Organizing for empowerment: an interview with AES's Roger Sant and Dennis Bakke. Interview by Suzy Wetlaufer.
The topic of empowerment is receiving a lot of attention, but how many employees are truly empowered? At the global electricity giant AES Corporation, the answer is all 40,000 of them. In this interview, chairman Roger Sant and CEO Dennis Bakke reflect on their trials and triumphs in creating an exceptional company and explain how their employee-run company works. When they founded AES in 1981, Sant and Bakke set out to create a company where people could have engaging experiences on a daily basis--a company that embodied the principles of fairness, integrity, social responsibility, and fun. Putting those principles into action has created something unique--an ecosystem of real empowerment. What does that system look like? Rather than having a traditional hierarchical chain of command, AES is organized around small teams that are responsible for operations and maintenance. Moreover, AES has eliminated functional departments; there's no corporate marketing division or human resources department. For the system to work, every person must become a well-rounded generalist--a mini-CEO. That, in turn, redefines the jobs of the people at headquarters. Instead of setting strategy and making the "the big decisions," Sant and Bakke act as advisers, guardians of the principles, accountability officers, and chief encouragers. Can other companies successfully adopt the mechanics of such a system? Not unless they first adopt the shared principles that have guided AES since its inception. "Empowerment without values isn't empowerment," says Sant. "It's just technique," adds Bakke.
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D003132:Commerce / Q000458:organization & administration*; D003299:Cooperative Behavior; D003659:Decision Making, Organizational; D017598:Efficiency, Organizational; D004650:Employee Performance Appraisal; D006801:Humans; D015279:Organizational Culture; D009937:Organizational Objectives; D010559:Personnel Management / Q000379:methods*; D011209:Power, Psychological; D012456:Salaries and Fringe Benefits; D012941:Social Responsibility; D014768:Virginia