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Enron Mail |
This year has been a year of change for Enron and GPG: Enron=01,s stock spl=
it,=20 we implemented a Continuous Improvement program, and we underwent a major= =20 reorganization. These changes have all had a positive impact on our compan= y,=20 increasing our competitive advantage in the marketplace and challenging a= =20 well performing organization to perform at an even higher level. All of th= is=20 translates to raising the bar for increased performance. =20 As GPG begins its annual year-end process of appraising performance and=20 allocating variable pay and merit increases, there are a number of changes = to=20 the process I would like to communicate. These changes will impact all GPG= =20 employees, except those of you receiving Skill Based Pay. These changes wi= ll=20 help us take a more focused look at individual and overall company=20 performance and are intended to ensure consistency and equity in the proces= s=20 across GPG. The following details these changes: Vice Presidents and Higher All employees with the title of vice president or higher will be reviewed= =20 Enron-wide, using common performance criteria and performance ratings. The= =20 officers will be reviewed and ranked within peer groups. These groups are= =20 Commercial, Commercial Support, Commercial Support Specialist and Technical= .=20 All Other Non-Skill Based Pay Employees All other non-Skill Based Pay employees will be evaluated using the current= =20 GPG performance criteria and performance levels within their respective=20 company or business unit. This will not be an Enron-wide activity. =20 For directors or director-equivalent employees there will be an additional= =20 step, which will be a GPG-wide cross-calibration by the GPG Management=20 Committee in early December.=20 We are taking a more focused look at performance. In our efforts to=20 challenge a well-performing organization to achieve an even higher level of= =20 performance, we are establishing the following distribution as a guideline: Level 1 - Consistently Exceeds Expectations 10% Level 2 - Often Exceeds Expectations 30% Level 3 - Meets Expectations 50% Level 4 - Needs Improvement and Level 5 - Seldom Meets Expectations 10%=20 In the case of non-Skill Based Pay team employees in Operations, this proce= ss=20 will lead to two ratings: a team rating, which will determine the level of= =20 variable pay, and an individual rating that will be used to determine merit= =20 increases. This represents a change in our performance management process. GPG is the= =20 premier natural gas transmission company because of our ability to accept a= nd=20 demand change. We were one of the first companies to implement a Skill Bas= ed=20 Pay Program and self-directed work teams. We implemented Best Practices an= d=20 Continuous Improvement. This new approach to performance management is an= =20 effort to strive for the top level of performance in our industry. I want= =20 to be clear that we have raised our performance expectations for the compan= y=20 as well as for individuals.=20 Variable pay and merit increases will be impacted by these changes as well.= =20 GPG will use market data, job grade and individual and company performance = to=20 set target bonus payout levels. Payouts will reflect performance. Divisio= n=20 heads will no longer receive a pool of dollars to allocate to their=20 employees. This method will eliminate significant differences in variable= =20 pay for similar positions, job levels and performance levels across the=20 organization. =20 Merit increases will continue to be determined as they were in the past. = =20 Each business unit will have a pool of dollars, which is funded as a percen= t=20 of payroll. Merit increases will be based on a variety of factors includin= g=20 individual performance. =20 Variable pay will be distributed in early February and merit increases are= =20 effective Feb. 1, 2000. To continue to be a leading energy transportation company in a highly=20 competitive market, it is imperative that we continue to strive for=20 excellence in all we do. I appreciate your continued support as we go=20 through this change, as you have accepted and supported other changes we ha= ve=20 undergone. Please do not hesitate to call your supervisor or your Human=20 Resources Representative if you have any questions.
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