"The most powerful person in the world is the storyteller. The storyteller sets the vision, values, and agenda of an entire generation to come." – Steve Jobs, Co-Founder of Apple

The hidden power of business storytelling

Every business, regardless of size or industry, has a narrative – a thread that connects its founding purpose to its current operations and future aspirations. This narrative isn't merely decorative; it's the invisible infrastructure that supports everything from employee engagement to customer loyalty to market valuation.

Owners of closely held businesses make decisions daily about capital allocation, talent, and strategy. But perhaps the most overlooked choice is one of the most consequential: Is your story being told – and if so, by whom and how well?

Why stories matter more than we think

Princeton University researchers discovered something remarkable when they studied brain activity during storytelling. When someone hears a vivid narrative, their neural patterns begin to mirror those of the storyteller – a phenomenon called "neural coupling." The stronger this alignment, the better the comprehension and emotional connection between speaker and listener.

This isn't just academic curiosity. Consider these practical findings:

• Information delivered as story is remembered 22 times better than facts presented alone.
• Companies that use character-driven narratives can boost conversion rates by nearly 30%.
• During periods of uncertainty, storytelling significantly increases employee engagement and resilience.

We’ve experienced this firsthand at BBH. Now in our third century of operation, we have weathered economic depressions, world wars, and technological revolutions. Our longevity isn't accidental – it's built on our ability to maintain a consistent narrative through dramatic change.

The silent vacuum that costs millions

Perhaps the most expensive mistake closely held businesses make isn't telling the wrong story – it's telling no story at all. As venture capitalist Ben Horowitz warns, "A company without a story is usually a company without a strategy."

The broader data confirms this warning. Gallup's 2024 “State of the Global Workplace” report found U.S. employee engagement was at a 10-year low, with "knowing what's expected of me at work" as the most-eroded benchmark. This information gap is precisely what a coherent narrative helps close.

Your origin story: More valuable than you think

Every closely held business has an origin story worth telling – not for sentimentality's sake, but for its practical power.

Your business likely began to solve a specific problem or seize a particular opportunity that others missed. That first spark contains the DNA of what makes your enterprise different. When articulated well, it becomes a decision-making filter and recruitment tool that no competitor can replicate.

Turning values from statements to narratives

Most companies have values statements. Far fewer have values narratives – specific stories that demonstrate those principles in action.

Consider the difference:

Standard value statement: "We value integrity in all our dealings."

Values narrative: "In 2018, we discovered a pricing error that had accidentally undercharged our largest client for six months. Though legally protected by contract terms, we calculated the difference, disclosed the mistake, and paid them back $217,000. We lost profit that quarter but gained a reference client who has since referred us $3.8 million in new business."

The first is forgettable rhetoric. The second is a story that informs action.

The most convincing values stories often involve sacrifice – moments when living your principles cost something. These narratives don't just tell employees what you believe; they show what you'll endure to uphold those beliefs.

How to craft a story that lasts and evolves

Creating an enduring company narrative isn't a creative writing exercise – it's a disciplined leadership practice. Here's a pragmatic approach.

Critical moments when story determines outcome

Certain business inflection points make storytelling not just important but decisive:

A boardroom reflection

Before your next strategic offsite or leadership meeting, consider three questions:

• Can every colleague explain, in plain language, why we exist?
• Is our forthcoming chapter – expansion, succession, or market pivot – captured anywhere beyond a few leaders' heads?
• If an outsider Googles us today, will they encounter the story the firm believes?

If any answer wobbles, your most urgent initiative may not be a reorganization or product enhancement, but reclaiming the narrative.

Conclusion

In closely held businesses, where the distance between owner, workforce, and market is measured in footsteps rather than floors, the storyteller doesn't just set the agenda – they preserve the very advantage that makes the business worth holding. If you are interested in discussing this topic further or have any questions about crafting your and your business’s stories, reach out to your BBH relationship team.