Many executives we speak with — truly undervalue the power of their corporate story. They do not realize the intrinsic link between the financial performance of the business and the clarity of their story. An article in the Journal of Business Strategy illustrates the “financial upside” of activating a clear, compelling and consistent corporate story. And, the “agony” executive teams experience when they don’t.
But before we get to the numbers, we need to share the definition used for “corporate story.” The journal defines corporate story as …
“A narrative tool that tells the tale of a company’s strategy in action. It is a clear, structured, compelling articulation of who we are and where we’re headed that rallies emotional and rational support from stakeholders.”
So what’s the financial upside for executives who effectively leverage this narrative tool?
- Organizations that effectively communicate the corporate story and business strategy, have a 43 percent higher market-to-book ratio than those organizations that did not. (Deloitte)
- Companies that leverage a clear corporate story to provide employees with line of sight to strategy, goals and priorities increased their market value by almost 5 percent. (Watson Wyatt)
So, you are probably asking, what’s the downside? Well, executive teams that do not develop and activate a clear, compelling story experience what the journal refers to as “the agony of the untold story.” Those companies that do not use their corporate story effectively:
- Fail to establish organization alignment
- Lack clarity across leaders, managers and employees
- Experience a higher percentage of disengaged employees
- And yes, fail to achieve optimal financial performance
At OnMessage, we specialize in helping executive teams develop and activate powerful corporate stories that drive organizational clarity and alignment. If you believe your company is “under-utilizing” its corporate story, speak with one of our experts today.
