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No corporate executive has a bigger share of the
spotlight after Hurricane Katrina's battering of
New Orleans than J. Wayne Leonard, chief
executive of Entergy, the power company that
serves the city and many other areas of
Louisiana and Mississippi.
Entergy faces the task of restoring power to 1.1
million of its 2.7 million customers, four times
the largest disruption it has ever encountered.
The blackouts affect numerous vital refineries
and energy pipelines. Daunting as that would
have been in any circumstance, the flooding of
New Orleans and the displacement of hundreds of
thousands of storm victims created civil
disorder, fuel shortages and chaos on a scale no
American utility has ever encountered.
Entergy, which was based in New Orleans and is
coping with the evacuation of thousands of
employees even as it races to restore service,
has been given high marks for its initial
response. But conversations with Mr. Leonard,
54, do not get very far before it becomes clear
that his pride in the company is tempered by
dismay at the price the region's poorest
citizens have paid for what he sees as society's
unwillingness to invest more in their needs.
Their plight has long been a concern for Mr.
Leonard, who ordered that photographs of
impoverished residents in Entergy's service
region be put on display at its headquarters
shortly after he became chief executive.
Mr. Leonard spoke about the hurricane and its
aftermath by telephone Thursday afternoon from
Little Rock, Ark. Following are excerpts from
that conversation:
Q. Close to 10,000 linemen and tree trimmers
from other utilities and contractors have joined
the thousands of Entergy employees working to
restore power, which creates huge logistics
challenges for you. Does the industry need more
extensive and formalized agreements to make
emergency responses more efficient?
A. No. It's the culture of people who have been
in the business for a long time that we feel the
exactly same sense of urgency whether it's our
lights or someone else's. Other companies are
eager to return the favor. Crews don't want to
be sent home. They want to be sent to New
Orleans. And these guys are exhausted. It's a
wonderful business when something like this
happens. You realize how dedicated people are.
Q. You've spent a lot of time talking to
government officials at all levels about the
recovery process. What's your assessment of how
well the various levels of government have
understood and reacted to Katrina's impact on
the power industry?
A. They have been far more understanding of what
we're up against than I've ever seen before.
Nobody has said no to anything we've asked for.
The Department of Commerce called me this
morning before I even got out of bed to go over
our list of long-term needs. When we've said we
won't go there without protection, they've
delivered it. Everybody understands now that
power is an absolute necessity.
Q. What advice would you give a business school
that wanted to train tomorrow's executives for
dealing with crises like Katrina?
A. The easy part of this is that it's a crisis.
We have all the skills and planning to deal with
catastrophe because we deal with it on a small
scale all the time. One of the most important
things is that your plans can be useless but the
planning process is invaluable. It teaches
people how to get back on the page when you're
off it.
The second thing is that you always have to have
a structure where someone's in charge. You have
to have people on the front line empowered to
make common-sense decisions. They have to know
they can spend what they need to spend. You've
got to make battlefield promotions and be
willing to go in and divide up your
organization. Some people will have half as much
responsibility and twice as much work.
And you have to stay ahead of your employees
because they are totally stressed. You've got to
get professional help for your people.
Q. How have you gone about stress management in
this case beyond providing counseling?
A. On Day 1, we told them you're going to have a
job. We may not know where yet, but you're going
to have one. One woman who was working in the
call center broke down crying when I was
visiting yesterday. She apologized to me. She
had been working for nine days straight and then
her son called and said he missed his school
bus. Obviously she wasn't crying over the missed
bus. I just hugged her. You've got to give a lot
of hugs that just don't seem very businesslike.
When I walked away, she was right back on it.
Q. You said when you announced last week that
Entergy would temporarily move its headquarters
to Clinton, Miss., that the company would return
to New Orleans as soon as possible. If Baton
Rouge were to emerge as the dominant business
center in Louisiana, would Entergy still return
to New Orleans and, if so, why?
A. New Orleans is our home. It's festive and
caring and our heart is certainly there. We'll
do everything possible to make sure it returns
to the city it was. But it's not carved in
stone. That's one of the reasons that I want to
be at the table when the decisions are made
about money that needs to be put into restoring
the coast, into the schools and into mass
transportation. It's not a matter of just
dropping a few sandbags on the levee. If those
things don't happen, moving back wouldn't be the
right answer for the business.
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