One of the Most Misunderstood Governance Questions
Ask ten people in an organisation who really holds power, and you’ll likely get ten different answers.
Some will point to the board.
Others to executives.
Some to regulators.
Many will quietly say: “The people behind the scenes.”
This confusion isn’t accidental — it’s one of the most persistent governance blind spots. And when power is misunderstood, accountability breaks down.
🔍 Why Power Is So Often Misunderstood
In governance discussions, power is frequently used as a catch-all term. In reality, it’s made up of three very different concepts that are often conflated:
- Authority – the formal right to decide
- Responsibility – the obligation to act or deliver
- Influence – the ability to shape outcomes, formally or informally
Problems arise when these are assumed to overlap — but they don’t always do so.
🧠 Authority, Responsibility, and Influence — Explained Simply
🏛️ Authority: The Formal Right to Decide
Authority is documented. It lives in charters, mandates, bylaws, and contracts.
Boards approve strategy.
Executives execute.
Committees advise.
On paper, authority is usually clear.
📋 Responsibility: Who Must Deliver
Responsibility answers a different question: who is accountable for outcomes?
A person may be responsible without having final authority — and vice versa. When responsibility isn’t clearly assigned, tasks fall into grey zones where no one truly owns the result.
🌐 Influence: The Hidden Force
Influence is the least visible — and often the most powerful.
It comes from:
- Expertise
- Control over information
- Seniority or reputation
- Proximity to decision-makers
- Cultural or historical weight
Influence is rarely documented, yet it frequently determines what actually happens.
⚠️ Where Accountability Gaps Come From
Governance failures often occur when:
- Authority is clear, but responsibility is vague
- Responsibility exists, but influence overrides it
- Decisions are made informally without ownership
In these cases, power exists — but accountability doesn’t.
Institutions like the OECD have long highlighted that unclear accountability frameworks are a root cause of governance breakdowns across both public and private sectors.
🌍 Real-World Examples Across Sectors
🏢 Corporate Boards
Boards may hold authority, but dominant executives or founders often hold influence. When roles blur, oversight weakens.
🤝 Partnerships
Contracts define authority, but informal power dynamics decide direction — especially when one party controls key resources.
🏛️ Public Institutions
Elected officials hold authority, but advisors, agencies, or lobby groups may exert greater influence over outcomes.
🌐 Digital Platforms & Projects
Formal governance structures exist, yet technical experts or platform owners often shape decisions far beyond their documented roles.
These dynamics aren’t inherently wrong — but when they’re invisible, conflict becomes inevitable.
🧩 Governancepedia’s Plain-Language Perspective
This is where Governancepedia plays a critical role.
Governancepedia exists to:
- Explain authority, responsibility, and influence in plain language
- Help non-experts understand governance mechanics
- Remove intimidation from governance concepts
- Clarify who is responsible for what — and why it matters
Rather than adding complexity, Governancepedia focuses on literacy — helping readers see governance as a practical system, not a legal maze.
💡 Why Understanding Power Matters
When power is misunderstood:
- Decisions go unchallenged
- Accountability disappears
- Conflicts escalate personally
- Trust erodes quietly
But when power is clearly understood and documented:
- Oversight improves
- Roles become defensible
- Conversations stay constructive
- Responsibility becomes visible
Bodies such as the Institute of Directors consistently stress that clarity of roles is one of the strongest foundations of effective governance.
🔮 Power Isn’t the Problem — Confusion Is
Governance doesn’t fail because power exists.
It fails because power isn’t understood, documented, or discussed openly.
Authority, responsibility, and influence will never be perfectly aligned — and that’s normal.
What matters is that people know:
- Where decisions sit
- Who is accountable
- How influence operates
That understanding is exactly what Governancepedia provides — helping readers navigate governance with clarity instead of confusion, and responsibility instead of assumption.