Corporate Culture at Enron

Jeff Skilling

Emerging Leaders Annual Vision Lunch

March 29, 2001

2UB-SMETHODIST-0301

Structure

Staff Skills

Strategy

StyleSharedValues

Systems

3UB-SMETHODIST-0301

• 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

4UB-SMETHODIST-0301

• Flat / Horizontal– Distributed power based

decision

– Promote open competition

• Labor Mobility

– United compensations

– Portable Titles

Structure

5UB-SMETHODIST-0301

• PRC– Company wide 360

evaluation

– Relative ranking against peers

– Screen for “who gets it”

• RAC– Understanding and

management or overall company risk/exposure

Systems

6UB-SMETHODIST-0301

• Best & Brightest– Associate/analyst rotation

program

• RAC– Innovative and entrepreneur

Staff

7UB-SMETHODIST-0301

• Logistics management

– Risk management

– Network management

– Ability to structure complex customized solutions

• Commodity market expertise

– Gas

– Power

– Broadband

– Pulp and paper

– etc...

Skills

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• Tight

– Risk management

– Financial accounting

– Performance review

– Legal obligators

• Loose

– Work schedule

– Working environment• Broadband

• Pulp and paper

– Organization

Skills

9UB-SMETHODIST-0301

• Respect 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.

SharedValues