The Benefits of the Story on the Example of a Ferrari Car Essay Example

and tell why that mousetrap will conquer the business world to investors, customers and employees.

Now he explained other point of discussion with the power of numbers.

With the example of general manager for the Oakland Athletics, Billy Beane, who abandoned the old tradition of listening to baseball scouts telling which young pitchers and hitters had the most potential and replaced those stories with statistics based on what worked on the fields. He advised the way to use numbers well to improve decision making and explained three aspects to data management as following:

• a. Follow simple rules in collecting data and judgments and look for ways to avoid the biases that can find their way into that data
• b. Use basic statistics to make sense of large and contradictory data and statistical tools to fight data overload
• c. interesting and innovative ways of presenting the data to make them understandable to those who might not grasp the statistical nuances

Now Mr. Damodaran explained to bridge on the gap between the storyteller and number cracker.

After developing the narrative for the business, he used the three P’s test for evaluation process which includes Possible, Plausible and Probable and given basic rule that not all possible are plausible and only a few of them are probable. It is advised that after completing the convert and connect driver of value to a valuation, keep the feedback loop open. He added up the required changes in the storyline and classify the narrative alteration into three groups

1. Narrative Breaks
2. Narrative Changes
3. Narrative Shifts

The two root

causes for the re-examine the story and change it significantly are:

1. Any major change in the company
2. Macroeconomics

He explained the reason why stories matter more at some stages of a business and numbers speak more loudly at others is critical not only for attracting investors but for managing these businesses. Author clearly mentioned that storytelling skill will never come easily for number cruncher. When try incorporate the storytelling in his valuation for the first time then the result may not be convincing but learner forced own self to working on the storytelling side.

Mr. Damodaran perfectly describe that there is neural coupling and electrical and chemical impulses synthesis in the mind of listener when they are listening good storytelling. To cross check, same experiment is done on the listener for whom same story is not understandable so there is no neural coupling and electrical and chemical coupling in their mind. He describes that good story teller can more easily convince the decision of the listener and convert the predefined decision of the listener. He also share his own experience in which his student remember the anecdotes and stories he scattered in classes, though the details of the classes and the numbers have long been lost in the fog of their memories. One of unique addition done here is that causal connections within the story make them more memorable but the nature of casual connection makes the difference.

In case of very strong or very weak causal relationship there is less probability of remembering the things and when moderate level of causal relationship where a person require to do some work then the probability of

remembering is very high. If storytelling is that helpful to remember longer and allow for longer connection so storytelling should be used to advance interest with different stockholders and employees of the business organization.