HBR On Leadership

Why Storytelling Matters When Changing Company Culture

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Key takeaways

  • Effective culture change relies on authentic storytelling that is rooted in actions, not just words.
  • Leaders should star in their stories and behave in ways that exemplify the new cultural values.
  • Stories that break with the past and are emotionally engaging help embed new culture.
  • Behavioral actions that illustrate strategic shifts create the most credible and memorable stories.
  • Virtual work environments pose challenges for storytelling, requiring intentional, theatrical, and creative efforts to maintain cultural continuity.
  • Ongoing investment and deliberate communication are essential for building and sustaining organizational culture through stories.

Summary

The Power of Storytelling in Culture Change

This section introduces the core idea that storytelling is a crucial tool for transforming organizational culture. Jay Barney discusses how successful leaders create authentic and memorable stories that reflect new cultural values and reinforce strategic shifts. Unlike top-down proclamations, these stories emerge from actions that break with the past and demonstrate new behaviors aligned with the desired culture. The stories must be genuine, and leaders should star in them to set a credible example. The importance of authentic storytelling that resonates emotionally and aligns with strategic goals is emphasized.

Strategies for Effective Storytelling and Culture Transformation

Here, Barney describes practical methods for leaders to craft and circulate stories that promote cultural change. Action is prioritized over words—behavioral changes create stories, which are shared informally and organically, eventually replacing old narratives. Leaders should focus on authentic stories that reflect their personal values and strategic challenges. The storytelling process involves theatrical elements, such as memorable events or symbolism—like the 'bread and water' dinner—to emotionally engage employees and embed new cultural values. The importance of a strong business case for change is underlined, ensuring stories are credible and aligned with strategic needs.

Challenges and Opportunities in Remote Work and Storytelling

This section addresses the impact of remote work and virtual communication on storytelling. Barney notes that culture-building stories are harder to create and share remotely because body language and emotional cues are less perceptible. Leaders are encouraged to be theatrical and intentional in their storytelling, even virtually, to foster cultural alignment. Rituals like 'mission moments'—short, focused stories about customer success—are useful for maintaining shared values and authentic narratives beyond in-person interactions. The overall message is to be deliberate and creative in storytelling efforts, especially in a virtual environment.

Keys to Spreading and Sustaining Cultural Stories

Barney emphasizes that stories spread naturally within organizations when they are authentic and impactful. Formal communication channels, like online magazines or press involvement, can supplement organic storytelling. Leaders should start with small, genuine stories that embody the new culture, then gradually formalize and amplify them as part of organizational communication. Recognizing that culture is an ongoing process, Barney advocates continuously investing in stories to reinforce and adapt the culture over time, rather than viewing change as a one-time event.

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Show notes

Jay Barney, a professor at the University of Utah’s David Eccles School of Business, studied leaders who successfully led culture change and found one thing in common: they created and spread authentic and memorable stories. The new stories then emanated throughout the workforce and rewrote the old narrative. Barney explains the six rules leaders need to follow to drive cultural change with storytelling.

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