Project Management Skills Development

- Power, Politics, and Decision Making

Power for Leaders

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Tom Peters (1942), (BSc. and Master’s in Civil Engineering,

Cornell University; MBA and Doctorate (Ph.D.) from Stanford
Business School) is a famous writer, researcher, consultant and
management guru in the area of successful business
management practices. Tom Peters was with McKinsey &
Company and is known for his contribution of the development
of the 7S Framework (McKinsey) and the further development
of Chaos Theory on organizational development and his famous
comment, “Leaders don’t create followers, they create more
leaders.”

So, to be an effective leader it is necessary to understand how to

wield power and what it means. Being a leader is more than just
managing people, employees and tasks. Leadership is a very
special and critical skill that requires both knowledge and
practice to make it efficient and effective.
The use of different forms of power is one of the many tools at a
leader’s disposal. Power in itself is neither good nor bad as it is
the wielder that determines if power is used to serve or to
undermine an organisational goal. Power is much more than just
a simple confidence. It is an extremely necessary tool for
enacting change within your sphere of influence. If Power is
used effectively, it can help a leader to gain respect and achieve
results. If used irresponsibly and improperly, the misuse can
hamstring an organization and lead to negative growth and
stagnation.

In the late 1950’s, John French and Bertram Raven published

“The bases of social power” which included FIVE distinct types
of power.
They later added a SIXTH.

All six of these powers are part of the fundamental knowledge

that all leaders must possess to be effective. Of course, it is not
only leaders that possess power. Each of us has certain power
and each of us has the option to choose how to use it. Knowing
about the types of power and how they can be used (or abused)
it is important to our ability to make decisions that affect both
our sphere of influence and our personal core values. Let us
explore in detail these six types of Power in order of Least
effective to Most effective.

1. Coercive Power - Coercive Power is often the least effective

but most employed (and abused) type of power in the corporate
world.
Coercive Power is forcing someone to do something against
their will or setting up “consequences” to employee actions.
Coercive leaders rely on threats, bullying, and “or-else”
language to “motivate” those that are subordinate or beneath
them in the organisation.
This type of behaviour often leads to fear, dissatisfaction, and
resentment.

2. Reward Power - Reward Power is another widely used

method today in industry and commerce. The results of Reward
power are mixed, and it is, therefore, the second weakest form of
power.
Reward Power is the concept of doing this and getting that. Or
(said another way) if you do this, you will receive something in
return.
Reward Power is useful if the reward is perceived as having
value. Giving away a gold-star or a gift card may be nice if it is
something that is rare, but if over-used the effect may be
weakened. In many cases, the employees begin to experience
frustration when the reward does not grow larger. Other times,
the reward can be taken for granted by the person giving the
reward as just compensation for a task when the employee feels
that the reward is not enough to compensate for the requested
task. (Think of buying your department Pizza for the 5th time
this week as a result of a poorly set customer expectation).
Reward power can also be used to increase morale. Think of
giving a trophy to the highest performer or the team with the
lowest number of mistakes. If used well, this type of reward can
become a highly sought-after status symbol within your
organization.

3. Legitimate Power - Legitimate Power is used in all

Organizations. It is the power of position or a specific role. This
is the typical “command and control” structure that is employed
by the Military world.
Legitimate Power acts as a formalized way of ensuring that there
is someone to make a decision (good or bad) and that someone
is responsible. Legitimate power can seem arbitrary and when a
person loses or changes positions or roles within a company, this
type of power does not move with them. By itself, this powers
the ability to persuade and convince others is weak. However,
when combined with the next three powers, Legitimate Power
can be an excellent first step toward effective leadership.

4. Referent Power - It is often referred to as the “cult of

personality”. This is the power and ability for an individual to
attract others and to build loyalty within them.
Referent Power is also the power earned out of respect. This can
occur through time if a leader is successful and has a well-
known track record of success.
Referent Power is also created through the values of the
individual. Some folks are born with “It”. Others study
leadership and develop themselves to be able to exercise this
form of power effectively.

5. Informational Power - It is the newest addition to the types of

power by French and Raven. Nonetheless, it is in the top 3 most
effective types of Power.
Informational Power is the power of having information that
another does not have, or, the distribution of information as a
means of effecting change. This could be positive or negative
propaganda, knowledge of an opponent’s strategy, or detailed
information that is used in decision support (Think of how the
Nielson ratings affect the price of a commercial).
Informational Power is in the possible use of information from
persuading “by the numbers” or making up a “statistic” to
manipulate opinions. (Some say that statistics are a precise and
logical method for stating a half-truth, inaccurately).
Informational Power can be used to measure and improve tasks,
processes, and strategies.
6. Expert Power - Expert Power is closely related to
Informational Power, it is the type of Power achieved by an
individual by possesses in-depth information, knowledge or
expertise in the area that they are responsible for. This type of
power is often the most effective type of power.
CFO, CTO, Doctor, Software Architect, lead engineer or other
highly skilled and highly trained and skilled employee are
examples of being equipped with Expert Power. Due to their
very high level of expertise and knowledge, they can often
persuade others to do things for them or an organisation using
trust together with a respect of admiration. So, such knowledge,
expertise leading to Expert Power are greatly valued in a
leadership role.

So, an excellent leader seeks to use the most effective type of

power at the appropriate time. They also seek others that
understand how leadership and vision work in order to set up a
framework for success.

And finally, it is important to remember - Managers light a Fire

under the people; while, Leaders light a Fire in the people.

Thanks, Suman
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