When power shifts in the organization: Understanding the impact and navigating the change
By Dr Philimon Chitagu (PhD)
Power dynamics are an inherent part of any organization.
They define who makes decisions, who influences others, and who sets the strategic direction.
However, power is not fixed—it shifts over time due to changes in leadership, restructuring, market forces, innovation, or internal politics. When these shifts occur, the impact can be profound, affecting employee morale, organizational culture, strategic priorities, and even the long-term success of the business.
This article explores the causes of power shifts in organizations, the signs that a shift is occurring, the effects on different stakeholders, and how to adapt and thrive during times of change.
Why Power Shifts Happen
Power can shift in an organization for a variety of reasons:
.Leadership Changes
When a new CEO, executive, or department head is appointed, their vision and management style often lead to changes in influence and authority within teams and across departments.
Restructuring and Mergers
Organizational restructuring, mergers, or acquisitions often consolidate or redistribute power, leaving some individuals or departments with increased influence while others lose their prominence.
Crisis or Failure
Financial downturns, project failures, or reputational crises can weaken the power of existing leadership, creating space for new voices or approaches to emerge.
Cultural or Generational Shifts
As organizations become more diverse and inclusive, traditional power structures may give way to more collaborative and decentralized models.
Technological Disruption
The rise of data, automation, and digital transformation can shift power toward those who understand and control these technologies.
Signs That Power Is Shifting
Organizations rarely announce power shifts explicitly, but keen observers can notice changes such as:
•Decision-making processes becoming centralized or decentralized
•Shifts in which departments or leaders are most listened to or consulted
•Changes in budget allocation or project prioritization
•New alliances forming within the leadership team
•Increased visibility or recognition for previously underrepresented groups.
The Impact of Power Shifts
On Employees
Uncertainty about roles and expectations can lead to anxiety or disengagement. Employees may feel they need to realign their loyalties or redefine their value within the organization.
On Culture
Culture can shift subtly or dramatically, especially if new power holders bring different values or communication styles. For example, a move from a hierarchical to a flat structure may foster more openness, but also create ambiguity.
On Strategy and Priorities
Power shifts often bring new strategic priorities, which can result in the redirection of resources, restructuring of teams, or termination of longstanding projects.
4.On Innovation and Growth
When managed well, power shifts can inject fresh energy and perspectives, fostering innovation. When mishandled, they can lead to turf wars, stagnation, or attrition of key talent.
How to Navigate a Power Shift
For Leaders:
•Communicate Clearly and Frequently: Address the changes transparently. Uncertainty breeds rumors and resistance.
•Honor the Past While Embracing the Future: Acknowledge the contributions of those who are losing influence while articulating the reasons behind the shift.
•Realign Roles Thoughtfully: Ensure that new power structures reflect the organization’s goals, not just personal politics.
For Employees:
•Stay Observant and Adaptive: Pay attention to who is gaining influence and how expectations are evolving. Be flexible and open to new ways of working.
•Build Relationships Across the Organization: Broaden your network to remain relevant, regardless of where power currently resides.
•Focus on Value Creation: Demonstrate your value in terms that align with the new priorities and power centers.
Conclusion
Power shifts in organizations are inevitable. While they can be unsettling, they also offer opportunities for growth, innovation, and reinvention. Whether you’re in a leadership role or part of a larger team, understanding the dynamics at play and responding with agility can help you not just survive, but thrive in times of change.
Dr Philimon Chitagu is an Executive and Team Coach (MGSCC-USA), Global Leadership Assessment (GLA-MGSCC-USA), Gallup Certified Strengths Coach (Uk), Chartered HR Practitioner (IPMZ), author of 12 HR and Leadship Books, Keynote Speaker and PhD with Doctoral thesis “Transformative Leadership through bonding culture”.
