When Influence Falls Short: The Case for Positional Power in Restructuring

Crossing the bridge, sometimes it takes more than a push

Introduction

Restructuring a company is never easy. It’s a process filled with difficult decisions, tough conversations, and often, the need for radical change. When approaching the people in the company, the usual blame is solely to “former management”. The stories one encouters when joins the company in need of change, may sound too much like: “we were doing everything good, but the management did not listen to us and made all the mistakes that brought us to this point”. Depending on one’s leadership style, it may be tempting to “avoid confrontation” and in many cases, it’s tempting to rely on personal power — influence, charm, and persuasion — to navigate through these challenges.

After all, people often say that great leadership is about soft skills and empathy.

But what if we all are in agreement that all the errors of the past were fault of the people who are not with the company anymore, but problems still remain?

Perhaps the issue was not only “the people that left”?

Often, when it comes to restructuring, especially in situations where legacy or incumbent individuals contributed to the company’s problems, positional power becomes indispensable. The authority that comes with a title or role can be the decisive factor in ensuring that necessary changes are made and followed through. Sometimes one does not have time to “play” the persuasion game. So what is one to do if that is the case?

Sometimes the chasm is too big for the personal power

The Limitations of Personal Power in Restructuring

Personal power is derived from relationships, trust, and influence. It’s what many leaders rely on to inspire and persuade teams to follow their vision. And while personal power is important, it has its limits — especially in a restructuring scenario. Here’s why:

• Legacy Employees Are Often Resistant to Change: Individuals who have been part of the company for years, especially those who may have contributed to its problems, often resist efforts to change. They are entrenched in the old ways of doing things and may see any attempts to restructure as a threat to their position or authority. The cognitive dissonance may be too prevailing that no “soft” persuasion can work.
• Personal Power Relies on Willingness to Be Persuaded: For personal power to work, the individuals you’re trying to influence need to be open to persuasion. They must not have “hidden agenda”. In a restructuring scenario, people who are used to the status quo may simply refuse to be swayed by charm or reasoned arguments. They are invested in the old system and may resist for personal or political reasons.
• Reinforcing the Status Quo: Legacy employees often have a vested interest in maintaining the existing structure. After all, it’s the system they helped build. Persuasion may not be enough to overcome their attachment to the old ways, especially if they feel implicated in the need for restructuring.

The roads of restructuring are rocky and full of obstacles

The Role of Positional Power in Restructuring

In contrast, positional power is the authority you hold because of your role or title. It’s the power to make decisions, enforce policies, and demand accountability. Here’s why positional power is crucial during restructuring:

• Authority to Implement Change: When legacy employees resist, positional power allows you to implement changes regardless of their willingness to cooperate. It gives you the ability to push through resistance and ensure that the restructuring process moves forward.
• Clear Accountability: Positional power sets clear expectations. It leaves no room for ambiguity about who is in charge and what must happen. During restructuring, this clarity is crucial, especially when quick and decisive action is needed to stabilize the company.
• Breaking Down Resistance: In some cases, positional power may be necessary to break through entrenched resistance. This doesn’t mean being authoritarian or disrespectful, but it does mean asserting the authority of your role to ensure that necessary changes are made.
• Navigating Tough Decisions: Restructuring often involves difficult choices — layoffs, budget cuts, shifts in strategy. These decisions aren’t always popular, and personal power alone may not be enough to get people on board. Again, because of the implications and involvement of the incumbent teams in the wrongdoings of the past. Positional power gives you the leverage to make tough calls and follow through

Real-World Examples of Positional Power in Action

Example 1: Too Connected with Service Providers

In a restructuring effort, legacy employees may have strong, longstanding relationships with certain service providers that have become deeply intertwined with the company’s operations. For instance, an IT department might have been using the same software provider for years, building a comfortable relationship with the provider’s team. This provider, however, may not be the best fit for the new direction of the company. The provider’s outdated technology, resistance to adapting to the company’s evolving needs, or refusal to lower costs could be hampering progress.

Despite the clear need for change, IT staff might resist switching providers due to personal connections, fear of the unknown, or the discomfort of transitioning to a new system. Here, relying on personal power — trying to persuade them that change is necessary — might not be enough. Their loyalty to the provider, and their personal stake in maintaining the status quo, outweighs the benefits of the restructuring plan.

In this scenario, positional power is required to make the tough decision to change providers. The leader must enforce the decision with clear, top-down authority, removing the provider even if it creates temporary discomfort. By asserting positional power, the leader ensures the company aligns with its broader goals, even if it means disrupting personal relationships with external partners.

Example 2: Unwillingness to Learn

Another common example involves employees who are unwilling to update their skills. Legacy employees may be comfortable with the existing systems and processes and feel that their experience and seniority exempt them from learning new technologies or methodologies.

In restructuring, such resistance can be a significant obstacle. While leadership can attempt to use personal power to encourage these employees to adopt a learning mindset — perhaps by offering training, incentives, or supportive words — it may not be enough to overcome their reluctance. These employees might argue that the old systems “work just fine” or fear the change will expose gaps in their skills.

At this point, positional power becomes necessary. The leader needs to set a clear expectation that continuous learning is non-negotiable for the success of the restructuring. In some cases, positional power must be used to make it clear that if employees are not willing to adapt, they may no longer have a place in the restructured organization. This is about establishing firm expectations and holding individuals accountable to the new standards, even if it requires making unpopular decisions.

Well balanced structures remain for centuries

The Balance Between Positional and Personal Power

While positional power is essential in restructuring, it doesn’t mean abandoning personal power altogether. In fact, the most effective leaders know how to balance both:

• Communicate the “Why”: Use personal power to explain the reasons behind the changes and to build trust among those who are more open to listening.
• Be Decisive When Necessary: Lean on positional power when resistance threatens the success of the restructuring. Sometimes, tough decisions can’t wait for consensus.
• Create Space for Feedback, But Hold Firm: Encourage input and feedback from your team, but make it clear that ultimately, some decisions are non-negotiable for the health of the company.

After all once the restructuring is finished and you have to start the innovation phase, you have to move to personal power.

Conclusion

Restructuring is one of the most challenging processes a leader can face. While personal power has its place, in times of radical change, positional power becomes a crucial tool for driving real transformation. Legacy employees and those who contributed to the company’s problems are unlikely to be persuaded by charm or influence alone. In these cases, the authority that comes with your role is what ensures that the necessary changes are implemented and followed through. Sometimes you cannot “make friends” with teammates that are not willing to change, and even you can create enemies.

In the end, successful restructuring is about knowing when to wield personal power and when to assert positional power to achieve the desired outcome. The balance between the two is what separates effective leaders from the rest.