In Case you did not receive the memo from the Office of the Chairman 
regarding the Midyear Performance Review Process, please read below.




The mid-year Performance Management cycle will begin on May 15 with the 
opening of the PEP system (the online "Performance Evaluation Process" 
feedback system).  You will be receiving your password for this system in a 
note to go out later from PEP.  In preparation for the cycle, four training 
classes will be offered to all new employees and to those employees who have 
not previously attended training.  Enrollment for these classes will be 
offered through the Development Center "Ernie" system.  For employees who are 
outside the Houston area, please contact your HR Representative for more 
information.  

These sessions will be held on :

Wednesday, May 10 from 9:00-10:00 a.m.,  and three sessions to be held on 
Thursday, May 11 from 9:00-10:00 a.m.; 1:30-2:30 p.m.; and 3:00-4:00 p.m.  
All sessions will be held at the Doubletree Hotel.  

To register, click on this link to go directly to the Development Center 

For those of you who have attended the training before and who are familiar 
with the past Performance Management Process, there have been some 
modifications:

1.  The Performance Management Process is now Enron wide.  All Enron feedback 
forms have been reduced to three (Vice President (VP)/Managing Director 
(MD);  Management/Professional; and Administration/Support), which all use 
the following criteria:
? Innovation/Entrepreneurship
? Communication/Setting Direction
? Teamwork/Interpersonal
? Leadership/Vision/Values
? Business Instinct
? Analytical/Technical

2.  The following six performance ratings will be used consistently on the 
final feedback forms across Enron: 
 Superior
 Excellent
 Strong
 Satisfactory
 Needs improvement
 Issues

3.  There will be four recognized peer groups across the company for purposes 
of the PRC (formerly the Business Review Meetings) meeting. 
? Commercial
? Commercial Support
? Technical
? Specialized Technical

4.  The Performance Review Process will continue to be used to facilitate:
? Promotions - up to Director level only. There will be no officer promotions 
to VP/MD at Mid-year
? Feedback to employee
? Compensation decisions
? Sharing of performance rating at Manager,s discretion

5.  PRC meetings will be reviewed by both functional area & business units
Both functional areas and business units will participate in the rating of 
employees to cover both solid and dotted line reporting relationships.  
Functional PRC meetings will take place first, followed by the final business 
unit meetings.  Difference in views on an individual employee,s rating should 
be discussed and consensus should be reached. The functional area meetings 
are:

- Accounting
- Human Resources
- Government Affairs
- RAC
- Global Finance

6.  The PEP system is now available via the Intranet to allow greater access 
from global locations and remotely. The functionality is essentially the 
same. If you would like further information on how to use this system you may 
gain access to the quick reference guide by clicking  on the attached 
weblinkhttp://home.enron.com/announce/WebPEPQuickReference.pdf .  If the 
Quick Reference does not display correctly on your PC, call your Help Desk 
for assistance, or  Irma Alvarez at 713-853-1543 to get a hard copy.

7.  The general responsibilities remain the same regarding the overall 
process: 

Employee/Reviewer Responsibilities:
Select  5-7 reviewers
Complete self-assessment 
Complete requested feedback forms
Reviewers who cannot provide feedback use the Decline Request feature

Supervisor Responsibilities:
Approve reviewers (at least 3 of the employee's choices)
Communicate modifications to employee
Participate in PRC meetings as required
Summarize feedback and complete appropriate feedback form
Communicate feedback to the employee


Schedule for Mid-year Performance Review

May 15   PEP System opens for feedback    
June 9   PEP System closes for feedback   
June 12   Functional/Business Unit PRC Meetings begin
July 20   PRC Meetings should finish
July 31/August 1 VP & MD PRC Meeting

As always, if you have further questions on the Performance Management 
Process, you may contact your HR Representative.