The word Power is derived from the Latin word posse, which means to be able. Power is neither good nor bad, but it may be used for good or bad purposes. Power shapes organizational behavior and its outcomes and is a key element in successful leadership. Power comes in many forms, but it is most effective through the more subtle activities of showing disapproval or displeasure through behavior.

Power in an organization does not reside only with those having title or position on the organization's line-staff chart. Informal leaders practice leadership by consent, the voluntary compliance of others to the informal leader's will or inclinations. Leaders do have power invested in them through their formal positions and can apply this "raw power" when all other leadership attributes fail to achieve results.

Instead of relying on positional power to command and control, effective leaders rely on leader-follower covenants, which are rooted in mutual trust and respect, shared values and beliefs, and common goals. Ideas and ideals are also sources of power. They attract a following, they serve to inspire achievement, and they identify needs. Power used to influence and persuade has been presented as four sources of leader power.