The Power Index: A Tool for Achieving Proper Representation on Key Management Committees

This paper describes a technique called the power index which a manager can use to evaluate the distribution of influence on key management committees. The important evaluation issues are concerns about equity (is thee balanced representation of contrasting interest groups?), concerns about effectiveness (is there a proper mix of representatives from each of the required areas of expertise – engineering, marketing, finance, etc.?), and concerns about the potential for one or more interest groups to dominate the decision process of the committee. The power index is explained in this paper, and it is illustrated with some examples of management uses.