Re: Draft - ENA, EGM and EIM HR Group Org Announcement

fine, sorry for the delay.
m

David Oxley
09/27/2000 10:37 AM
To: David W Delainey/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Mark
Frevert/NA/Enron@Enron, Mike McConnell/HOU/ECT@ECT, Jeffrey A
Shankman/HOU/ECT@ECT, Raymond Bowen/HOU/ECT@ECT, Greg McMahon/LON/ECT@ECT
cc: Cindy Olson/Corp/Enron@ENRON
Subject: Draft - ENA, EGM and EIM HR Group Org Announcement

Gentlemen,

Below is a draft org announcement I would like to send out to the HR team
today or towmorrow, essentially clarifying responsibilities following the
formation of EGM and EIM. I do not intend to circulate outside HR other than
to then 7 of you, Cindy O and the other HR leads. This essentially reflects
what I hope you already know that your HR lead support is:

ENA - Me with Sheila Knudsen (I ultimately hope Cindy Skinner will move to
take this lead sometime next year).
EGM - Cindy Skinner and Shanna Funkhouser (We believe Shanna will develop to
lead this in the next 12 months)
EIM - Me and Fran Mayes (the plan would be for Fran to eventually take lead
on this when she is ready).

Please let me know if you have any questions or concerns.

David

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TO: ALL ENA HR
CC: Olson, Delainey, Lavorato, Frevert, McMahon, Bowen, McConnell, Shankman,
R. Jones, M.Barnard, M.Joyce, D.Lynch, B.VanCleve
From: Oxley

Western Hemisphere Wholesale Energy HR Group Organisation Change

When we launched our HR Franchise Team structure in February this year we did
so with the commitment to continually refine and challenge ourselves to
ensure we were optimising the resources we have available to help our
businesses achieve and exceed their goals. In fact you will recall in
communicating the changes in February, we actually highlighted what we
anticipated would be a need to make further refinements and changes to
maximise our effectiveness.

A great deal has happened in these last 6 months and I am delighted that the
Franchise team concept has contributed so much towards our far greater
partnership with our individual business groups and our own outlook,
priorities and objectives. We truly have revolutionised how we provide HR
services and advice. More importantly, the business has recognised us for the
huge progress we have made to date. This success is an outstanding
achievement and one that I hope you join me in being extremely proud of.

As is always the case at Enron, continuous change is the norm and so as to
illustrate this point quite effectively the businesses previously part of ENA
have over the last 2 months, essentially been split into three: Enron Global
Markets, set up to focus on the Global Fuels markets which were previously
part of Enron Europe and CALME, Coal, Financial Tarding and
Insurance/Weather which were all previously part of ENA. EGM is now led by
Mike McConnell and Jeff Shankman. Enron Industrial Markets, set up to focus
on the Industrial markets and expand our activities across new Industrial
sectors which will build on the success of the Paper, Pulp and Lumber
business previously part of ENA and immediately develop a steel market. EIM
is led by Jeff McMahon and Ray Bowen. Enron North America remains the largest
of these three businesses even after these changes and will now focus all of
its efforts on the highly successful Gas and Power markets in North America,
including Canada and Mexico. ENA continues to be led by Dave Delainey and
John Lavorato. Mark Frevert, following his return from Europe, has been
instrumental in the restructuring of these businesses and is Chairman of each
of these as well as Enron Europe, which collectively now constitute Enron's
entire activities in the Wholesale commodity markets.

These changes in the businesses we support clearly force us to re-examine the
HR business model and adjust our strategy accordingly. Fortunately, our
flexible organisation structure lends itself extremely well to realign along
these new business lines and as such the changes illustrated below in the
attached org chart are far easier for us to make than they might otherwise
have been. In addition, given the immense value and positive client feedback
we have received on our efforts to concentrate our HR resources on Franchise
skill lines, this also provides us with an opportunity to reinforce and
refine our efforts in developing market intelligence, employment
propositions, compensation ideas and best practices, as well as the
innovatively sourced talent pipelines in each of these areas to pro-actively
provide our clients with a competitive advantage.

I believe the changes outlined on the attached org chart are self
explanatory, however if you have any questions please feel free to raise them
either with your team leads or me. Given that we have a staff meeting
scheduled for Friday I would plan to walk through these changes with you and
answer any questions at that time.

Finally, to reinforce our goals and prepare you all for the next 6 months, I
would like to underline the overall commitment to continue to change and flex
our resources to anticipate, meet and exceed our businesses needs. This will
clearly mean further organisation changes as we move forward. This is not
Change for change's sake, but change, and our ability to change quickly and
as often as necessary, is essential for us to remain a competitive and
effective HR resource for our clients.