Steve Jobs was the world’s greatest business storyteller.
He transformed the often unimaginative product launch into a theatrical production, complete with a cast, sets, props, and music.
At the center of it all, Jobs was the showman who used the classic components of narrative to inspire his audiences.
Remarkably, Jobs used the same 3-act storytelling paradigm found at the heart of many Hollywood screenplays: Setup, Confrontation, Resolution.
The formula is simple, although a lot of creative action takes place within the structure.
In Act One, we get to know the hero and the hero’s world as it exists before the adventure starts. Think of Act One as the status quo. In the first act, an “inciting incident” occurs that sets up Act Two, the confrontation, where the hero’s world is turned upside down and the hero must overcome a series of obstacles to achieve his or her goal. In Act Three, the resolution, the hero conquers the villain and makes the world a better place.
Transformative business pitches follow a similar template. For example, on January 24, 1984, Steve Jobs introduced Macintosh for the first time.
Act 1: Set-up
It is 1958. IBM passes up the chance to buy a young, fledgling company that has invented a new technology called xerography. Two years later Xerox is born. IBM has been kicking themselves ever since. It is ten years later. IBM dismisses the mini-computer as too small to do serious mini computing and unimportant to their business …
Act II: Confrontation
It is now 1984. It appears IBM wants it all. Apple is perceived to be the only hope to offer IBM a run for its money. Dealers fear an IBM-dominated and controlled future. They are increasingly turning back to Apple as the only force that can ensure their future freedom. IBM wants it all and is aiming its guns to its last obstacle to industry control: Apple.
Act III: Resolution
Jobs walks to the center of the stage and unveils the “hero,” the first Macintosh. He pulls a floppy disk from his pocket, inserts it into the computer, and lets Macintosh “speak for itself.” With the introduction of Macintosh, the world sees “Why 1984 won’t be like ‘1984.’”
The Macintosh story played itself out on stage just like a hit movie, complete with heroes, villains, props, and surprises. Steve Jobs was a great marketer because he was great storyteller and he used the structure of great movies to make his pitch.
In 2003 Steve Jobs returned to the structure to persuade consumers to pay 99 cents for songs. This was a tough sell, because many people were downloading music for free (illegally) on the internet. With the introduction of the iTunes music store, Apple revolutionized the music industry. Once again Jobs leveraged the 3-act storytelling structure to make his pitch.
Act I:
Jobs began his presentation with a review of the status quo: “We all know that starting in 1999 there was a phenomenon called Napster. It demonstrated that the internet was made for music delivery. Its offspring, Kazaa, is alive and well today …”
Jobs continued to explain the “good side and the bad side” to the status quo. The good side included: vast selection, unlimited CD burning, and the fact that it’s free. “But there’s a dark side,” he continued: unreliable downloads, unreliable quality, and the fact that it’s stealing (“It’s best not to mess with karma”).
Act II:
Remember, in Act Two, the hero must confront challenges and obstacles that stand in the way of achieving his or her goal. In the Jobs pitch, the goal was to make the world a better place for music lovers. The first obstacle was to acquire a broad set of music rights. Jobs said that Apple solved that problem by negotiating “landmark deals” with the big five record companies.
The next hurdle was to convince people to pay 99 cents per song. Jobs used another component of narrative to make his case — analogy. “How many of you bought a Starbucks latte this morning? That’s three bucks. And how many lattes got sold this morning? A lot.” Jobs said 99 cents was a great value in return for a vast selection, high quality downloads, and “good karma,” since the files were legally acquired.
Act III: Resolution
Jobs resolves the problem with a demo of the iTunes music store and its seamless delivery of high-quality files.
The introduction of the iTunes music store would not have been persuasive had Jobs simply said: “You’ve been getting your songs for free and now you’ll have to pay a buck a song.” Instead, Jobs had to build a case for his argument, and he did so brilliantly using the tools of narrative.
The next time you pitch an idea or a product, steal a page from the book of the Steve Jobs and Hollywood. Begin your pitch with a description of the status quo, identify the problem (villain) your audience is about to encounter, and show them how the hero (your product or service) will help them conquer the villain. Wrap up the pitch with a picture of a better world, and you’ll win over your audience. That’s the Steve Jobs way.