You are driving down a highway in the middle of nowhere. It is the middle of the night, and no other vehicle is on the road. In fact, you haven’t seen another car for miles. Since there is no traffic and no other activity on this deserted road, you are making good time. As you crest a hill and begin your descent, you see a traffic light turn red. Despite there be no other cars on the road, you stop, wait 2 minutes until the light turns green, and you continue your journey.
What if instead of a traffic light stopping you, you come upon a policeman directing traffic – although there is no traffic on the road besides you. Regardless, he holds up his hand and points his palm toward you. You stop. He continues holding his hand in the air for 120 seconds, and then he drops his hand and waves you on.
Each scenario above results in the same outcome….you stop for two minutes and you continue on your journey. However, how would you feel during each? Which would you accept and which would make you mad?
The traffic light represents INSTITUTIONAL POWER. It is an inanimate object and one in which we are accustom. The policeman represents PERSONAL POWER. He had the authority and the power to wave you through, nonetheless, he used his power to stop you and keep you waiting.
Personal power creates a “you vs. me” scenario. There is usually one winner and one loser. Institutional power removes this “you vs. me” situation and puts the authority into an inanimate object (e.g. corporate policies).
Organizational leaders should institutionalize as much power as possible to remove the conflict and resentment associated with personal power.