Even when a narrator seems to be a peripheral. [fact]
When point of view fails, Hills argues, it is always because the perception we are using for the course of the story is different from that of the character who is moved or changed by the action. Even when a narrator seems to be a peripheral observer and the story is "about" someone else, in fact it is the narrator who is changed, and must be, in order for us to be satisfied by our emotional identification with him or her.
Janet Burroway, Writing Fiction, Tenth Edit…, loc. 529