Those of us who followed the Theranos saga with incredulity wonder how the company could have convinced investors to outlay $900 million for a “black box” whose technology was not, and may never be, feasible. In response, federal prosecutors filed charges alleging massive criminal fraud perpetrated against investors, as well as defrauding doctors and patients.
In my opinion, Theranos was an extreme example of the power of stories. This particular epic was incredibly powerful because it focused on health benefits for everyone – something laudable, relatable and easy to understand. Very few people haven’t experienced blood tests, tubes and needles.
Theranos may have had a stellar story, but it lacked performance. They convinced everybody of what it could do, and then at great expense and user distress, failed to perform.
On the other hand, mining and building industries have outstanding performance, yet are weaker on stories.
Today, consumer brands increasingly depend on data analytics for buying behavior and to drive product purchase. That’s certainly helpful, but as the number of brands increase, and true differences decrease, it will be those brands that tell their story – that consistently position their purpose and communicate their positive contributions to society – that have the best chance of enduring.
It is no different – and likely more so – for industrial “brands”, such as those materials from mining. While our products are wholly necessary for the functioning of society, the ability to operate is often constantly challenged. Our customers extend to the general public, and we must enable them to experience confidence and trust in what we do and how we do it. We must meet them where their expectations are, communicate how we “do good”, and bring them along on our journey.
If there’s one lesson from Theranos, it’s that staying power is a combination of performance and stories.