Don't forget, we have reviewed DOZENS of books. See more reviews here.

All these books reflect our approach to issues of leadership and organizations. Go here to find out more about how we help organizations.

You can also learn more about Jamie Notter's thinking about these issues on the Get Me Jamie Notter blog.

And if you want to get on our mailing list (no more than four updates per year), sign up here.

We write books, as well as review them. Don't forget to check out the books that we have for sale.

Need more info? CALL JAMIE: (240) 603-7693 (or email).

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

by Art Kleiner
Doubleday, 2003

“The customer comes first,” is one of the three great lies of the modern corporation, argues Art Kleiner in his provocative and powerful book, Who Really Matters: The Core Group Theory of Power, Privilege, and Success. Along with “We make our decisions on behalf of our shareholders” and “Employees are our most important asset” Kleiner argues that statement ignores the fact that what really comes first in all organizations is the organization’s “core group.” This group looks different in every organization, but it is always there, and the organization will always move in the direction that people think the core group wants to go.

The core group usually includes people at the top of the organizational chart, but not always every one of them. And in some cases, people in the core group may be at lower levels, or perhaps not on the chart at all. In short, people in the core group are the people who get named in the following sentence: “Before we make this decision, what do you think X will think?” At one level, organizations can be seen as large collections of decisions. These many decisions come together in aggregate form as the direction of the company. Those whose opinions are considered as decisions are made, therefore, are the ones setting the direction of the organization—the core group.

Why is this relevant? Because core group dynamics are a large part of huge organizational challenges, problems, issues, and opportunities, yet few people realize it, and even fewer act on it. For example, issues of micromanaging, empowering employees at lower levels of the organization, and encouraging innovation, can all be wrapped up in core group issues. We try to move away from the dangers of old-fashioned hierarchical structures (which is good), but we do so without understanding that the core group dynamic is still in place. Trying to share power without recognizing that fundamental structure is often confusing. It’s not that power cannot be shared, but it must be shared within the recognition that the core group is still the core group. Both leaders and followers often pretend this is not the case, to the detriment and eternal frustration of all.

Other chapters in the book explore how people who are not in the core group can effectively have an impact on (change) the core group. There is also a discussion of diversity and how the core group needs to understand who it is excluding and why. There is also an excellent chapter on corporate governance that talks about the challenges and opportunities inherent in the Board-Core Group relationship.

This book represents an important big-picture shift in the view of organizations and how they work. The shift holds tremendous potential, however, for leveraging change that can increase effectiveness. It includes examples from the corporate world and nonprofit organizations, including associations. Kleiner is one of the original leaders of the “systems thinking” movement, so his principles tend to be applicable to all kinds of systems. This book is valuable to all parts of the system, too: from leaders ensconced in the core group to staff peering in from the outside. It can help everyone develop more effective strategies for moving organizations (and their careers) forward.