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Summary: weLEAD Book Review from leadingtoday.org
Review: Jim Collins, author of Good to Great and co-author of Built To Last, says, "Art Kleiner has uncovered a central truth about the way organizations work." Every decision, such as who gets the promotion or how to spend money, is affected by the perceived wants and needs of a group of people who are the genuine heart of an organization. This group, called the Core Group, is usually made up of most, but not all, of the people at the top of the organization chart. It may also include others. A Core Group might be huge, or it might be small. But be sure, if you have an organization, you will have a Core Group.
A Core Group guides and controls the organization. Core Groups are informal networks of key people who set the direction of the organization. Only rarely will a secretary or aide rise to the level of Core Group member. Usually they stand as gatekeepers to the real Core Group members.
The vast majority of employees are outside the Core Group. They make up "employees of mutual consent." These are people who feel their jobs require them to protect the position and status of the Core Group. The Core Group may consist of tenured faculty, established executives, or whoever the bureaucracy might be. The needs and wants of the Core Group actually come first, despite lip service that "the student comes first" or "the customer comes first."
In fluid organizations membership in the Core Group shifts from year to year, while in other types of organizations, such as family firms, membership of the Core Group is fixed enough to last for generations. When times get tough, sometimes a Core Group is streamlined, as in the case of "Welchism." Jack Welch was brought in as CEO of GE in 1981 to turn the organization around. He redefined the Core Group at GE-from a large body of employees with lifelong membership to a very small group of people whose membership is permanently insecure. Those in the new Core Group were expected to have the same brash, hard-driving, energetic personality that Welch himself has.
Occasionally one finds an organization where the chief executive is barely a member of the Core Group. For instance, Art Kleiner points out that in some universities nothing happens without the approval of long-standing tenured faculty members in critical departments. The president or dean has a limited term or limited power, and if he or she tries to change the organization, people simply say yes but ignore the changes. A dean may ask, "What is the difference between a tenured faculty member and a terrorist? You can negotiate with a terrorist."
In rare cases, such as Southwest Airlines, Scientific Applications (SAIG), Toyota, or St. Lukes Advertising Agency in London, an organization may have an expanded Core Group, where everyone's welfare and development is one of the entire organization's priorities. However, an "Expanded-Core Group" organization is difficult to create and maintain. This is because it must continually refine and expand the financial and learning-and-development structures, trying to make them more transparent and inclusive.
The author explains why more organizations don't follow the model of Toyota or Southwest Airlines. It is "because it would require most Core Group members to fundamentally change-not just what they say, but how they think, how they are paid, how they carry themselves, and how they build relationships." He then points out that most Core Group members have an unconscious vested interest in keeping themselves and their organization going in the same pattern of basic management. They have invested their careers, their habits, their thinking, and their feeling in an organization that maintains its current Core Group form.
Art Kleiner is a talented and seasoned writer. He worked as a collaborator with MIT lecturer Peter Senge, helping him conceive and edit his best seller, The Fifth Discipline. He later collaborated with Senge to produce the follow-up Fifth Discipline Fieldbook series which included The Dance of Change and Schools That Learn. He is a contributing editor at strategy+business magazine and the author of The Age of Heretics, which was a runner-up for the Edgar G. Booz Award for the most innovative business book of 1996. Who Really Matters is destined to be another significant contribution to this body of knowledge!
Review By Dr. J. Howard Baker
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Summary: The "Invisible Committee" has a name -- the Core Group !
Review: Kleiner's position is self-evident and irresistable to the reader. It was right there in front of us all the time -- so why all of these years couldn't we see it?!!John Cougar's "The Authority Song" (authority always wins) came to mind before getting to page 3. So what exactly is "authority" anyway? Unless one is naive and thus on the way to being laid-off or fired in today's "swim with the sharks" corporate environment, it's for darn sure not the org chart on the wall. Instead, it's a small, incognito, collective of individuals upon whom legitimacy for calling the shots is "implicitly" bestowed by the organization at large. Prior to this book by Kleiner, this collective was simply known as "they" (aka "the invisible committee"). At last, "they" have now been exposed and are known by their real name. Kleiner has entered the "Metaphor Hall of Fame" by mainstreaming the term "the Core Group". Before you smugly reply "I knew that already", pair up the above observation with this additional Kleiner bombshell: the purpose of an organization is *NOT* to fulfill the mission & vision of the company. INSTEAD, an org exists to serve the "perceived" needs of the CORE GROUP ! Human nature is the darndest thing ! Add to this a 3rd Kleiner truth, and the arena for a paradigm-shifting experience is set: the world is run by an infinitely large community of core groups -- NOT individuals or organizations. Speaking as an I.T.-focused OD-HRD person, it's sometimes hell on earth to be a "professional heretic" in a world where organizations are being run by the first generation in history to "have the choice" to be knowledge workers. Using Covey-speak, in an ideal world this social arrangement would realize synergy of the org at large, not just independence & competence of the individuals within it. But unfortunately, at this juncture in our history, Mankind is still very much a babe in the woods in terms of his understanding of how to work together in true team-like fashion instead of facing everyday adversarially in organizations that O.D. guru Chris Argyris calls "skillfully incompetent". In closing, I found this book personally very helpful by giving me clarity of both the very self-destructive phenomenon Kleiner calls "core group envy", as well as the 7 forms of human capital equity (note to H.R. professionals here: compensation is a mere subset of the larger value delivered by a "total rewards" approach that's actually required for today's knowledge worker). Though Kleiner has invested a lot of time working personally with Peter Senge, going forward he continues to demonstrate that he is very much his own man. Get a copy of this book and get ready for a cold but timely slap in the face. It's good medicine, really! Read this work over 3 evenings and do so with profit !
Rating:
Summary: The "Invisible Committee" has a name -- the Core Group !
Review: Kleiner's position is self-evident and irresistable to the reader. It was right there in front of us all the time -- so why all of these years couldn't we see it?!! John Cougar's "The Authority Song" (authority always wins) came to mind before getting to page 3. So what exactly is "authority" anyway? Unless one is naive and thus on the way to being laid-off or fired in today's "swim with the sharks" corporate environment, it's for darn sure not the org chart on the wall. Instead, it's a small, incognito, collective of individuals upon whom legitimacy for calling the shots is "implicitly" bestowed by the organization at large. Prior to this book by Kleiner, this collective was simply known as "they" (aka "the invisible committee"). At last, "they" have now been exposed and are known by their real name. Kleiner has entered the "Metaphor Hall of Fame" by mainstreaming the term "the Core Group". Before you smugly reply "I knew that already", pair up the above observation with this additional Kleiner bombshell: the purpose of an organization is *NOT* to fulfill the mission & vision of the company. INSTEAD, an org exists to serve the "perceived" needs of the CORE GROUP ! Human nature is the darndest thing ! Add to this a 3rd Kleiner truth, and the arena for a paradigm-shifting experience is set: the world is run by an infinitely large community of core groups -- NOT individuals or organizations. Speaking as an I.T.-focused OD-HRD person, it's sometimes hell on earth to be a "professional heretic" in a world where organizations are being run by the first generation in history to "have the choice" to be knowledge workers. Using Covey-speak, in an ideal world this social arrangement would realize synergy of the org at large, not just independence & competence of the individuals within it. But unfortunately, at this juncture in our history, Mankind is still very much a babe in the woods in terms of his understanding of how to work together in true team-like fashion instead of facing everyday adversarially in organizations that O.D. guru Chris Argyris calls "skillfully incompetent". In closing, I found this book personally very helpful by giving me clarity of both the very self-destructive phenomenon Kleiner calls "core group envy", as well as the 7 forms of human capital equity (note to H.R. professionals here: compensation is a mere subset of the larger value delivered by a "total rewards" approach that's actually required for today's knowledge worker). Though Kleiner has invested a lot of time working personally with Peter Senge, going forward he continues to demonstrate that he is very much his own man. Get a copy of this book and get ready for a cold but timely slap in the face. It's good medicine, really! Read this work over 3 evenings and do so with profit !
Rating:
Summary: The "Invisible Committee" has a name -- the Core Group !
Review: Kleiner's position is self-evident and irresistable to the reader. It was right there in front of us all the time -- so why all of these years couldn't we see it?!! John Cougar's "The Authority Song" (authority always wins) came to mind before getting to page 3. So what exactly is "authority" anyway? Unless one is naive and thus on the way to being laid-off or fired in today's "swim with the sharks" corporate environment, it's for darn sure not the org chart on the wall. Instead, it's a small, incognito, collective of individuals upon whom legitimacy for calling the shots is "implicitly" bestowed by the organization at large. Prior to this book by Kleiner, this collective was simply known as "they" (aka "the invisible committee"). At last, "they" have now been exposed and are known by their real name. Kleiner has entered the "Metaphor Hall of Fame" by mainstreaming the term "the Core Group". Before you smugly reply "I knew that already", pair up the above observation with this additional Kleiner bombshell: the purpose of an organization is *NOT* to fulfill the mission & vision of the company. INSTEAD, an org exists to serve the "perceived" needs of the CORE GROUP ! Human nature is the darndest thing ! Add to this a 3rd Kleiner truth, and the arena for a paradigm-shifting experience is set: the world is run by an infinitely large community of core groups -- NOT individuals or organizations. Speaking as an I.T.-focused OD-HRD person, it's sometimes hell on earth to be a "professional heretic" in a world where organizations are being run by the first generation in history to "have the choice" to be knowledge workers. Using Covey-speak, in an ideal world this social arrangement would realize synergy of the org at large, not just independence & competence of the individuals within it. But unfortunately, at this juncture in our history, Mankind is still very much a babe in the woods in terms of his understanding of how to work together in true team-like fashion instead of facing everyday adversarially in organizations that O.D. guru Chris Argyris calls "skillfully incompetent". In closing, I found this book personally very helpful by giving me clarity of both the very self-destructive phenomenon Kleiner calls "core group envy", as well as the 7 forms of human capital equity (note to H.R. professionals here: compensation is a mere subset of the larger value delivered by a "total rewards" approach that's actually required for today's knowledge worker). Though Kleiner has invested a lot of time working personally with Peter Senge, going forward he continues to demonstrate that he is very much his own man. Get a copy of this book and get ready for a cold but timely slap in the face. It's good medicine, really! Read this work over 3 evenings and do so with profit !
Rating:
Summary: A brilliant confrontation with the realities of power.
Review: 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.
Rating: 
Summary: When all you have is a hammer, everything looks like a nail.
Review: The main point of this book is there exists a core group of people in any organization. Their concerns are what really drive the company. Not the market, the business, or anything else. There is a club aspect to any business, no matter how people may want to pretend its something more slick/high tech. Plenty of anecdotes. The book has some merit. However, this book should be called "Core Group is My Theory to Explain Everything". I would bet over half of all the paragraphs in the book contain the phrase "Core Group". I wonder if the author has a copywright on the term or something. Maybe hes doing "Core Group Learning Seminars", for a fee. (Be sure to go to one and tell me how it is.) To sum up : Good anectdotes, not great book structure, massive repition of the term "Core Group". There are alot of management books out there. Just throw this onto the pile.
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Summary: Fabulous book
Review: 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.
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Summary: If you have talent- learn to understand the Core Group
Review: While the mainstream press predicts layoffs, downsizing, offshore job loss.. no one has asked who employs the talent and pays them well. Core Group Theory is the basis and must do for shaping a succession plan or simply planning your own career. You can't change the core group. You can work for a core group, understand them, do excellent work for them and add to your career portfolio of accomplishments. This is the sure way to create a vest of protection from downsizing. Implied within the Core Group Mission and how they carry it out is the dna for career success and company sustainability. If the founders give up control and let a core group emerge, there is hope for a future. If the core group then forms to learn how to accelerate performance tangibly and intangibly there is a future for you anywhere and possible growth to become an accepted member of the core group. Every college graduate planning a career, every HR Director or C-Level person who thinks about organization and direction should read WHO REALLY MATTERS. Analyzing the Core Group Pattern is the dna for guiding a direction for companies and people that is sustainable. Understanding the Core Group Theory and applying it can aid any individual to new jobs, companies to new customers and teams of people that innovative thinking to launch new products and organizes knowledge as an asset. Lavinia Weissman
http://www.workecology.com
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