Our societies have grown from a collection of tribes, added institutions, and later developed markets. These aligned with revolutions in communications: from oral, to written, to print. The network era began with the advent of electric communications, though it is by no means completely established.
Each type of societal structure has required different types of leadership. Alexander the Great was probably one of the best tribal leaders. He led his armies from the front and created an enormous empire. After his death, some of his generals created long-lasting institutions not based on military tactics. Ptolemy’s library at Alexandria is one example. Later, institutions like the Catholic Church dominated more through soft institutional power, rather than wielding swords. Others did that for them when necessary. As a market society developed, new types of economic and financial power were exercised by the Fuggers and the Hanseatic League in Europe. Later, captains of industry in America, such as Andrew Carnegie, would dominate in their markets, often circumventing existing institutional power.
As we enter the network era we see companies like Apple dominating, often ignoring Wall Street pundits. With network effects, Google can control the online advertising market, making market competition almost irrelevant. Power shifts as a society’s organizing principles change. In almost all organizations today, positional power is alive and well. For some managers, this is all the power they have, and they are at the mercy of the organizational hierarchy. If they lose their position, they lose their power. More effective leaders influence people through their social leadership abilities. This is what most modern leadership training programs focus on developing. In the network era, effective leaders also have to build their reputational power through connected leadership.