Corporate Culture at Enron Jeff Skilling Emerging Leaders Annual Vision Lunch March 29, 2001

Structure Staff Skills Strategy Style Shared Values Systems

Strategy Super Ordinate Goal: Crusade for free markets Bust monopolies Promote open competition De-integration Leverage technology and risk management to reduce interaction costs “Virtual” integration Be logistics company Have networked approach to transformation Oriented towards Real options Knowledge-based Strategy

Structure Flat / Horizontal Distributed power based decision Promote open competition Labor Mobility United compensations Portable Titles Structure

Systems PRC Company wide 360 evaluation Relative ranking against peers Screen for “who gets it” RAC Understanding and management or overall company risk/exposure Systems

Staff Best & Brightest Associate/analyst rotation program RAC Innovative and entrepreneur Staff

Skills Risk management Network management Commodity market expertise Logistics management Risk management Network management Ability to structure complex customized solutions Commodity market expertise Gas Power Broadband Pulp and paper etc... Skills

Skills Risk management Financial accounting Loose Work schedule Tight Performance review Legal obligators Loose Work schedule Working environment Broadband Pulp and paper Organization Skills

Shared Values Respect Integrity Communication Excellence We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness, and arrogance don’t belong here Integrity We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we cannot or will not do something, the we won’t do it Communication We have an obligation to communicate. Here, we take the time to talk to one another. . . And listen. We believe that information is meant to move and that information moves people Excellence We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great in here will be for all of us to discover how good we can really be. Shared Values