Sources of Power in Organizations

What makes some folks and certain teams more powerful than others in organizations? What is the source of their power? In contrast, why do others despite having competence and positional authority are ineffective? This is one of a series on power in organizations. I focus on Gareth Morgan’s classic political metaphor of organizations and his findings of 14 sources of power.

In my coaching work, it's common to work with leaders who have hit a ceiling of sorts and want to engineer that next breakthrough. Often the answers lie not necessarily in their individual performance but instead how well they understand and navigate the environment in which they operate.

Like fish in water, they often don't have perspective on the waters they're swimming in. A challenging aspect, and also elusive, of these "choppy waters" is power.

Understanding how power works inside organizations is a pre-requisite for effective leadership. Some are naturals at it while the majority of us have to work to get there.

By their very nature, in mid-to-large organizations teams are vying for the same resources and attention. Leaders who are adept at navigating this terrain help not just themselves and their teams, but also the organization at large by getting more things done.

In contrast, those who don’t understand the underlying power dynamics fail to make an impact.

In this post I look at Gareth Morgan’s findings on sources of power from his seminal Images of Organization. [1] Although Morgan identified 14 different sources, I’ve chosen to highlight 11 of the most common ones I've seen in my own practice.

For an in-depth study, I highly recommend Chapter 6 of his classic, and from which this article draws heavily. By grasping these concepts, you'll be better equipped to navigate your organization's power structure and find ways to amplify your own influence.

However, don't try to implement these all at the same time. Pick one that you're deficient in and work at it consistently. Revisit this piece as often as you like! Let's get started.

(1) Formal Authority

Also known as positional authority, this is the form of power most of us instantly recognize and usually think of, especially in the context of org charts.

Max Weber identified three types of legitimate authority :

1. Charismatic Authority: Think of that inspiring leader who seems to have a magnetic personality. It’s the Steve Jobs-like figure who can rally an entire company around a vision.
2. Traditional Authority: It's the power held by those who embody traditional values or inherited status. E.g. the family business owner whose authority stems from being part of the founding family.
3. Bureaucratic Authority: This person's power comes from their official position and adherence to company policies.

Formal authority however only works if people respect it. As Weber pointed out, legitimacy is crucial. Without it, even the fanciest job title becomes meaningless.

While the org chart depicts a neat top-down structure, reality is more complex. Authority is delegated from the top. But it's legitimized from the bottom.

People at lower levels of the organization have more power than you might think. They're the foundation of the power pyramid, and without their buy-in, the whole structure can crumble. Unions are a prime example of how power at the bottom can be channeled to challenge authority at the top.

(2) Control of Resources

At its core, this power boils down to two key factors: scarcity and dependence. Thus the resource power equation can be expressed as: Scarcity + Dependence = Influence.

When an organization relies on a resource that's in limited supply, those who control that resource gain influence. It's a simple principle with far-reaching implications. Consider these examples of valuable resources:

• Financial capital
• Specialized skills or expertise
• Cutting-edge tech
• Access to key customers or suppliers
• Crucial information or data

Any of these can become a source of power if they're both scarce and essential to the organization's operations.

While all resources can be powerful, money often takes center stage. But you don't need to control the entire budget to make waves. Often, it's the ability to influence decisions at the margins that matters most. Why?

Because most organizational budgets are already committed to ongoing operations. The real power lies in controlling those extra funds that can spark new initiatives or shift the direction of existing projects.

Imagine you're a middle manager with access to a small "slush fund." By strategically allocating these resources, you can:

1. Launch pilot projects
2. Support team members' professional development
3. Invest in tools or technologies that give your department an edge

Suddenly, that modest sum becomes a powerful tool for shaping the future and building alliances.

While financial resources often dominate discussions of organizational power, it's crucial to recognize that other resources can be just as influential. Consider the following:

1. Expertise power: In a tech company, the lead developer with unique knowledge of a proprietary codebase holds significant sway.
2. Information power: A market research analyst with exclusive access to customer insights becomes indispensable to product development teams.
3. Relationship power: An account manager with strong connections to a key client can influence decisions.
4. Emotional support power: A trusted advisor who provides valuable counsel to top executives can shape major strategic decisions.

Some pointers:

1. Identify critical resources: Analyze the organization to determine which resources are most valuable and in shortest supply.
2. Develop unique skills: Invest in building expertise that aligns with the organization's future needs.
3. Cultivate key relationships: Network strategically to gain access to important information or decision-makers.
4. Create resource buffers: When possible, maintain a reserve of critical resources.
5. Leverage marginal control: Focus on influencing decisions about discretionary resources, even if they seem small.
6. Demonstrate value: Consistently show how your command of resources contributes to organizational success.

(3) Use of organizational structure, rules, and regulations

We’re taught to view organizational structures as purely rational tools designed to enhance performance. But they're often more political than we realize.

E.g. a newly promoted VP immediately starts reshuffling the deck. On paper, it's all about improving efficiency. But look closer, and you'll see an orchestrated power play. The reshuffle weakens a GM’s position, consolidating the VP's control. Later, when the VP leaves, the GM uses further structural changes to regain lost power.

Organizational structure is frequently used as a political instrument. What appears to be a simple reorganization can often be a complex dance of power and influence.

Most common structural changes include:

1. Differentiation vs integration
2. Centralization vs. decentralization
3. Matrix organization tensions

Each of these often have agendas related to power, autonomy, and interdepartmental relationships.

Some points to consider:

1. Learn to recognize when structural changes and new rules are politically motivated.
2. Study your company's structure and rules in depth. How can you use rules and structures to your advantage?

Understanding the political side of organizational structure doesn't mean playing dirty. It's about being aware, strategic, and able to navigate organizational landscapes.

(4) Control of Decision Processes

Whether you're a team leader or a PM looking to make your mark, the ability to influence decision-making processes is a crucial source of power. There are three key elements of decision control: premises, processes, and issues themselves.

(1) Decision Premises

Imagine you're playing chess, but instead of moving pieces, you're subtly altering the board itself. That's what controlling decision premises is all about. It's about influencing the very foundations upon which decisions are made.

• Control the agenda: Be proactive in setting meeting agendas and topics for discussion.
• Guide attention: Steer conversations towards issues that support a given viewpoint.
• Shape organizational culture: Influence the unspoken rules and "the way we do things around here."

By shaping underlying factors, you're not just influencing a single decision – you're setting the stage for countless future decisions.

(2) Decision Processes

While controlling premises is often subtle, mastering decision-making processes is about orchestrating the "how," "who," and "when" of decision-making.

• Choose the right forum: Decide whether a decision should be made in a committee, one-on-one, or through a formal report.
• Set the timing: Determine when a decision will be made and in what order on the agenda.
• Select participants: Influence who will be involved in the decision-making process.

(3) Influencing Issues and Objectives

Last but not least, controlling the very issues and objectives at hand is a potent way to shape decisions. This is where your ability to frame the conversation and set evaluation criteria comes into play.

• Prepare compelling reports: Use data and analysis to support your preferred direction.
• Emphasize key constraints: Highlight factors that naturally lead to your desired outcome.
• Set the evaluation criteria: Influence how alternatives will be judged.

Eloquence, command of the facts, passionate commitment, or sheer tenacity or endurance can in the end win the day, adding to a person's power to influence the decisions with which he or she is involved.

 — Gareth Morgan

By mastering the three elements of decision control, you can significantly increase your influence within an organization by guiding it towards better outcomes.

(5) Control of knowledge and information

We've all heard the phrase "knowledge is power," but in the corporate world, this takes on a whole new meaning.

Information gatekeeping is like playing chess with a blindfold; while you struggle to make decisions based on limited visibility, those with full access to information hold a powerful advantage in shaping outcomes and strategies. These folks understand a fundamental truth: if you control what people know, you control how they act.

How do they do it?

1. Filtering information: Deciding what data reaches which people.
2. Timing: Releasing information at strategic moments.
3. Interpreting data: Providing analysis that shapes perceptions.
4. Structuring communication channels: Influencing who talks to whom.

They're able to define the organizational reality for others, creating a landscape where their interests are front and center.

But it's not just individuals who wield this power. Often, it's baked into the very structure of the organization. E.g.:

• Hierarchies: Information typically flows from top to bottom, giving those at the top an inherent advantage.
• Departmental divisions: Silos can create information monopolies.
• Centralized systems: Think of the traditional IT department controlling access to crucial data.

But information control isn't just about gatekeeping. It's also about positioning yourself as indispensable:

1. Develop unique skills or knowledge
2. Limit access to crucial information
3. Become the go-to person for synthesizing complex data

This creates what some call "expert power." And it's a force to be reckoned with. Of course, organizations aren't blind to these dynamics. Many take steps to break down information monopolies by cross-training and encouraging knowledge sharing to reduce reliance on individuals.

Some takeaways:

1. Be aware of information flows in your organization.
2. Question the "official" interpretations of data.
3. Seek out multiple sources of information.
4. Develop your own expertise, but also be willing to share it.
5. Push for more transparent systems.

Next time you're in a meeting or reading a report, ask: who's shaping the information I'm seeing, and why?

(6) Control of boundaries

Boundary management is about controlling the flow of information and resources between different parts of an organization. It's like the bouncer deciding who gets in, who stays out, and what information passes through.

How does boundary management work in practice?

1. Information control: By managing the flow of information, you can shape how others perceive reality. It's not about lying or hiding the truth, but instead about curating and contextualizing information.
2. Access management: Controlling who gets access to key decision-makers can significantly influence outcomes.
3. Resource allocation: By managing the distribution of resources across boundaries, you can create dependencies and leverage points.
4. Environmental scanning: Keeping an eye on what's happening outside your unit allows you to anticipate changes and respond proactively.

Boundary management isn't just about accumulating personal power. When done right, it can be a force for good in an organization by:

• Improving integration: By facilitating communication between different units, boundary managers help break down silos and improve overall organizational effectiveness.
• Buffering: As managers, boundary management involves protecting your team from external pressures, allowing them to focus on their core tasks.
• Enabling innovation: By bringing in fresh ideas from outside and connecting different parts of the organization, boundary managers can spark innovation.

A few tips:

1. Build a wide network across different parts of your organization.
2. Pay attention to information flows - what's being said, and more importantly, what's not being said.
3. Look for opportunities to facilitate connections between different units or teams.
4. Be proactive in scanning your environment for changes that could impact your team or organization.

Effective boundary management is as much about building bridges as it is about controlling access. It's about becoming a valuable node in your organization's network, someone who can connect the dots and facilitate positive outcomes.

(7) Control of Technology

Technology in the workplace is like a magnifying glass for power dynamics. It amplifies existing structures and can create entirely new ones.

One of the ways it influences power is through the interdependence it creates. E.g. if process A must be completed as a requisite for process B, teams at each stage hold significant power.

When organizations introduce new technologies, they often aim to increase efficiency or control. However, these changes can have unexpected effects on power structures. Technological changes are never neutral. They reshape the organizational landscape in ways that can be difficult to predict.

Given the high stakes involved, it's no surprise that technological changes often become hotly contested issues. When managing these transitions:

1. Anticipate resistance: Understand that groups losing power will likely push back.
2. Involve stakeholders: Include those affected by the change in the planning process.
3. Consider unintended consequences: Think beyond the immediate goals of the change.
4. Provide training and support: Help people adapt to new systems and roles.
5. Be transparent: Clearly communicate the reasons for and impacts of the change.

Understanding the power implications of technology is crucial. It's not just about mastering the latest tech; it's about recognizing how these tools reshape relationships and influence within your organization.

So, the next time you encounter a new piece of technology, look beyond its features and functions. Ask: How might this change the power dynamics? Who stands to gain or lose influence?

(8) Alliances and informal organization

While skills and knowledge are undoubtedly important, the power of interpersonal connections in the workplace cannot be ignored.

Workplaces are like complex ecosystems. While the formal organizational chart may show clear lines of authority, there's an entirely different network operating beneath the surface.

The informal organization is like the nervous system of a company. It's where information flows fastest, decisions are influenced, and real power often resides.

Key components of this “informal organization” include:

1. Friends with power (not just positional)
2. Mentors and sponsors
3. Cultural or ethnic affiliations
4. Coalitions and alliances
5. Informal communication channels

Within these networks, informal leaders often emerge as powerful influencers. These individuals may not have official titles, but they sure wield significant sway.

Steps to build your own informal network and strategic alliances:

1. Identify key players: Map out who holds influence in your organization, both formal and informal.
2. Cultivate relationships: Attend social events, join professional groups, and seek out opportunities to connect.
3. Offer value: Look for ways to help others and build a reputation as a reliable and resourceful team member.
4. Bridge divides: Connect with people across departments and hierarchical levels to expand your influence.
5. Find common ground: Look for shared interests or goals, even among those who may seem like potential adversaries.
6. Think long-term and be patient: Build relationships beyond immediate needs, focusing on mutual benefits over time. Recognize that coalition-building is often a long-term investment.

(9) Symbolism and management of meaning

Symbolic power is the ability to shape reality through the management of meaning. It's a skill that sets apart truly transformative leaders from those who simply occupy a position of authority.

Three aspects that can elevate your leadership game are:

(1) Imagery and framing
Imagine walking into a boardroom where the CEO consistently refers to the team as a "wolf pack" and the market as a "hunting ground." This isn't just colorful language—it's a deliberate use of imagery to shape how others perceive their roles and the company's mission.

Successful leaders understand that words matter. They carefully choose metaphors, stories, and symbols that resonate with their team and align with organizational goals. By doing so, they're not just communicating—they're crafting a shared reality that drives motivation and performance.

Pay attention to the images and language you use. Are they inspiring the right mindset?

(2) Organizational stagecraft
Ever noticed how some executives seem to command attention the moment they enter a room? That's no accident—it's organizational theater in action. Savvy leaders carefully curate their environment and appearance to reinforce their authority and influence. It's not about being inauthentic; it's about understanding that every interaction is an opportunity to communicate one's vision and values.

(3) Gamesmanship
In organizational politics, some leaders excel by treating it as a strategic game. Effective gamesmanship requires understanding the unwritten rules of your organization. It's about being politically savvy and strategic in your interactions.

For example, a skilled organizational player might:

• Build alliances with key stakeholders before important decisions
• Use selective visibility to enhance their perceived importance
• Master the art of timing when presenting ideas or concerns

Mastering symbolic power is about more than just individual techniques—it's about integrating these elements into a cohesive leadership style.

Reflecting on your own leadership style, consider:

• How can you use imagery more effectively to communicate your vision?
• What aspects of your "organizational stagecraft" need fine-tuning?
• What unwritten rules can you leverage?

(10) Ability to cope with uncertainty

From market fluctuations to technological glitches, organizations face a myriad of unpredictable situations daily. Those who can effectively manage these uncertainties often become the most powerful players.

Uncertainty in organizations typically comes in two flavors:

1. Environmental uncertainties: external factors like market trends, supply chain or financial fluctuations.
2. Operational uncertainties: internal issues such as equipment breakdowns or data errors.

Those who can navigate these murky waters gain a significant advantage. Peter Drucker is supposed to have said, "The best way to predict the future is to create it." In the context of organizational uncertainty, those who can "create" certainty out of chaos become indispensable.

The power of “uncertainty tamers” stems from two factors:

1. Irreplaceability: How difficult is it to find someone else with their skills?
2. Centrality: How crucial is their role to the organization's overall operations?

The more irreplaceable and central they are, the more power they wield. While organizations strive to minimize uncertainties, those who benefit from them may actually work to maintain them.

Organizations employ various strategies to reduce uncertainties:

• Building up resource reserves
• Implementing preventive measures
• Training staff to handle contingencies

However, as Murphy's Law states, "Anything that can go wrong, will go wrong." Some level of uncertainty will always remain.

Some pointers:

1. Develop skills in managing uncertainty in your area of expertise
2. Stay alert to both environmental and operational uncertainties
3. Foster cross-unit relationships to better understand and manage interdependencies
4. Be transparent about uncertainties to build trust and avoid power plays

When faced with an uncertain situation at work, ask yourself: "How can I turn this uncertainty into an opportunity?" Can you and your team become the go-to problem solvers your organization can't live without?

(11) Power you already have

This is perhaps the most underrated and thus overlooked aspect of power: you probably already have enough to make a dent.

The IOU economy. Imagine you go out on a limb to support a colleague in a crucial project. Months later, when you need backing for your own initiative, that same colleague is more than happy to return the favor. This is the essence of the IOU economy in action.

Power used judiciously is like an investment. It often pays dividends when you need it most.

Here's how you can start building your own power network:

• Identify opportunities to help others without immediate expectation of return
• Keep a mental (even physical) ledger of favors given and received
• Learn to ask for support when you need it, referencing past assistance

The honeypot effect. Have you noticed how successful folks seem to attract even more success? That's the honey pot effect in action. Your existing power acts like a magnet, drawing in others who want to get in on the action.

To leverage the honey pot effect:

• Showcase your achievements and influence (without bragging)
• Create opportunities for others to align with your vision
• Be generous with your support, creating a cycle of reciprocity

Success breeds success. Remember the first time you achieved something you thought was impossible? That rush of accomplishment, that surge of confidence? That's the empowerment cycle kicking in.

Some pointers:

1. Use your existing power strategically to build a network of support
2. Leverage your influence to attract more opportunities and allies
3. Build confidence through small wins, leading to bigger successes

Remember, you might not recognize the power you already have. It's up to you to recognize it, nurture it, and use it to effect the change you want.

Understanding and strategically applying the principles of power is a powerful tool in a leader's arsenal. By identifying critical sources of power and thoughtfully wielding your influence, you can enhance your leadership capacity.

True organizational power isn't about domination or control—it's about creating value. Use your understanding of power wisely, and you'll find yourself at the center of your organization's most important initiatives and decisions.

Related Reading

• How leaders influence their team's locus of control and context.
• Small Wins - most folks fail to understand its nuances.
• Henry Mintzberg on managing the flow of information and influence
• Language and leadership.

Sources

1. Images of Organization by Gareth Morgan