?
Unearthing your narrative
Effective change management stories are not off-the-shelf products, but must be crystallized from experience. Consider these four factors as you craft your own story:
1. Leverage heritage
Companies with a rich history of success have a unique asset. They should harness this legacy to illustrate their trajectory, emphasizing that the future is built on historic foundations. Acknowledging a proud past, like Porsche’s engineering excellence or Hermès’ leather craftsmanship, also gives the narrative a human touch. It shows respect for those who shaped the organization’s legacy.
In times of difficulty, the leadership must also show candor about the present, acknowledging and taking responsibility for the financial and human cost of change. At the same time, the narrative and its storytellers need to radiate confidence in a successful and achievable future. They should provide compelling reasons to embark on the journey, explaining why it’s the right path and the consequences of inaction. The story should motivate stakeholders to co-create the future with the organization, highlighting the mutual benefits of shared value creation.
An authentic, hopeful narrative helps stakeholders reflect on (and be inspired by) past achievements and the organization’s ability to navigate change from within. This is a powerful antidote for fear and skepticism about change.
2. Messenger before message
If transformation is a journey, the trustworthiness of the guides is key. The audience must trust the messenger, especially when change seems threatening. Is the story merely being “sold”, or is it embodied? Are leaders “in the trenches” with us? Is the story and the storyteller authentic?
Two levels of storytelling can help here: a high-level, overarching narrative and practical examples of its application. The overarching narrative secures intellectual agreement and sets the framework, but a narrative alone can be flat, impersonal, and abstract, like a deflated balloon. It is only made tangible and authentic through smaller, concrete stories: the air that fills the balloon.
When this dual-track storytelling succeeds, it fosters a strong sense of identification and connection for employees with their organization and the transformation. A collective narrative does double duty in enabling change: concrete stories that can be “vicariously experienced”, and the “enactment” of the overarching narrative. This feeling of connection –empathy for a character or belonging to a larger narrative arc – is very real: it is triggered by oxytocin, the same bonding hormone that accompanies physical embrace.
In our experience, unfortunately, corporate transformations often lack both storytelling levels, with disastrous consequences. An organization that neglects one or both levels of the story soon encounters the death knell of change: a narrative void. This void demands to be filled with stories (explanations). If you don’t tell your story, others will, and often their version isn’t pretty.
3. Start with deep listening
A story only resonates when it conveys a deep understanding of the subject matter. This is challenging and takes time, given the complexity of organizations and their environments. Developing the necessary sensitivity depends on listening to others in a focused and unbiased manner: “When you talk, you are only repeating what you already know. But if you listen, you may learn something new.” The goal is to capture as many perspectives as possible and step out of your echo chamber to engage your stakeholders. Without their support and participation, transformation is unattainable. The process should also include critics, skeptics, and self-appointed guardians of tradition. Interlocutors should feel their opinions and questions are welcomed and valued.
Take Albert Kriemler, co-owner and chief designer at the Swiss fashion house Akris. Kriemler prepares his new collections based on discussions with sales staff in boutiques worldwide to understand exactly what his customers want. He collaborates with other artists and creatives (painters, photographers, architects, etc.) to grasp the zeitgeist, casting a wide net to inform his “story”.
You should listen to yourself too – an introspective exploration of one’s true desires and convictions, and how they relate to your organizational values. Before deciding on transformation strategies, there must be a shared understanding of what constitutes good or bad, and right or wrong decisions for the organization.
4. Purpose as an anchor
The cornerstone of a transformation narrative should be the organization’s purpose, which shapes its identity. This purpose serves as a programmatic core, defining what the organization stands for. A clearly articulated purpose provides a sense of direction, offering inspiration and orientation to meet the need for increased freedom, flexibility, and agility.
The task for leaders is not simply to communicate more clearly, but to think narratively. They must understand that meaning precedes metrics, purpose and belief come before behavior, and transformation doesn’t succeed because of the plan but because people feel it’s worth the effort. In a world where uncertainty is the norm, stories can offer the one thing strategy alone cannot: belief. And belief, more than anything, is what moves people.
IN FOCUS
A magic carpet ride: how a rug company learned to tell a different story
In 2023, the traditional rug market faced saturation, particularly for hand-knotted rugs. Jaipur Rugs was a leading player in the handcrafted rug industry, but they sold mainly to retailers, which limited their reach to end consumers and control over brand messaging and pricing. To grow, they would need to reach new customer segments directly. Part of the company’s ambitious pivot was to start selling to individual households not just in India, but globally.
Instead of highlighting technical aspects like design and durability (important for B2B), Jaipur Rugs recognized the importance of connecting with consumers on an emotional level. Repositioning the brand necessitated moving the focus from their product (carpets) to the stories of the artisans who create them. This storytelling highlighted the heritage, craftsmanship, and social impact behind their rugs (overarching framing narrative), which they illustrated by telling the individual stories behind a particular carpet or the sourcing of materials.
While the branding and marketing storytelling were in full swing, Jaipur Rugs’ management recognized that the transformation of the business model required a cultural transformation. Founder Nand Kishore Chaudhary was already an advocate of stories, having used them in his public talks. He decided to leverage stories internally. Following the framework outlined in this article, the company systematized its approach to storytelling, which included categorizing stories and using a narrative approach to leadership and change.
Storytelling has been a key factor in Jaipur Rugs’ successful transformation to a B2C company that has expanded its market footprint with a new e-commerce platform, 11 flagship stores, and six franchise stores. It has unified the company’s vision and motivated employees by emphasizing the significance of their work and its impact on artisans’ lives. This cultural shift within the organization has driven a more customer-centric approach and innovation in product offerings.
Five must-haves for effective storytelling
Crafting a powerful and authentic story to support transformation is a great start, but it must be supported by the right skills, mindset, and environment.
- Storytelling skills. Few people are naturally gifted storytellers. Narrative competence cannot be learned just from theory; it must be consistently practiced and refined over time. Consider seeking external help to hone your skills.
- Persuasion, not coercion. Leaders might be tempted to use their hierarchical position to force strategic change through directives or coercion, but what might appear quicker and easier will soon backfire. Instead, focus on empowering individuals to embrace change. Changes should be chosen to align with individuals’ goals, which they are already committed to achieving: help them see themselves as the “heroes” in their own story.
- Opportunities for personal experience. In transformation narratives, the path into the future is unknown and can’t be described in detail. Instead, provide opportunities for individuals to explore their envisioned future in their daily activities. This experimentation helps employees perceive an unsuspected realm of opportunity for themselves, which business administration academic Shubha Patvardhan refers to as “prospective sensemaking”. As they playfully venture into this imagined tomorrow, they will generate stories of their discoveries, which will validate the framing narrative and build enthusiasm.
- Open communication in multiple formats and channels. Most organizations have a communications strategy, but many neglect to involve narrative techniques. Effective communication of the story benefits from various formats (text, speech, images, video, cartoons, etc.) and channels (training sessions, social media, branding campaigns, etc.), making the narrative accessible and engaging across different mediums. The story needs to be constantly repeated and applied. Jack Welch, the former CEO of General Electric, said: “You’ve got to be out in front of crowds, repeating yourself over and over again, never changing your message no matter how much it bores you.” This approach can include starting every management meeting with the story and briefly reflecting on its progress. Leaders should not shy away from expressing their emotions. This includes positive feelings such as enthusiasm, happiness, joy, or gratitude, as well as negative sentiments like frustration, regret, or discomfort. Transparently sharing these emotions signifies that the story is genuinely theirs.
- Dialogue with stakeholders. Without participation and buy-in from an organization’s stakeholders, the story will have no impact. The relationship with them should be perceived as reciprocal: engaging with them as equals in the value creation network of the organization. Dialogue helps earn and maintain stakeholders’ enduring trust. Attentive listening to stakeholder expectations leads to a well-informed sense of balance in the distribution of the created value. A purely economic perspective is not sufficient for distributive justice; a moral assessment is also needed to determine when and whether a distribution is fair and equitable.
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