Leaders, How Well Do You Understand The Psychology of Power?

As a leader who works with other leaders, I wanted to start off 2025 sharing some lessons learned throughout my career. This post is intended for organizational leaders interested in developing a genuine understanding of how their position in organizations may influence others. We are all familiar with the saying leadership is not a title but a set of behaviors. Im not a fan of titles but my/your/our neurological wiring betrays us. Positions of authority do matter and impact the way we work. So, let’s talk about power.

Power is a fundamental force shaping human behavior and organizational dynamics. It influences how we think, act, and interact with others. While power enables leaders to achieve goals and drive progress, it also carries risks, such as fostering undesirable behaviors (Sanford prison experiment. Milgram experiment). This article explores the psychology of power, its implications for leadership, and practical strategies for mitigating its negative effects.

The Foundation of Power in Leadership

Every organization—military, corporate, or nonprofit—relies on hierarchies. These structures, formed naturally, help facilitate task completion, improve coordination, and enhance decision-making. Research has shown that hierarchies contribute to organizational effectiveness by ensuring clear roles and responsibilities. However, power within these hierarchies can significantly influence behavior, sometimes for better and sometimes for worse.

The Dual Systems of Behavior

One theory of human behavior posits that behavior operates under two systems: the behavioral inhibition system (BIS) and the behavioral activation system (BAS). The BIS acts as a mental brake, urging caution, deliberation, and restraint, while the BAS encourages action, goal pursuit, and risk-taking. When individuals feel powerful, the BIS weakens, and the BAS strengthens, leading to:

• Increased confidence and assertiveness.
• Greater impulsivity and reduced deliberation.
• A focus on achieving desires rather than considering consequences.

These changes explain why powerful individuals may exhibit both extraordinary accomplishments and troubling missteps. Power’s ability to shape behavior underscores the need for vigilance and awareness in leadership roles. Remember- we know that self-awareness is one of the two greatest predicter of leader effectiveness. Leaders must understand these dual systems to balance their actions effectively and promote ethical decision-making.

Moreover, power is not static. It ebbs and flows based on context, relationships, and outcomes. Recognizing this dynamic nature allows leaders to adjust their strategies and maintain their effectiveness across various situations. Understanding these foundations of power provides a framework for exploring its broader ethical implications.

Personal anecdote: Once, while visiting my spouse’s workplace in a suit, I casually asked an employee if they knew her whereabouts. Later, I learned the employee assumed I was there to fire her, simply because of how I appeared: wearing a suit (Im also a middle-aged white dude, confident well-spoken etc.). This small moment illustrates how perceived power can unintentionally intimidate others.

The Ethical Paradox of Power

Power’s influence on ethical behavior is particularly intriguing. Despite ethics programs and compliance measures, rule-breaking often occurs in highly regulated environments. Ethics/compliance programs within large organizations are intended to protect us from ourselves. For example, scandals at organizations like Volkswagen, Enron, and Wells Fargo highlight how individuals in positions of power can make unethical decisions despite extensive oversight mechanisms.

The “Ethics Professor” Dilemma

A humorous yet telling study asked whether ethicists—those who think deeply about morality—are more ethical than others. Researchers examined library records and found that ethics books were 50% to 150% more likely to go missing than general books. This paradox illustrates that simply knowing or thinking about ethical principles does not guarantee ethical behavior. Psychological forces, not just moral intentions, shape actions.

This finding raises critical questions about the effectiveness of ethical training programs. Are they enough to instill integrity, or do they merely provide theoretical knowledge without practical application? Organizations must move beyond surface-level ethics education and delve into the psychological underpinnings of behavior to address this gap.

The Slippery Slope

Another finding, known as the “slippery slope of unethical behavior,” reveals how small, seemingly insignificant acts of misconduct can escalate. Leaders rarely commit major ethical violations overnight. Instead, they take incremental steps, each justified as minor, until they find themselves deeply entrenched in wrongdoing. Recognizing and addressing these early behaviors is crucial to maintaining integrity.

For example, a leader who overlooks minor breaches of protocol might inadvertently signal that such behavior is acceptable. Over time, this creates a culture where larger infractions are normalized. Preventing this requires proactive measures, such as regular audits and a zero-tolerance approach to minor violations.

The Impact of Power on Leadership Effectiveness

Power is a double-edged sword in leadership. On the one hand, it enables decisive action, inspires confidence, and drives innovation. On the other hand, it can distort perception and judgment, leading to counterproductive behaviors. I’m remined of the quote “if you want to go fast, go alone, if you want to go far go together”. ?If you want to guard against powers propensity to adversely impact your leadership’s ability, consider the following key effects of power on leadership:

Overconfidence and Risk-Taking

Powerful leaders often exhibit overconfidence, believing their decisions are infallible. This mindset can lead to poor risk assessment and reckless behavior. For instance, studies show that powerful individuals are more likely to bet money on their predictions, even when evidence suggests caution.

Overconfidence also affects decision-making processes. Leaders may ignore alternative perspectives, dismiss data that contradicts their views, or make unilateral decisions without consulting their teams. This isolation can stifle creativity, innovation, and collaboration within organizations.

Resistance to Feedback

Feedback is vital for growth and self-awareness. However, power can create a sense of invulnerability, causing leaders to dismiss constructive criticism. This resistance limits opportunities for improvement and alienates team members. Leadership is lonely. That is one of the reasons I encourage leaders to get coaches and mentors.

Organizations can combat this by fostering a culture of open dialogue. Leaders should actively seek feedback, demonstrate humility, and create safe spaces for honest conversations. Encouraging 360-degree evaluations and anonymous feedback mechanisms can further enhance this culture. If you are doing it right, you will be surprised to the amount of effort required to be perceived as approachable and ascertain honest feedback.

Empathy and Social Awareness

Power can diminish empathy, making leaders less attuned to the emotions and needs of their teams. Experiments (Galinsky 2006), such as having study participants draw an “E” on one’s forehead oriented the letter based upon their perception of power. Subconsciously participants who felt empowered oriented the letter E in so it aped correct in their reflection, vs participant who felt disempowered oriented their letter so observers could see the letter correctly oriented form the observer perspective. This is one of several studies that demonstrate how power shifts attention inward, reducing consideration for others’ perspectives. This lack of social awareness can result in poor decision-making and strained relationships.

Empathy is a cornerstone of effective leadership. Volumes have been written on the subject. The TLDR is that empathy is a skill that needs to be developed through practice over time. I believe privilege can be a barrier to developing empathy and overcoming adversity a precursor. Leaders who prioritize understanding their team members’ experiences foster trust, loyalty, and engagement. Incorporating empathy training into leadership development programs can help mitigate power’s adverse effects on social awareness.

Strategies for Mitigating Power’s Negative Effects

To harness the benefits of power while avoiding its pitfalls, leaders must adopt intentional practices. Here are three key strategies:

1. Accountability

Accountability mechanisms ensure that leaders remain mindful of their actions. Transparency and oversight encourage ethical behavior and discourage misconduct. Simple practices, such as regular performance reviews and open communication channels, can make a significant difference.

Public accountability also plays a critical role. Leaders who openly share their goals, decisions, and progress with stakeholders demonstrate transparency and build trust. This approach not only keeps leaders grounded but also reinforces their commitment to ethical practices.

2. Feedback Cultures

Creating an environment where feedback is valued and encouraged helps leaders stay grounded. For example, fostering a culture where team members feel safe pointing out errors—even as trivial as spinach in someone’s teeth—builds trust and promotes continuous improvement.

Regular feedback loops can also enhance organizational resilience. By continuously evaluating and adjusting strategies based on team input, leaders ensure alignment with organizational goals and values. This iterative process fosters adaptability and long-term success.

3. Positive Reinforcement

Acknowledging and rewarding positive behavior reinforces desired actions. Expressions of gratitude and recognition—such as a “fist bump” or verbal praise—boost morale and motivate individuals to maintain high standards.

Recognition programs tailored to individual and team achievements can further amplify this effect. Celebrating milestones, both large and small, creates a sense of accomplishment and inspires continued excellence.

4. Continuous Learning

Effective leaders must commit to lifelong learning to navigate the complexities of power effectively. Said more plainly, “do the work”. It wasn’t until I recognized my inherent leadership skills were insufficient to make me a great leader that I began my leadership journey.? Its life long, scary, tiring, humbling and tremendously rewarding. Engaging in leadership training, attending workshops, and staying informed about emerging research in psychology and organizational behavior equips leaders with the tools to adapt and grow.

Reflection Questions for Leaders

Here are a few questions for you to consider to cultivate self-awareness and enhance your leadership effectiveness:

1. What undesirable behaviors have you observed in your organization, and how can they be addressed?
2. Who in your team might be particularly vulnerable to power’s effects, and how can you support them?
3. How can your organization’s culture promote accountability, feedback, and positive reinforcement?

By reflecting on these questions, leaders can begin to identify areas for improvement and implement strategies to foster a healthier organizational culture.

Conclusion

Power is an essential component of leadership, but it must be wielded thoughtfully. By understanding the psychological effects of power, leaders can mitigate its risks and maximize its benefits. Through accountability, feedback, and positive reinforcement, we can create environments where power empowers rather than corrupts, driving both individual and organizational success.

I founded Human Capital several years ago with the intention of helping organizational leaders and leadership teams build leadership capacity. We have no shortage of subpar leadership in 2025, and Human Capital can help. Not because we are great leaders, but because we are good leaders putting in the work in to be great, bringing in our clients with us.

By embracing empathy, humility, and a commitment to ethical practices, leaders can harness power as a force for good. As organizations and societies continue to evolve, understanding and addressing the psychology of power will remain critical to achieving sustainable success. I once heard someone say “privilege is invisible to those that have it”. The same could be said for the impact of power.