Six years ago I recommended using stories as a management tool; three years later I wrote that entrepreneurs should use stories to present themselves to the world.

Now a Carmine Gallo, a much bigger name than me, has written The Storyteller’s Secret, highlighting the importance of story from building a culture to building a brand or entire company.

Vinod Khosla, billionaire venture capitalist here in Silicon Valley, where I live, tells me that the biggest problem he sees is that people are fact-telling when they pitch him. They’re giving facts and information and he says, “that’s not enough, Carmine. They have to do storytelling.”

When Ben Horowitz, co-founder of Andreessen Horowitz, another big venture capital firm, tells me the most underrated skill is storytelling, or when Richard Branson, who I interviewed, said, “entrepreneurs who cannot tell a story will never be successful”

Of course, what can you expect from generations that don’t read much and think communication is an email or, worse yet, texting?

When it comes to a storytelling culture it has to start from the top and isn’t just a good story about the product.

Every day at the Ritz-Carlton there is a brief morning meeting of housekeeping.

And they ask the question of the employees: “Is there a great customer experience that you’ve been a part of, that you can share with the rest of us? (…)They start sharing stories with one another, and then they start competing for who has better stories. They get recognized publicly.”

Southwest’s success is the result of a masterful storytelling culture.

So they created what’s called a storytelling culture, where every week the HR teams go out, and they take videos of real passengers who have had a struggle, or have maybe almost missed a funeral or a birth, or a life-changing event, and stuff like that. But they were able to do it because of Southwest.

Apple is a giant at storytelling, as is Microsoft and Zappos.

So is Whole Foods, KPMG, every farm-to-table restaurant and even ugly food.

Just don’t kid yourself about why the stories work.

The work because they are real, true, authentic or any other adjective you care to use.

The stories are based on/backed by employee actions, which is what makes them resonate.

That means the CEO and all the executive team not only believes in the importance of customer experience, but also knows that the experience is created and facilitated by their people at all levels — especially the front-line people.

Lida / Flickr

Hooray! Finally! It’s about time.

For more than a decade my angel investor and many of our colleagues have been bemoaning what happened to the venture world. Call it the takeover of the walking investment banker.

It started when the name partners wanted to kick back a bit. That made sense, but unfortunately they went to Wall Street for their new people and hired a lot of the hot young turks who were great at manipulating money, but had never really produced anything.

I remember a client telling me how the Board member from his VC investor had a tantrum yelling for the company’s ROI numbers—when the company was six months, working on a revolutionary hardware/software system and the product was still in development. Sheesh.

“The biggest names in the industry are concerned about low returns and are blaming several factors: funds that have grown too large, the M.B.A.’s that have invaded the industry and older partners who have lost touch with what is new in technology.”

For those who don’t understand, typically a partner sits on the board of each startup that the firm funds and this limits the number of companies in which they can invest. In 1990 VCs invested $2.7 billion, at the height of the dot bomb it was $104 billion; it’s dropped back to around $30 billion now.

Because the money must be put to work, too much money is often forced on firms that didn’t need it.

“That often means forcing $3 million into a company that needs $300,000,” according to Ben Horowitz.

Now a number of VC firms, some old players and some new ones have decided to change the game.

The latest, and one of the hottest, is Andreessen Horowitz.

“Marc Andreessen, who co-founded Netscape, is announcing on Monday that he and Ben Horowitz, a longtime business associate, have raised $300 million that they intend to invest in technology companies. The venture capital firm, Andreessen Horowitz, will risk small sums, as little as $50,000, on new ideas.”

This is good strategy, far better than pushing millions on a company that needs far less for no other reason than the money needs to be invested and the number of partners is limited.

So what does all this mean to you?

Well, it won’t happen overnight, but it could mean dozens or even hundreds of new, solid startups with doable business plans and backed by patient money.

The kind of companies that grow and flourish because their investors don’t have to have a multi-billion return next week to look like heroes to their investors.

And that’s what made our economy and country strong.

Image credit: Mark Coggins on flickr and agoldfisher on YouTube