We all intuitively know the power of stories. There are some interesting studies cited in the HBR article referred below on this topic. Essence of the research is that stories affect the behavior both positively and negatively. The study cited quotes an example of increased cheating among the people just by believing that someone else in the same cohort is cheating. Implication of this study at work could be quite significant - if as a leader we turn a blind eye to one star performer's some unacceptable behavior then many more in the organization could resort to similar behaviors.
Another study shows that people are lifted up by the stories of those at the bottom behaving generously. No surprise that I was never uplifted by the news of generous donations by the likes of Gates or Buffett. The implication is that as a leader we should first spot such real life stories within the organisation and then make it sure that its spread within the organisation. No matter how small or irrelevant it seems.
Another finding shows that people are particularly discouraged by stories about higher-ups misbehaving. This is a no-brainer. However, still we hear lot of such cases which suggests that at times we may find our behavior as acceptable while the same is not acceptable from the perspective of most of the other people in the organisation. As leaders we should possibly be more introspective of our own behavior, as these become stories and then spread without one's knowing.
Refer: The Unexpected Influence of Stories Told at Work
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