“Where are we, right now?” … “What’s going on here?” … “Where are we headed?” … “What do we need to do now?”
These are the basic questions every executive asks themselves (and their teams) about the organization they lead. They’re questions of situational awareness and decision-making.
Several times a year, I teach a lesson called Narrative & Cognition, and I always open with a simple question: What’s going on here?
Person 1: Where’s John?
Person 2: Well … I didn’t want to say anything. But, I saw a green VW parked in front of Carol’s.
Invariably, we assume John is at Carol’s under questionable circumstances. Poor John and Carol!
I took this example from Daniel Khaneman’s seminal book Thinking Fast, and Slow because it shows, in a simple but brilliant way, how our minds leap to conclusions. There’s nothing in those two lines explicitly stating where John is, or that he and Carol are up to no good. All we really have are two brief statements delivered in sequence—and that slight nudge in our minds that something is off. The idea that John and Carol might have an inappropriate relationship is sparked by our own storied experiences. In other words:
Based on my experience, the information in those two lines means John and Carol have an inappropriate relationship.
What Is Narrative and Why Do I Care?
“Narrative” is a term we all use, but it can mean different things. It can refer to a specific description or sequence of events from a particular point of view. It’s that thing you had to write in elementary school. It’s the way a story is structured.
But narrative is much more than that—it’s a cognitive structure.
At its core, a
narrative is a system of stories that helps us make sense of the world. It gives meaning to our experiences, connecting our past to our present and shaping our expectations for the future. It’s how we orient ourselves in the world, and it directly influences our decision-making and actions. That’s what makes it so powerful.
Narrative is the link between information and behavior. It’s the process that assigns meaning, determines value, and drives action. It’s bigger than individual messages, stories, or experiences—it’s the framework that makes them all coherent.
In practical terms, narrative tells us:
- Where we are
- What’s happening
- Where we’re headed
- What we should do next
And it does the same for our competitors and adversaries.
A System of Stories
Let’s take a step back and talk about stories—because humans are, at their core, story-making machines.
We process information best when it’s in story form. And when we don’t have a ready-made story, we create one—just like in the example of John and Carol earlier.
Cognitive scientist Kendall Haven calls this the Neural Story Net—a subconscious network in our brains that takes in raw information (sights, sounds, emotions, etc.), processes it, and then sends a refined story to our conscious mind for decision-making. In other words:
Data goes in → The brain organizes it into a story → We extract meaning and decide what to do next.
This is where narrative comes into play. Over time, we naturally bundle stories together based on common themes—values, cultural norms, social expectations, and personal experiences. These bundled stories form narrative structures, reinforcing what we already believe or adapting as new stories emerge.
Take the movie Casablanca. It’s more than just a classic film; it’s part of a larger narrative —one that continues shaping American identity today. Casablanca didn’t just reflect American values; it actively shaped them. Its themes of moral clarity, reluctant heroism, and noble sacrifice helped define the American narrative about World War II. Even as it acknowledged the complexities of global conflict, it reinforced the idea of America as the reluctant hero—hesitant at first but ultimately doing the right thing.
Look at Rick Blaine. At the start, he embodies isolationism:
“I stick my neck out for nobody.”
But by the end, he makes the ultimate sacrifice, choosing duty over personal happiness. Meanwhile, Victor Laszlo represents the classic underdog fighting against tyranny, reinforcing America’s foundational myths.
Casablanca didn’t just tell a wartime love story—it became part of the system of stories that define how Americans view themselves, their role in the world, and what “doing the right thing” looks like. That’s the power of narrative.
Narratives Are Time Machines
Every leader wants to see what’s around the corner. They need the clearest picture of what tomorrow holds—so they can seize opportunities and guard against threats. Narrative analysis provides that picture.
Narratives don’t just explain the past; they shape the future. They influence how we see the world, how we respond to challenges, and what actions we take.
Think about the first person to cross the Alps. They had little in the way of technology or clothing, yet they set out and made it across. How?
Before taking that first step, they had already built a narrative about the journey—imagining the dangers, obstacles, and needs they would face. This mental framework allowed them to plan ahead, gathering the right tools, clothing, and food for a successful crossing.
Quite literally, the narrative they created helped shape their future.
Narrative Analysis
Narratives don’t exist in isolation—they are inseparable from people. They live in our minds, are shared in conversation, revised through experience, and passed along again. We are both the narrators and the characters in the stories we tell. We play out our roles, shaping and being shaped by countless narratives every day.
This is what makes narrative analysis so powerful.
When done well, narrative analysis doesn’t just show us how ideas flow—it reveals why people make decisions and take action.
Within a narrative, people tell us exactly:
- What they expect to happen next
- Where they want to go
- How they plan to get there
- Who the heroes, villains, and bystanders are in their world
With this insight, we can look ahead, anticipate emerging trends, and assess what tomorrow will likely bring.
Narrative analysis is much more than a word cloud, sentiment analysis, or tracking shares and impressions—it’s a seat in the time machine.
Conducting a Narrative Analysis
Analyzing a narrative can seem complex, but it really comes down to a few fundamentals: what is being said, how it’s being said, and how it spreads. Let’s break it down.
1. Content – What’s Being Said?
The core of any narrative is its system of stories.
Every story has a beginning, middle, and end, but more importantly, stories contain:
- Characters with distinct traits, goals, motivations, and struggles
- Heroes and villains—figures who shape the narrative’s moral structure
- Risks and challenges that give the story stakes
- Key messages—the values, opinions, and emotions that the narrative reinforces
Understanding these elements tells us who is influencing the narrative, how it may affect our organization, and what people expect to happen next.
That iconic V-J Day photo in Times Square continues to be echoed in American culture at homecomings of Navy ships, public demonstrations of gratitude for military service, and reenactments of the kiss - just like my wife and I did at our wedding.
The image reflects a romanticized version of war’s end, emphasizing celebration over destruction, unity over division. This influences how Americans remember not just World War II, but other military engagements—often framing conflicts in terms of heroic service and ultimate triumph rather than the complexities of war’s consequences. It shapes how Americans view the nation as one of victory, leadership and resilience.
2. Form – How Is It Being Said?
Form refers to the medium through which the narrative is told, language being used, and how events transpire.
For example, Casablanca conveys its narrative through a film. Meanwhile, the Harry Potter story exists as books, movies, audiobooks, videogames, theme park rides, among others.
A strong narrative often appears in multiple ways, evolving across different platforms, adapting to new audiences, and reinforcing its key messages in various ways. Language and sequence order the contents of narrative contributing to form.
Language—specific phrases, words, idioms and tone.
Sequence of events—how events are ordered, and this order may appear differently to outside observers
3. Transmission – How does it spread?
Narratives spread through different channels and modes of communication. The strength of a narrative often depends on how effectively it moves through these pathways. Transmission happens through:
Interpersonal Transmission: Some of the most powerful narratives spread through personal interaction. Word-of-mouth storytelling, social interactions, and cultural traditions all shape how people understand and adopt narratives. This kind of transmission is deeply influential because it comes from trusted sources—friends, family, or community leaders.
Example: A soldier telling a war story to a new recruit doesn’t just pass along facts—he transmits values, expectations, and cultural norms about service, sacrifice, and identity.
Institutional Transmission: Institutions—governments, schools, religious organizations, and corporations—act as powerful narrative transmitters. They reinforce dominant narratives through policies, educational curricula, rituals, and messaging.
Example: National histories taught in schools are a form of institutional narrative transmission. What’s included (and what’s left out) shapes how students understand their nation’s past and present.
Media Transmission: Mass media—news outlets, television, films, books, podcasts—are some of the most visible narrative transmission mechanisms. Media shapes public perception by selecting which stories to tell, how to tell them, and what context to provide.
Example: During major conflicts, news coverage plays a crucial role in shaping public understanding. The framing of events determines whether an audience sees a group as freedom fighters or insurgents, allies or adversaries.
Digital and Networked Transmission: The internet has revolutionized narrative transmission. Social media, forums, and decentralized digital platforms allow narratives to spread faster and more unpredictably than ever before. Unlike traditional media, digital transmission is often bottom-up, where individuals or small groups shape narratives that can gain mass adoption.
Example: A single viral tweet or meme can redefine a public debate, spreading a new interpretation of events far beyond its original context.
Understanding how a narrative spreads is just as important as understanding what it says. The effectiveness of a narrative isn’t just about its content or form—it’s about whether it reaches the right audiences and takes root.
Key questions in narrative transmission analysis include:
- Who is spreading the narrative? (Key figures, influencers, institutions)
- Where is it spreading? (Media channels, communities, networks)
- How fast is it moving? (Organic growth vs. strategic amplification)
- Is it adapting? (Do people reshape the narrative as it spreads?)
- Is it resilient? (Does it persist despite counter-narratives or challenges?)
Some narratives spread intentionally, through strategic campaigns, while others emerge organically from cultural or social movements. Either way, the mode of transmission impacts whether a narrative gains momentum, fades away, or evolves into something new.
Take Casablanca, for example. The film itself is a piece of narrative transmission, reinforcing American identity and values during WWII. But its transmission didn’t stop in 1942.
The film was replayed and referenced in media, keeping its story alive.
Key lines like “Here’s looking at you, kid” became cultural shorthand.
Its themes of sacrifice and moral clarity were reinterpreted for new conflicts—from the Cold War to modern debates on interventionism.
Casablanca became part of a larger system of stories, not just because of its content, but because of how it was transmitted, reshaped, and reabsorbed into American culture.
From Understanding Narrative to Applying It
Narrative isn’t just about storytelling - it’s about seeing the world more clearly and anticipating what comes next. It’s how individuals, organizations, and entire societies make sense of their environment, align their actions, and chart their futures.
For organizations, mastering narrative analysis isn’t optional - it’s essential. Understanding how narratives form, evolve, and spread provides a competitive advantage. It helps leaders anticipate shifts in public perception, identify emerging opportunities, and navigate complex challenges with greater clarity.
But knowing what narrative is and how it works is just the first step. The real power comes in applying these insights strategically. How can organizations actively shape the narratives that define them? How can they influence how their story is told - and who listens?
In the next blog on narrative, we’ll dive into how to apply narrative analysis in practice. We’ll explore methods for identifying influential narratives, shaping organizational storytelling, and leveraging narrative foresight to stay ahead of the curve.
Because in a world where perception drives action, the best-positioned organizations aren’t just reacting to the narrative - they’re shaping it.
The Information Advantage
At
Information Advantage LLC, we help organizations navigate the complex world of strategic change, innovation and culture by building strategies rooted in trust, clarity, and adaptability. Whether you’re combating misinformation, fostering resilient communication networks, or building a culture of transparency, we’re here to help you find your advantage in today’s dynamic information environment.
Let’s rewrite the narrative—together.
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Written by Jack and co-edited by Steve and
Information Advantage Assistant, a GPT trained by Steve. If you're wondering how to get AI included into your workflow flow from content creation all the way to strategic campaign management and forecasting, reach out!
