In today’s noisy, complex business world, facts and data alone are not enough to influence, inspire, or lead. Stories—how they’re built, shared, and felt—have become an essential leadership skill.
Few people understand the true power of story better than David Pearl. A former BBC broadcaster, Hollywood script consultant, and lifelong performer, David has spent his career bridging the worlds of the arts and business. From the opera stage to boardrooms around the globe, he has pioneered the use of creative storytelling to help leaders think differently, connect more deeply, and inspire action. As a trusted confidant of CEOs and their teams, David is known for designing and animating some of the world’s most high-stakes meetings. He’s also the founder of Street Wisdom, a social venture that helps people find inspiration in the everyday, and keeps his creative instincts razor-sharp with his improvising musical ensemble, Impropera.
In this candid conversation with Noorain Nadim, a McKinsey consultant focused on strategic and change communications, David explains how stories shape decisions, how leaders can build their storytelling voice, and why understanding the “story weather” around us is crucial in the modern corporate landscape.
Noorain Nadim, McKinsey: David, how would you define stories in the business world?
David Pearl, Pearlworks: People are swayed more by the narratives they believe than by raw data. There are more facts and more competing narratives out there than ever before, and at the same time, people have never found it harder to decide what really matters—in your language, the “so what?”
Leaders must understand not just the facts but the “story weather” that is shaping opinions and decisions, because the only thing that will unseat an unhelpful story is a better story. To anyone who thinks storytelling is optional, I’d say it’s now an essential leadership skill.
Noorain Nadim: You often distinguish between story and storytelling. Can you elaborate?
David Pearl: Yes, I talk about story for leaders, rather than storytelling. Storytelling is the most visible part—how the story is told. But the real work happens behind the scenes, in how the story is built and structured.
In my work—especially with my background in film, TV, and theater—I’ve seen that the act of telling a story is only a quarter of the equation. Even people who aren’t naturally charismatic can still tell incredibly persuasive stories. Their success doesn’t rely on delivery but on how well the story is crafted. People think you have to be born a master performer to be a great storyteller, but so much of the work is first of all getting your story right.
Story isn’t just something creative types use; it’s a fundamental faculty of the mind. Even the most fact-driven person constantly imagines what’s next. Much of what we see in newspapers and on social media about the future is just that—imagination, presented as fact. Even saying, “I must get a cucumber sandwich,” puts you in an altered reality where your brain plays with concepts that aren’t physically there. And the moment you do that, you’re in the world of story.
Noorain Nadim: That’s such an interesting perspective. Businesses forecast the next decade, presenting it as fact, but it’s really storytelling.
David Pearl: Businesses are often surprised by how much a story can make or break them, whether it’s a reputational crisis or sentiment. Investor sentiment itself is about feeling. Analysts don’t just look at numbers; they’re sensing whether leadership has a clear vision and if the company feels solid.
I often talk about the seen world versus the felt world. Business operates more in the unseen—money, brand, trust. Coming from the arts, where everything is tangible, I find business surprisingly abstract—almost poetic.
This frustrates some leaders. They see storytelling as woo-woo while viewing their work as rational. But founders get it. Because they are creating something from nothing, they are compelled to craft a vision people can believe in. If they don’t do that, they don’t have a company. A lot of other business chiefs could learn from that.
When people dismiss story as a soft skill, I challenge them: Break it down, and you’ll quickly hit vision, principles, mission—all things that must be worded before they can be acted on.
Noorain Nadim: You’ve worked with top leaders across industries. What makes a leader a great storyteller?
David Pearl: At its core, great storytelling makes complexity simple. A friend in politics told me, “The only job of a politician is to describe a future worth working toward and suggest how to get there.” That captures why I’m fascinated by future stories. Leaders shape the future by authoring it.
They also need to make sense of the past. In a world of overwhelming inputs and uncertainty, the best leaders create meaning. When people hear them speak, they gain perspective and direction.
Natural storytellers can sometimes be limited because they rely on their style, which only works for part of the audience. We’ve all seen leaders whose go-to story—maybe about their dog—has people rolling their eyes. Great storytelling isn’t about one style. It’s about helping people see what’s happening, where we’re going, and why it matters.
Noorain Nadim: How can leaders develop their storytelling voice?
David Pearl: First, they have to want to. Storytelling is a discipline, not just a talent; it takes a lifetime to master. Even seasoned filmmakers sometimes get it wrong.
Leaders should build on their strengths and broaden their repertoire. I recently worked with some financial leaders who were very fact based, to write better stories. Instead of changing that, we focused on what was missing: engagement with their audience.
One leader showed me a slide of two penguins—one working, one resting—telling his team, “If we don’t work hard, we’ll be left behind.” But it wasn’t landing.
I suggested adding context. Show the market opportunity first—the ocean full of fish. Then frame the choice: Do you want to be the penguin fishing in abundance or the one sitting idle? To heighten it, introduce a competitor for the company—a whale looming nearby. Now the story isn’t just a warning but a call to action with meaning.
Sometimes small shifts—sequence, context, emotion—bring a story to life.
Also, remember that good storytelling rests on good listening, on the ability to focus your attention on your audience, not on what you want to say, while at the same time saying what you want to say.
Noorain Nadim: What holds leaders back from storytelling?
David Pearl: Leaders often resist storytelling because of rigid self-perception: “I’m an engineer, not a storyteller.” But that itself is a story they tell themselves.
Many also misunderstand what storytelling means. They assume it’s long-winded when, in reality, micro-stories—short, meaningful moments—can be just as powerful. A simple reply like “Compared to Q4 last year, things are amazing. How are things with you?” instantly adds perspective and energy.
Another barrier is the belief that story means fiction—a childhood association with “stop telling tales.” But storytelling in leadership isn’t about fabricating; it’s about framing the truth so it’s heard and remembered.
Noorain Nadim: How can leaders ensure their stories resonate with diverse audiences?
David Pearl: It takes two things: trust in our shared human experiences and sensitivity to our differences. Many stories are rooted in universal myths, like the hero’s journey. That pattern exists across cultures.
But the details vary. A story that resonates in Norway might not land in Nigeria without context. That’s where story listening comes in. Leaders focus so much on storytelling, but listening is just as crucial—understanding others’ stories, seeing where they’re coming from, and sometimes helping them reshape an unhelpful narrative.
As the saying goes, an enemy is just someone whose story you haven’t heard yet.
Noorain Nadim: With AI and evolving technology, our communication is changing rapidly. Does this impact how stories are shared?
David Pearl: It’s going to be fascinating to see how this plays out, especially in terms of who’s telling the story. Stories often aim to reveal a more authentic human side, but it’ll be interesting to see how that holds up when AI starts to sound and look just like humans.
The media available for storytelling are multiplying, too, but so is both the good and the bad in storytelling. It seems unwise for leaders fully to outsource their storytelling to technology. Leaders may find it increasingly valuable to tell their own stories. It could become a key differentiator.
Rapid-fire with David Pearl:
- One word to describe a great storyteller: Enchanting.
- Biggest storytelling mistake leaders make: Sharing too much information.
- What’s more important—structure or emotion? Structure because it leads to emotion.
- A storytelling approach leaders can use instantly: Work on your story with someone else.
- Best way to start a story: In medias res—bang in the middle of the action.
- One storytelling book every leader should read: Joseph Campbell’s The Hero’s Journey.
- Best way to practice storytelling daily: Share micro-stories in the corridor.
- Your best piece of advice to handle nerves before sharing stories: Love your audience more than your own self-preservation.
Comments and opinions expressed by interviewees are their own and do not represent or reflect the opinions, policies, or positions of McKinsey & Company or have its endorsement.