Great leaders have common characteristics; tend to have the credibility, respect, approval, and admiration of their employees as well as their peers. These characteristics are usually earned over a period of time, and are based on the relationship with the leader and the person/group of people. Therefore, a relationship is required for a leader to have a chance at being seen as successful.
But do you know what is not required to be a great leader? Formal Authority.
That's right, folks - your title and power in your workplace are not was is required to be a great leader. Formal authority is not a prerequisite for success, as characteristics like credibility and admiration can be earned in any relationship regardless of title and power. For example, Martin Luther King Jr. - a universally renowned leader in American History - had very little formal authority. But King had something far more important to be successful: Informal Authority.
The truth is that leaders with formal authority (aka title and power) all but require informal authority (ex. respect, admiration, credibility, etc.) to be successful. Think back to a time you had a boss who may have had formal authority over you but lacked your respect and trust. Did you consider them great leaders? Of course not! Short of fear of losing your job, what motivation did you have to perform at your best each day? Odds are you weren't even doing your best, as fear tends to not motivate people beyond doing just enough to not get fired.
On the other hand, great leaders bring the best out of people with their informal authority. That is the key difference between being a great leader and just a "boss" - the earned informal authority between a leader and their employees as well as their peers. To quote Harvard professor Ron Heifitz, "Informal authority ... comes with a subtle, yet quite substantial power; the power to extend one's reach beyond the limits of the job description." That is how leaders can get the very best out of their people and have influence amongst their lateral peers. A leader with a middle manager title can influence and drive a significant amount of change not only from their employees and peers but from those they report to as well.
Informal authority matters because formal authority alone is not enough to get the work done. If you want to be a great leader who drives change in your organization, then pay attention to your informal authority amongst the people you serve. Remember, you not only serve your employees as a leader, but you also serve those you have informal authority over. They trust, respect, and admire you for a reason. Like a politician, they are your constituency. Be mindful of who you represent formally and informally, as they will make or break your capacity to lead.
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