As organizations grow, their inner structure does not remain static. Formal charts show one hierarchy, but informal shifts can move influence elsewhere. We have seen this happening in startups turning into larger businesses, family companies opening up, and even established enterprises adapting to new markets. Recognizing, understanding, and managing these changes is essential for resilient leadership and a healthy culture. In our experience, six steps help uncover and respond to power shifts before they become stumbling blocks.
Recognizing the subtle signs of shifting power
When companies expand, the fabric of decision-making often changes before anyone realizes. Sometimes, it starts quietly. A team stops consulting one long-time manager and seeks guidance from someone else. Meetings change tone. New cliques form.
The symptoms can be subtle at first, like a well-worn path suddenly being overgrown while a new shortcut appears beside it.
Instead of waiting for big conflicts or surprises, we suggest paying attention to patterns such as:
- Information flowing through different channels or people compared to the past
- Key talent gathering informally outside planned meetings
- Decisions being influenced elsewhere, not just at the top
- Increased off-the-record discussions among certain groups
- Shifts in who leads conversations, even without formal authority
These early indicators are easy to overlook amid the excitement and pressure of growth. Yet, spotting them early can save a company from deeper conflict later on.
Step 1: Map the visible and invisible networks
The first step is to map out both the formal and informal networks within the company. The org chart shows reporting lines, but the real story lies in the connections built by trust, respect, or even fear.
We often encourage leadership teams to ask:
- Who do people turn to for advice, besides their manager?
- Where do ideas actually get momentum?
- Which teams or individuals seem quietly influential?
Invisible networks can carry more power than official titles.
This mapping helps spotlight the people and groups shaping day-to-day choices, sometimes under the radar. It can be eye-opening to see the degree to which influence travels in different directions as a company grows.
Step 2: Observe decision-making changes
As companies scale, the way decisions are made evolves. In the early days, everyone has a say. Later, bottlenecks appear or new “gatekeepers” emerge. We suggest observing:
- Is decision-making becoming slower, more fragmented, or shifting to new hands?
- Who is included (or excluded) from critical discussions?
- Are previously unchallenged leaders being bypassed?
Sometimes one team or function becomes dominant simply because of a current project or market needs. This does not always mean a formal change, but it impacts how people act and how resources are allocated. Tracking these shifts helps leaders stay connected to reality, not just to plans.
Step 3: Identify the triggers causing the shifts
Power does not shift in a vacuum. There are usually catalysts—new hires, major projects, funding rounds, strategic pivots, or technological changes. Sometimes, outside consultants or investors influence internal structure. Other times, a crisis exposes gaps in leadership or communication, giving new groups a reason to step up.
By reflecting on what recently changed (or is about to change), we can anticipate where influence may land. It's not just about what is happening externally, but also about the internal values, fears, and aspirations driving these changes.
If you know the triggers, you can prepare the ground.
Step 4: Listen to informal stories and emotions
The stories people tell each other in private reveal much more than official updates. Employees’ feelings and narratives offer a powerful tool for understanding how change is being received. If people feel threatened, excluded, or confused, those feelings will eventually surface as conflict or disengagement.
We have learned to listen not just for the facts but for the underlying emotions in informal stories:
- Excitement about certain projects or teams
- Frustration or confusion about new processes
- Admiration for new leaders, or nostalgia for old ways
This qualitative information helps clarify if power shifts are generating trust or breeding resistance.
Step 5: Clarify new roles and responsibilities
Unclear roles fuel anxiety and turf wars. When companies grow, job descriptions written for a smaller team no longer fit. Clarifying roles, both formally and informally, is a proactive move we have seen pay off.
Clear responsibility lines do not hinder progress; they let people focus and collaborate.
- Review formal job descriptions and actual daily tasks
- Make space for unofficial “connectors” who may not hold traditional authority
- Involve those affected in updating responsibilities to build shared buy-in
A little clarity now can prevent bigger misunderstandings as teams and leadership adapt.
Step 6: Foster open and respectful dialogue
The final step is building space for safe conversation. Growth brings both opportunity and tension.
Dialogue is what transforms power struggles into shared progress.
We encourage organizations to:
- Hold forums or town halls where all voices are welcomed
- Invite people to share concerns about future changes
- Support leaders in modeling vulnerability – admitting what they do not know or control
- Recognize and celebrate new leaders as they emerge, not just when they are officially promoted
This is not a one-time process. As companies evolve, so must their conversations. By keeping channels open and respectful, we see trust and resilience rise even during uncertain transitions.
Conclusion
Power shifts are natural in growing companies. They are signs of adaptation and can be opportunities when handled with awareness and care. By mapping networks, tracking decision changes, understanding triggers, listening to stories, clarifying roles, and fostering open dialogue, organizations can grow stronger through change. Every power shift contains lessons for healthier culture and sustainable results. When we act before crisis strikes, we build companies grounded in trust and shared purpose, not just titles and numbers.
Frequently asked questions
What is a power shift in companies?
A power shift in a company means that influence, decision-making, and authority are changing from one person, team, or group to another—sometimes officially, sometimes informally. These changes affect who sets priorities, allocates resources, and shapes company culture.
How to identify power shifts early?
Early signs often include changes in who key team members seek advice from, shifts in whose opinions carry weight in meetings, or informal groups forming around certain employees. Watching how people communicate, who drives decisions, and listening to workplace stories can help spot shifts before they become disruptive.
Why do power shifts happen in startups?
Startups often begin with flat structures and shared leadership, but growth demands new skills, expertise, and leadership approaches. As new hires join, market pressures grow, or investors get involved, different people or teams gain greater influence, resulting in power shifts.
What are the six key steps?
The six key steps are: 1) Map both formal and informal networks, 2) Observe changes in decision-making, 3) Identify triggers for shifts, 4) Listen to informal stories and emotions, 5) Clarify new roles and responsibilities, and 6) Foster open, respectful dialogue.
How can leaders manage power changes?
Leaders can manage power changes by staying aware of informal networks, encouraging open communication, updating roles as needed, and supporting those affected by new dynamics. Proactive leadership and emotional maturity help transform shifts into opportunities for growth rather than sources of conflict.
