Certainly if we are able to generate revenue, that will be a great offset to 
our expenses.  At this point, we are working on a best, worst and most likely 
case for a revenue model, plus getting some teeth behind our up front costs.  
With this info, we can size the potential and then decide how to proceed.  

My first note to you around disbanding Joel's group was the best overall 
summary of reasons to disband the team.  In addition, Joel and his team had 
recently spent a couple of hours updating my direct report team on the 
projects in which they were involved.  The update had the exact opposite 
effect that Joel wanted, I am sure.  After the two hour session, it appeared 
to me that the team was probably overstaffed and still adding to its girth, 
fulfilling IT's roles in some cases, not communicating with the rest of my 
direct report team (if your role is be a liaison, then communication is a 
necessary component of the role), struggling to create a role for themselves, 
etc.  If my reaction had been to say "what a talented group - we have to 
figure out how to best utilize them", then the outcome might have been 
different.  But I also had concerns over quality of staff as well.  That two 
hour exposure created so much concern on my part that we were incurring costs 
for the team without commensurate value, that I couldn't in good conscious 
make any other decision after further investigation.  --Sally 




Mike Jordan
02/27/2001 01:29 AM
To: Sally Beck/HOU/ECT@ECT
cc:  
Subject: Re: Disbanding of Joel Henenberg's Team  

Thanks for this - given volume increases and our need to develop and test new 
systems that is a stretch target !! I have a similar focus here in Europe and 
am currently meeting Michael Brown & Fernley on a 3 week / monthly basis to 
assess progress.

Have you considered anything on the offsite as of use for this objective ?

Mike


   
	Enron Capital & Trade Resources Corp.
	
	From:  Sally Beck                           27/02/2001 01:01
	

To: Mike Jordan/LON/ECT@ECT
cc:  

Subject: Disbanding of Joel Henenberg's Team

I have a stretch goal for the operations budget under Enron Americas to 
reduce costs by the end of the year.  To this end, I have recently studied 
possible options for reaching the targeted savings.  To make the best 
decision on this, I have reviewed functions within my team on the basis of 
core versus non-core functions, and the inherent cost versus value 
proposition.

As a result, I made the decision last week to disband Joel Henenberg's team.  
To fulfill the role of Joel and his team in leading IT initiatives, we will 
lean on the appropriate IT project managers and the business sponsors/end 
users.   

Joel and his team were told of this decision on Friday afternoon last week.  
Our HR rep spent some time with the team explaining the corporate 
re-deployment service that they all will be working through over the next few 
weeks.  
Let me know if you have any questions regarding this.  While it was a tough 
decision, I feel comfortable having made it.
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