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Power, Incentives & Behavior

Power Dynamics at Work: How Authority Flows Through Organizations (And Why It Rarely Matches the Org Chart)

Power in organizations doesn't follow formal authority. It flows through information control, resource allocation, and structural position in ways that make official hierarchy nearly irrelevant.

Power Dynamics at Work: How Authority Flows Through Organizations (And Why It Rarely Matches the Org Chart)

Power dynamics at work describe how influence, control, and decision authority actually operate in organizations, as opposed to how org charts suggest they should operate.

Organizations have official hierarchies. Reporting lines. Job titles. Defined authority levels.

None of this determines who actually has power.

Power flows through different channels. It accumulates in unexpected places. It operates through mechanisms that have nothing to do with formal position. Understanding these dynamics is not about politics or manipulation. It is about recognizing how organizations actually function beneath the official structure.

The org chart is documentation. Power dynamics are the operating system.

Why Formal Authority and Actual Power Diverge

Formal authority is granted. It appears in job descriptions, delegation matrices, and approval workflows. It specifies who can approve budgets, hire staff, or sign off on decisions.

Actual power is taken, earned, or accumulated through structural position. It does not require official authority. It often exceeds it.

A senior engineer with no direct reports can have more organizational power than a director with twenty. The engineer controls critical technical infrastructure. They are the only person who understands certain systems. Their approval is required for any major change, not because policy says so, but because reality demands it.

The director has budget authority and headcount. But if they cannot ship without the engineer’s cooperation, formal authority is subordinate to structural necessity.

This pattern repeats everywhere. Executive assistants who control calendar access. Analysts who control data pipelines. Procurement officers who control vendor relationships. IT administrators who control system access.

Each position holds power not through official delegation but through control of something others need.

Formal authority can be revoked by changing an org chart. Structural power persists until the underlying dependencies change.

Information Asymmetry as Power Infrastructure

Information is not equally distributed. Some people know things others do not. This asymmetry creates power.

The person who knows actual project status has power over the person who only sees summary reports. The person who understands customer complaints has power over the person who only sees satisfaction scores. The person who knows which executives are aligned has power over the person who assumes consensus.

This power operates independently of rank. A junior employee close to operational reality often knows more than a senior executive relying on filtered reporting. If decisions depend on that knowledge, power flows to the person who has it.

Organizations try to solve this with dashboards, reporting systems, and communication protocols. These tools do not eliminate information asymmetry. They formalize it.

Dashboards show what someone decided to measure. Reports contain what someone chose to include. Metrics reflect what someone defined as important. The person controlling these choices controls what the organization sees as true.

This is not deception. It is curation. But curation is power. The ability to shape what information reaches decision-makers is often more consequential than the ability to make decisions.

Resource Control as Operational Power

Organizations run on resources: budget, headcount, infrastructure, vendor relationships, physical space.

The person who controls allocation controls outcomes.

Budget authority is obvious. Less obvious is control over budget timing, reallocation processes, and discretionary reserves. A finance manager who can shift budget between quarters without formal approval has more power than their title suggests.

Headcount is not just hiring authority. It is control over who gets backfilled, which roles get prioritized, and how positions are classified. An HR partner who influences these decisions shapes team capabilities more than most managers.

Infrastructure includes systems, tools, licenses, and access. The team that controls deployment pipelines controls release velocity. The team that manages authentication systems controls who can access what. The team that owns data infrastructure controls what analyses are possible.

These are rarely high-status positions. They are high-power positions. The difference matters.

Organizations that map power to status systematically misunderstand where leverage actually exists. They negotiate with executives while infrastructure teams quietly constrain what is possible.

Structural Gatekeeping and Workflow Chokepoints

Work flows through processes. Processes have chokepoints. Whoever sits at a chokepoint accumulates power.

A legal review process makes the legal team a gatekeeper. They do not decide strategy, but they can block execution. Block authority is power.

A security review process gives the security team veto power over architecture decisions. They may have no official say in product direction, but they can prevent any direction that fails security review.

A compliance approval process gives compliance officers control over timelines. Delay is a form of control. Control is power.

These chokepoints exist by design. Organizations create them to manage risk. But risk management creates power structures that operate independently of official hierarchy.

The person who can delay indefinitely has more power than the person who can only say yes. Approval can be overridden. Blockage requires escalation, negotiation, or exception processes that are costly and slow.

Rational actors learn to preemptively satisfy gatekeepers. Product teams design for compliance from the start. Engineering teams build with security review in mind. Strategy adjusts to what legal will accept.

The gatekeeper never needs to say no. Their power operates through anticipated reaction. Organizations self-censor before the gate is ever tested.

Network Position and Coalition Power

Power accumulates at network hubs. The person who connects disconnected groups has more influence than people with more formal authority but fewer connections.

A program manager who coordinates between engineering, product, sales, and support sits at the intersection of information flows. They see patterns no single team observes. They can shape narratives, broker compromises, and control what information reaches which audience.

This is not the same as being well-liked or socially connected. It is structural position in the coordination network.

Organizations try to formalize coordination through cross-functional teams, working groups, and liaison roles. These structures acknowledge the power of network position but rarely capture it effectively.

Informal networks persist. The person everyone asks for context. The person who knows which exec will support which initiative. The person who can predict how decisions will actually be made.

These individuals hold what sociologists call “structural holes” they bridge gaps in the network. Bridging gives them control over information flow, timing, and framing.

Coalition power works similarly. The ability to assemble agreement across teams is more valuable than individual authority. A mid-level manager who can align three departments can override a director who lacks cross-functional support.

Organizations nominally reward individual authority. They actually run on coalition-building capacity. The mismatch creates confusion about why certain people have disproportionate influence.

The Power of Irreplaceability

The harder someone is to replace, the more power they hold. This has nothing to do with competence and everything to do with dependency.

A mediocre engineer maintaining legacy systems no one else understands has more power than an excellent engineer working in well-documented areas. The organization depends on the first. The second can be substituted.

A junior analyst with exclusive vendor relationships has more power than a senior analyst with generic skills. The vendor relationship is a dependency. Generic skills are commodities.

Irreplaceability creates power through implicit threat. The organization cannot afford the disruption of losing the irreplaceable person. That person can extract concessions formal authority would never grant: flexible hours, veto power over changes, immunity from standard processes.

This is not extortion. It is leverage. The organization created the dependency by allowing knowledge silos, vendor lock-in, and single points of failure. The person who occupies that position gains power whether they seek it or not.

Smart organizations work to eliminate irreplaceability through documentation, cross-training, and redundancy. This reduces operational risk. It also redistributes power.

The resistance to documentation and knowledge sharing is often not laziness. It is rational protection of power. Why would someone voluntarily eliminate the source of their leverage?

How Proximity to Authority Creates Derivative Power

Physical and organizational proximity to powerful people generates derivative power.

Executive assistants control access to executives. That access is valuable. People cultivate relationships with assistants not because assistants make decisions but because they control who gets to make their case to decision-makers.

Chiefs of staff do not have line authority. They have the executive’s attention, context, and trust. In practice, this often exceeds the power of vice presidents who have formal authority but limited executive access.

The person who briefs the CEO before meetings shapes how the CEO understands issues. The person who debriefs the CEO afterward learns what was actually decided versus what was publicly communicated.

Proximity is structural, not personal. It comes from role position, not relationship quality. A new assistant to a powerful executive immediately gains derivative power. A tenured manager distant from executive attention has less.

Organizations underestimate derivative power because it is not visible in formal hierarchy. Influence does not flow down through reporting lines as assumed. It radiates outward from power centers to anyone with access.

This creates odd status inversions. A scheduler controls more executive time than a senior director. An analyst who presents directly to leadership has more influence than their manager who does not.

The formal hierarchy says the director and manager have more authority. The operational reality disagrees.

Performance of Powerlessness as Power Preservation

Some people perform powerlessness to avoid accountability while maintaining actual influence.

A manager claims they cannot change a policy while quietly choosing how to enforce it. Enforcement discretion is power. By claiming powerlessness, they avoid blame for the policy while exercising control over its application.

A team insists they are blocked by dependencies while selectively prioritizing which blockers to escalate. Prioritization is power. Performing blocked status deflects responsibility while preserving choice.

A executive defers to “the board” or “legal” or “compliance” while shaping what information those groups receive. Framing is power. Claiming constraint maintains deniability.

This is not dishonesty. It is a rational response to organizational environments that punish visible power exercise. If using power explicitly attracts opposition, backlash, or accountability, then disguising power as powerlessness becomes adaptive.

The pattern is recognizable: people claim they cannot do what they do not want to do while finding ways to do what they prefer. The claimed constraints are real. The selectivity of when constraints bind is where power operates.

Organizations that create high-accountability, low-trust environments incentivize this behavior. Power becomes covert because overt power is punished.

When Official Authority Tries to Override Structural Power

Executives occasionally try to override structural power through formal authority. They reorganize to eliminate gatekeepers. They mandate access to information. They bypass network hubs.

This works temporarily. It fails structurally.

Reorganization can remove specific individuals from power positions. It rarely eliminates the positions themselves. The chokepoints persist because the underlying workflow remains. New people occupy the structural positions. Power reconstitutes.

Mandating information access does not eliminate information asymmetry. It creates compliance theater. Reports get filed. Dashboards get populated. The information that actually matters continues to flow through informal channels to people who know how to interpret it.

Bypassing network hubs works until the executive needs coordination they cannot personally orchestrate. Then they rediscover why the hubs existed. The work of bridging disconnected groups does not disappear because someone draws a new org chart.

Formal authority can suppress structural power. It cannot eliminate it without changing the underlying structure. Most organizations change labels, reporting lines, and titles. They do not change dependencies, workflows, or information architecture.

The structure reasserts itself. Power flows back to its natural accumulation points.

The Misconception of Meritocracy in Power Distribution

Organizations claim power should flow to the most competent. They implement performance systems, promotion criteria, and leadership development programs designed to identify and elevate talent.

Power does not follow competence. It follows structure.

The most skilled engineer does not automatically gain power. The engineer who controls critical infrastructure gains power. These are different people.

The best strategist does not automatically influence decisions. The strategist with executive access influences decisions. These are different people.

Competence matters for performance. Structure matters for power. Organizations that confuse the two systematically promote people based on competence into roles where power depends on structure.

The result is capable people in positions where they lack the structural power to execute. They have authority but not leverage. They can make decisions that others can ignore or subvert through informal channels.

This is not failure of competence. It is misunderstanding of power topology. The organization promoted someone based on what they could do and placed them in a position where power depends on what they control.

Where Psychology Meets Structure

Power dynamics operate through structure. But structure is inhabited by people who bring status needs, fear responses, and scarcity mentalities.

The structural analysis explains where power accumulates. The psychological analysis explains how people use it, defend it, and respond to its presence.

An information gatekeeper has structural power through knowledge asymmetry. Whether they hoard information or share it depends on their psychological response to status threat and resource scarcity.

A network hub has structural power through coordination position. Whether they use it to build alignment or extract concessions depends on how they perceive organizational trust and reciprocity.

Structure creates the possibility space for power. Psychology determines how that space gets used. Both matter. Neither is sufficient alone.

What Organizations Mistake for Power

Organizations commonly mistake several things for power:

Visibility is not power. High-profile people may have influence, but visibility without structural position is celebrity, not power.

Status is not power. Prestigious roles and impressive titles matter for social standing. They do not automatically grant control over resources, information, or workflows.

Seniority is not power. Long tenure provides context and relationships. It does not automatically translate to structural leverage.

Popularity is not power. Being well-liked facilitates cooperation but does not create dependency.

These things can accompany power. They can make power easier to exercise. But they are not power themselves.

Power is the capacity to make things happen or prevent things from happening despite opposition or absence of cooperation. It depends on controlling something others need.

Everything else is correlation or enablement.

The Stability of Informal Power Structures

Organizations redesign reporting structures regularly. They reorganize departments. They redefine roles. They redraw lines of authority.

Informal power structures remain remarkably stable.

The person who controlled information still controls information after the reorganization. Their job title changed. Their access to source systems did not.

The person who sat at the workflow chokepoint still sits at the chokepoint. The process got renamed. The bottleneck persists.

The person with executive proximity still has proximity. The executive might report to a different person. The assistant still controls the calendar.

Formal reorganization changes documentation. It rarely changes structure enough to redistribute power. Unless the reorganization deliberately alters dependencies, workflows, and information architecture, power stays where it was.

This frustrates leaders who assume org charts determine power distribution. They move people around and expect influence to follow. It does not.

The organization adapts. Informal coordination routes reassert themselves. Information flows find new channels that look different but function identically. Power returns to its equilibrium distribution.

Changing power distribution requires changing structure. Changing structure requires understanding where dependencies actually exist.

How Power Becomes Invisible Through Normalization

The most effective power does not look like power. It looks like the way things are done.

Standard processes embed power relationships. The person who defined the standard controls how work happens. This control becomes invisible because it is normalized.

Default settings encode power. The person who set the defaults shaped outcomes for everyone downstream. No one questions defaults. They just use them.

Approved vendor lists, qualified supplier databases, and preferred partner programs formalize past decisions into ongoing constraints. The person who made those decisions exercised power once. The structure perpetuates it indefinitely.

When power becomes infrastructure, it disappears from view. It operates automatically. It does not require ongoing exercise.

This is why insurgent challenges to power are so difficult. The power is not held by a person who can be opposed. It is encoded in systems that seem neutral, necessary, and inevitable.

Challenging a gatekeeper is possible. Challenging the existence of the gate requires changing the process. Process change requires authority most challengers lack or coalition-building most find too costly.

Power that has successfully normalized itself into infrastructure becomes nearly immune to challenge.

What This Means for Operating in Organizations

Understanding power dynamics does not make them disappear. It changes what strategies make sense.

If formal authority and actual power diverge, cultivating formal authority without securing structural power creates appearance without capacity. Better to understand where leverage actually exists.

If information asymmetry creates power, controlling how information flows matters more than being the most knowledgeable person in the room.

If chokepoint positions accumulate power, being essential to critical workflows matters more than being senior in the hierarchy.

If network position creates influence, bridging disconnected groups creates more leverage than deep expertise in one area.

If irreplaceability generates power, being the only person who can do something creates more security than being the best person who does it.

None of this is advice to pursue power for its own sake. It is recognition that organizations operate through power dynamics whether anyone acknowledges them or not.

The question is not whether to engage with power dynamics. The question is whether to do so with accurate understanding or comforting fictions about meritocracy and formal hierarchy.

Organizations are structures. Structures distribute power through dependencies, information flows, and resource control. The distribution rarely matches the org chart.

Operating effectively requires seeing the structure as it exists, not as documentation claims it should be.