Subject: Follow-up/Next Steps

Ken,  Let me expand on some of issues we covered in Houston earlier this week.
Some of this is outside my purview, but want you to have the benefit of my objective, outside, reasonably well-informed perspective.
Please call to discuss any of this at any time.
1.)
Establish your own internal advisory group to plan/coordinate all company actions during this period.
Meet/call with full group at end of each day to assess develoments, adjust strategies, set next day's actions.
In my view, that group should include:  Bowen, Derrick, Delainey, Frevert, McMahon, Tilney.
(I am happy to participate at any time.)
2.)
I'd assign specific tasks to this core group and other senior execs.
as follows:  	Bowen:  new IR point person.
Have him visit and re-visit sell-side analysts, provide update on status of core business, financing, promise ongoing communications, full disclosure, renewed commitment to candor, clarity.
(I can help prepare/advise him on this new role.)
Derrick: monitor SEC investigation, shareholder suits etc.
Keep tight leash on MacLusas and Wilmer Cutler.
Engage outside lawyers in discussion of SEC leak strategy, endgame and public relations implications.
(I have considerable experience in this space and would be happy to talk/work with Derrick to insure that the public face of this SEC investigation is seriously evaluated as part of Enron's SEC strategy.)
Delainey:  have him spend his time meeting, calling, talking with wholesale and retail customers.
Quite similar presentation to that Bowen delivers to the Street.
Humility, candor, commitment to continue serving customers should be core thematics.
Frevert:    have him devote his time to calling on, talking with international customers with similar messages to those delivered by Delainey.
Also have him take charge of wholesale review/potential revamp of Enron's performance review/comp programs.
(This is where Herb Allison, Merrill's former COO, could be helpful.)
McMahon:    he's your point person with lenders, ratings agencies.
I'd also have him work with Tilney to construct the clearest case statement possible explaining Enron's strategy for is core businesses and why they are so compelling.
Suggestion:   Irwin Stelzer is the single best writer who can simplify complex issues that I know.
He' s offered to help.
I encourage you to have him see whomever he needs to see and then write the Enron business strategy story.
He'd also be a great spokesperson and advocate with Wall Street.
Might be worthwhile having Bowen take Irwin to a few key meetings with sell-side analysts.
I think Irwin would be a huge asset in that role.
Tilney:	    have Beth make sure that every communication from Enron, internally and externally, is clear, concise, candid and responsive to each audience's needs and expectations.
She should manage Mark Palmer and his staff, Kekst people and any other communications resources (internal and external) that should be brought to bear druing this period.
Whalley:   have him spend all his time with your traders and those among counterparties with whom he is a critical factor.
I'd keep him away from the Street and from the media.
Kean:	   have him focus solely on regulatory and legislative audiences.
He should personally work federal and state regulators, Capitol Hill (members and staff) and present updated presentation about the company's business, status of financials, status of internal reviews and SEC investigation.
I do think Steve's core presentation should be vetted carefully by Derrick, McMahon and Tilney before he goes on the road.
Palmer:    I'd leave it to Tilney as to whether Mark should continue as principal spokesperson for Enron.
Don't know if Tilney's right, but I do think you need a new face and voice to the media.
Koenig:     I'd pull him back, have him work under Bowen to craft/refine presentations to the Street (in close coordination with MacMahon and Tilney).
As we discussed, I think Koenig is damaged goods on the Street right now.
Lay:	 I think you should  act as the general who sets strategy, deploys your senior human assets and motivates your troops.
I think you should orchestrate every strategic action of the company,  talk regularly to employees, selectively call on strategic customers,  and reassure the world that Enron touches that you are "in charge,"  "hands on," and doing "everything possible" to guide this damaged ship into safer waters.
3.)
Encourage the board Special Committee to prepare an Executive Summary of its report to you and the board that is entirely suitable for public consumption.
(I would be happy to help craft and edit that document.)
Assuming the report fundamentally exonerates the company, this is a critically important document.
You must assume that this report will become public eventually.
It is be prepared and submitted with that clearly in mind.
4.)
Retain a second investment bank to augment Goldman.
My suggestions: talk with Jeff Holzschuh at Morgan Stanley or Bruce Wasserstein at Dresner Kleinwort Wasserstein.
Lehman's top energy people are gone and I think Rick Gordon/Merrill is seen as too close to you.
I've gone on too long.
Let me know how I can be specifically helpful to you and/or your colleagues.
I'll stay in touch via voicemail or e-mail if and as I have specific tactical suggestions.
I've available to you or your colleagues  at any time.
Harry