Navigating the power dynamics landscape
Power dynamics in organisations have a profound effect on organisational effectiveness. How can we work with, rather than against, the prevailing differentials?
In the intricate world of business, one cannot overlook the importance of power dynamics within organisations. Power, in its many forms, shapes the direction, culture, and success of businesses. Understanding these dynamics is crucial for leaders and employees alike. This article delves into the nuances of power dynamics, offering insights and strategies for effective navigation of that complex landscape.
In order to do that, we would like to address:
The nature of social power and the dynamics at play, and how to
Successfully navigating the power dynamic, leading (hopefully) to
A powerful conclusion
The nature of social power and the dynamics at play
Power, at its core, refers to the ability to influence others' behaviour or decisions. I would like to call this type of power, Social Power. And I suggest using the following definition:
Social Power refers to the ability of an individual (or a group) to influence the thoughts, feelings, or actions of others within a social context
Psychologists Bertram Raven and John French (1959/1965) identified six types of social power that impact power dynamics in the workplace. And I suggest we extend this to seven in the context of this article.
Coercive power - Those who have this type of power use the threat of (physical, social, emotional, political, or economic) force to gain compliance from another. An example would be a manager who can give a poor performance review to a team member.
Expert power - Someone with expert power bases it on what they know, their experience, special skills or talents. This can be demonstrated by reputation, credentials certifying expertise, and actions. This expertise does not have to be genuine. It is the perception of expertise that creates the power differential. An example of this type of power could be a management consultant on a large IT programme.
Reward power - Reward power is based on a person’s right to offer or deny tangible, social, emotional, or spiritual rewards to others for doing what is wanted or expected of them. This reward can be positive or negative. A manager has positive reward power when they provide an incentive or praise to an employee and negative reward power when they can sideline an employee from an important project that they would love to be engaged in.
Informational power - Those with informational power have the ability to influence others, because they possess unique knowledge that others need or want. An employee who has a niche education that helps the company would have informational power. This power is, arguably, the most transient in nature, for once the information has been shared, the power differential all but disappears.
Formal power - A person with formal power has legitimate control of others, derived from an elected, selected, or appointed position of authority, that may be underpinned by social norms. This power which means the ability to administer to another certain feelings of obligation or the notion of responsibility. For instance, a CEO wields significant power due to their role's authority. The expression ‘(s)he who holds the gold, holds the power’ captures this neatly.
Referent power - Someone with referent power utilises the shared personal connection or shared belief between them and their peers with the intention to influence their actions. An example might be a popular employee who can motivate their peers to meet goals.
Connection power - This is the one I suggest we add to the six original ones. Stemming from personal relationships and networks, an individual with strong connections or alliances may hold sway over key decisions. For example, the leader of the national workers’ council in a company has connection power.
Understanding these power bases is essential, as they often interplay, creating a complex web of influence within organisations.
Dynamics at play
Organisations are dynamic entities where power dynamics constantly evolve. Several levels of factors contribute to this fluidity, that I suggest are extensions of each other.
Organisational Structure - The internal hierarchical structures inherently embed power differentials. As you ascends the ladder, your influence generally increases. However, matrix organisations and flat hierarchies can challenge traditional power dynamics, fostering collaboration over authority.
Culture and Values - Your organisation’s culture profoundly impacts power dynamics. Companies valuing transparency and collaboration may exhibit egalitarian power dynamics, whereas those emphasising hierarchy might foster more traditional power dynamics.
External Factors - Market dynamics, competitive pressures, and external stakeholders can also influence your internal power dynamics. For instance, a crisis might shift power towards those adept at crisis management, regardless of their formal position.
After a significant fire in a chemical company, the investigating committee concluded that one of the main reasons that the fire was contained successfully, was because everyone chipped in as required, irrespective of their formal position. The prevailing power dynamics had collapsed completely to deal with the immediate emergency in front of them.
And, everyone felt really great after the event, because the negative power dynamics were felt to be absent!
This makes you wonder why the people cannot work that way (and feel great about it!) outside the emergency. As their safety guru mentioned in the feedback presentation to the organisation:
People, we can’t keep burning the plant down to feel good about ourselves.
Quite.
(Adapted from a story by Richard N Knowles, at the Center for Self-Organizing Leadership)
INTERMEZZO
USED CASE EXAMPLE - UK-based Global Investment Bank
Our (then) London-based consulting team was hired to facilitate a conversation within a management team of a shared services organisation of a large UK-based global investment bank to help resolve some serious ineffectiveness issues within the organisation.
For this purpose we designed a two-day workshop with the entire management team present, including the managing director of the operation, who had commissioned our work.
As is our practice we agreed the wicked starter question for the workshop with the team and the managing director up front, to ensure it was compelling enough to overcome possible personal issues.
When day 1 of 2 had arrived our team of two facilitators flew to Scotland (where the shared services operation was based) to set up the session that would start mid-morning.
The managing director greeted us very pleasantly, set us up in the agreed boardroom with all materials we required, and then -casually- said that he had so many priorities that he would be unable to join the workshop.
Now what? We travelled all the way out here, and so did the entire management team, but the key player would not be there. Despite our reservations, we decided to go ahead.
The workshop went very well, though! With the rest of the management team, we identified some excellent and unexpected actions to resolve the issues. But, as is so often the case, many had to do with the way the managing director led the team. There appeared to be real issues, that -in fact - seemed the root cause of most problems.
But, when at the end of the second day we played back the (what we thought were) excellent results to the MD, he selected 3 of the 8 key actions that he would support, and the other 5 he said he would not consider to take on board. Not surprisingly, these were the ones that concerned the power dynamics between the MD and the rest and the team.
KEY LESSON REGARDING POWER DYNAMICS
As the lead facilitator, I should have cancelled the workshop immediately when the MD mentioned he could not join. I should have cancelled there and then. Clearly, the MD felt the tensions coming. But, by him not being in the room, that specific power dynamic was not in the room either, so the outcomes could never be supported by him.
So:
Ensure that the key power dynamics are always part of the key conversations.
Successfully navigating Power Dynamics
The first and foremost element for being able to navigate the Power Dynamics, is to be aware that they exist and ensure they are recognised as affecting the outcomes of the work we do. That sounds trivial, but in my experience more often than not people are simply unaware of these dynamics. Or choose to be unaware, if you get my drift.
For each of us individually, navigating power dynamics requires tact, awareness, and strategic thinking.
Self-awareness - Recognise your own sources of power and your own potential biases. Regular self-reflection and asking for feedback can enhance awareness, enabling more conscious decision-making. Think about the four quadrants Johari Window I shared in the feedback article.
Build Coalitions - Forming alliances and networks can amplify influence. Collaborating with diverse stakeholders can foster mutual respect and shared objectives. Look at the people that seem to be able to influence others in the areas you are interested in from the types of social power introduced in the first section above.
Seek Mentorship - Engage with mentors and advisors, benefiting from their experience and insights. Mentorship can provide valuable perspectives, aiding in navigating complex power dynamics.
Leadership… again…
Apart from our individual requirements, there is a clear role for our leaders because understanding and managing power dynamics is a pivotal leadership skill.
Our leaders do that by
Building trust - Establishing trust is fundamental. Our leaders should communicate transparently, value diverse perspectives, and thus will foster an inclusive environment, reducing the likelihood of power struggles.
Empowering others and promote inclusion - Effective leaders empower their teams, recognising and leveraging their strengths. By distributing power, our leaders will foster a culture of ownership and innovation. Our leaders must encourage diverse voices and perspectives to be heard, fostering an inclusive culture where everyone feels valued and empowered.
Navigating politics wisely: Organisational politics are inevitable. Our leaders must navigate these politics judiciously, prioritising organisational goals over personal agendas.
Emphasising ethics - It is pivotal that our leaders uphold high ethical standards, ensuring power is wielded responsibly and ethically. Ethical leadership fosters trust and integrity, essential for long-term success.
These are important attributes to lead the ongoing conversations in the organisation. They are essential for the leaders to be able to facilitate the themes to emerge in those conversations that are essential to move the teams forward. The leaders need to recognise that the negative effects of the always present power dynamics can seriously hinder the convergence of the conversations, that we working towards.
Do you remember the image of the converging reality that we used when talking about making your AI strategy work or in a different form when we talked about feedback? We can add the power dynamics to that to clarify what leaders need to see and help navigate in our organisational conversations.
It is therefore esential that organisations invest in leadership development, equipping leaders with the skills and insights to manage power dynamics effectively.
A powerful conclusion (please, forgive me the pun…)
Power dynamics are inherent in organisational life, shaping interactions, decisions, and culture. Recognising the nature and implications of power is crucial for leaders and employees alike. By fostering transparency, trust, and inclusivity, organisations can navigate power dynamics effectively, fostering a culture of collaboration, innovation, and success. Embracing these principles, our businesses can harness the power of dynamics, driving growth, and excellence in the ever-evolving business landscape.
It is an important part of our organisational development to equip our leaders with the awareness, insights and tools to help this navigation of the power dynamics landscape and ensure they support, rather than hinder, the effective conversations that make up our organisation.
Do you always know what power dynamics are playing in the conversations you are part of?
Have you, like our manager in the Investment Bank, deliberately avoided conversations where negative power dynamics could be exposed, because the conversation might turn out to be uncomfortable? And in one stroke confirm what indeed the issue could be?
Are your leaders well equiped, and empowered, to help navigate the prevalent power dynamics?
I think you're absolutely right that the most important thing is to recognise that these dynamics exist, and be open about them with others. Love the point that you should have cancelled the workshop when the MD pulled out - I wonder how many consultants would have had the courage to do that.
I have found that senior managers, often need “coaching” to see how their behaviour can negatively influence the effectiveness of their teams. Paradoxically, senior management teams can be some of the most ineffective teams I have seen operate, mainly because the players are so well versed in power games.
What tends to help is to draw attention to how those games affect the outcome of the team.
One thing I tend to do when facilitating senior management teams is to ask permission of the ranking person (often the CEO) to make certain intervention when I think their behaviour is detrimental to the conversation that we are having.
Without that permission it can be almost impossible.
But, you need trust for them to accept that, and trust takes time to establish itself... In a once off workshop that is simply not possible, so -beforehand!!- make the rules clear that it is everyone or no one in the session...