Here is my cut at it.  We may want to re-arrange   
 -----Original Message-----
From: 	Oxley, David  
Sent:	Monday, October 29, 2001 2:45 PM
To:	Olson, Cindy; Corteselli, Gina; Inglis, Elspeth
Cc:	Jones, Robert W.- HR Exec; Cash, Michelle; Joyce, Mary
Subject:	Draft ENE OTC Memo Re. y/e PRC

Spoke with Delainey this morning he suggested I draft below and send to him and Greg. Can you help critique (in particular I think this is too detailed);


******************************************************************************************************************************

To: All ENE employees (bar EEL)
From : ENE OTC
Re: Year-end Performance Evaluations, Promotion Nominations, PRC Meetings and Annual Bonus process.

Many of you have asked for clarification on upcoming  changes to the PRC which were announced as a result of the  Lay-it-on-the-Line survey.  We have outlined the process and changes below to provide you with a clearer picture of how it will be administered for year-end 2001.  Additional communications will follow from each of your BU OTC's or Functional leads regarding the specific details the process as it affects each BU and Functional area. 


Feedback and Performance Evaluations
The ENE OTC believes strongly that all employees should receive a written evaluation summarizing their achievements over the last 6 months and illustrating successes and constructive areas for development and opportunity. We do not intend for the written evaluation to replace the critical day-to-day communication, coaching and feedback that we expect supervisors to provide to all employees throughout the year.  Our 360 feedback process will be administered as follows: 

 Summary of Process	 Timeframe	 Applicable to	 Notable changes from the past	
360 degree feedback via PEP System 	System open 9 November through 30 November 	ALL full time/part time/reduced hours employees who joined Enron prior to 1 October 2001	None	
Managers collate feedback for final written performance evaluation- balancing their views with the data received in feedback   	Final evaluations due no later than 31 January 2002			
Final evaluation should contain any appropriate objectives for the next 6 months 				
								

Employee training on the PEP system and application will be available from 5-9 November.  Please contact XXX (Elspeth - who do we use as a POC? - GUS?)  to register. 

PRC Meetings and Promotion nominations
The Lay-it-on-the-Line survey memo outlined our desire to make some changes and refinements to the PRC process. Enron management strongly believes  in the value of regular discussions about our talent.  As a management team we need to review and identify what performance and skills are currently valuable at Enron, and, on a relative basis, where they are being demonstrated most.  Likewise we need to discuss deployment of our talent and identify who among our employees may be ready to assume a greater role in the organization.  Equally important is the identification of  areas where overall performance may be lacking. Continuing the PRC process is core to our desire to maintain a meritocractic culture and to identify new opportunities for employees. 
In this regard, and particularly in light of significant business matters we must attend to in the coming months the ENE OTC has directed Business Units and Functional areas to undertake a very limited number of PRC discussions. initial discussions with senior management indicated  a reduction to no more than  22 meetings in total, down from over 200 at the mid year 2001.
The refined PRC process will focus on the following:

Summary of Process 	Timeframe	Applicable to	Notable changes from the past	
Each BU or Functional area will  conduct one discussion to identify its top and bottom 10% of employees 	28 November - 14 December 	Managers and above and all Analysts and Associates 	No preferred distribution	
Criteria for discussions are: --Leadership potential  --Teamwork --Enron intrinsic skills    and qualities --BU/Functional area   specific measures	VP/MD discussions occur in mid-December	All other employees are not required to be discussed in this forum	Process not linked to employee feedback - no label attached to final written evaluation 	
Promotion nominations  to Senior Director decided by each BU/Functional area		Promotion recommendations for all other employees by supervisor to BU OTC or Functional lead	No longer primary driver of bonus process	
Results of meetings reviewed with the ENE OTC			Purpose of meetings is to identify promotion candidates; leadership potential, deployment of talent within BU's and Functional areas  	
Management Committee will convene to discuss VP/MD  candidates for Promotion submitted from each BU or Functional area			No cross calibration of employees at the Manager-Sr. Director level outside of their BU's or Functional areas.  VP/MD's will be cross calibrated across the company.  	
			No prescribed outcome on top and bottom 10% 	

						 		


Annual Incentive Plan and Equity Award process