In this post, we explore how tech startup leaders can combine compelling narratives with data to significantly enhance their ability to inspire confidence, secure funding, and drive action from their investors and other stakeholders.
In 2014, Elon Musk set a target for Tesla to produce 500,000 cars annually by 2020. At the time, Tesla was a relatively small player in the automotive industry, producing just over 35,000 cars per year. The target of 500,000 cars represented a more than tenfold increase in production capacity within six years, and many experts felt that Musk couldn’t be taken seriously.
Musk's bold “500,000” vision inspired Tesla employees and investors to believe in the company's potential to revolutionize the industry. He kept telling his story and emphasizing his “500,000” vision. This data-driven storytelling approach drove innovation in production processes, battery technology, and vehicle design. It also generated significant media attention and public interest.
By 2020, Tesla had achieved this target (by the end of 2023 the company was producing 1.85 million vehicles a year), demonstrating its ability to scale and compete with established automakers.
Everyone has a story to tell. This could range from convincing your partner to watch a specific movie, to convincing your Board about a new strategic direction for your organization. It’s no wonder that Harvard’s Dr. Howard Gardner said “Stories constitute the single most powerful weapon in a leader’s arsenal.”
But few narratives are as compelling as those that use a number to tell the story.
Narrative is one thing. But how can this be supplemented to really drive a point home?
Experts note that one of the most powerful tools in storytelling is the use of numbers. By leveraging numbers, your story gains authenticity, is anchored in the real world, and provides something tangible for your audience to hold on to, remember, and look to for inspiration.
Specific benefits of storytelling with data include:
In 2014, Starbucks CEO Howard Schultz set a goal to expand to 25,000 stores worldwide by 2021. At the time of the announcement, Starbucks had around 21,000 stores globally. The target of 25,000 stores within seven years was ambitious, especially considering the competitive landscape and varying market conditions across different countries.
Setting such an aggressive expansion target involved significant financial investment and operational risk. It required entering new markets, which posed challenges related to cultural differences, regulatory environments, and local competition.
Schultz's data-driven storytelling and compelling vision inspired confidence and a sense of purpose among employees and stakeholders. The bold target rallied the company around a common goal. It motivated teams to focus on new store formats, like drive-thrus and Reserve Roasteries, and to enhance the overall customer experience.
By 2021, Starbucks had achieved this milestone, cementing its status as a dominant global brand. Today, there are over 38,000 Starbucks locations worldwide.
Data-driven storytelling was so powerful for Starbucks that the company has doubled down on this approach. New CEO Laxman Narasimhan has set his sights on:
1. Expanding to 55,000 stores globally by 2030
2. Doubling its 75 million global Starbucks Rewards members within five years
3. Generating $3 billion in savings over three years
Let's take Lauren as an example. She is the CEO of a fast-scaling SaaS startup. In her upcoming meeting with the Board of Directors, she wants to leverage data-driven storytelling to tell the story of the year so far: the team has been working super hard, and the results are starting to reflect this. At the end of June, there have been 50 paid accounts signed up, and that’s after just 3 months of launching paid plans.
In fact, paid plan takeup has been even more rapid than the growth of the free plan, which in itself has been encouraging. She also wants to summarize her top asks from the Board members, after demonstrating the traction the company is getting and the high Net Promoter Score they’ve achieved.
Lauren also has to present the “regular” metrics like burn rate and runway, which she would prefer to give over in the context of the story so far, as in isolation these might seem scary for investors holding Board seats.
Obviously telling this story is one thing – but presenting it with numbers, in a beautiful, logical way – is orders of magnitude more effective.
Here’s how Lauren nails data-driven storytelling, using Decipad:
She first presents some key metrics in a number-oriented, visually appealing way. These are even more impressive when emphasized visually. Lauren can even show how the MRR will change once they reach their short-term goal of 2,000 paid accounts by the end of the year.
Interested Board members can see the numbers and Lauren can make changes to key variables live.
Lauren can also leverage a visual graph to demonstrate traction and growth. Her narrative might emphasize that the company has created exponential growth with free accounts, and therefore has the skills and experience to do the same with paid accounts.
Lauren can then launch her top asks, knowing that the Board members are already excited about the results so far and the future prospects of the company, and are thus more likely to take impactful action sooner rather than later.
Finally, after all this context, Lauren presents the burn rate and runway, which are more understandable and digestible given the information that’s already been shared, and the story that Lauren has told.
The Board are suitably impressed. Lauren’s storytelling with data was highly effective, garnering not just support but active advocacy on the company’s behalf.
It’s highly unlikely that just numbers, or only narrative, would have conveyed the messages that Lauren intended.
Got an investor meeting coming up soon? Check out our Investor Update template here. Simply duplicate it and customise it according to your business and data.
While numbers shouldn’t stand alone in telling your story, neither should narrative. It’s in the combination of these where the magic is found.
Leaders have always used the power of storytelling to inspire action. Great leaders can use numbers to achieve even more impressive results.
Get started with your numbers+narrative journey here.
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