Power as Integration

Meditation on the nature of power, excerpted from George Siemens:

“Information is not power. And, neither is money. Or any of the other terms that get equated with power. Quite simply, integration is power. How an individual or organization forms a coherent view (integrates elements) internally and how it is related to the entities (venture capital firms, government officials, vendors, clients) that either enable or constrain their actions, that ultimately determines success.

What, for example, gives Goldman Sachs their “power”? Is it their wealth? No – other firms and countries have significant wealth but lack the capacity for influence of GS. Is it the location of their headquarters – i.e. New York? No – many top banks are headquartered in London, Hong Kong, or other major cities. No, the real power of GS is how they have managed to integrate their company with businesses and government. The bailout of AIG benefitted GS more than almost any other firm. The fact that former GS leaders hold influential government positions reinforces the company’s integration with government. Power and influence, then, are not single points but rather the capacity of an organization (or individual) to construct an integrated network that not only frames a certain reality or addresses certain problems or situations in society, but also creates very situations that only they can solve.

Goldman Sachs is a great example. When GS created financial instruments of growing complexity, the government needed to hire their employees in order to make sense of the new financial climate. This in turn created a structure that reinforced the power structure of GS, ensuring “too big to fail” status.

I’m going to make an imperfect leap from power as an integrated network in corporate and government settings to power as integrated knowledge in conversations, education, and society in general.”