“Many times, people recognize and reward the outward signs of merit rather than merit itself.” — La Rochefoucauld
Those who read Play 01: What is success? might recall the paragraph in which, speaking to young professionals or students, I used to run a quick exercise to illustrate how complex this topic is, by asking four simple, but revealing questions. One of them was “Who wants to be a president of a bank like me?”
In 1937, The Washington Post quoted American writer Beatrice Kaufmann with a line that has since taken on a life of its own: “I’ve been poor, and I’ve been rich; rich is better.” Countless public figures have repeated the quote ever since.
Paraphrasing Kaufmann, I could say: “I’ve been an employee, and I’ve been a president; president is better.”
Being at the top of a hierarchy is more comfortable than being at the bottom. A leadership position comes with decision-making authority, the ability to shape outcomes, and the opportunity to change things — ideally for the better. It also comes with power: control over resources, priorities, and the professional destinies of others.
And yet, position and status are not the same thing. Confusing them leads to poor leadership, fragile authority, and a shallow understanding of success.
A Lesson Learned Early
When I joined BRCE as a junior employee, curiosity was my defining trait. I asked questions constantly — sometimes too many. At that time, there was no internet, no practical banking manuals, and university knowledge was insufficient for real-world banking.
After a while, exasperated senior colleagues suggested I speak to Dan Becker.
Dan Becker had once been the director of BRCE’s Foreign Exchange Department. He spoke fluent English, German, and French, had extensive negotiation experience, and possessed a rare ability to work with people. He had been an outstanding leader and manager.
But during the communist period, when his sister remained in West Germany, his career collapsed overnight. A relative in the West destroyed one’s professional file because of an ideological offense. Officials removed Becker from leadership and reassigned him to a marginal role in the Documentation Service — the organizational equivalent of an “elephants’ graveyard.”
And yet, something remarkable happened.
Although Becker lost his position, he did not lose his standing. People still sought him out. His experience, competence, and judgment continued to command respect. I was fortunate enough to learn from him during that period — learning not only technical knowledge, but also something far more critical: how to learn, and where to look for meaning when information was scarce.
Years later, after he emigrated to Germany and rebuilt a successful banking career, I met him again — this time as president of BRCE, visiting correspondent banks. Both of us understood the irony.
Power and Status Are Not the Same
This story illustrates the essential distinction between power and status.
We usually receive both when people appoint us to a leadership role. But they are different in nature.
Power comes from position. The organization grants it. Access links to it — access to resources, budgets, decisions, and authority structures.
No one grants status. You have to earn it. It exists entirely in others’ perceptions. It is rooted in competence, credibility, experience, and trust.
Power can be removed overnight. Status cannot — unless it was never real to begin with.
Dan Becker lost power the moment he lost his position. But his status remained intact because no decree could erase his knowledge or professional authority.
Why Titles Are a Poor Measure of Success
Many people equate success with reaching the highest possible position in a hierarchy. From one perspective, this is understandable, and that ambition is natural. If we discover our vocation and continuously develop our potential, it is natural to want greater influence, broader responsibility, and increased recognition.
But two realities constrain this path.
1. Competence alone is not enough for leadership. Leading people requires emotional intelligence, social awareness, and empathy — qualities that are far harder to develop than technical skills. One can be an outstanding professional and still be ill-equipped to lead.
2. There are a limited number of positions. In every country, management/leadership positions represent probably less than 10% of the active population and less than 5% of the total population.
Does this mean that success excludes the vast majority of professionals?
Absolutely not.
Status Without Position
Many people without formal positions hold informal but undeniable status — experts, freelancers, artisans, skilled tradespeople, advisors, or professionals whose influence comes not from title, but from competence and trust — people whose opinions matter because they know what they are doing.
They may not control resources. They may not sign budgets or approve strategies. But they have something equally powerful: influence.
Their status comes from recognized competence. It starts with being trusted, being consulted, and being listened to.
This is often called informal authority, earned authority, or professional credibility. Unlike positional power, it cannot be delegated or imposed. You must build it slowly, consistently, and visibly.
In my definition of success, influence is an essential component. And influence does not require a title.
A More Durable Definition of Success
Positions come and go. Organizations restructure. Titles change — power shifts.
Status, when earned, endures.
If your sense of success depends entirely on position, it will always be fragile. If it depends on the respect you command, it becomes resilient.
The most effective leaders understand this. They do not rely on their titles to be heard. They invest in competence, character, and credibility — knowing that even if the ladder disappears, their standing will remain.
Position may give you power. Status gives you legitimacy. And legitimacy is what endures.
👉 Therefore, success is not just about climbing the ladder. Sometimes it’s about the respect you earn, even when the ladder is taken away.
Questions for Reflection
- What kind of status are you currently building—positional or earned?
- Do you believe you can be successful without a formal title?
- What would you do differently today to increase your professional credibility and influence?
Downloand the Chairman’s Playbook Worksheet — Play 24: Position, Status and Earned Authority
📚 Further Reading
Alain de Botton — Status Anxiety
A philosophical look at why humans chase status and how deeply it affects identity and self-worth. Pairs well with your reflection on success beyond titles.
Will Storr — The Status Game
A modern, accessible exploration of how status actually works in societies and organizations. Perfectly complements your argument that status lives in the eyes of others, not in formal roles.
Dacher Keltner — The Power Paradox
Shows how power is gained through empathy and service—and lost when leaders rely only on authority. A strong theoretical underpinning for your distinction between power and earned status.
David Epstein — Range
A powerful argument for broad competence and adaptability—key ingredients of status without formal position.
Marcus Aurelius — Meditations
A timeless reminder that external honors are fleeting, while character and wisdom endure.
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