Subject: Mid-year 2000 Performance Review Process
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Date: Thu, 25 May 2000 10:18:00 -0700 (PDT)

As we move into the Spring/Summer of 2000, it is time to turn our attention 
to the performance review process.  Mid-year is always busy and we have a 
number of important tasks and projects in process.  While recognizing this, 
it remains extremely important to take time over the next few weeks to gather 
necessary information to provide quality and meaningful feedback for our 
employees, as well as utilize this information during the year end review 
process.

In the spirit of One Enron, the Performance Review Process (PRC) will be 
global for Mid-year 2000.  Vice Presidents and above across all operating 
companies will be reviewed and discussed in a consistent manner with 
identical criteria.   ENA will review all professional level and above 
employees.  The timeline and training for the midyear process are outlined at 
the end of this memo.  Your HR Business Consultant is also available to 
answer questions.

With regards to the Global Functions, review sessions will be led by the 
Global and/or Corporate Functional heads, and will be designed to calibrate 
personnel within these areas of expertise.  The Global Functional Review 
Areas include:

_ NetWorks/Technology
_ Accounting
_ RAC
_ Finance
_ Human Resources
_ Public Relations & Reg Affairs	G. Whalley
	R. Causey
	R.  Buy
	A. Fastow
	C. Olson
	S. Kean
       
ENA Mid-Year Process:

ENA has received favorable feedback on the review process used for Mid-year 
and Year-end 1999, and as such, will follow the same general guidelines and 
process for Mid-year 2000.  The following are key features of the Mid-year 
2000 process:

o The focus of the feedback will continue to be on the qualitative aspects, 
as opposed to quantitative.  Toward this end, communication of the employee,s 
explicit ranking will be left to the discretion of the business unit manager.
o Initial discussions with employees regarding their accomplishments, are 
highly encouraged, prior to the Business Review Meetings.
o Mid-year performance results will be used as baseline performance 
information for Year-end 2000.
o Creation of 3 standard feedback forms for all peer groups.  
o Standardization of criteria for all peer groups.
o   Utilization of a consistent 6 gradation rating scale.  
o All exempt employees will be discussed at Business Review Meetings and 
placed into one of six categories by peer group.  ENA VP's will be pre-ranked 
by the ENA Office of the Chairman and Managing Directors prior to the Enron 
PRC.  Non-exempt (overtime eligible) employees will be evaluated by their 
supervisors and placed into one of the 6 categories.  The results of the 
Business Review Meetings will be the final rankings for exempt employees 
below VP, subject to ENA Office of the Chairman.
o A minimum of two representatives from other functional areas will be 
required at the Business Review Meetings.  The meetings should otherwise be 
rescheduled to allow this very important representation to take place.  The 
nominated individuals are illustrated below.
o The top 5 HR priorities/challenges for 2000 should also be agreed to at the 
Business Review Meetings.
o Analysts and Associates will be pre-reviewed in a Business Review Meetings 
based on their current rotation, then cross-calibrated at the Enron Global 
Analyst and Associate Business Review Meeting.

Peer Groups:

 Commercial
 Commercial Support
 Technical
 Specialized Technical

Performance Criteria (for all peer groups):

Innovation/Entrepreneurship
Communication/Setting Direction
Teamwork/Interpersonal
Leadership/Vision/Values 
Business Instinct
Analytical/Technical

Guidelines:

o Use of multiple sources of input is encouraged (employee, peers, direct 
reports, internal customers, external customers), as is a self-evaluation
o Employees should recommend 5-10 reviewers to Supervisor and Supervisor 
should select at least three of the employee,s recommendations
o All feedback must be entered via the Performance Management System located 
on the intranet
o Supervisor should consolidate the feedback, prepare a draft of the 
Performance Review form and meet with the employee prior to the Business 
Review meeting
o Final feedback to exempt employee follows the July 28th meeting
o For VP's & MD's, final feedback follows the Enron Executive Committee 
Meeting

Business Review Meetings / VP Pre-Ranking Committee Meeting 
Responsibilities / Actions:

The following list represents suggested groups and the individuals 
responsible for each Business Review Meeting.  Attendees at the meetings are 
appropriate Supervisors within the Business Unit.  In addition, the Office of 
the Chairman requires the attendance of two to three other senior level 
representatives from other Business Units to add external perspective.

Area/Function	ENA Lead	Global/Functional Lead*	Required Non-functional  Attendees
			
COMMERCIAL			
			
Trading	Presto		Dietrich
	Shankman		Calger
	Lavorato		Bowen
	McClellan		Ajello
	Hickerson		Delainey
	Belden		
			
Origination	Redmond		Shankman
	Dietrich		McClellan
	Milnthorp		Belden
	Calger		Presto
	Donahue		Delainey
	Bowen		Lavorato
	Ajello		
	Duran		
	Ondarza		
	Malcolm		
	Overdyke		
	Thompson/Josey		
	Yzaguirre		
			
Finance(*)	Jakubik	Fastow	
			
COMMERCIAL SUPPORT			
TECHNICAL  			
SPECIALIZED TECHNICAL			
			
Legal	Haedicke		
Research	Kaminski		
RAC	Buy		
Technical	Miller/Parquet		
			
Energy Operations (*)	Beck	Causey	Colwell
			Oxley
			
Business Analysis & Reporting/Tax (*)	Colwell	Causey	Beck
	Mintz		
			
Human Resources (*)	Oxley	Olson	
			
Public Relations (*)	Palmer	Kean	
			
NetWorks/Technology (*)	Perlman	Whalley/McConnell	

(*) Note:  Global Functional Review meetings to be held for these areas.

ENA VP Pre-Ranking Committee:

Ray Bowen	Mark Frevert	Dan Leff (non ENA rep)	David Oxley
Dave Delainey	Brian Redmond	George McClellan	Mark Haedicke
Janet Dietrich	Julia Murray	Jeff Shankman	Gary Hickerson
Jeff Donahue	Jere Overdyke	Marty Sunde (non ENA rep)	John Lavorato

Outcomes of Business Review Meetings/ VP Pre-Ranking Committee Meetings:

o Calibration of employees into six gradations 
o Promotion nominations below VP
o Assessment of  the &right people in the right jobs8
o Assessment of gaps for what is needed in the Business Unit (skills, 
capabilities, training,
 experience)
o Top five HR challenges
o Feedback to employees on the results of the meetings, as applicable

Timeline
PEP System Open for Feedback    May 17 
PEP System Closes for Feedback    June 9 
Feedback Collection/Initial Employee    May 17-June 12
 Discussions   
Global Functional Review Meetings   June 12-June 16
ENA Business Review Meetings    June 12-July 25
ENA VP Pre-Ranking Committee Meeting  July 28
Enron Executive Committee meeting   July 31-Aug. 1