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Related Experiment Videos

Are you in with the in crowd?

Art Kleiner

    Harvard Business Review
    |July 16, 2003
    PubMed
    Summary

    The unacknowledged core group significantly influences organizational decisions and direction. Understanding and engaging this powerful, informal leadership is crucial for effective company strategy and long-term shareholder value.

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    Area of Science:

    • Organizational Behavior
    • Corporate Strategy
    • Leadership Studies

    Background:

    • An informal 'core group' often dictates organizational decisions, despite not appearing on any official chart.
    • This group's perceived interests and needs shape company-wide actions, often contradicting the idea of a shared stake in success.

    Purpose of the Study:

    • To highlight the existence and influence of the informal core group within organizations.
    • To explore the power dynamics and impact of this core group on corporate strategy and performance.
    • To provide guidance for leaders on how to identify and manage the core group for organizational success.

    Main Methods:

    • Conceptual analysis of organizational dynamics.
    • Examination of informal power structures and their influence on decision-making.
    • Case study insights into the impact of core groups on company direction and value creation.

    Main Results:

    • The core group, though unacknowledged, wields significant power, reinforcing what it prioritizes.
    • When independent and creative, the core group can drive innovation and long-term shareholder value.
    • Ignoring or misunderstanding the core group can impede leadership effectiveness and strategic change.

    Conclusions:

    • Leaders must identify and understand the core group's values and influence to effectively lead.
    • Explicitly engaging or challenging the core group may be necessary to shift organizational direction.
    • Awareness of the core group's signals is vital for both intended and unintended consequences.

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