Kay, please forward to Scott Josey, John C Thompson and Julie Murray.  I 
could not find them on e-mail.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 07/10/2000 
02:27 PM ---------------------------


David W Delainey
07/10/2000 02:31 PM
To: Jeffrey A Shankman/HOU/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, Tim 
Belden/HOU/ECT@ECT, Gary Hickerson/HOU/ECT@ECT, George McClellan/HOU/ECT@ECT, 
Jere C Overdyke/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Janet R 
Dietrich/HOU/ECT@ECT, W David Duran/HOU/ECT@ECT, Christopher F 
Calger/PDX/ECT@ECT, Raymond Bowen/HOU/ECT@ECT, James A Ajello/HOU/ECT@ECT, 
Rodney Malcolm/HOU/ECT@ECT, Edward Ondarza/HOU/ECT@ECT, Rob 
Milnthorp/CAL/ECT@ECT, Brian Redmond/HOU/ECT@ECT, Jean Mrha/NA/Enron@Enron, 
Max Yzaguirre/NA/Enron@ENRON, Jeff Donahue/HOU/ECT@ECT
cc: Mark Frevert/NA/Enron@Enron, David W Delainey/HOU/ECT@ECT, David 
Oxley/HOU/ECT@ECT, Kay Chapman/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Mark E 
Haedicke/HOU/ECT@ECT, Beth Perlman/HOU/ECT@ECT, Jordan Mintz/HOU/ECT@ECT, Wes 
Colwell/HOU/ECT@ECT 
Subject: PRC

I would like to thank all of you for putting quality time and effort into 
this important process.  There is nothing more important to ENA than 
attracting and retaining the most talanted and innovative people.

Effectively immediately, written and oral feedback for commercial managers 
and directors can be delivered. As per our discussion, the PRC process is 
primarily a feedback, performance management and staff planning tool.  It 
provides a data point for bonus purposes; however, it is not the only 
determinant.  In the interest of ensuring the most effective performance 
management tool, I would suggest that we implement the following:
 a)For employees ranked in the strong and above categories, the ultimate 
ranking should not be communicated and the message should focus on progress 
towards identified commercial goals and objectives and progress towards the 
further development of desirable leadership and commerical capabilities. 
Written and oral feedback should be delivered immediately;
 b) For employees ranked in the satisfactory, needs improvement and issues 
category, the ultimate ranking should be communicated to ensure approriate 
documentation of performance and to stimulate a plan to rectify or cure 
performance issues.  For the satisfactory category, the message should focus 
on increasing deal-flow, financial performance and productivity.  The bar is 
always being raised.  For the needs improvement category, the message should 
focus on turning around poor performance over the next six months.  For the 
issues category, the business unit manager should determine, in conjunction 
with your HR rep., the appropriate plan to find a better "fit" in the 
organization or counsel out.  Regardless, the ENA Office of the Chairman will 
require a written plan of action for all employees in the needs improvement 
and issues category from the business unit manager documenting the plan of 
action to rectify performance.

Vice President ranking can not be communicated until after the Enron VP PRC 
currently scheduled for July 31st.  I anticipate a similar process as above 
with our officer feedback process.  Associate and Analyst rankings can not be 
communicated until after the Enron A&A PRC currently scheduled for July 19th.

Other identified action items from the meetings include:
 a) the HR group will put together a "profile and performance book" for ENA's 
A&A's to ensure our representatives can augment performance information at 
the July 19th meeting;
 b) ENA will be aggressively attempting to retain highest performing A&A's to 
continue rotating within ENA;
 c) ENA will be holding an additional "off-cycle" A&A super-saturday for 
Houston and Portland in August to augment our capabilities in this area;
 and d) your HR representative is building a pipeline of outside employment 
candidates for your review each week.  Please review these resumes in a 
timely basis and let them know your interest or lack thereof.

Please communicate to your organization as appropriate.

Regards
Mark and Dave