Management by storytelling is a craft for manager to influence the audience. Its aim is to change the thought and cognition of the audience, influence their judgments and inspiration actions. As the change of environment, management by storytelling has been the target of lesson-drawing for public manager. This article clarifies the meaning of storytelling, explaining the factors of its appearance, and trying to find its theoretical basis in public administration. After introducing the categories of stories by Denning and Simmons, this article concludes four types of stories that could apply to public sector; they are defining relationship stories, explaining status quo stories, vision stories and sparking action stories. Then the article analyzes the crafts and key points of the practice of storytelling, and takes notice the pitfalls of storytelling. The pitfalls of storytelling includes focusing on the trifles that have not any inspiration, becoming the instruments for manager to brag, absence of trust relationship between storyteller and audience, implying direct mandates in stories and the expectation of immediate effects.