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 profound impact of storytelling, the transformative power of words. Leadership is definitely not only 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 (‘thrill’) and, consequently, behavior, a leader is merely a manager focused on daily ‘ticking-the-boxes’ tasks. A powerful story that resonates with followers and intrinsically motivates them is particularly relevant in high-stakes environments like investment banking, where leadership involves navigating uncertainty and stress, inspiring teams, and communicating complex ideas to diverse clients and various other stakeholders.
The most impactful stories, often ‘stories from the trenches’ or ‘warzone stories,’ resonate with followers because they offer guiding business principles that capture their feelings and emotions. Think of figures like John Mack of Morgan Stanley, John Whitehead of Goldman Sachs, or André Meyer of Lazard. They were (‘are’, Mack is still alive) revered wordsmiths.
A well-crafted story, adorned with metaphors, unique experiences, and anecdotes, has the power to transform dry and abstract figures — for example, numerical data — into a vivid picture. Most people, including investment bankers, perceive numbers as incomplete, at the very least. While the financial metrics of an M&A deal are crucial, the narrative surrounding it determines its success (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 2008/2009 financial crisis, leaders like Jamie Dimon of JP Morgan and Lloyd Blankfein of Goldman Sachs used storytelling to navigate their organizations through unprecedented challenges. By framing their 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 the investment banking business, important decisions made by leaders are usually rooted in an underlying story. Much like Allende’s ‘Two Words’, 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.