Lets talk a little bit more about POWER

Lets talk about power in shipping. shipbroking and business in general.

In a previous post I described a person who was considered the 'best of the best' as a shipbroker - and then I stated that this was in most part due to the power they wielded...

How did this manifest

1. Expert power - there was no doubt this person had great knowledge. At the start of this person career they had been a shipowner and therefore was able to bring unique and strong perspectives to the world of shipbroking. In the late 80's it was rare to find a shipbroker who could run a voyage calculation and one that understood intimately the important metaphoric buttons to push...

3. Coercive power - This is old news for those long in the shipbroking tooth. Shipbrokers expand business and keep business through being powerful. that is why some of the larger shops are the most successful. A powerful shipbroking company or a power individual has 'things' that pothers want. And if those 'things that others want' are worth alot of money and status then its amazing how money keeps rolling in. In its simplest form many shipping companies - both charterers and shipowners are scared of powerful shipbrokers and therefore the shipbroker in question gets more business.  If as a shipowner I no longer want to work with a shipbroker because they have behaved unethically, or because they have provided poor service - how is this possible if the shipbroker has'exclusivity' on heaps of business that I want? Well I can't.I need to dance with the devil baby!!...again nothing new here. This broker in question (from the previous post) had 2 large exclusive clients - and knew very well how to use this leverage to his advantage. He and his company would not be shy in reminding clients that 'support was expected' rather than potentially earned.....which is probably the way the world should be.....but it aint...

Look it isnt all bad here. What is wrong with using leverage? Used in a smart way with sound ethics its perfectly reasonable. the problem occurs when expectations go too far...

3. Social power - What i found the most intriguing and sometimes disconcerting was the open use of social power. This is still very much the case in shipping around the globe. This successful broker was also the most social. If someone was up for a late night out, a boozy business trip, a very long lunch - this guy was there. Not only was he there but his cohort were with him. They moved like a Possy, always within eye sight, always within earshot to laugh at each others jokes, back each other up, and basically present a united front wherever they went...

This was both fun but also disconcerting - I have never been a fan of crowds and although as individuals they were all good guys - as a combination of people - well group dynamics can take over...

Anyway - this combination of power is very intoxicating for all involved and has led to great success. Those wanting to be a part of the possy (customers mostly) readily bought in and the rest is history. This guy lived shipping 24/7...and has made millions as a result.

The one element of power they didn't really have in my opinion was Legitimate power. This is the kind of power that comes easy and is a reward for being great at your job - minus the social and coercive elements. This manifested (for said broker and his cohorts) in certain ways - mainly cynicism, bullying, and the other social problems related to working too long and too hard....a lack of perspective can be damaging. I dont think they have the respect they crave.

So being the best (or perceived to be the best) is not always what its cracked up to be. And in all honesty I think there are quite a few others in that market that are actually more successful in terms of making money, deals done etc but they keep things quiet and play cards close to the chest and have a life outside of shipping.

I think by the tone of this post you can tell which modes operand I prefer.

Keep rocking

VS

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The Virtual Shipbroker