You can help with McKinsey.  The only thing I can think of is them analyzing the size of the market for mid and back office services and how much capital is dumped in to this, etc.

On Whalley, we should be down 15% on 2002 plan vs. 2001 forecast across EA, EGM, EIM, EEL, EES, and Corp. (as a whole) on total expense (so EBIT is helped) and probably that much on capital as well so cash flow in 2002 is better and we don't keep making the depreciation snowball bigger.  The key will be having accurate 2001 forecast numbers!

Can I go with you when you see Causey just to sit in?  You can do it all, I just want to see how he feels about the whole thing.  Besides, I don't really know him well.

See you at 1:30 PM today until 4 PM, if necessary.

GP

 -----Original Message-----
From: 	Beck, Sally  
Sent:	Wednesday, October 10, 2001 10:46 AM
To:	Piper, Greg
Subject:	McKinsey, Staff Meeting and Budget Updates

McKinsey:  I read their letter - pretty good recap of where we are today.  Todd Busby and I would like to meet with you regarding his assessment of market potential and internal trade-offs relative to that.  Would make most sense for the three of us to do that before having any further conversations with McKinsey.  What I know is that McKinsey can be very expensive to work with.  We would have to feel revenue opportunities would be very strong in order to commit to spend dollars with McKinsey.  


Staff Meeting Attendees:  Will Alan Sommers now attend the Thursday Net Works staff meeting?  Does he know about it for this week?  Have we made any decisions on the purpose and make-up of that meeting?  We are including Mark's directs on IT, but not their counter parts in Operations.  Including operations would make that meeting too big, so I am not necessarily suggesting that.  Just trying to rationalize the meetings that we want to have.  (FYI - In Causey's staff meeting today, Alan mentioned that the move of the ISC under Net Works was announced within Net Works - and spread - before Causey or Alan announced this to the people in the ISC.  Creates a bit of a bumpy start.  Causey is still very much in favor of this move - he did share with me last week 3 things that he will be looking for to insure that this move is smooth and yields the results desired,.  I can share those with you.  Causey has explicitly covered the 3 items with Mark in agreeing to the transition.)  

Budgets:  After meeting with Whalley last week, should we consider coming to the table as Net Works with a reduction in budgeted dollars (expense and capital) of 10% or so?  That has not been our goal to date, but maybe it should be, given the stretch that Greg is trying to make.  Might also bode well with all of the business units to which we are allocating if we could say that we took a hard look and made those reductions ourselves.  I have some ideas on how we might get there.  Let me know - we would need to get that done this week.  --Sally