Shadow Governance

Tactics of Organizational PoliticsStructure and AuthorityA borderline tacticAlso known as Decisions Over Dinner, Star Chamber Decisions

Real deliberation happens in a small inner circle, in private and at speed, while the formal committee keeps its right to ratify, amend, or reject what the circle brings it.

Borderline: whether this move is justified depends on the situation, and only the person in it can judge.

An example

After a regional grocery chain bought a smaller rival, the chief executive set up an integration office of five people reporting to him, and told the capital committee how it would work. The office would recommend rebranding, store closings, and distribution changes, with its analysis, and the committee would see each recommendation at least a week before voting and could amend or reject it. The office met twice a week; the committee met monthly. That year the committee approved eleven recommendations and sent one back, a distribution center closing, after the chief merchant showed the analysis had missed a supplier contract. The integration office revised its work and closed a different center.

Why it works

Small groups make their route look better and easier: decisions in days, the sponsor's backing, and none of the formal overhead of a quarterly cadence and long debate. Taking an issue only to the formal committee looks worse, because by the time it meets the analysis has been done elsewhere, and costlier, because redoing that work takes time few members have. The formal body has to keep real rights for the arrangement to stay legitimate. Three conditions carry it: a sponsor with real authority, a slow formal process, and a plausible cover such as an integration team.

The thinking behind it

Jeffrey Pfeffer Jeffrey Pfeffer's Power in Organizations (1981) treats control of the decision process as a main source of power. An inner group that does the analysis and frames the recommendations controls most of the process, even when the formal committee keeps its vote. Pfeffer's account explains the speed the arrangement buys, and why the committee's right to amend or reject has to be real for the arrangement to stay legitimate.

Irving L. Janis Irving Janis's Victims of Groupthink (1972) argues, mainly from case studies, that cohesive groups insulated from outside views can let the drive for agreement override realistic appraisal; later work suggests the idea overstates small-group dynamics. A small, loyal inner circle deciding fast and in private fits the conditions he described. Inviting members who own a matter into the working sessions is one check against that risk.

Thomas C. Schelling Thomas Schelling's The Strategy of Conflict (1960) argues that a party that visibly commits in advance forces others to adjust. A recommendation that arrives with its analysis done, its supporters aligned, and implementation planned carries that kind of commitment into the formal meeting. It explains why ratification becomes the path of least resistance, and why members should ask for the analysis well before the vote.

When it fits

Periods that need speed the formal calendar cannot give, such as an integration or a turnaround, are where it belongs, with a sponsor who has the authority to convene a working group. You need a formal body willing to delegate the analysis and keep its vote. It fails where members have fiduciary duties they cannot discharge without deliberating.

How to use it well

Tell the formal body how the arrangement works before it starts: what the inner group will do, what the body will see, and when.

  • Send each recommendation with its analysis well before the vote.
  • Keep the body's right to amend or reject real, and accept it when used.
  • Invite members to the working sessions on matters they own.
  • Keep minutes of the inner group's decisions, and report regularly on what it decided and why.

Wind the arrangement down when the period that justified it ends, and tell the formal body when you do.

What it costs and where it backfires

Members outside the circle may feel reduced to a rubber stamp even when they have the right to object, and insiders can harden into a caste. Fast, private deliberation also narrows the views considered, the condition in which cohesive groups make confident mistakes. The formal body's rights are the test. Withholding the analysis, presenting decisions as already made, or marking members who insist on deliberation for slower promotion conceals what they are entitled to see and punishes them for doing their job.

When it is used on you

Committee members who find decisions arriving already settled can ask on the record for the analysis and for deliberation on the merits before signing off. Use the gap between the private session and the formal meeting to line up colleagues, push the decisions back on the record, and if your body has fiduciary duties, decline to ratify what you did not deliberate.

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