The Hindu Business Line : Not what, but who, is the `matter'

You see enough of them everywhere. Corporate leaders announce glibly that they make decisions on behalf of the shareholders, but the truth is that "every decision — which projects to back, whom to promote, or how to spend money — is affected by the perceived wants and needs of core group of people," writes Art Kleiner in Who Really Matters, from Currency Books (www.currencybooks.com).

It is not always that the most senior people in the hierarchy are the members of such core group. "The people who matter can extend far down the corporate ladder, or even reach outside the company to include key customers, labour union leaders, and stockholders."

So, don't treat the CEO's chauffeur lightly, nor ignore the VP's secretary.

The next time you see a mission statement that reads, "The customer comes first," you can bet that it is one of "the great lies of the modern corporation". Chapter 1 is titled "the customer comes eighth", and even that may seem too optimistic for many.

And there is more devastating stuff:

"It is because of core group dynamics that a depressing number of business corporations have evolved into organisations with one primary purpose — that is, to extract wealth from all constituents (not just the shareholders, but the employees, customers, and neighbours) and give it essentially to the children and grandchildren of some of its senior executives."

How does it work in some family-run organisations?

"The membership of the core group is fixed enough to last for generations, with outsiders finding no way in, no matter how hard they work and how indispensable and loyal they become."

An anecdote that the author cites in this context is about the experience of a manager at the Ford Motor Company, during the days when Ford advertised that `Quality is Job One'. "His boss pulled him aside and told him, `Remember. Your real job here is creating wealth for the Ford family.'"

In `a field guide to some common core groups', the author states that at McKinsey, the core group is `heavy with ex-Naval officers', while in the Navy, the core group consists of the `rising stars', that is, officers who are singled out at a very junior level and continually picked for plum assignments.

At Microsoft, the people who matter are those whose stock has matured (and who are thus independently wealthy) and those who have been personally recognised by `billg', the e-mail tag of Bill Gates.

If you already want to hate core groups, wait. There is nothing wrong with such groups, per se, emphasises Kleiner, because the people who matter may often be robust, intelligent and capable.

Problems come only when the organisation is too infatuated with the core group members, leading to the "problematic aspects of love affairs — such as, tedium, jealousy, spite, money troubles, and the pressure of greater and greater responsibilities."

What if you are among the 95 per cent of people in most organisations "who are not part of the core group"? The author asks: "Does this mean the organisation is not good for you? Does it mean giving up hope of a fulfilling job or career?"

Those are the queries that pop up in your mind too. Here is the answer:

"In many ways you may be better off having a non-core group position, especially if you are not ready to commit your life to any particular organisation."

Also, he cautions readers against a common trap:

"First, you have to recognise your situation for what it is, and not be distracted by an illusory core group status that you don't actually share."

A book that core groups may not like to read for the too unpalatable truths that it holds.

ManageMentor@hotmail.com

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