Do you have a history with Hughes?

 -----Original Message-----
From: 	Hughes, James A.  
Sent:	Wednesday, October 31, 2001 10:33 AM
To:	Hayslett, Rod
Subject:	RE: Organization

Rod:

I think it may eventually be appropriate, but I would prefer not to do it right away.  My team has had a bad experience with Global Finance over the years.  They have always had an arrogant attitude and often did deals involving our assets without consulting or even involving the commercial team responsible for the asset.  Kevin is going to need to overcome this and demonstrate that he is coming in to behave differently.  It is very important to me to have a centralized analytical team so that I know there is consistency, independence and thoroughness in the analytics related to the EGAS businesses.  I have learned the hard way that analytical groups under the control of a commercial team sometimes produce lower quality results. I also like to have a single point of contact for other parts of the Enron organization that want or need models, valuations and analytics.  Again, historically I have seen disastrous results when there are multiple sources of information relating to any given project.

I do think it makes sense to describe Louie Fischer's relationship to Kevin as a dotted line and then we can reevaluate over time.  I would also suggest that prior to or immediately following an announcement you have Kevin go meet with each manager of a significant business (namely Pete and Mariella) to introduce himself and describe how he is going to fit into the organization.  I also think he needs to make that introduction interactive and do some listening not just talking.  He will ultimately find them more cooperative and trusting if he makes an effort to assure them that he is part of the team and not just a finance guy trying to get his name on a deal and earn a big bonus.

Jim

 -----Original Message-----
From: 	Hayslett, Rod  
Sent:	Tuesday, October 30, 2001 10:52 AM
To:	Hughes, James A.
Subject:	Organization

I am getting ready to announce that I am bringing Kevin Howard into EGS as Vice President of Finance and Transaction Support.    Thinking about the current organization, do think it appropriate to consider putting Ms Fischer in his organization?   The kind of things she is doing for you currently are similar to the kind of things we are going to have Kevin working with Corp on.   I will be putting into his organization the economic analytic talents and special projects people from the pipeline group as well as some others.    We will not be charging out these costs into the specific commercial units, but instead expect them to generate the ideas and value to pay for themselves.    His group will be providing services to all, but I am willing to carve out some priorities.

Rod Hayslett
EB4054
713-853-6178