The book writer is responsible for the scripted segment between the songs.
The writing of musicals is divided into three tasks; lyrics, composition and book. "Book" refers to the scripted segments between the songs. Writing book for a musical is much like writing a straight play where the story is told through dialog and stage direction. The key difference for a book writer is that the most powerful moments or "beats" in a musical are carried by the songs. The book writer's task is to set up those songs.
Instructions
1. Create an outline or "beat sheet" for the story you are telling. First write down a vertical list of the important moments, or "beats," that will be told through song. Leave ample space between those to write down the necessary plot points that need to happen for the songs to make sense. An example might be "The main character meets his love interest on his first day at work," which would likely set up a love song between the characters. Each "beat" should be no longer than one sentence.
2. Expand on each "beat" by creating an outline of a scene, including the setting, characters and action that will transpire. Also, for each character, write (in one sentence) their motivation -- what they want from the other characters. When characters have conflicting motivation, scenes become active and intense. Writing this information down on index cards keeps each outline short and allows you to rearrange the story visually for later drafts.
3. Write scripted scenes leading up to each song. Open each scene with stage direction indicating the setting and characters. Try to give characters action or "stage business" so they are not "talking heads." Consider what each character wants and write dialog that stays true to their motivations. The scenes should build in momentum to a place of emotional intensity so it seems natural when they break into song. Consider using script-writing software such as Final Draft or Celtx to make the formatting tasks easier than they might be on a word processor such as Microsoft Word.
4. Arrange a table read of the entire musical. Gather actors or other theatre practitioners together and assign each of them a role. Remember to have one extra reader available to read stage directions, so you are free to listen carefully. Take notes as to how naturally you feel the scripted segments flow into the songs. Write notes down on the script itself so you can easily refer to them when writing another draft. Solicit feedback from everyone present at the reading.
5. Write another draft, correcting and improving the scenes that seemed unclear in the reading. Ensure that each character has clear motivations and that each scene has a conflict that engages the audience. Make sure to save edits on your new draft to a new filename, so you still have a record of the first draft. This way you are free to experiment with changes that may or may not work, without losing a record of how things originally played out. Musicals usually go through many drafts and table reads, so don't be discouraged; just keep repeating steps 4 and 5 until you've got it right.