A decade after the corrupt businessman who controlled the NSW Labor Party, Eddie Obeid, was finally expunged from the body politic, the once-fearsome political machine has decided to borrow some business practices to salvage its reputation.

An external review of the governance and administration of the Labor Party's biggest division, which was initiated on Sunday, is designed to end the concentration of power that requires the party's general secretary to be fundraiser-in-chief, campaign grand master and political kingmaker, according to those involved in discussions.