Effective leaders use their power to help individuals, teams and organizations achieve success. Ineffective leaders squander their power and use it for personal gain.
There are three types of power.
1. Position power
Your position on the org chart gives you power over the people below. Having position power allows you to establish goals and make decisions about the tasks and people in your group. Some of the things you can do include:
- Assign tasks, schedule meetings, establish the agenda
- Revise project budgets and deadlines
- Approve pay increases and promotions
- Discipline and fire people
But wait…
Do you really have all that power? Maybe not. It depends on your boss. They may limit your power.
“You can recommend pay increases, but I need to approve them.”
“Before you take any disciplinary action, you need to review it with me.”
Your boss determines how much “position power” you really have.
Tips for gaining and using your position power:
- Consistently deliver high-quality work and exceed expectations. That leads to promotions — a higher position on the org chart. More position power!
- Make decisions that align with the organization’s strategy and values. Use both rewards and punishments to motivate people and reinforce your standards.
- Be fair and consistent when administering recognition, rewards and punishments. Do not play favorites.
Ineffective leaders do not make timely decisions so they become the bottleneck in their group. Some leaders are great at doling out praise and rewards but never have the difficult conversations that may result in disciplinary action or termination.
During his tenure as Yahoo’s CEO, John Key had the authority to make strategic decisions that could have secured Yahoo’s dominance in the internet and search industry. However, he failed to take decisive action at key moments. Yahoo lost its standing as a dominant internet company. Google and Facebook overtook Yahoo in search, advertising and social media.
2. Expert power
You listen to your doctor, accountant, lawyer and mentor because of their expertise. Similarly, you can become an expert in some aspects of business, such as strategic planning, business analytics, online marketing and team building.
Become an expert in a valuable area in your organization and profession.
You can gain expertise by:
- Acquiring degrees, certifications and other credentials that reinforce your expertise.
- Taking on challenging projects. Learn by doing!
- Attending conferences to keep your knowledge and skills up-to-date.
- Working with mentors and other experts to benefit from their insights.
Remain humble and open-minded. Even if you are an expert, there is always more to learn.
You also need to promote yourself as an expert by writing articles and books, conducting seminars and building your reputation. Become the “go-to” person in your area of expertise. For example, Warren Buffett’s deep knowledge of investing and financial markets has made him a go-to expert in value investing. His track record at Berkshire Hathaway has solidified his expert power in finance.
Take on high-profile projects that showcase your talent and increase your visibility within the organization. Expert power becomes ineffective when you do not keep your knowledge and skills up-to-date or you become an arrogant “know-it-all” that no one wants to deal with.
In addition, expertise becomes obsolete when leaders fail to adapt to changing industry landscapes. For example, Kodak ignored digital photography, fearing it would hurt film sales. Competitors adapted, Kodak did not, and it filed for bankruptcy in 2012.
3. Personal power
Leaders with this type of power are often described as having charisma and big personalities. They are optimistic and upbeat. Some leaders known for fitting this profile include Richard Branson, Sara Blakely, Shaquille O’Neil, Howard Schultz, Oprah Winfrey and Dwayne “The Rock” Johnson.
They project both strength and warmth.
- Strength — they are very confident and decisive. Self-aware and comfortable in their skin.
- Warmth — they are friendly, social and interested in people’s ideas. Relaxed in social situations.
They build strong networks inside and outside the organization. In addition, they use their network to acquire resources, gain support and get things done.
Actions you can take to increase your personal power:
- Learn to eliminate distractions and be fully present with people.
- Be approachable and show genuine interest in others.
- Understand and respond to the emotions expressed by others.
- Command attention with poise and authenticity.
Personal power becomes ineffective when you become over-confident, arrogant or use it for personal gains.
Travis Kalanick was known for his charismatic leadership, big personality and relentless optimism. He was a visionary who built Uber into a global powerhouse. But Kalanick became overconfident and arrogant. A video of Kalanick berating an Uber driver went viral, damaging his reputation. Instead of projecting warmth and emotional intelligence, he came across as entitled and dismissive. He was forced to resign as CEO in 2017.
Increasing each of your power sources is a worthwhile goal. It equips you to be more effective and get more done.
Action items
- Within the next seven days identify some specific actions you will take to increase your expert power and personal power.
- Establish some measurable outcomes that you will use to evaluate your progress.
- Review with your mentor.
Opinions expressed by SmartBrief contributors are their own.
____________________________________
Take advantage of SmartBrief’s FREE email newsletters on leadership and business transformation, among the company’s more than 250 industry-focused newsletters.