AESAESOrganizing for EmpowermentOrganizing for Empowerment

AESAES

Founded in 1981 by Chairman Roger Founded in 1981 by Chairman Roger Sant & CEO Dennis BakkeSant & CEO Dennis Bakke

Based in Arlington, VirginiaBased in Arlington, Virginia Currently 90 plants in 13 countriesCurrently 90 plants in 13 countries Approximately 40,000 employeesApproximately 40,000 employees

Four Principles that lead to Four Principles that lead to EmpowermentEmpowerment

FairnessFairness IntegrityIntegrity Social responsibilitySocial responsibility FunFun

FairnessFairness

Performance evaluationsPerformance evaluations AccountabilityAccountability

FairnessFairness

Compensation split 50/50 Compensation split 50/50 Survey of valuesSurvey of values Group evaluationsGroup evaluations

Performance Evaluations

FairnessFairness

Penalizing mistakes Penalizing mistakes ForgivenessForgiveness

AccountabilityAccountability

IntegrityIntegrity

Chief Guardians Chief Guardians ““most of the time, our people guard most of the time, our people guard

the values without any input from the values without any input from senior people.”senior people.”

IntegrityIntegrity

AES admitted error exampleAES admitted error example Indonesia exampleIndonesia example

IntegrityIntegrity

Teams are responsible for both Teams are responsible for both operations and maintenance. operations and maintenance.

They do not want the two separatedThey do not want the two separated Employees are responsible for Employees are responsible for

something from start to finish, they something from start to finish, they take better care of it, like it was their take better care of it, like it was their ownown

Social ResponsibilitySocial Responsibility

ProgramsPrograms Values of upper managementValues of upper management

ProgramsPrograms

ReforestationReforestation World Wildlife FundWorld Wildlife Fund Cancer researchCancer research

Social Responsibility ValuesSocial Responsibility Values

Chairman Roger SantChairman Roger Sant CEO Dennis BakkeCEO Dennis Bakke

Fun at AESFun at AES

ResponsibilityResponsibility InvolvementInvolvement No hierarchyNo hierarchy PartiesParties

ResponsibilityResponsibility The business is not just fun because The business is not just fun because

of the parties they haveof the parties they have Fun because people who work here Fun because people who work here

are fully engagedare fully engaged People have total responsibility for People have total responsibility for

their decisions and full control of their decisions and full control of them.them.

India example.India example.

InvolvementInvolvement

They know what they do every day They know what they do every day matters to the companymatters to the company

Company sets itself up this way –Company sets itself up this way –Power and responsibilityPower and responsibility

Gives employees empowerment and Gives employees empowerment and TrustTrust

No Hierarchy No Hierarchy No (real) bosses – just small teamsNo (real) bosses – just small teams Team example.Team example. Complete lack of hierarchy –2 coal Complete lack of hierarchy –2 coal

plant decision exampleplant decision example Eventually, they want a system in Eventually, they want a system in

which each team has total which each team has total responsibility of their plant in terms of responsibility of their plant in terms of operations and maintenance. operations and maintenance.

Parties Parties Finally the company does have party’sFinally the company does have party’s Billion dollar deals call for a party!Billion dollar deals call for a party! From team members to the owner, From team members to the owner,

every employee loves a good party.every employee loves a good party. These people love their parties These people love their parties

because they feel like they’ve earned because they feel like they’ve earned it and that’s what make the company it and that’s what make the company truly fun.truly fun.

ConclusionConclusion Four PrinciplesFour Principles

– FairnessFairness– IntegrityIntegrity– Social ResponsibilitySocial Responsibility– FunFun

EmpowermentEmpowerment– Employees make decisions without top-down Employees make decisions without top-down

directiondirection AccountabilityAccountability