In 1993, as the co-founder of photographic library startup, I travelled to Los Angeles to check out one of America’s largest commercial photographic collections. Remarkably they were well under way converting their film stock to Kodak PhotoCD, a proprietary digital format launched the year before. We were impressed with Eastman Kodak because it looked like they were taking digital photography seriously. The shift to digital was really happening. It was an exciting time. So we began to furiously scan our 100,000 images. At the time it seemed that Kodak was riding the digital wave. They were a digital camera pioneer building the first digital camera in 1975. This 110 year old manufacturing giant, however, missed the digital boat. Their share price today is less that what it was for them in the 1950s. So why did Eastman Kodak falter? Why did it take them so long to really adopt a digital approach to their products and services? What held them back?
Perhaps Kodak reached their goals in the early ‘90s and was struggling to set new ones. Kodak was the predominant force in the photographic industry. It had succeeded through its many advances in chemical processing and manufacturing streamlining. At the same time it was more than aware of the new digital technologies yet profits were coming from its established business lines. In the minds of their leaders they knew how to succeed. They had done it for so long. So don’t fix what’s not broken.
We see this ‘I know what’s right’ mentality in our leadership programs. Just last week Mark was running a leadership program in Sydney and the most senior person in the room approached Mark and said, “I really just wanted to come to see what the troops were learning and keep an eye on things.” He had been with the company for 20 years and believed he’d seen everything and didn’t need to learn anything new. He told himself a story along the following lines: “I’ve been in the business for 20 years now and I have seen it at its best and its worst and I have survived and thrived. So I pretty much know what I’m doing and that it works.”
Our stories, collectively and individually, have a profound affect on what we believe is possible. Therefore the challenge for leaders is to both understand the stories affecting individuals and groups and then know how to define and tell (ideally through wide participation) new stories that set the direction for the company. But that’s not all. The greatest challenge is to help people hear, remember and believe where the company is headed and then inspire people to act in line with that belief.
Whether the leadership team at Kodak had seen the need to redirect towards a digital future in time is hard to say. But even if there was a resolve to go digital, were the leaders equipped with the skills to create the new stories and have them stick in a meaningful way?
Aligning everyone’s actions to the company’s strategy is equivalent of finding the corporate Shangri-la. It can be done. Take IBM’s turnaround for example.
This post is the beginning of a series I have planned that looks at why storytelling is a vital leadership skill. Some of the topics I will cover include how stories are memorable, how they show commitment, how they inspire people to take action, how they reduce anxiety, how they share lessons, how they convey values and how they change minds.
Gerstner, L. V. (2002). Who Says Elephants Can’t Dance? Inside IBM’s Historic Turnaround. New York, Harper Collins.
Turner, T. (2008). Call Me Ted: The Autobiograhy of the Extraordinary Business Leader and Founder of CNN. London, Sphere.