client case study

Dynegy

CEO Robert Flexon

Culture: The fuel that rocketed Dynegy back into the power generation elite

A Houston energy powerhouse in the 1990s, Dynegy ran into significant financial and leadership challenges that pushed it into bankruptcy in 2011. Just two days after the company emerged from bankruptcy court, the new CEO Robert Flexon unveiled a cultural overhaul that became an important pillar of its successful strategy to create a fast-growing, agile company with people re-energized by a One Team, One Goal strategy.

 

When Robert Flexon took the helm as CEO in 2011, he saw opportunity in the chaos, and began a bold plan to rebuild for a strong, competitive future. “I recognized we had to do financial restructuring – that was imminent. Operationally, we had to restructure the company as well, drive reliability of the assets, also getting the right people in the right spots to run the organization in the right way. And third but most importantly was the cultural restructuring that had to take place. We were just not going to be successful with the other two elements of restructuring, or it would be fleeting if the culture wasn’t changed with it,” says Flexon.
 

He cites the culture-shaping work as a critical foundation in restoring the company to healthy, high performance. Dynegy has reestablished itself as an energy powerhouse with revenues of $5.5 billion. It recently reported full year and fourth quarter earnings for 2015 of $850 million in consolidated Adjusted EBITDA, a $503 million increase over 2014. After several acquisitions that grew the company three-fold in size and footprint in three years, it now operates power generating facilities in eight states in the Midwest, the Northeast and the West Coast.

 

Flexon cites the“agility” value that encourages employees to be more innovative and faster than competitors for being able to successfully compete for these portfolios.“Dynegy probably would not exist today if we hadn’t done these new acquisitions; if we didn’t have the agility to do those kinds of things. It really gets back to culture just really energizes an organization. A big difference today versus back then is that folks didn’t think we couldn’t win. You don’t hear that anymore. People know that we are out there to compete, we are out there to win, we are out there to be faster and better than everybody else."

 

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Flexon discusses the journey back to high performance.

 

 

Culture Drives Performance Image