Strategic Storytelling: Influence Through Narrative

In college, Walter Bettinger, now CEO of Charles Schwab, was on track to graduate with a perfect GPA. His final exam was for a business strategy module. Instead of the usual questions, his professor handed him a blank sheet of paper with one question: “What’s the name of the woman who cleans this building?”

Walter failed the exam because he didn’t know Dottie, the janitor he’d passed countless times. That moment shaped his leadership style, teaching him that everyone in the organisation, no matter their role, matters. Today, he ensures he knows every Dottie in his company, because good culture needs to be modelled at the top.

Is it true? Who the heck knows?

It’s effective, though, isn't it?

Storytelling allows us to  resonate emotionally with our audiences, and ensures our messages have longer staying power.  Stories transform dry facts, data and lessons into engaging narratives that ultimately influence attitudes, behaviours, and decisions. 

Great Founders and CEOs are usually outstanding storytellers. Because they know that’s what it takes to sell and scale.

Let’s dig in.

How Your Brain Responds To a Good Story

Our brains are wired for stories. They crave narratives in the same way our taste buds long for that perfect cup of coffee in the morning (and mid-morning, afternoon, evening and before bed…I have a problem).

Stories do more than entertain or explain. Real neurological reactions engage our emotions, connect us to others, and help us make sense of the world. 

Neuro coupling

When we listen to a well-told story, something remarkable happens in our brains called neural coupling. As you listen, your brain activity actually starts to mirror those of the storyteller. Some research has actually shown a listener’s brain can precede the speaker’s (cool hey?) —anticipating what comes next. 

As they tune to the same frequency, so to speak, your brain starts to live and feel the story as if you were the one who experienced it. 

Empathy and oxytocin

A good story doesn’t just support a point, it tugs at our emotions. Oxytocin is released when we engage with compelling narratives. It boosts empathy, making us more likely to connect with the characters and, ultimately, the storyteller. Just the act of telling a story can physiologically build trust and buy-in.

Data doesn’t speak for itself

It’s not enough to just present the data. 

When researchers studied individuals with damage to their amygdala—the part of the brain responsible for processing emotion—they found they couldn’t make a decision. 

Turns out, emotion is critical in every choice. 

If pure data were all that mattered, decisions would be as simple as plugging numbers into a calculator (or, if you take some of the marketing at face value, AI). But they aren’t. Stories imbue data with meaning and context, appealing to our emotional core and guiding us toward action. 

The Pyramid Principle

The Pyramid Principle, developed by Barbara Minto, the first female MBA hired by McKinsey (look up her story, it’s incredible), is a method of organising ideas in a compelling and logical manner that resonates with decision-makers. 

Here are the tenets of the Pyramid Principle (also the anatomy of a great slide deck):

1. Always start with the answer first
2. Supplement your conclusion or thesis with supporting arguments
3. Deepen your arguments with evidence

Every layer adds depth, supporting the primary message while maintaining the audience’s focus. This logical progression mirrors our natural way of processing information—starting with the need to know and then examining why it matters and how it all fits together. 

After all, clarity and persuasion are two sides of the same coin. 

👉 Drop me a DM if you want to learn how to apply this and we can hop into a quick workshop.

The Strategic Storytelling Cycle

To create real influence and change in your organisation, strategic storytelling must be an ongoing cycle*. A dynamic process that evolves with your audience and objectives. 

It has three main stages.

1. Capturing

The first step is capturing authentic stories. Identify and gather narratives from within and outside your organisation that resonate with your values, mission, and objectives. 

They could be customer experiences, employee interactions, or even historical successes (or mistakes). The key is for them to be truly genuine, relatable, and impactful. 

2. Sharing

Craft your stories in a way that supports your main point without always explaining why. This is where creativity meets strategy. A well-told story will naturally lead your audience to the conclusions you intend, often more effectively than explicit instructions or directives.

Every good story needs the following:

Context

Set the stage with the necessary background information. Introduce the characters, the setting, and the circumstances. By painting this picture, your audience can place themselves within the narrative.

Conflict

Conflict engages your audience’s emotions and keeps them invested in the outcome. Whether the challenge is an obstacle faced by an individual, a team, or the organisation itself, highlighting the struggle adds tension and intrigue. 

Outcome

The resolution of conflict is where the story becomes supporting evidence. A well-crafted outcome offers a satisfying (or sometimes jaw-dropping) conclusion and subtly reinforces the main point you’re trying to communicate. 

3. Generating

The final stage in the cycle is generating new stories from the behaviours you’ve influenced. As your stories begin to resonate and inspire action, they spark a chain reaction, leading to new experiences and transformations.

Encourage your audience to share through their own storytelling sessions or informal gatherings. Highlighting these real-world applications of strategic storytelling helps to validate the original stories and brings them full circle.

Final Thoughts

‘Storyteller’ is often listed on the CV of a marketer, writer, or someone in entertainment. But corporate leaders often need to be just as much Dickens as Buffett. It’s not enough to just present data points and demand action. 

Emotional, engaging, strategic storytelling is how you can effect real change in your company. It’s the reason I write these newsletters. It’s the way I connect with clients and make a difference in the community at large. It’s how all of us make decisions. 

Learn to tell a good story, and you can influence people to do anything. 

About Me

👋 Hi I'm Kat, a strategy and board advisor to Fortune 500, ASX200, and ambitious startup leaders. With over 12 years of experience guiding top businesses toward exponential growth, I’ve seen firsthand what works (and what doesn’t). In Strategy Sketch, I distil the lessons from 100+ clients to help you think more clearly, sidestep costly mistakes, and build the structure needed for rapid success.

Let’s chat if I can support you or someone in your network.