Harvard Business School has proven the effectiveness of storytelling - but how do we use this tool?

The Harvard Business School has proven the effectiveness of storytelling  to communicate even the most complex issues. But how do we create an effective story. This interview with McKinsey provides some valuable insights. 

Good stories have three components: a strong beginning, a strong end, and a point of tension. Most people confuse stories with situations. They’ll tell about a situation: Xhappened, Y happened, Z happened. But a good story takes Y, the middle part of the story, and creates tension or conflict where the reader or the audience is drawn into the story, what’s going to happen next.

Treating stories as assets is an underrealized idea right now. Stories serve as glue to unify communities. Stories spread from employee to employee, from consumer to consumer, and, in some cases, from employee to consumer or consumer to employee. Stories are much more memorable than statistics or simple anecdotes and are a mechanism that allows communities to grow. Strong stories can be told and retold. They become infectious.

There are at least four important stories that all companies should have in their portfolio. The first is the “who am I?” story—you know, how did we get started? The second is the “vision” story, the “where are we going in the future?” This may or may not be connected to the “who are we?” story. A third is the “apology and recovery” story. In any long-term relationship, there is inevitably going to be transgression. But it is remarkable to see how few companies have thought through what a transgression is for them and how they might respond to it. The final type of story that becomes really important for corporations to have in their bank is the “personal” story: what are the personal stories that are being incubated and cultivated within the organization? This is a very different type of story. This shines a light on people rather than the organization.