Memo from Office of the Chair

The mid-year Performance Management cycle will begin on May 15 with the=20
opening of the PEP system (the online "Performance Evaluation Process"=20
feedback system). You will be receiving your password for this system in a=
=20
note to go out later from PEP. In preparation for the cycle, four training=
=20
classes will be offered to all new employees and to those employees who hav=
e=20
not previously attended training. Enrollment for these classes will be=20
offered through the Development Center "Ernie" system. For employees who a=
re=20
outside the Houston area, please contact your HR Representative for more=20
information. =20

These sessions will be held on :

Wednesday, May 10 from 9:00-10:00 a.m., and three sessions to be held on=
=20
Thursday, May 11 from 9:00-10:00 a.m.; 1:30-2:30 p.m.; and 3:00-4:00 p.m. =
=20
All sessions will be held at the Doubletree Hotel. =20

To register, click on this link to go directly to the Development Center=20

For those of you who have attended the training before and who are familiar=
=20
with the past Performance Management Process, there have been some=20
modifications:

1. The Performance Management Process is now Enron wide. All Enron feedba=
ck=20
forms have been reduced to three (Vice President (VP)/Managing Director=20
(MD); Management/Professional; and Administration/Support), which all use=
=20
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=
=20
final feedback forms across Enron:=20
Superior
Excellent
Strong
Satisfactory
Needs improvement
Issues

3. There will be four recognized peer groups across the company for purpos=
es=20
of the PRC (formerly the Business Review Meetings) meeting.=20
? 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 promotio=
ns=20
to VP/MD at Mid-year
? Feedback to employee
? Compensation decisions
? Sharing of performance rating at Manager=01,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=
=20
employees to cover both solid and dotted line reporting relationships. =20
Functional PRC meetings will take place first, followed by the final busine=
ss=20
unit meetings. Difference in views on an individual employee=01,s rating s=
hould=20
be discussed and consensus should be reached. The functional area meetings=
=20
are:

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

6. The PEP system is now available via the Intranet to allow greater acces=
s=20
from global locations and remotely. The functionality is essentially the=20
same. If you would like further information on how to use this system you m=
ay=20
gain access to the quick reference guide by clicking on the attached=20
weblinkhttp://home.enron.com/announce/WebPEPQuickReference.pdf . If the=20
Quick Reference does not display correctly on your PC, call your Help Desk=
=20
for assistance, or Irma Alvarez at 713-853-1543 to get a hard copy.

7. The general responsibilities remain the same regarding the overall=20
process:=20

Employee/Reviewer Responsibilities:
Select 5-7 reviewers
Complete self-assessment=20
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 =20
June 9 PEP System closes for feedback =20
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=20
Process, you may contact your HR Representative.