Customer Reviews

Who Really Matters: The Core Group Theory of Power, Privilege, and Success

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Ever since sand box days, we have grown accustomed to observing that there is an envied "in" crowd and an "out" crowd consisting of everyone else in the group. It feels great to be in the "in" crowd and not so great otherwise. Mr. Kleiner has taken that basic characteristic of human social behavior and examined it to propose how we can improve our organizations in both the profit and nonprofit sectors of the economy. You'll read about companies mostly, but there are also government agencies, labor unions and schools in the book.

The suggested improvements are aimed both at those who are in the "in" crowd and those who are attempting to influence them, whether these are part of the "out" crowd or the management consultants who are hired to assist. One of Mr. Kleiner's central theses is that most people don't know how to join or influence the "in" crowd because they don't understand how it works in their neighborhood. Who Really Matters contains 11 superb diagnostic exercises to hone your skills in "in" group analysis and influence. Almost everyone will find these exercises to be helpful.

The book is vividly written. I found myself remembering dozens of "in" groups that I have observed. The examples and arguments brought me right back into those circumstances as though they still existed. Feel business books I read have that sort of visceral effect on me.

Mr. Kleiner argues that management consultants have a sixth sense about the "in" crowd because that is how we add clients. I have been just as often hired by an "out" crowd as an "in" crowd, but it certainly is clear in the first few minutes which is which. I agree that most people in both crowds lack the basic skills to influence the direction of the "in" crowd in positive ways. Regardless of the topic of an assignment, I usually find myself helping my clients learn these skills. In the future, I will also suggest that clients read this book who need help in those areas.

The book's central theme for reformation is one that I heartily endorse from my own research and experiences. Make the "in" crowd as inclusive as possible, establish a "noble" purpose that is practical to make the group more socially productive, and eliminate organizational pressures to do anything else.

Please do realize that this book is based more on thoughtful personal observation than on deep scholarly measurement and analysis. I found many of the arguments compelling, though, simply because they resonated so strongly with my own experience.

If you want to better understand more about the "in" crowd phenomenon, you will probably enjoy Dr. Jane Goodall's books about chimpanzee behavior. You'll find her observations about the chimpanzees sounds a lot like the "in" and "out" crowds.

I have a few nits to pick in disagreeing with this otherwise fine book. Mr. Kleiner feels that having an organization be responsive to all stakeholders is impractical. Self interests are too greatly at odds, and reconciliation takes too much time. Yet our firm's research shows that the most successful organizations strive to do as much of this as possible. Education Management, Paychex and Xilinx are excellent examples. For instance, the current successes in improving environmental protection in the United States almost always use the method of putting all the stakeholders into a room and not letting them out until they find mutually acceptable solutions. In most cases, these solutions are less expensive and provide more protection than government regulations require.

Mr. Kleiner also argues that having financial independence is one important way to have more ability to influence the "in" group. My experience is that financial independence for the "out" group members just increases the likelihood of someone leaving an organization when they don't like the direction the group is taking. The result is often catastrophic for the organization. Instead of financial independence (which helps the individual certainly), I have noticed that when an "out" group member operates from principled values that the organization respects in an objective way the "in" crowd in any legitimate enterprise is very supportive. The mistake that most "out" group members make is to try to simultaneously do some organizational knife fighting with an opponent over personal agenda items. That approach negates the power of principles, and nothing happens except blood is spilled.

Finally, I think Mr. Kleiner missed an opportunity to apply his theory to highly effective nonprofit organizations. Habitat for Humanity International and Earthwatch International would make fine examples of inclusion of everyone into pursuing a noble purpose.

Few people, however, will fail to benefit from this book. Buy it, read it, live it and share the book with others.

I also highly recommend The Fifth Discipline, The Fifth Discipline Fieldbook and the Dance of Change. Mr. Kleiner assisted with the writing of the first, and is the editorial director of the latter books.

After you finish this fine book, do something to include others in your "in" group, direct your group into a more noble purpose, seek to help all stakeholders and eliminate distractions from these initiatives. I'm sure you'll feel great as you do this, pushing goodness forward in new ways.

This book is fascinating on (at least) two different levels. First, it is the most useful self-help book I have ever read. Second, it is a very interesting psychological portrait of organizations, and those who run them and run from them. In this sense, it is not unlike other tales from the analyst's couch that I have read and enjoyed.
Self-Help Book
Who Really Matters is an effective self-help book for those of us who have trouble negotiating life in and with organizations and those who run them. Kleiner starts with the premise that certain core groups run organizations and it is only by understanding and dealing with those in these core groups that one can understand and deal with the organization. This insight was not news to me but what Kleiner does with the insight is remarkable and I learned a tremendous amount about organizations and myself thorugh Kleiner's lively case histories of organizations and those within organizations. Through the case studies, a clear picture of the psychology of the leaders (or core groups) of organizations emerges. Kleiner prompts the reader to question himself about his own past and present experiences with core groups and organizations. He also helps the reader recognize patterns within orgqanizations that indicate that the organization (or you within the organization) will be successful or his headed towards inevitable disaster. In this way, I emerged with a much clearer picture of how power operates within organizations and of my own reactions to that power and how those reactions serve (and disserve) me.
I found particularly helpful his list of the differnt kinds of capital an individual could amass in order to be in a strong position vis a vis an organization -- reputational (keep your name known in the field in general); relational (friends all over); financial (you can figure that one out), etc. He then discusses what the different kinds of capital will do for you vis a vis the corporation. I also found helpful his discussion of the glass ceiling. Most women I know, including myself, have difficulty asking employers for money. Kleiner explains why asking for too much money is rarely frowned upon within orgnaizations and why waiting for the organization to give you that which you "deserve" is rarely in an individual's self interest. The book is the best and most useful self-help book I have ever read.
Psychological Case Studies Are Always Fun to Read
The second way in which the book is terrific is that it is essentially a psychological analysis of organizations, how they operate, who operates them and how we react to the "organization," the core group running the organization and those without the core group. I am not someone who has read much on businesses, mostly because I always thought such books are boring. This is definitely not a boring book. It puts the personal elements of business in the open and makes the business world much more accessible for liberal arts types like me.

According to Art Kleiner "The Customer Comes First" is one of the core lies of corporate culture.

The director of research at consulting firm Dialogos says in every organization there are people who really come first, a core group that really matters. In each company the group differs. Yet every action taken by that group is undertaken with the goal of meeting the perceived needs and priorities of this group.

Kleiner says core groups are not inherently evil or dysfunctional. They are the source of the organization's energy, drive and direction. The foundation of every organization is the decision. Some are made at the top; others are made at lower levels of the organization. Most are made in the midst of conflicting priorities, constraints competitors and constituents. Core groups play a critical role. By understanding who populates the core group, a collective organizational coordination is achieved.

Core Groups can be large or small. They have many identities; often the identity is mixed. Among them:

* A Bureaucracy - Bosses come and go; the core groups remains.
* The Too Nice Organization - No one wants to admit they have power, yet one or two people influence decision making.
* The Indigestible Acquisition - The deal is sealed but significant groups are not brought into the fold.
* The Hidden Cabal - Quiet influencers who know how to influence the direction of people's decision making and covertly do it.
* Charismatic Rainmakers
* Stovepipes

To determine a core group's character one must have insight into the mindset of the organizations people. Whose interests they consider when they make decisions.

This is an interesting book. For those who love to get things done, corporate intrigue or simply want to survive, this book will open one's eyes to the reality of corporate culture.

Core Group theory is a vague notion that is as well-meaning in its intentions as it is blurry in its specifics. The theory's basic goal is clear enough: the empowerment of workers who feel their work is neglected by their company. Ultimately, however, the author, Art Kleiner, has a far more ambitious aim than simply reordering business organizations, envisioning a world (unions, schools, the body politic, etc.) developed along his Core Group theory.

The book's problems begin immediately with the introduction of the Core Group theory. What is it? Kleiner claims it is the people in an organization who matter - the ones with power. But how can it be applied to a particular company or organization? Is the president of the company part of its Core Group? Probably, Kleiner says, but don't assume it. What about his secretary? Possibly. What about the head of an important division in an organization? Maybe. Is it the people in the organization with the best titles or those who make the most money? Not necessarily. Can someone be part of the Core Group one month and then out of the group the next month? Yes. At one point, Kleiner even says the Core Group exists "in people's hearts and minds."

In other words, Core Group theory is a subjective notion. This lack of substance haunts the rest of the book. The people who matter in an organization are the people who matter. Period. Even if you are part of an organization, you can't be sure who matters. As Kleiner makes clear in the beginning of the book, you can't even be sure about your own status. You might think you matter, and indeed for a while you might matter, only to discover later on that you don't.

Despite this muddled beginning, Kleiner soldiers on as if he has given the reader something concrete to grasp. He mentions the history of some companies as examples to highlight his theory, but it's clear that with a theory this flexible, there is no company's history that can't be explained with it. Whatever decisions the company makes are due to the Core Group dynamics. If it appears that something the company did can't be explained by the Core Group theory, then you simply don't understand who belongs to the Core Group. There's a circularity to the theory that makes it impervious to any empirical proof.

Ignoring those difficulties, Kleiner moves on to give a solution to those left outside the Core Group: develop a shadow Core Group. Given that you can't be sure who is in the Core Group and who is not, this seems rather dangerous. I'm not aware of any organization that would look kindly upon an informal group set up within it that second guesses, however nicely, the formal organization's power structure. Kleiner acknowledges the difficulties, but says that with "a certain finesse, a fair amount of relationship and reputation equity, a willingness to experiment....Most of all, it takes...time and commitment that people generally do not invest in organizations." In other words, Kleiner believes that a shadow Core Group must be far more talented in their organizational and people skills and more dedicated to the company than the Core Group itself. This seems highly unlikely to happen.

I don't think Kleiner is really interested in looking at real-world organizations as they are so much as he's interested in dreaming up some catch-all theory to turn organizations (and ultimately the world) into what he wants them to be. And why not? There's a certain appeal to his theory. Almost everyone who's worked in an organization has at some point felt his or her talents and efforts were neglected by those in charge. Unfortunately, the real-life solution to such a problem was to either work harder and make the organization notice you, or cozy up to someone in the in-group. Kleiner's solution of making everyone part of the in-group sounds nice, but its pleasantness is of the same variety as fluffy talk of wanting everyone to be rich or happy.

Folks, I'm an Organization Development Consultant with 22 years of corporate experience spanning 3 Fortune 100 companies and a host of many smaller companies. I work internally for a major company, externally for several others. I teach Organizational Behavior online. I have a BS in Industrial Engineering, an MS in Manufacturing Management, an MA in OD and I'm 40% toward becoming a PhD in Human and Organization Development. I only lay that framework to add some credibility to this review.

This book lays out THE MOST IMPORTANT CONCEPT OF THE DECADE. Remember when Senge hit the market with the Fifth Discipline? Remember when Goleman hit the market with Emotional Intelligence? Remember when Gardner taught us about intelligence? Well, if you remember them you'll remember the special "feel" you got for that work, when you read it you knew instantly that it was right.

Well, Art Kleiner has done it for us again. This concept is astounding to read. If you believe as I do that BRILLIANCE comes in SIMPLE packages then you'll understand why this aerospace engineer turned People Person loves this work so well!

Art lays out the concept of a Core Group that runs the organization you work for. The purpose of ANY organization is to serve the needs of the Core Group. Period. It works whether you are at Citibank or whether you are part of a sewing circle. The ones in charge call all the shots and learning the nuances of this and how to relate is what Art is all about.

I've picked up SO MANY books that were a waste of my time. Not this one. Read it, confirm me in this. I use this in my coaching work, I use this in my teaching. I have been both a "victim" of this concept as well as a consummate "gamesman" at this concept all of my life. As you read this you will have story after story after story come alive for you from your past as you piece this game together. I'm telling you, this is fantastic thinking.

I love to challenge my new MBA students with this work. They love to "kill me" for the work at first until they start to realize how important Art's work is. I love to needle them as they come to the realization that Art is right, that Art's work is simplistic genius.

I have asked many people that I work with at a peer level to engage me in conversation regarding this concept. It makes them a little nervous because the truth is nerve wracking at times. But once they embrace it they get busy. You see, once YOU embrace it you will get busy too, you will get busy building new self help strategies that are less "touchy feel" crap and more dedicated to the attainment of your goals. Trust me, this is awesome stuff.

The people who I find this work to be most valuable for are the Core Group members of any company I work with. It is important for them to know this work so they know how to analyze their own needs and how to expand their needs to include others. Where was this work when Enron was faltering? Where was this work when Arthur Anderson was helping them falter? Read this work, think about these headline corporate events and your life will be forever different for this concept will give you THE FRAMEWORK to think about corporate purpose and the motivations of executives. Remember, I'm an engineer, I like SIMPLE!

PS - I will dialogue with any of you on this. Send me a personal email at odjoe@charter.net. Because I use this work with my students and clients I made contact with Art directly. I found him online at his website (http://www.well.com/user/art/) and he wrote me right back and we've been in dialogue. He's a great guy, not just a good author!

I have always enjoyed Kleiner's writing and this book is no exception. Whether his "theory" is thoroughly researched or tightly validated is not the point. The "core group" or "who really matters" in an organization is a reality we all live with at some level. His book is more a commentary about what we may already know but have not been able to verbalize -- Kleiner puts those words out there for us.

This is not a book of instruction with "how-to" steps but more of a book that will spark your thinking and provide you an opportunity to analyze your situation and how it might/could be better. His "diagnostic exercises" are a series of question to help you guide you through a process of uncovering and improveing your core group.

Especially helpful is the admonition not to be a core group enabler, a person who keeps dysfunctional core groups going even though they know it is wrong. A powerful admonition to embrace your freedom to choose in the midst of pressures to conform.

The book is written around a simple but powerful idea. Whatever their public stance, organisations are in fact run by and for the benefit of a core group. At best, this is the source of a dynamic that produces great benefits for all players. At worst, it leads to a primary purpose of extracting wealth from all other constituents for the benefit of members of the core group.

As developed in the author's highly readable style, this deceptively simple idea produces extremely valuable insights into the dynamics that actually drive organisations and the great issues involved in ensuring that these organisations, the society in which they are embedded and the physical environment on which both depend live in reasonable harmony. (It is interesting that, almost in passing, the author deals a deathblow to the outdated notion of Adam Smith's 'invisible hand' on which the neo-conservatives still rest their political and economic philosophy.)

Interestingly, the fact that the idea appears 'new' and yields a genuinely useful and sometimes surprising perspective on these great issues is itself a product of the evolution of organizations. If the same theory had been put forward when family businesses were dominant, it would have been too obvious to merit comment, (and each small enterprise would also have been governed, however imperfectly, by the 'invisible hand'). Kleiner has chosen to study organisations which:
* have become so large that they are political entities rivalling many governments, and in which the study of power and its exercise has all the complexities of wider political theory
* operate within a wider system of societal governance, but are able to treat with the wider government almost as independent sovereign powers - and are often large enough to challenge, change or ignore it to their own benefit
* overtly reject (with a very few, very interesting exceptions) the notion of democracy within the organisation. Real power (as distinct from the often purely formal power of a Board member) is obtained and exercised through processes that are seldom transparent, not always legitimate, and therefore only very imperfectly accountable. (The parallels to a medieval court are startling, and it is a bit surprising that Machiavelli is not cited in the bibliography.)

These are the organizations that dominate our global economy. Most of them are American, so it is valuable that that the study is by an author with an intimate knowledge of American business culture.

The book explores three broad themes:
* the nature, structure and dynamics of core groups
* at the micro level, relations within the organisation - the 'ins', the 'outs' and the 'wannabes' and how they interact
* at the macro level, the relationship between the organisation and wider society

Most of book is an exploration of the structure and dynamics of core groups, their virtues and defects and the consequences for success and even survival of the various strengths and pathologies encountered among them. There is an interesting 'bestiary' of core group types, such as the distinction between an 'extended core group' (attempts at moderate or radical inclusiveness) and 'Welchism' (overt pursuit of a tight-knit inner circle, hopefully a meritocracy, but often degenerating into cronyism or worse.) There is also, towards the end (Chapter 23), what could be called a guide to revolutionaries - some advice on how an outer group might work to transform - or infiltrate - a core group.

At the micro level it goes into detail on who makes up the core, how does a core group emerge, how does one get in, and the appropriate behaviour (in their own self-interest) of 'ins', 'outs' and 'wannabes'.

A sub-theme of the book, based on recognition that the vast majority of employees are and will remain 'outs', is the notion of the 'employee of mutual consent' with sage advice on what such employees can do either to remain happily with the organization or to ensure that, on parting, they take with them suitably marketable or protective wealth, skills and reputation. The central message is to reinforce the need to take an independent view of your own career. (Kleiner, whether consciously or not, focuses on what can best be called the 'managerial class'. It is interesting to compare his advice with the harsher view of the reality of present-day employment in Beynon: Managing Employment Change: The New Realities of Work, which has a somewhat stronger focus on 'blue collar' and supervisory staff).

At the macro level, the book touches on the the great issues of how one ensures that the interests of the core group are and remain consonant with those of society at large. Essentially this has two elements: corporate governance and the formal relationship between private organizations and government (as manifest in regulatory bodies and regulation). This is covered mainly in two short chapters, 24 on corporate governance and 26 on the body politic, but is also mentioned in chapter 19 on government agencies.

These are subjects of great importance - perhaps of the greatest importance, and hopefully the author will return to them. One of the really interesting questions is what it is that causes one core group to ignore or ride roughshod over these wider issues, while another embraces the issue of sustainability thoroughly, effectively - and profitably. Kleiner discusses this briefly in his chapter 25 The Cycle of Noble Purpose, and the business case for sustainability is developed in some detail in Holliday et al: Walking the Talk: The Business Case for Sustainable Development.

Those who want to pursue the issue of corporate governance further would do well to look at Cadbury, Adrian: Corporate Governance and Chairmanship, A Personal View. Sir Adrian Cadbury chaired the UK government review of corporate governance and his book compares European, UK and American governance requirements and traditions. One of the problems that he and Kleiner both highlight is the fact that, in the USA, the CEO is often also Chairman and Board members may be little more than a cheer squad for the Chairman/CEO. Cadbury's views on sound governance and the distinctive role of independent board members are very relevant to Kleiner's concerns on governance.

Similarly, any view of the relationship between organizations and government needs to reach beyond the USA, to compare the very different 'flavours' of capitalism in, say, Germany, France, Singapore, Sweden and the UK. Of them all, American capitalism is the most hostile to the role of government, a fact that is probably not unrelated to the spate of high profile scandals that have beset it. Having said that, the ideas of American authors such as Hawken: (The Ecology of Commerce. and Natural Capitalism.), Harman: (The New Business of Business.), and, more radically, Korten: (When Corporations Rule the World. and The Post-Corporate World: Life after Capitalism.) provide pointers toward a more constructive relationship.

Kleiner again did not disapoint me. His writing is to the point and offers clarity to viewing the interactions of corporate leaders and the corporate workers.

The truth is that very few organizations run on consensus or democratic principles. Most organizational decisions are made by a few individuals, and - for good or ill - those decisions impact the lives of everyone associated with that organization. In his book "Who Really Matters," Art Keiner peels back the façade of power to reveal a Core Group that exists at virtually every organization and it's this micro-minority group that controls the directional destiny of the majority. Soundview likes this book because it empowers any employee or organizational member with the skills necessary to anticipate a near approximation of the Core Group's decisions before they happen. Keiner writes that the observant individual can best position themselves for unavoidable change by scoping the past decisions, ongoing communiqués and day-to-day activities of the Core Group. Beyond mere vocational survival, such insight is invaluable for the individual who may aspire to share the mantle of influence and join the Core Group.

Who really matters is the first practical guide to corporate politics I have read. Sure there are lots of books about corporate politics, complete with Cosmo Magazine style self assessments. But these pale in comparison to Kleiner's systematic review and dissection of the issue.

Many people wonder what is really going on in corporate politics and how some good people can never seem to break into the leadership team. Call it a clique, or a core group, this book shows how and why these groups form and why some success is based on "who you know" rather than "what you know".

I found Kliener's observation that many entreprenuers start their own companies in part to start their own core groups particularly interesting.

What puts this book over the top for me is the diagnostic questions and points it raises on who is in the core group, what it is about, and how you can work with it

This is a must read for anyone starting a new job, transferring, or wanting to break through that glass ceiling.