The Seven Sources of Leadership Power and how to think about them when working with your team

You have the potential to wield power when you have control over a scarce and valuable resource.  You know you have power when, as Stanford’s Jeffrey Pfeffer says, you have “the ability to get things done your way in contested situations.”  While some people shrink back from using power, it isn’t a choice if you want to bring your team successfully through a challenging situation. 

 Effective leadership requires understanding the different sources of power you choose to leverage to guide your teams to achieve results. In this issue of On Leadership, I will explore the seven sources of leadership power that I have experienced and used throughout my career as a leader and how they can be used to have the positive impact you want.

(1) Expertise.  Superpower number one is Expertise: This power comes from your knowledge, skills, and expertise. When recognized as an expert in your field, your team members and others are likelier to trust your decisions and follow your lead. Cultivating expertise requires continuous learning and staying up-to-date with industry and technology trends. Examples of leaders with expertise are lawyers, finance managers such as CFOs, and software coders.  One of my favorite leadership examples of someone who leads with expertise is Chandler Wilson.  Chandler is an expert in alternative data, open-source intelligence (OSINT), and machine intelligence and can-do amazing things with data.  When Chandler presents data, people listen because he is one of the best at what he does; his insights have influenced some of the world’s largest companies and governments.  You can find Chandler at https://www.bridgeci.co.

(2) Relationship: This source of power is based on your personal charisma and the trust and respect that others have for you as a leader. Leaders with strong relationship assets are often seen as role models and, therefore, have strong followership. Building relationships takes time and a consistent display of integrity, authenticity, and competence. One of the best examples of a leader who is excellent at this is Doug McMillon, CEO of Walmart.  I have known Doug for over 25 years, going back to when he was a merchant at Sam’s Club, and he has always been a role model of what trusting relationships look like.  I ask all the leaders I coach to follow Doug on LinkedIn to see what outstanding leadership looks like and how he connects to his team.

(3) Formal authority:  this source of power is derived from your formal position within an organization. People obey others with authority because it’s part of their job description. However, relying solely on formal authority will ultimately weaken you.  We all know that leader who says what your mom used to say when you got her really frustrated: “Because I said so…”  They may not literally say this, but that is the message.  This leadership style is occasionally needed but is not the basis for building long-term success or a functioning team.

(4) Information: In today’s technology and data-driven world, leaders who control and distribute critical information and/or access to information hold unique power. Sharing information strategically and transparently can help leaders gain the trust of their team and make informed decisions collaboratively.  Possessing vital information is not limited to accessing and understanding data; it can also be controlling access to people in power.  You know this person.  They are the person you must go through to get information or access.  This can be as simple as an executive assistant or Chief of Staff (think Al Hage in the Reagan administration), but make no mistake, these people, while lacking legitimate power, are very powerful.   

(5) Network position:  This source of power creates influence by proxy and often results from deliberate and proactive network building skills. This power comes from gaining favor and being a valuable resource to others.  Politicians are a good example of people who use their network positions to achieve results.  My partner, Rita McGrath, lectures on power in her classes at Columbia Business School and uses the example of Lyndon Johnson using his vast network of connections (as well as a few well-placed rewards) to get the Civil Rights Act of 1964 passed. 

The most valuable positions in any social network are those in which you connect people who otherwise do not have access to one another.  LinkedIn facilitates these opportunities to enhance your network position.  I receive multiple connection requests weekly, and frequently am asked to make a connection between two of my first connections that don’t know each other; this is digital connection power at work, and when I make these connections for people, I increase my value to them as a resource and build up important relationship currency.

(6) Rewards: Leaders who can provide rewards such as promotions, raises, or other incentives control a strong basis for power. This can and is an important component of motivating team members to perform at their best. However, overusing rewards can lead to problems like entitlement and a lack of intrinsic motivation among team members. Remember that over time, material compensation is, at best, neutral in terms of long-term motivation and job satisfaction. 

One type of reward that has often been overlooked is recognition.  Don’t underestimate the power of recognition; even for very high performers on your team, public acknowledgment is a powerful driver of engagement and job satisfaction.  

(7) Coercion: This is perhaps the most straightforward way to wield power, in which leaders rely on fear and punishment to control their teams. While it can produce short-term results, it often leads to resentment and a toxic work environment. Coercion should be used sparingly, if at all, and as a last resort.  Majority Whip and Minority Whip in the U.S. House of Representatives are examples of leadership roles designed to use coercion.

Understanding the seven sources of leadership power is crucial for leaders looking to inspire and guide their teams toward success. By recognizing the strengths and limitations of each source, leaders can develop a balanced approach that fosters trust, respect, and collaboration among team members, ultimately leading to a more aligned and impactful team.

Be well,

Ron

Special thanks to my editor: @ritamcgrath

Leveraging three decades of expertise gained as a CEO of public companies, a board member, and a leader in Fortune 500 companies, Ron serves as a leadership advisor and coach for C-suite executives, specializing in helping them achieve their personal, team, and company growth ambitions.

A globally experienced organizational transformation expert, Ron is sought by boards and CEOs to help them navigate some of the most demanding operating environments. He has held C-level roles as CEO of Barnes & Noble, Sears Canada, and Brookstone, as well as senior leadership positions at Sony, Toys R Us, Sears Holdings, and Best Buy.

Contact Ron at ron@uplandgroup.us or on Twitter (@ronboire) or LinkedIn ( www.linkedin.com/in/ronboire/ ).