1. AES Organizing for Empowerment

2. AES  Founded in 1981 by Chairman Roger Sant & CEO Dennis Bakke  Based in Arlington, Virginia  Currently 90 plants in 13 countries  Approximately 40,000 employees

3. Four Principles that lead to Empowerment  Fairness  Integrity  Social responsibility  Fun

4. Fairness  Performance evaluations  Accountability

5. Fairness  Compensation split 50/50  Survey of values  Group evaluations Performance Evaluations

6. Fairness  Penalizing mistakes  Forgiveness Accountability

7. Integrity  Chief Guardians  “most of the time, our people guard the values without any input from senior people.”

8. Integrity  AES admitted error example  Indonesia example

9. Integrity  Teams are responsible for both operations and maintenance.  They do not want the two separated  Employees are responsible for something from start to finish, they take better care of it, like it was their own

10. Social Responsibility  Programs  Values of upper management

11. Programs  Reforestation  World Wildlife Fund  Cancer research

12. Social Responsibility Values  Chairman Roger Sant  CEO Dennis Bakke

13. Fun at AES  Responsibility  Involvement  No hierarchy  Parties

14. Responsibility  The business is not just fun because of the parties they have  Fun because people who work here are fully engaged  People have total responsibility for their decisions and full control of them.  India example.

15. Involvement  They know what they do every day matters to the company  Company sets itself up this way – Power and responsibility  Gives employees empowerment and Trust

16. No Hierarchy  No (real) bosses – just small teams  Team example.  Complete lack of hierarchy –2 coal plant decision example  Eventually, they want a system in which each team has total responsibility of their plant in terms of operations and maintenance.

17. Parties  Finally the company does have party’s  Billion dollar deals call for a party!  From team members to the owner, every employee loves a good party.  These people love their parties because they feel like they’ve earned it and that’s what make the company truly fun.

18. Conclusion  Four Principles –Fairness –Integrity –Social Responsibility –Fun  Empowerment –Employees make decisions without top-down direction  Accountability