Wolfgang Hammer - The Power of Story - [Invest Like the Best, EP.447]

A compelling narrative isn't just about what you do (external). It requires a personal "why" (emotional) and a steel-manned refutation of the dominant worldview (philosophical). This internal work galvanizes teams and resonates with customers.

Companies often neglect narrative because the complexity of their work is overwhelming. But defining a philosophical "why" creates powerful symbols. This gives work a sense of ultimate concern, making it feel more meaningful and inspiring to employees and customers.

The story of an underdog rising against the odds is powerful because everyone subjectively views themselves as one. Even the most powerful people are locked in their own perspective, wanting more and fighting limitations. Tapping into this universal feeling creates an immediate, relatable connection.

The pursuit of pure originality is often a status game that leads to incomprehensible ideas. A more effective approach is to see originality as a new way to show people an old, constant truth. This re-frames innovation as a novel form of derivation, making it more accessible and relatable.

The human mind rejects ideas that are too novel. Effective communication and innovation should be grounded in the familiar, introducing only about 20% new information. This principle, from designer Raymond Loewy, helps make new concepts intelligible and acceptable.

An effective CEO maintains a consistent core philosophy but tailors the emotional and subjective components of the message for different audiences (e.g., engineering, sales, investors). This context-switching ensures everyone can hear and internalize the message in a way that resonates with them personally.

According to screenwriter Robert Towne, stories tap into two fundamental human drivers: achieving a cherished outcome or avoiding a negative one. This binary is a powerful lens for product development and marketing. Frame your offering to either fulfill a deep-seated aspiration or eliminate a persistent fear.

The version of your life or company story that feels so big it's terrifying is often the correct one. This fear stems from your subconscious recognizing a potential for greatness that is overwhelming to your rational, analytical mind. Acknowledging this vast inner world unlocks inner transformation.

A sales pitch fails when it doesn't align with the buyer's subjective worldview. For example, a C-level executive's philosophical framework is vastly different from a frontline manager's. The key is to map your solution onto their current story, not force a new one.

You cannot think your way out of the fear of your own greatness. Potential is unlocked through doing. Action, even if it doesn't yield immediate results, begets more action, which in turn begets courage. Narrative itself can be defined as "fear made conscious and conquered through action."