latest draft attached latest effort entailed fairly drastic restructuring reorganization earlier draft revision effort directed improving focus paper new story following 1 enron formed regulated gas pipeline company mid eighties 2 economic competitive conditions conspired force dramatic reorganization company almost immediately result creation new unregulated energy trading operation strategy new unit capitalize business opportunities deregulation markets occuring time mid eighties 3 business model adopted new unregulated business gas bank analogy commercial bank posed difficult problem enron management source liquidity market central bank authority consequence enron develop elaborate risk management procedures 4 another consequence new business model required different set employee skills talents specifically required bright energetic innovative individuals capable identifying entrepreneurial opportunities starting new businesses furthermore new flatter organizational structure entailing decentralized decision making required facilitate quick response changing market conditions monitor manage new empowered labor force required firm develop new personnel policies procedures 5 three primary tools personnel management adopted measure performance semi annually ii tie compensation closely performance iii allow personnel free movement within enron seek best opportunities 6 attributes enron model include consideration asset optionality recognition value networks adding value trading platforms use mark market accounting business transactions means ensuring transparency promoting prompt actions story line sounds better draft attached last thing written rate look forward hearing comments getting wrapped thanks look forward seeing february john enron _ paper _ 1 _ 26 _ 01 doc john martin carr p collins chair finance finance department baylor university po box 98004 waco tx 76798 254 710 4473 office 254 710 1092 fax j _ martin baylor edu web http hsb baylor edu html martinj home html