Honeycomb

AES Honeycomb (A)

* Roger Sant: CEO

July 1992
* Big problems: False Enviromental Reporting:Shad’s Point plant in Oklahoma.
* Share price: has fallen by a half.
* Investmentbankers, shareholders, legal advisors were calling for change and explanation.
* Some critics company: corporate culture and operating style.
* Manager: arrogate and neglecting.
* AES:founded in 1981, one of the largest publicly traded independent power producer in the world.
* AES: rapid growth and market valuation of $1.4 B,
* Founders: Sant and Dennis Bakke:
*Creating a business that was socially responsible as well as profitable.
* Mission: provide electrical power in a way that was safe, clean, reliable, cost-efficient, and fun.
* IPO in June1991:
* Shared values to act with integrity, result to provide a quality product to its customers.
* Built corporate culture:
* Loose management,
* Keeping rules
* Staff* Hierarchy to a minimum
* Unusual “honey comb” => system of employee’s management had evolved.
* Honeycomb: critical means through which the company’s values andphilosophies could be expressed and reinforced.
* Encourage reducing hierarchy and democratic control of the work environment.
* Less than 4 years after it development, the approachwas being challenged. Legal advisors and investor urged to Sant to introduce more formal controls.
* Sant and Bakke: in Arlinton, Virginia, offices: have a mimic office, to share:
*Theirs desk to talk easily, keeping informed their work, ideas also theirs mood.
INDUSTRY HISTORY: THE EMERGENCE OF THEINDEPENDENT POWER PRODUCER.

* AES: founded just as the US electricalpower, Olygopoly.
* Types operators generating electric
* Qualifying facilities: small operators generating less than 80 megawatts of power. From waste coal, biomass, wood wasted, other...