Who is a Power Broker?
A power broker refers to an individual who can influence other parties' decisions. The network is built by personal and professional relations of the power broker rather than by public channels, such as direct lobbying for a specific decision.
Within the finance sector, a power broker is usually an insider in the business who knows other influential individuals and organisations. He can exercise control or make decisions by using certain networks.
Power players may also be public figures, such as elected officials or well-known business executives. They work strategically on their relationships rather than taking a public stand on a particular issue.
Power Broker Explained
Companies also seek out power players to mobilise support for concerns that are important to a specific sector, such as how they are handled. In exchange for their service, power brokers may request high payments, future favours to help a business or sector deal with a specific problem, or to move on a common goal.
In general terms, a power broker has a deep understanding of the industries in which he works, particularly when recognising key contacts. Industry lobbyists and media workers are also seen as power brokers. Since they are thorough with the in and out of particular problems, they can meet decision-makers quicker than those less familiar with key players and influence them.
How Does a Power Broker Work?
A power broker may or may not be directly involved in managing and expanding the sphere of influence. An industry power broker maybe a consultant, an attorney, or other ancillary participants in that industry market.
While they may not be a CEO or senior executive in an industry-leading organisation, their presence and influence may affect such companies. Former CEOs who have retired from their business also become power players within their former field. They build a network through their current ties and post-retirement board roles.
As a power broker, a retired executive will work his network to check for oil and gas majors in the project. They identify customers in target markets to bring in early and begin to lay the groundwork for the political and regulatory approval required for such a large project.