Harvard Business Review

5 Types of Stories Leaders Need to Tell

by Nick Westergaard

September 22, 2023

The historian Doris Kearns Goodwin emphasizes the importance of storytelling in leadership,

illustrating that Abraham Lincoln was not only a great leader but also a master storyteller

who used stories to educate, inspire, and entertain.

Storytelling is crucial for leadership, as facts entwined with stories are seven times more

likely to be remembered. Stories aid in implementing five effective leadership practices:

modeling the way, inspiring a shared vision, challenging the process, enabling others to act,

and encouraging the heart. However, different types of stories serve different leadership

outcomes:

1. Trust Story:

By sharing personal experiences, leaders humanize themselves, fostering

trust and connection. Sharing stories of vulnerability and personal experiences, like

Thasunda Brown Duckett, president and CEO of TIAA does, encourages reciprocal

sharing, creating a virtuous circle of trust.

2. Teaching Story: Stories can simplify complex topics, offering models for behavior and

skills, and making leaders great teachers. Marvin Ellison, CEO of Lowe’s, uses stories

to promote a culture of feedback and candor, enabling others to act.

3. Action Story: Leaders inspire action through stories that portray a clear cause and

effect, helping in launching new business ideas or inspiring organizational change.

Melanie Perkins, Canva founder and CEO, and former PepsiCo CEO Indra Nooyi have

effectively used action stories to reshape perceptions and drive change.

4. Values Story: Leaders convey organizational values through stories, modeling values-driven behavior.

CEOs like Eric Yuan of Zoom and Hamdi Ulukaya of Chobani use

personal anecdotes to convey and encourage adherence to organizational values.

5. Vision Story: These stories illustrate a vivid, inspiring future, encouraging listeners to

commit to a shared vision. Historical figures like Winston Churchill and Martin Luther

King, Jr., and business leaders like GM CEO Mary Barra and Microsoft CEO Satya

Nadella have used vision stories to inspire and guide.

In essence, stories are a versatile tool for leaders, aiding in building trust, teaching, inspiring

action and vision, and conveying values, making the unseen future seem tangible and the

difficult journey seem surmountable.

Source: https://hbr.org/2023/09/5-types-of-stories-leaders-need-to-tell?ab=hero-subleft-1