1. Storytelling in the Narrative-DrivenEconomy
HR Leaders Can Play a Critical Role in Strategic Success
By AllenSchoer
“Craftinga newnarrative savedourbusiness. Itrestored meaning,alignedourpeople,
improvedthe culture andincreasedproductivity.” Sosaysthe CEO of a successful global enterprise.
Listeningtothe storiesthatrun throughhiscompany,understandingthe themestheyevoke andthen
weavingthose themesintoalargernarrative hasbeencritical to hiscompany’ssuccess. ThisCEOis
pointingthe wayahead.
These are challengingtimesforyou,yourbusinessandyourCEO. And while itmayseem
counter-intuitive tolookback,the narrative youcreate togetherwill be yourcompasstofuture success.
As Chief HumanResourcesOfficeryouare the executive closesttothe heartbeatof yourpeople
and theirstories — goodand bad. You know firsthandhow these storiesaffectboththe culture and
productivity. You,therefore,are wellpositionedtoplayakeyrole in helpingyourCEOcraft the positive
and powerful narrative thatwillpropel yourbusinessforward. Use yourinsightstohelpthe CEOaccess
the meaningwithinthe stories. Thenweave themtogetherintoanarrative toengage staff,customers,
mediaandeveryone elseinvolvedinyourbusiness. That’s yourmandate.

2. The most-recentwave of technological andsocial change iscreatinga NarrativeDriven
Economy. Fromthe frenetic24-hourbusinessnewscycle tothe immediacyof social mediaandthe
demandforinstantanswers,we are increasinglyaffected(like itornot) byhow theyinfluence the
collective narrativesaboutourbusiness. People seekclear,compellingstoriesthathelpthemmake
sense of what’sgoingonaround them.
No-Man’s Land
We have all experienced,sometimeswithoutbeingaware of it,how negative narratives
undermine morale andperformance. Here’sanexample of thatdownwardspiral inaction,how itcan
turn around,and howthe Chief HumanResourcesOfficercanhave a critical role to playin identifying
the issuesandcreatingnew,positivenarratives.
Witnessthe mergerof twoleadingprivate hospitalsinthe northeasternUnitedStates. Not
surprisingly,mashingthe twobusinessestogethercreatesoperational andpersonaltensionstothe
pointthat some staff describe as“civil war.” Hostilityragesasa sense of lossandfear of the future
spreadsthroughthe organization. Andthese tensionsshow upespeciallyclearlyinthe combined
finance divisions. Theynowshare a vastfloorfilledwithcubicleswhere bitterandoftenfearful staff
nurture theirfavorite resentmentsandconspiracytheories. One of the original divisionspridesitself on
the qualityof itscustomerservice andaccountspayable record — the otherdivisionhasahorrible
historybringingwithitagingsummariesgoingbackyearsanda growingpile of law suits. Relationships
deteriorate tothe pointthatthe cubiclesinthisnew 275-persondivisionare splitbyagapingcorridor
downthe center— literallyreferredtoas“no man’sland” dividingthe staff of eachof the former
companies. Symbolismdescendsintofarce aseveneverydayinternal communicationsare conducted

3. throughFedEx deliveries! The plunge inmorale of the finance divisionisaffectinghospital servicestoo,
as the CFO and histeamfumble fora solution.
Theirnot-so-subtle C-suite responseinthe firstmonthsisto“show the flag"- walkaroundthe
cubicles,patpeople onthe backand share a few laughs. It alsomeanshiringapublicrelationsfirmto
define the valuesforthe newentitywithoutstaff perspectiveorbuyin. The new valuesbuzzwordsare
emblazonedont-shirts,coffeemugsandacrossscreensavers. One observersays it’sas if the leaders
are all livingafairytale,exceptgrown-upsgenerallydon’tbelieve infairytales. The PRstory isthat the
mergedbusinesswill create amore outstandinghospital withnew certaintyandcareeropportunitiesfor
staff,butthe underlyingnarrative tellsof abotchedtakeoveranda Darwinianstruggle forascendancy.
Resentmentsonbothsidesdeepen. Manyof those inthe finance divisionnotengagedinsabotage
simplyleave — around30%of a total staff of more than 350 leave inthe firstsix months.
Notsurprisingly,the newCHROisalarmedatthe calamitousstaff lossesfinance issufferingas
gaps incritical rolesappear. He andan equallyalarmedChiefOperatingOfficerrecognizethatthe issues
are notabout structure or process,butabout people,mindsetsandbehaviors — andthatthe CFO and
histeamare in denial. Walkingthe floorand“glad-handing”isnota strategy. Togetherthe CHRO and
COO make the case for radical action. If theyare to save the finance function,andultimatelythe whole
organization,fromself destruction,the CFOhasto take control and create a new narrative forhisteam
fromthe topdown. The overwhelmedCFOisskeptical,butwillingtotrya new approach.
First,theyfacilitate aseriesof small groupdiscussionswhichincludethe CFOandthe
managementteam. The teamlistenstoeachother’sstoriesaboutwhathasgone wrongbefore and
afterthe merger. It is a harrowingnarrative of wretchedperformance,toxicrelationshipsandcultural
dysfunction. Noleadership;nodirection;noengagementof employees;deepdistrustof the new
organization. Furthermore the reputationof the hospitalhasbeenseverelydamagedandmanyfearthe

4. neworganizationwillnotlast. The CHRO and COOput it onthe line tothe CFO:This iswhere yourteam
isright now. Is thiswhatyou wantas your legacy? He is shaken,butlisteningtothe opportunity: He
and the executiveteamhave the unique opportunitytobe the foundingmembersof anew business.
He mustnot onlychampionthatnewbusiness,butbe afull participantaswell. Andthisnew business
— thisnewhospital — mustbe builtonvalues,principlesandethicsthateveryone holdsdear.
The CFO and hisexecutivescommittothe processof creatingthisnew narrative,andkickoff
witha townhall invitingall 275 employees. Thiswillnotbe a bitchsession. He startswithtwo simple
messages:thathe has heardthe complaints,andthathe’strulydedicatedtorightingthe ship. Thisisa
critical moment. Forthe firsttime,the CFO istryinga new approach — candidcommunication,dealing
inthe true coinof the realm — stories. Hislargerpurpose istoreveal meaning. Whatismost
meaningful inthe workeveryone isengagedinandhow can thismeaningleadthe waytogrowinga new
organization? He showsothershisownvulnerabilitybyacknowledginghisfailuresatthe start;giving
thempermissiontoacknowledge theirowndoubtsandfears. Itistime for everyone toreconnectwith
whytheyare still inthe business.
All staff nowgatherina seriesof facilitatedgroupmeetingsof about20 people eachtoexplore
the most simple,yettoughest,question:whyare we here? Much to the participants’surprise,as
commonalitiesemergeamongstemployees,new dialoguesandcollaborationsensue. One chastened
accountanttellsanotherfromthe otherside of “no man’sland”that he hadno ideathese valueswere
so importanttoothersbecause they’ve nevertalkedaboutthembefore. Perhapstheyshouldhave a
conversationaboutwhattheycan accomplishtogether. Anotherreportsthatthe scale of the shiftin
attitudesisdramatic,likeningittothe fall of the BerlinWall. Sharedperspectivespromotenew
alignmentandpeople who’veneverspokentoeachotherbefore begincooperatingandeven
developingnew,proactive initiatives.

5. The processcompletesat a full-dayretreatof more than100 employees,representingthe
feedbackof all staff. Here theydistill the themesintoacollective statementratifiedbyall:“We are a
HealingCommunity.” Onthe surface,thismighteasilybe anotherniftyaspirational slogandreamedup
by a high-pricedconsultancy. Butitemergesfromthe heartandexperience of everyparticipantasa
stake inthe groundaboutthe valuesandprinciplesthatholdessential meaningforeachmemberof the
organization.
We Are a HealingCommunitybecomesthe title of thisnew narrative. Asaresult,a new
strategyfor actionemergesfromthatnarrative. Inthe process,people are renewedandliberatedinto
theirwork. Sickdays and personal daysfall backto negligiblelevels. The responsetime forcustomer
complaintswentfrommore than90 days,or never,tolessthan30 days,withthe nextgoal to generate
responsesinlessthan14 days. Anemployee surveysix monthsafterthe culture alignmentprocess
starts has the highestparticipationrate recordedandthere isa markedimprovementinsatisfactionas
well aspositive suggestionsforchange ratherthanthe endlesswhining. The boardchairmanpaysa visit
several monthsintothe processandholdsamini-townhall inwhichhe asksforthe formulaforthe
dramaticturnaround. Overthe followingyear,onlyone personleavesthe team.
The real heroof thistale isthe CHRO. Notonlyis he inthe bestpositiontosee the impactof a
failingnarrative,buthe alsopossessesthe courage todosomethingaboutit. He understandsthe
strengthsandvulnerabilitiesof the CFOwell enoughtospeakthe truthandbe heard. What’smore,he
isalso instrumental inguidingthe processatall stages — trulythe people person.
The Meaning of Narrative

6. Narrative skill canbe developedandisrequisite foroutstandingleadership. Anditall begins
withstory. Why are storiesare so importanttoculture? Why are theyessential tohow we learnand
communicate?
As the screenwriterWilliamGoldmanputsit,“We getfedthem(stories) inthe cradle and
foreveron.” A storyis a learningtool,arallyingpoint,avehicle forentertainment,oran escape from
“reality.” Anditis a powerful communicationinstrument. Woventogetherstoriesdefine whowe are as
individuals,asfamilies,ascommunitiesandascultures.
From our birth,we hearand tell storiesthatshape the waywe see andmake sense of the world.
As parents,we use storiestoteachour childrenhow tonavigate the worldaroundthem. All of uscan
recall as adultsseminal eventsthatshape ourexperience andgrowthaschildrenandadolescents. They
stay withusas stories — howour mothercomforteduswhenwe fell outof that tree;whathappened
whenwe hadtoo much to drinkat that firstparty;or where we were on9/11.
Storiesevoke powerfulmemories. Theystirouremotions,expressourvaluesandstoke our
motivations. AsDominican-AmericannovelistJunotDiazwrote inthe New YorkerOnline in2010. We
all needfromour leaders:“A coherent,accessible,compellingstory — one thatisnarrow enoughtobe
heldinour mindsandheartsand that neverthelessisroomyenoughforus,the audience,toweave our
ownpredilections,dreams,fears,experiencesintoitsfabric.”
Stories call upthe meaningwe crave ashuman beings. Andmeaningisanessential nutrientof
our livesandourenterprises. We hungerforthe leaderwhofirstrecognizesthe meaningfulnessof
storiesandcan thenweave themtogether,givingvoice tothe overarchingjourneyof ourlives. Stories
takentogetherforma narrative thatis richerand strongerthaneach of its strands.

7. Considerthisexample. The incomingCEOof one of Europe’slargestcompaniesfacesadaunting
challenge. Herpredecessorhasjust beenfired. Thousandsof staff,alongwiththe owners,needanew
message aboutstability,aswellasa visionforthe future,whenshe addressestheirannual congress.
Thishighlyrespectedbutreservedwomanmuststepbeyondhercomfortzone andinspire 500skeptical
managersfromall corners of the globe? Thisis the time forherto listentoher innervoice ratherthan
surrendertothe soothingmessagescraftedbyherPRteam.
Again,itis the executivesclosesttothe heartbeatof the global business,the headsof talentand
strategy,whorecognize the urgentneedforanew narrative. Througha trustedadvisorfromoutside
the business,the CEOstartsreflectingonthe valuesatthe core of her career. Theytalkabout how
entrepreneurshipguidesbothherpersonal andcompanydecisionmaking. Asshe recognizesthe scope
of whathercareer has beenaboutforherand what herimpacthas been,she isnow able to articulate
whather tenure asCEO must accomplish. The theme andthrustof his narrative becomesclear.
Drawingon herfoundational valuesof entrepreneurshipandinvestigation,she personalizesher
message,sharingherformative entrepreneurial experienceswithcolleagues,invitingthemtothink
abouttheirown. She vividlyrecountsthe richhistoryandlegacyof the company,the challengesitfaces
and the impactshe wants itto have inthe future. She speaksfromthe heart. Her honestyand
vulnerabilitysurprise her. The immediateandvisceral response of her500 colleaguessurpriseshertoo.
Rapturousapplause isfollowedbyenthusiasticpersonal commitment. A new,energizedjourneybegins
and withinashort time the boardpresentsherwithanew multi-yearcontract. The businessisonthe
move. Again,the personclosesttothe shop floor,the headof talent,sensesthe needandopportunity
for fundamental change andhasthe courage to name it.
Becoming the Narrator-in-Chief

8. Storiesare evocative,butnarrative providesthe compass.
Everyday there are many storiesbeingtoldinour workplaces. Everyanecdote we tell,every
strategywe articulate,everypolicywe implementisastoryunto itself. Butonlywhenwe weave the
tapestryof all those storiestogethercanwe begintoexperience the meaningof the journeywe’re
on. That isthe fundamental jobof all CEOs – to be the chief narrators of theirbusinesses. The CEO
mustguide everyemployeeonthe journey. The CEOmustlistentoindividualstoriesandhelpeveryone
identifywiththe narrativeof where the businessisheaded.
Why? Because narrative becomesthe glue. Narrative touchesourheartsandminds,lightsour
imaginations,invitesdialogue,encouragesalignment,createscontextandprovidesmeaning. Andmost
importantforus as a consequence,narrative motivatesaction.
Many of our businesses,like ourfamily,ourcountryor otherassociationswe have,are founded
on a setof ideals. These idealsare oftenunspoken,andsometimesassumed. Whenwe don’thave the
opportunitytoremindourselvesof these ideals,toconnecttothem, to experience theminaction,we
can become enragedordisillusionedandlose ourway. Whenthere isnomeaningful narrativeto
connectwith,we lose faithandtrustin ourselvesandinourleaders.
Whether,CEO,President,CHROor family head,the same istrue forall of usin a leadership
role. We are more than policymakers,managersandresultproducers. Firstwe are narrators.
Going Viral in the Narrative DrivenEconomy
No longercanwe treat storiesandnarrativesassimplyanothertool inthe corporate
communicationskitbag. Theyare inescapable elementsof ourdailypersonal andprofessionallives. All

9. data containthe seedsof storiesthatinformourlives,drive ouractionsandaffectthe successor failure
of ourbusiness. We talkface-to-face withfamily,friendsandcolleagues;attendclasses,seminarsand
live performance;readbooksandmagazines;watchmovies,sports,advertisementsandtelevision
shows;use email andsocial mediasuchas TwitterandFacebook;playgames;andgossip.
The deviceswe use forall thiscontentare expandingfastastablets,phones,laptopsand
televisionsincrease infunctionalityandease of interactivity. These devicesare all channelsforstory-
telling. Andtheyall fuel our insatiableappetite forstories. Everysoundbite,everytextmessage,every
tweetisa story. While the Digital Age hascertainlyfracturedhow storiescanbe structured,ithas also
dramaticallyincreasedthe numberof storiestowhichwe are exposed, andthe speedwithwhichthey
flowbetweenus. Storiesare nowa prime engine of commerce.
Researchconductedby eMarketerpredictedthatthe numberof social networkusersaround
the worldwouldhave risento1.73 billionbythe endof 2013. That’s nearlya quarterof the world’s
population. They’re all tellingstoriesandcreatingsome kindof narrative. Asthe numbersof us
participatinginthisnarrative-driveneconomyspiral up,the powerof the driversisalsoincreasingata
staggeringrate. Intel’sformerCEOCraigBarrett saysthat inthe nextdecade ortwowe’ll see continuing
exponential growthincomputational poweralone. While thiswill bringsocial andcultural disruptions,
Barrett isexcitedaboutmarryingcomputingcapabilitieswithothersciences,suchasbiologyand
medicine. “The possibilitiesof whatcan happenare unlimited,”he says.
In thisenvironment,itisessential forCEO’storeflectuponthe storiesbeingtoldintheir
organizations,tounderstandthe waythey’re beingexpressedandtobringthemtogetherina
meaningful way. Further,theymustembrace anduse these new channelsof communicationtofull
advantage. These channelsare ournewreality.

10. The Elements of NewNarrative
Creatinga newnarrative foran organizationisnota complex job,butitisoftendifficultasyou
findwaysto overcome skepticismandbuildawillingnessamongall participantstoengage openlyinthe
process— startingwithyour CEO. It starts withunderstandingthe sequential flow of the narrative
processand howitworks.
Story yieldsNarrative
Narrative yieldsMeaning
MeaningyieldsAlignment
AlignmentyieldsPerformance
Approachyour newnarrative asa discoveryprocess. StartingwithyourCEOand the executive
team,identifythe structures,teamsandalliancesthatnaturallyshow upinyourorganization. Thesewill
not alwaysbe those onyour organizationchart. Withthe helpof a trustedoutside facilitator(critical to
ensure rulesof engagementare adheredtoandeveryone iscandidfromthe start) start withthe top
team.Expandthe circle throughthe organization(gettingasmuchbuy-inaspossible),encouragingtrust,
risk-taking,opendialogandactive listening.Thiscantake weeksormonthsandthe topteam islikelyto
heara lottheydon’tlike. Youare gatheringthe themesof the storiesthatwill formthe buildingblocks
for puttingtogetheryournewnarrative.
The questionsforyouto ask are verysimple,butwill reveal goldasyoucraft the new narrative.
Don’tbe afraidto presshard formore whenyoufeel youare simplygettingthe patPR response. Your
jobis to digfor valuesandprinciples.

11. Why doesyourCEO reallywantto be leadingthisparticularbusiness? Atthispointintime? In
thisindustry?
What are the foundational valuesof yourpeopleandisyourCEO hearingthemclearlyaswell as
embracingthem?
What are yourCEO’s foundational valuesandhow dotheyrelate towhatyouknow of the
valuesof the people?
Clearly,it’sjustasimportant toknowwhat drivesyourpeople. Youchoose the mosteffective wayof
findingout,butitmightbe a combinationof onlinesurvey,groupmeetingsandone-on-oneinterviews.
As withyourCEO, askpeople whytheyare inthisindustryandthisfirm.
What are theircore idealsandvalues?
How closelydoindividualvaluesalignwiththose of the firm?
Where do the bestconnectionsandcollaborationsexistandwhyare theyeffective?
Where couldtheybe improvedandhowcouldthat happenbysharingvalues?
Keepinmindthe themesof the storiesandthe intrinsicvaluestheyexpress. Whatdoesit all tell you
aboutthe,culture,meaningandpotential impactof the firm? Findaway to conveyall thistoyour CEO
so as to invite anewdialogue basedonprinciple andmeaning.
You can complete the processata town hall or retreatwhere youcan draw the emergent
themesintoashareddeclaration. Keepitsimple andinthe presenttense.Thisisnotmeanttobe a
goal-oriented“missionstatement”. Itisa straight-forwarddeclarationof whoyouall are now. Itshould
resonate forindividualsandforthe organization. The essential elementatthisstage iscreatinga
contextforall the storiesandthemes. Here’sacheck listtohelpyoualong:
What are our foundationalvalues?
Do theyrelate tothe contextof ourtimesand ourbusiness?
Why isour businesswellsuited,ornot,tothese times?

12. What unique challengesdowe face now andhow do our valueshelpguide oursuccess?
How dowe draw thisintoa short,powerful declaration?
Starting WithYou
You’re takingthe firststepon thisnarrative journey. Itisn’talwayseasy. Itwill take personal
awarenessandindividual courage. YourCHROear iscontinuallyattunedtothe voices,issues andneeds
inyour business. Youdohave the sensibilitiestomine the intrinsicvaluesinall youremployees. Hence,
youare uniquelyqualifiedtohelpyourbossbecome the narrator-in-chief. First,redefine yourownrole
alongside yourCEOandyour communicationsteam, tohelpenactanew reality.
Understandwhatyour CEO wantsas hisor her legacy. It’scritical. Linkthisinsightwith
commonthemes,viewpointsandaspirationsyou’re hearingfromstaff. Weave all of these themes
together,andyouwill see the core of your sharednarrative.
Personal legaciesare builtonthe storieswe tell,notsimplythe targetswe meet. Inthe words
of the CelticmusicianandstorytellerCharlesde Lint,"We're all made of stories. Whentheyfinallyput
us underground,the storiesare whatwill goon.It'sa kindof immortality."
Allen Schoer is Chairman and Co Founder of The TAI Group. This chapter has had contributions from Graeme Thomson, TAI
Director of Strategy and Jim Cornehlsen, founder of FutureSearch, former director and leader of the Global Media and
Information Services practice at Heidrick & Struggles, and board member of the AMA’s HR Council.
For more than 30 years, The TAI has been helping CEOs and their teams rediscover the personal meaning in what they do, create
new corporate narratives, and increase their authentic communication and leadership impact. Partnering closelywith Chief HR
and Communication officers, The TAI Group helps discover and drive the critical aspects of personal and team leadership that
drive high performing organizations. Its work is founded on the principle that an organization's outcomes depend on what
people do, and TAI helps create the messages, practices and experiences that transform culture to get there.