The president of a client hedge fund called an all-hands meeting of employees to discuss corporate culture. Instead of a PowerPoint presentation, he told this story:

“When I first joined the company, I made an investment that worked out much better than I expected. I met with the senior partner I reported to. I expected him to congratulate me. 

"I was surprised at his response: ‘What can we learn and how can we do better next time?’

“I soon came to realize that his question was not personal. It was the company culture: we are self-reflective and critical. 

"We are always looking for ways to improve.”

The CEO’s story and its structure are powerful from a neurochemistry and business perspective.

How Good Stories Influence Brain Chemistry:

Renee Scudder (2021) examined stories from a neurological perspective. When listeners hear good stories, their brains produce the hormone oxytocin. A chemical with many anti-stress and prosocial effects, oxytocin motivates cooperation. Two other brain chemicals are also released in response to well-done stories: cortisol to help us focus attention and dopamine to reward us for paying attention.

In the popular Broadway musical Hamilton, the mortally wounded first Secretary of the Treasury asks, “Who tells your story?”

For Alexander Hamilton, the production answers his question:

For years, the story of Alexander Hamilton was forgettable for thousands of high school students taking required U.S. history. Now Hamilton’s story is being told as a hip-hop musical. Millions of people are eager to pay to see it and hear it.

Psychologist Melanie Green (2013) has found that it is important that the listener be immersed in the story at both a cognitive and an emotional level. One way of accomplishing such dual immersion is to have stories told by high-status individuals.

The hedge fund president’s story is powerful because the president was telling it. It would also be powerful if a video was made of him telling this story. Having a Human Resources trainer tell the story during an onboarding program would not be as valuable.

Do You Have a “First" Story?

The president’s story resonates because it is about vulnerability. His story is about the first time he had personal responsibility for an investment. “First" stories tend to especially draw in younger audiences and new employees, as they often see themselves as drowning in “firsts.” 

Good stories have three acts. (Alton, 2016). In the president’s story, the first act is an inexperienced professional making his first successful investment. The second act is the supervisor’s failure to compliment him. The third act is the story’s resolution: "Our culture is to always ask, 'How can we improve?'"

Summary and Conclusions:

If your leadership goal is to change individual behavior today and establish traditions for the future, learn the structure of good business stories. You are providing your audience with valuable information and changing brain chemistry.