In Isabel Allende’s ‘Two Words,’ Belisa Crepusculario makes a living selling words. Her fate changes when a colonel with presidential ambitions kidnaps her to craft a speech powerful enough to sway the masses and defeat his rivals. Her gift for capturing emotions, aspirations, and dreams makes her indispensable.

Allende’s story delves into the impact of storytelling and the transformative power of words. Leadership is not merely about authority and strategy. While the colonel may possess those assets, it is his ability to articulate this ‘package’ within an effective narrative that defines his leadership in the eyes of his followers. The Holy Trinity? Will, skill, and ... thrill.

Lacking the ability to influence motivation and, consequently, behavior, a leader is merely a manager focused on daily box-ticking tasks. A powerful story that resonates with followers and intrinsically motivates them is particularly relevant in high-stakes environments such as investment banking, where leadership involves navigating uncertainty and volatility, inspiring teams, and communicating complex ideas to diverse clients and other stakeholders.

The most impactful stories — stories from the trenches — resonate with followers because they offer guiding principles that capture their inner feelings and emotions. I once interviewed Bruce Wasserstein, the legendary former head of M&A at First Boston, co-founder of Wasserstein Perella & Co., and former Chairman and CEO of Lazard; he was an impressive storyteller, to say the least. John Mack (former CEO and Chair of Morgan Stanley) was also a revered wordsmith.

A well-crafted story, adorned with metaphors, unique experiences, and anecdotes, has the power to transform dry and abstract figures such as numerical data into a vivid picture. Most people, including the clients of investment banks, perceive numbers as incomplete. While the metrics of an M&A deal are crucial, the narrative surrounding it determines its success (e.g., how will the combined entity serve its customers better?)

A well-told story can inspire confidence, foster resilience, and create a sense of shared purpose. During the 08/09 financial crisis, leaders like Jamie Dimon of J.P. Morgan and Lloyd Blankfein of Goldman Sachs used storytelling to navigate their organizations through unprecedented challenges. By framing their key decisions within a broader narrative of resilience and renewal, they were able to inspire their teams and restore confidence among clients and investors.

Despite the analytical nature of investment banking, key decisions made by leaders must be rooted in an effective story. Effective stories lubricate the wheels of an investment bank’s leadership-followership engine. Allende’s ‘Two Words’ is a masterful exploration of the intersection between narrative and leadership in a complex, high-stakes environment.