Message-ID: <12453763.1075846393163.JavaMail.evans@thyme> Date: Wed, 12 Jan 2000 06:08:00 -0800 (PST) From: cynthia.sandherr@enron.com To: richard.shapiro@enron.com Subject: Resource Allocation Working Group Cc: ginger.dernehl@enron.com, robert.frank@enron.com, kelly.kimberly@enron.com, sue.nord@enron.com, mark.palmer@enron.com, john.palmisano@enron.com, mike.smith@enron.com, james.steffes@enron.com, terence.thorn@enron.com, kathleen.wagner@enron.com, doug.wood@enron.com, elizabeth.linnell@enron.com, steven.kean@enron.com, joe.hillings@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: ginger.dernehl@enron.com, robert.frank@enron.com, kelly.kimberly@enron.com, sue.nord@enron.com, mark.palmer@enron.com, john.palmisano@enron.com, mike.smith@enron.com, james.steffes@enron.com, terence.thorn@enron.com, kathleen.wagner@enron.com, doug.wood@enron.com, elizabeth.linnell@enron.com, steven.kean@enron.com, joe.hillings@enron.com X-From: Cynthia Sandherr X-To: Richard Shapiro X-cc: Ginger Dernehl, Robert Frank, Kelly Kimberly, Sue Nord, Mark Palmer, John Palmisano, Mike G Smith, James D Steffes, Terence H Thorn, Kathleen Wagner, Doug Wood, Elizabeth Linnell, Steven J Kean, Joe Hillings X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Working groups X-Origin: KEAN-S X-FileName: skean.nsf From: Cynthia Sandherr 01/11/2000 05:16 PM Rick: Per your request, please find the one page description of how the Washington D.C. office prioritizes both human and financial resources while fitting within the Enron budget process. I have attached our 1999 activities report which illustrates the process described below. Congress operates in a two year cycle while the Administration operates in a four or eight year cycle. Thus, it is necessary for our prioritization to focus on the long term. Within the context of the Congressional and Administration's Calendars, our office determines and communicates doable priorities based upon the environment in which we operate. In addition, we actively work behind the scenes and commit resources to affect and change this environment. On an annual basis, we communicate federal legislative and global opportunities which we believe affect our operations via briefings to Steve Kean, who along with our assistance, submits our proposed goals to the Enron Management Committee, Global CEO's , individual operating company heads and heads of key divisions. Many dialogues and briefings occur resulting in goal adjustments and additions. During this dialogue, we advise on possible new corporate strategies based upon political realities and communicate necessary resources required in order to achieve the legislative successes. Once this vetting process is complete (December-January timeframe), and the Management Committee prioritizes the federal Corporate goals, we submit our budget and assure this budget directly correlates to the necessary resources (both human and financial) detailed and allocated to meet these priorities. (Note: the budget process usually occurs in the August-October timeframe). On the financial side, we keep current as to the rates and the expertise available on the market, as well as, track potential conflicts of interest. It's our job to know our environment and to lay out strategy. On an annual basis, we adjust our resources which can include dropping some issues, reassigning personnel, hiring or letting go necessary outside counsel, etc. We remain mindful that in order to achieve legislative success, it is necessary to follow long-term planning so as to allow for us to build credibility, keep important political relationships viable and, ultimately, place us in the best possible political position to achieve success. Our budget does its best to recognize that the Congressional process can be unpredictable and that Congress reacts to fast occurring events and public reaction. It is rare when we have not foreseen some form of a potential issue; thus, we always operate within budget. An example of a contingency issue would be India setting off a nuclear device, a possibility we had accounted for yet could not possibly exactly predict nor could we predict the fall-out and precise Corporate impact. However,we were still able to budget for possible permutations for such an occurrence and make adjustments as needed in order to meet our goals and stay within our budget. Based upon the experience of the people in our office, we have been very successful in anticipating these type of occurrences. Our report details our 1999 results and projects Enron priorities for 2000 although neither the President's State of the Union address which outlines the Executive Branch's legislative agenda for 2000 nor the Republican Congressional response and 2000 Congressional legislative agenda has as of yet been delivered nor finalized.