Transcript
Stanford University (0:01)
This episode is brought to you by Stanford University. As a Think Fast Talk Smart listener, you've heard firsthand how Stanford researchers have brought cutting edge ideas to life. Like Aliyah Crumb's work on how our mindset can empower confidence and manage stress, Stanford researchers are constantly working to improve the world around us. Microbiologists Justin and Erica Sonnenberg are studying the gut microbiome and its potential for helping people live healthier lives. The essential microbial community in your gut influences your immune system, your metabolism, and even affects your mood and behavior. The Sonnenberg's work is leading to actionable insights that can nurture your gut microbiome to reduce inflammation and contribute to a healthier, longer life. Groundbreaking research like this happens every day at Stanford and you can Learn more at researchmatters.stanford. eduardo.
Matt Abrahams (0:56)
The glue for ideation, imagination, and even strategy is communication. My name is Matt Abrahams and I teach strategic communication at Stanford Graduate School of Business. Welcome to Think Fast Talk Smart, the podcast. Today I'm excited to speak with Martin Reeves. Martin is chairman of the BCG Henderson Institute, which is a think tank dedicated to exploring and developing valuable new insights from business, technology, economics, and science. Martin has written many books. One of my favorites is the Imagination Machine, and he's also written a new book along with Bob Goodson called the Button that Changed the World. Welcome, Martin. I look forward to our conversation.
Martin Reeves (1:45)
Yeah, likewise. Thanks for having me, Matt.
Stanford University (1:48)
Before we get started, I wanted to remind everyone that we have amazing resources on Faster, Smarter IO, including recommended books, deep div into topics such as anxiety management and spontaneous speaking, and content for English language learners for every single episode. Check out Fastersmarter I.O. resources and to learn even more, you can subscribe to Premium at fasterastersmarter IO Premium.
Matt Abrahams (2:16)
Excellent. Let's get started. Okay, sure. The very first article my students read in my GSB Strategic Communication class is your article called your Strategy needs a Story. Your article emphasizes the power of narrative in strategy. How can leaders craft compelling strategic stories that not only inform but also inspire and mobilize their organizations?
Martin Reeves (2:42)
There's a lot here. It sounds improbable, right? Strategy seems to be a very serious affair, a very analytical affair. And stories sounds like fiction. It sounds like something frivolous. But actually, a strategy is a story. If you think about it, strategy starts with a reality, the present. And it's about a fiction which is causing a different state of affairs. Competitive advantage, favorable outcomes. So it's a special type of story. It's a story which is initially fictional. That's converted to a reality. And I think the important thing about the story is not just informing, which generally strategy does a very bad job at this is famous statistic that only 27, that's 28% of managers actually know any of the top priorities of their company's strategy. So informing is a bar, but an even bigger one is inciting action because you want people to actually be motivated to. To execute the strategy. And so how do you do that? I think you, you think about the details of the strategy, but then you think about how to tell it in a way which is actually informative and inspiring. And I think a lot of the elements are actually elements that are present in any story. You need to start with a past, how did you get here? A present, your future aspiration. You need some sort of obstacles to overcome to reach your journey. You need some sort of hero the company. You need some sort of path as to and philosophy as to how you're going to achieve that that result. And I think a very good way to think about this is the strategy formulation process, which is obviously a little bit aristocratic. Sometimes it's only the strategists or the highly analytical types in the corporate center that deal with the strategy. But you think about the process of strategy formulation, an inclusive process whereby a group of people that are charged eventually with executing the strategy come up with the strategy has the additional benefit that the process of formation of the strategy can be motivating and informative in itself. And I think critical there's is using the right sequence of questions in that process to have some degree of control and ability to shape the process, but a lot of openness too. So there's a lot of discovery of listening, a lot of creativity. I think these two topics of story and strategy are intertwined.
