2800.2000-11-08.farmer.ham.txt 11 KB

123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135136137138139140141142143144145146147148149150151152153154155156157158159160161162163
  1. Subject: organizational changes
  2. we are making a number of significant organizational changes . these changes
  3. are intended to accomplish four key objectives :
  4. first , we need to realign all our wholesale businesses around the successful
  5. business model developed over the last decade in north america and europe .
  6. this model relies on extensive physical and transactional networks built
  7. around a relatively small strategic asset position .
  8. second , we need to significantly streamline corporate reporting
  9. relationships . particularly with joe sutton  , s departure , the ability to
  10. directly manage the day - to - day activities of 15 independent business units
  11. has become increasingly difficult .
  12. third , we need to accomplish these changes without , in any way , compromising
  13. the ongoing profitability of all our businesses and without delaying or
  14. hindering our effort to monetize a significant portion of our lower - yielding
  15. asset positions .
  16. and fourth , as always , we need to take advantage of the reorganization to
  17. redeploy our talent into our highest value opportunities .
  18. enron wholesale services
  19. today , we are forming enron wholesale services ( ews ) which will consolidate
  20. our global wholesale businesses . the closer alignment of our wholesale
  21. businesses will accomplish the following : ( 1 ) enhanced communication and
  22. coordination across business units , ( 2 ) more rapid deployment of people to
  23. higher valued opportunities , ( 3 ) more effective prioritization of
  24. opportunities across the wholesale business , and ( 4 ) more rapid extension of
  25. enron  , s wholesale business model and capabilities into new industries and
  26. markets .
  27. enron wholesale services will include our current north american , european
  28. ( including japan and australia ) , global markets , and industrial markets
  29. operations , and will be expanded to include enron  , s net works business unit
  30. as well as a new unit  ) enron global assets . in addition , enron  , s merchant
  31. businesses outside of north america and europe will be integrated into this
  32. new structure as described below .
  33. mark frevert , currently chairman of each of our wholesale units , will assume
  34. the role of chairman and ceo of enron wholesale services . greg whalley ,
  35. currently chairman and ceo of enron net works , will join mark in the office
  36. of the chairman as president and chief operating officer .
  37. providing further impetus for these organizational changes , several of our
  38. international business unit leaders have elected to move into new leadership
  39. positions :
  40. rebecca mcdonald , currently ceo of enron apachi , will join ews as president
  41. and ceo of enron global assets . enron global assets will have responsibility
  42. for managing all of enron  , s existing energy asset portfolio outside of north
  43. america and europe . joining rebecca in the office of the chairman as coo
  44. will be jim hughes , currently coo of enron apachi . rebecca and jim will
  45. report to the ews office of the chairman .
  46. sanjay bhatnagar , currently ceo of enron india , has joined ebs as ceo for the
  47. middle east and asia region . sanjay will be responsible for building our
  48. broadband business in this region and the current ebs team in this region
  49. will report to sanjay . in this role , sanjay will report to the ebs office of
  50. the chairman . in addition , sanjay will continue to remain responsible for
  51. enron  , s wholesale energy business in india and will transition this business
  52. into enron global assets in the near future .
  53. diomedes christodoulou , currently co - ceo of enron south america , has joined
  54. ebs as chief commercial officer . diomedes will be located in london and will
  55. focus his origination activities on global opportunities , with near term
  56. attention to the wholesale and enterprise sectors . diomedes will report to
  57. the ebs office of the chairman .
  58. jim bannantine , currently co - ceo of enron south america , will be joining ees
  59. to lead ees  , commercial efforts outside north america and europe . in order
  60. to ensure a smooth transition for our south american businesses and to
  61. facilitate our asset sales activities , jim will remain in south america for
  62. at least the next several months and continue to serve as ceo of enron south
  63. america . throughout the transition , jim will report to cliff baxter and to
  64. the office of the chairman of enron wholesale services . following the
  65. transition , jim will join ees .
  66. in addition to these changes in our international asset operations
  67. activities , we are making the following changes in our merchant wholesale
  68. businesses and the commercial support functions :
  69. enron net works
  70. louise kitchen will assume greg  , s previous responsibilities as president and
  71. ceo of enron net works , reporting into mark and greg .
  72. enron americas
  73. concurrent with the transfer to enron global assets of responsibility for
  74. operating enron  , s south and central america asset base , all trading ,
  75. marketing , and new asset development activities in these regions will report
  76. into a new entity , enron americas . enron americas will have responsibility
  77. for all wholesale merchant businesses across north , central and south
  78. america . dave delainey , president and ceo , and john lavorato , chief
  79. operating officer will comprise the office of the chairman for enron
  80. americas .
  81. enron europe
  82. the enron europe organization , which includes enron  , s businesses in australia
  83. and japan , and enron metals , remains unchanged under the leadership of john
  84. sherriff , president and ceo , and michael brown , chief operating officer .
  85. enron global markets
  86. enron global markets , under the leadership of mike mcconnell , president and
  87. ceo , and jeff shankman , chief operating officer , will continue to have
  88. responsibility for enron  , s middle east and lng operations . with the
  89. exception of ecoelectrica in puerto rico , all operating power plants and
  90. associated personnel in the caribbean and central america will transfer to
  91. enron global assets . enron global markets will also continue to manage the
  92. commodity businesses in crude and products , coal , weather , insurance ,
  93. equities , interest rates , foreign exchange , and agricultural products .
  94. enron industrial markets
  95. enron industrial markets  , organization , under the leadership of jeff mcmahon ,
  96. president & ceo , and ray bowen , chief operating officer , remains unchanged .
  97. commercial support for ews
  98. the commercial support functions for ews will remain with , and be managed by ,
  99. the individual business units . we are creating no incremental overhead in
  100. the creation of ews , and in fact hope to reduce our operating costs by more
  101. efficient utilization and sharing of resources across ews .
  102. to this end we have asked several people to take on an expanded role across
  103. ews in addition to their ongoing roles within their business units . these
  104. newly defined roles are as follows :
  105. mid and back office operations  ) sally beck will lead mid and back office
  106. operations across ews . these services will become part of enron net works ,
  107. with sally reporting to louise kitchen and rick causey , executive vice
  108. president and chief accounting officer . this alignment creates a coordinated
  109. services organization with it and e - commerce platforms to support the
  110. wholesale businesses and to maximize opportunities to commercialize these
  111. services . mid and back office services for all commercial activities will
  112. continue to be organized with dedicated operations controllers responsible
  113. for specific commodities and / or geographic locations .
  114. legal  ) mark haedicke will serve in the role of general counsel for ews .
  115. regulatory and government affairs  ) this function will remain organized on a
  116. regional basis . rick shapiro will support all ews businesses operating in
  117. the americas , and mark schroeder , who is based in london , will support all
  118. european and eastern hemisphere operations . rick and mark will also continue
  119. to support all other enron businesses operating in their respective regions
  120. and will continue to report to steve kean , executive vice president and chief
  121. of staff .
  122. public relations  ) this function is also organized primarily on a regional
  123. basis . eric thode will have responsibility for north american activity ,
  124. enron net works , and enron industrial markets . jackie gentle will continue
  125. in her role for enron europe ( including japan and australia ) and john ambler
  126. will have responsibility for activity outside north america and europe as
  127. well as providing support for enron global markets and enron global assets .
  128. these individuals will also continue to have a split reporting relationship
  129. to mark palmer , vice president of communications .
  130. business analysis and reporting  ) wes colwell will expand his role to cover
  131. ews reporting in addition to his current role in north america .
  132. attached for your review is an organization chart for enron wholesale
  133. services which summarizes the changes described here . as this organization
  134. continues to evolve we will keep you informed of any additional changes .
  135. enron global exploration and production
  136. and enron wind
  137. as part of our company - wide initiative to examine our assets and investments
  138. around the world , we are considering a variety of options with respect to
  139. egep and ewc . as a consequence , we are putting these businesses under cliff
  140. baxter  , s direction . jeff sherrick , ceo of egep , and jim noles , ceo of enron
  141. wind , will report to cliff .
  142. corporate staff
  143. we are consolidating the corporate staff functions : human resources ,
  144. government affairs , public relations / communications and administration . in
  145. that regard , cindy olson , executive vice president of human resources and
  146. community relations , will report to steve kean , executive vice president and
  147. chief of staff .
  148. committee structure
  149. in light of the increased leadership opportunities created by enron  , s
  150. growth , the executive committee will be expanded to include more of our
  151. business unit leaders . the primary role of this committee will continue to
  152. be the communication of relevant information across enron  , s businesses and
  153. the coordination of activities across those businesses . we will also be
  154. drawing on this group to lead company - wide initiatives such as the
  155. performance review process and evaluation and creation of new businesses .
  156. the executive committee membership is shown on the attached list .
  157. we are also forming a new committee  ) the enron corporate policy committee .
  158. this group will be responsible for overall corporate policy , personnel
  159. management policy and corporate strategy . the enron corporate policy
  160. committee membership is also shown on the attached list .
  161. we are confident that these changes will align our talent and our capital to
  162. our highest return opportunities . please join us in congratulating and
  163. supporting all of these individuals in their new roles .