The doorstep audit is not yet complete as I'm having about 25 or so deals "tested" out of the Long Beach office. We should know all final results within the next week or so. Rick-your suggestions are generally on target as we have already begun the process for pulling each specific office's information together-ie: how many offices do we have, who are the specific people in them, what do they transact on (DSM, gas/power commodity, services mgmt., etc), and can we consolidate/minimize the number of offices we have.  For example, of the 87-ish offices that we currently have EES folks in, only 14 of those offices have individuals that transact gas or power deals in the EnronDirect sales group (ie:  customers below $10 million in energy spend) and there are @ 45 sales folks in these 14 offices. 

The losses now expected out of the Long Beach office are MUCH lower than initial estimates. If anyone would like to review, please call me directly.

We are already well underway in establishing new transaction process' for both gas and power deals. Although we have already put in place and communicated these new procedures to each of the sales offices, we are putting together a "sales package" that will encompass each of the new procedures in detail, each of the new gas and power contracts and rules for use, and a new sales policy which will review in detail the responsibilities for each sales individual. This policy will require signatures from the sales folks in order for them to continue working for EES in a sales transaction role. We are also exploring an independent verification process whereby we would have someone from either Deal Capture or Deal Management actually contact the customer to confirm the transaction. The "McDonald's Hamburger" analogy is quite appropriate here!


Just wanted to let everyone know what was already underway.



-------------- Forwarded by Janet R Dietrich/HOU/EES on 08/10/2001 03:41 PM ---------------------------


David W Delainey
08/10/2001 11:06 AM
To:	Dan Leff/HOU/EES@EES
cc:	Rick Buy/Enron@EnronXGate, Janet R Dietrich/HOU/EES@EES, John J Lavorato/Enron@EnronXGate 
Subject:	Remote Offices- Suggestions

Dan, in response to the following memo, can you discuss with Rick his ideas.  I would also like to go through a detailed description of each EES office, its people and functions to determine which should be eliminated and which should be modified.  Given the latest redeployments and terminations the field offices are a shadow of their previous stature either way.  This is consistent with our overall strategies but perhaps we want to accelerate.  If you could help set up the framework to discuss I would much appreciate.

Good job on handling the "5's".

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/EES on 08/10/2001 11:03 AM ---------------------------
From:	Rick Buy/ENRON@enronXgate on 08/10/2001 10:53 AM
To:	David W Delainey/HOU/EES@EES, Janet R Dietrich/HOU/EES@EES
cc:	John J Lavorato/ENRON@enronXgate 
Subject:	Remote Offices- Suggestions

After reviewing the Doorstep audit at Long Beach with the team I have the following conclusion:

1. We should shut these offices down because we can not control them. They don't make much money and will be a huge negative after losses at Long Beach.

---or----

2. We establish a rigid template for how these offices operate. My thought is that we create a McDonalds Hamburger type operation. Each office is exactly the same and operates under precise and well communicated rules. "Hamburger" quality is monitored from Houston routinely.

There are a huge number of these remote offices so we need to address how we proceed.

Any thoughts? Rick