Framework

The Leadership Currency Audit

TL;DR

A 90-minute diagnostic sprint to map actual vs.

A 90-minute diagnostic sprint to map actual vs. formal power sources in your organization. Identifies whether your leadership model is despotic (>70% formal authority), healthy (40-60% mix), or experiencing authority vacuum (<30% formal). Helps detect hidden power dynamics before they become problematic.

When to Use The Leadership Currency Audit

Series A+ companies (15-200 people), quarterly or after major org changes. Use when politics emerge, informal power diverges from org chart, or key decisions happen in opaque ways. Skip if pre-seed (<15 people), enterprise (200+ needs consultants), or crisis mode.

How to Apply

1

Decision Inventory

List 8-10 major decisions from last 60 days across product, people, strategy, operations categories

Questions to Ask

  • Who first raised this as a decision?
  • Whose opinion changed your mind or broke a tie?
  • Who was in the room when the real decision happened?

Outputs

  • Decision table with date, official decision-maker, outcome
2

Influence Mapping

For each decision, identify who actually influenced it using power source codes

Questions to Ask

  • Who provided critical information/analysis?
  • Whose objection could have blocked it?

Outputs

  • Influence map with power sources: [F]ormal, [E]xpertise, [R]elationships, [I]nformation, [P]olitical, [H]istorical
3

Currency Analysis

Tally power sources across all decisions and diagnose patterns

Questions to Ask

  • Is formal authority >70% (despotic risk)?
  • Is formal authority <30% (vacuum)?
  • Is political >40% (coalition warfare)?

Outputs

  • Power source percentages
  • Concentration analysis
  • Diagnostic interpretation
4

Action Planning

Based on analysis, identify 2-3 specific actions to rebalance power currencies

Outputs

  • Delegation decisions
  • Working group formations
  • RACI clarifications
  • Next review date

The Leadership Currency Audit Appears in 1 Chapters

Framework introduced in this chapter

Related Mechanisms for The Leadership Currency Audit

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