Five Narrative Archetypes Told by CFOs

This article is a guest post by Kim Vogel, a former CFO who currently teaches in Stanford University's continuing education program. The views expressed in this article are solely those of the author.

Effective CFOs understand the power of storytelling. Numbers can explain, and data can clarify, but if the goal is to convey complex financial information in an understandable way while also inspiring individuals and teams to take decisive action, then stories are the best path.

When CFOs use the right stories at the right time, they can engage stakeholders at all levels of the enterprise, prompting them to take the actions needed to move the company forward, thereby elevating the strategic importance of the finance and accounting function and enhancing the CFO's own profile.

Although the stories CFOs tell are as unique as the situations they are in, it turns out that almost all narratives chosen by CFOs can be classified into five major categories or archetypes that have guided literature, drama, and film since the art of storytelling began. Below is a review of these powerful and timeless plot structures, along with examples of how Fortune 500 CFOs use these plot tools to shape messages and make complex information more accessible.

1. Rags-to-riches

The rags-to-riches plot features an underdog character who has been deprived of something such as status, wealth, or recognition. Along the way, the underdog strengthens their belief in self-determination and perseverance, learns important lessons, and surpasses what they lost by the end of the story. Examples in literature include Great Expectations, the fairy tale Cinderella, and the films Rocky and Pretty Woman.

Walmart's successive CFOs have repeatedly used the rags-to-riches archetype, leveraging this time-tested theme while also empowering their stakeholders—the "three-legged stool" of strategic business communication. David Glass introduced this narrative when he joined Walmart in 1976 as the company's first CFO. Glass often positioned Walmart as the underdog of the retail industry. One story he told compared the retailer to a gazelle in a world of lions:

"Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning in Africa, a lion wakes up. It knows it must run faster than the slowest gazelle or it will starve. Whether you are a lion or a gazelle, when the sun rises, you had better be running."

2. The quest

In the quest plot, the protagonist embarks on a journey to achieve a goal, obtain a specific reward, or acquire a specific item, often facing and overcoming numerous challenges and obstacles along the way. The journey often leads to a greater outcome than the protagonist anticipated. The Wizard of Oz is a classic quest story, and other examples include the Harry Potter series.

Amazon describes its own story as a quest to become the world's largest bookstore and later the world's largest online retailer. Its very name suggests a quest, indicating its determination to deliver every product from A to Z.

Amazon's first CFO, Joy Covey, often compared her own unlikely quest to the company's journey. Covey dropped out of high school at age 15 and eventually earned an MBA and law degree from Harvard. As Amazon's CFO, her message emphasized that the company was on a quest challenging traditional short-termism:

"We didn't ask ourselves 'How was it done in the past?' Instead, we asked: 'Where do we want to go, and what are our goals?' 'Which companies are truly able to make decisions that best serve shareholders' long-term interests?' 'How do we frame the conversation with Wall Street from the very beginning, even before the company goes public?' We believed this was the path to building the best company over the long term."

3. Rebirth

The rebirth plot describes a character or organization that experiences a near-death experience but rises stronger and more determined than ever. The lesson of rebirth stories is that challenges are hidden gifts, leading to positive outcomes that even the protagonist did not foresee. The time-loop film Groundhog Day is a classic rebirth story, and rebirth is also a major plot element of the hugely popular Barbie movie.

Apple is one of the most famous rebirth stories in corporate America. In the late 1990s, Apple was on the verge of bankruptcy. In 1997, co-founder Steve Jobs rejoined the company, and through a series of innovations that bet the company's future, Apple became the most valuable company in the world. Fred D. Anderson, who served as CFO from 1996 to 2004, often spoke about that turbulent period in the language of rebirth:

"Apple's resurrection from the ashes of near-death could only be led by Steve Jobs. Only he understood Apple's soul and its innovative roots, and the importance of combining art and science to create truly great products. Only he possessed the strong personality, vision, and taste needed to achieve greatness. There will never be another Steve Jobs."

4. Voyage and return

In the voyage and return story, the protagonist travels to an unfamiliar place and returns with wisdom and renewed agency. Think of Gulliver's Travels, Alice in Wonderland, and the film Toy Story, where Woody and Buzz Lightyear embark on a journey, get lost, and must cooperate to get home, thereby learning the importance of cooperation and teamwork.

Hasbro CFO Gina Goetter incorporates the voyage and return theme into her presentations. To eliminate what she calls "bad complexity," Goetter cites the film Toy Story. Thinking of the opportunity cost of all unsold Hasbro products gathering dust in warehouses, Goetter laments "all those little action figures coming to life at night," a direct quote from the film.

5. The hero's journey

This plot is rooted in the world's oldest stories and describes a character who must overcome a daunting challenge. Think of classic stories like David and Goliath or The Lord of the Rings trilogy. In a corporate context, this plot device places the company before a survival-level financial threat, which could be disruptive technology, an emerging competitor, or a "black swan" event. The fact that some companies have not survived these threats—think of Enron in 2001 or Lehman Brothers in 2008—only strengthens the narrative's impact when the hero survives.

By 2010, Best Buy was on the verge of bankruptcy and looked likely to join Circuit City in the retail graveyard. New leadership, including CFO Sharon McCollam, implemented strict budgets, eliminated the company plane, personally inspected 75 Best Buy stores, conducted "white glove" dust checks, and replaced managers who allowed stores to be messy. McCollam consistently championed a customer-centric approach. "Retail is detail," she said. "If you don't handle the small things, the big things won't take care of themselves."

The best story wins. For CFOs who think in Excel, a good exercise is to list past experiences and lessons learned and see how they map onto one of the five plot archetypes. The more complex the information, the more CFOs need to harness the power of narrative. By honing storytelling skills, CFOs will be better equipped to guide their organizations through the complexities of the financial landscape, drive overall success, exert strategic influence, and create lasting impact.