For your files

Ginger Dernehl
Administrative Coordinator
Global Government Affairs
Phone# 713-853-7751
Fax# 713-646-8160

 -----Original Message-----
From: 	Dernehl, Ginger   On Behalf Of Shapiro, Richard
Sent:	Tuesday, August 07, 2001 9:28 AM
To:	Sherriff, John; Brown, Michael - COO London
Cc:	Lewis, Richard; Shaw, Eric
Subject:	Enron Europe Government Affairs Group



On my last visit to London, I met with John Sherriff & Richard Lewis separately and discussed the possibility of naming a team leader within the Enron Europe Government Affairs group.  The purpose of naming a team leader would be to provide more consistent leadership for the group on a day-to-day basis, principally on personnel issues, but also to ensure that a consistent policy approach is being taken across the Government Affairs group on issues that affect the company.  I know that John is ambivalent about naming such a team leader, but I thought that I would make the case once again, and, hopefully in a more compelling manner so we can move forward with this idea.

First, it is important to say what the designation of a team leader would not do.  It would not, in my estimation, change the nature of the reporting relationships that we currently have relative to Eric Shaw, Richard Lewis and myself.  Peter Styles and Paul Hennemeyer will continue to report to Eric Shaw and myself, and Paul Dawson and Doug Wood would continue to report to Richard Lewis and myself.   Second, as the unchanged nature of the reporting relationships indicate, this change is in no way intended to diminish the role of Eric and/or Richard relative to the management of the Government Affairs group, but merely to ensure that someone is tending to personnel, administrative and group management issues on a daily basis.  Third, by naming a team leader within the Government Affairs group, I am not attempting, in any way, to step back from the role that I personally have taken on relative to the group - I will continue to provide strategic guidance (where I can) and also will continue to ensure that the Enron Europe Government Affairs group is fully integrated within the global government affairs function so that the Europe group is the beneficiary of knowledge and information that is developed around the world within the government affairs function.

The intent of designating a team leader, as already stated, is merely to ensure that issues related to the administration of the group, consistency of external advocacy, and personnel issues are handled on a timely and effective basis.  While I believe there have been many benefits from the current organizational structure, one of the significant and increasingly more noticeable negatives has been that there has not always been a consistent and fair approach to the handling of personnel issues within the group (notwithstanding my best efforts to deal with these issues from a distance).  This has resulted in, what I consider to be, the sub-optimal handling of at least one employee who is in the process of being terminated, as well as inconsistent messaging to many of the junior people within the group in terms of what their career opportunities are within the larger government affairs function in Europe (which, in turn, has created issues of morale).  These issues, in my mind, are of sufficient concern that, if left unaddressed, the group's ability to sustain a record of providing excellent support throughout the organization may, in time, be in jeopardy.  I am confident that, by naming a team leader, we will retain virtually all of the benefits of the collective leadership approach that are embodied in the current structure, chief among them,  greater participation from both Eric and Richard on an ongoing basis.  What we will gain, however, by the designation of a team leader, is increased and sustained attention to the issues that I have already mentioned.  

The person that I believe is best suited for this team leadership role is Paul Dawson.  
My observations, relative to Paul, are that he understands the needs of the individuals within the group and will do everything that he can to ensure that personnel issues are handled in a fair and expeditious manner.  In addition, Paul has a very sound grasp of many, if not all, of the issues facing Enron Europe and will provide, I believe, consistent leadership on substance as well as on personnel and administrative issues.  It is also my expectation that Doug Wood, who has assumed many of the administrative responsibilities, e.g., budget, will continue to assist Paul in that capacity and that both Peter Styles and Paul Hennemeyer will also continue to participate in a leadership role along with Paul Dawson and Doug.

I believe that this is the right approach to take and it is my hope that on my next trip to London, in mid September, that I would be able to sit down with Paul Dawson, Paul Hennemeyer, Peter Styles and Doug Wood with any combination of yourselves, and lay out the modest organizational change embodied within this memorandum.  If you have any questions, please feel free to contact me.

Thanks