Enron Mail

Subject:Business-Wide Cost Saving Opportunities
Date:Tue, 12 Jun 2001 07:06:00 -0700 (PDT)

At Enron, we=01,re good at a lot of things: making markets, commoditizing=
products, managing risk, offering innovative energy solutions to customers =
the list goes on and on. However, one of the things we could do a lot bett=
is watching our expenses. We=01,re all shareholders in this company, and w=
need to spend our company=01,s dollars as wisely as we spend our own.

There are some simple, yet significant measures each of us can take to make=
sure we=01,re careful with Enron=01,s money. The Policy Committee has appr=
oved and=20
recommended the following:

? Professional Services =01) This is our largest area of discretionary spen=
at more than $600 million last year. =01&Professional Services=018 includes=
contracts with outside law and accounting firms, contractors and other=20
consulting groups. To make sure that we are negotiating the best rates and=
terms of service for the company across business units, we are requiring al=
future professional service contracts and those up for renewal to be=20
negotiated through or in consultation with Global Strategic Sourcing (GSS),=
effective July 1. In addition, contracts for more than $5,000 must be=20
pre-approved by the business unit senior executive or their designee and=20
GSS. For more information, see http://ibuyit.enron.com.

? On-line expense reporting tool XMS =01) XMS, our online expense reporting=
tool, enables us to expedite, monitor and report expenses. Effective July =
all employees on domestic U.S. payroll will be required to use XMS for=20
reimbursement of business-related expenses. To access XMS, go to=20
http://xms.enron.com/. =20

? Enterprise wide portal =01) We currently have 122 internal web sites acro=
the company. The amount of technology work, marketing collateral, and othe=
related costs required to develop and support so many portals is sizeable. =
It makes sense to have one Enron portal so you can efficiently access conte=
and services through a single, personalized channel that will make it easie=
for you to find information and perform basic tasks online. This new=20
company-wide portal, under the leadership of Tony Mends, will be launched i=
several phases beginning this fall. =20

Another significant area where we can be more diligent in our spending is=
travel and entertainment. Enron has long had travel policies in place. As=
we have grown, we have not done as well as we should have in communicating=
those policies to new employees and reminding all employees to take advanta=
of the discounts we have negotiated. The availability of discounts and=20
booking services online should make it easy to save money for the company=
without sacrificing the comfort of employees who travel. The following are=
common sense recommendations that we should all adhere to when traveling fo=
business. Any regular deviations from these travel policy recommendations=
will be reviewed by each business unit leader.

? Air travel =01) Employees are requested to use either Travel Agency in th=
Park (TAP) or the GSS-approved preferred travel agency for your location -=
all of which have access to the significant airfare discounts negotiated by=
GSS - or http://clicktrip.enron.com/enron, the new online travel booking=20
service that allows employees to book their own travel with the same=20
negotiated discounts. Employees who fly in the United States should book=
non-refundable coach tickets, which are typically 65 percent less than=20
refundable tickets and can usually be changed by simply paying a $100 fee. =
For this reason, we strongly encourage all employees to purchase=20
non-refundable domestic coach tickets when possible.

? Lodging =01) GSS has also negotiated preferred rates at a number of hotel=
chains in many cities worldwide to accommodate each business unit=01,s=20
individual hotel policy. We recommend that you use Enron=01,s list of pref=
hotels to select accommodations that are in line with your business unit=01=
policies. You can view the list at http://travel.enron.com.

? Car rental services =01) When renting a car for business travel, employee=
should use our preferred car rental agencies =01) National (U.S. and Canada=
) and=20
Alamo (U.S.)- since the agreements we have negotiated are intended to prote=
you and Enron through the insurance coverage in our contract. Visit=20
http://travel.enron.com for details and updates to services available outsi=
the U.S.

? Off-site meetings =01) All domestic-U.S. off-site meetings and events wit=
more than 10 people should be coordinated through GSS, which will negotiate=
preferred rates for Enron. They can be reached at (713) 646-8311.

Because there are differences between business units and offices, each=20
business unit leader will follow up this memo with a communication further=
elaborating on these policies as they apply to their business unit.

Each of us has a responsibility to make sure we do our part to ensure Enron=
retains its competitive edge. These recommendations are some basic, sensib=
actions we can take company-wide, but it is up to every employee to look fo=
cost saving measures and do what makes sense in your daily activities. If=
you have an idea or a suggestion you would like to share with us, please=20
e-mail us at recommendationsforcostsavings@enron.com. A list of questions=
and answers about these policies is posted on=20
http://ibuyit.enron.com/gss/ibuyit/csfaq.doc. If you have additional=20
questions, Policy Committee member Kevin Hannon will host an eSpeak on=20
Tuesday, June 19 at 10 a.m. Houston time to discuss these cost saving=20