CenterPoint Energy

1. Draft for Discussion CenterPoint Energy Becoming Network of Choice… Continuing the Customer Service Momentum Phase II: Action Planning and Implementation March 21, 2004

2. Table of contents • Your terms of reference (TOR) • Key assumptions that drive the work and the cost estimate • How to do the project • Typical work plan and milestones • Deliverables and work products • Representative project team biographies

3. Network of Choice – Business Benefits As CNP becomes the Network of Choice... Customers: • view CNP as “the” standard when it comes to customer satisfaction • select CNP for the unique value they receive vs. other pipes • publicly endorse and actively refer CNP to others Market demand for CNP services pulls CNP into new geographies Competitors seek to replicate CNP practices Employees view CNP as the Employer of Choice and are CNP advocates Investors regard CNP as the Investment of Choice due to our: • ability to leverage intangible assets and • “non-utility”growth potential

4. Phase II Phase II: Action planning and implementation Phase III: Tracking and Sustaining Phase I Findings 8-10 weeks 2-3 weeks 4-5 weeks 4 weeks A Analyzed key stakeholders Analyzed customer-facing employees Analyzed key customers 1 Complete customer analysis and segmentation Conduct more customer interviews 4 Clearly define customer service, responsibilities & next steps to operationalize roles Conduct employee training simulations Refine incident log and other measurements Complete the business case Apply Business Model to define CNP success drivers for each customer segment Define business case criteria for improvements Define requirements for CRM system, and KPI system Map CNP internal systems to meet employee needs 6 Engage Field Services and Pipeline Services Identify all customer facing processes & owners – by segment Coordinate with Millennium (and other) projects 2 5 B Redefined Mastio attributes to factors important to CNP and their customers Defined Business Model: Level 1.0 and 2.0 Define Phase III steps, cost-benefits and CNP capabilities needed 7 C Defined gaps vs. CNP objective to be “Network of Choice” … More than transaction improvement … Must change the game by new customer value propositions 3 Creating & sustaining the CSM change - with customers, employees and management Initiate specific communications, forums, recognition and accountability steps Process Organization Gap Analysis Strategy Technology

5. Bringing it all together Assess AS IS Plan TO-BE Processes Define A Solution Architecture 0 Mobilize project Define key processes and closing cycles 3 7 Interviews and cross functional work sessions to design “To Be” functions • Define • Process details • Org roles & responsibilities • Technology features 9 11 Define solution architecture Define a business model picture 1 Recommend best “acceptance” option 12 8 Best practice investigation • Evaluate Processes • Reports • Closing Timetable • Org Structure, e.g., S/S Group Technologies • Governance 2 4 Catalogue reports 13 Develop next stage work and timing Define key organizations and roles 5 10 Assessother key related initiatives 6 Catalogue current (formal & informal) systems 14 Manage change • Assess change barriers

6. Typical work plan milestones Project Step W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 Mobilization and Discovery Team & User Interviews Process Interviews and documentation Reports Other BP Best Practices Organization Characteristics Roles & Responsibilities System Features & Requirements Technology Future State Workshop Gap Analysis Roadmap – Implementation Plan Project Mgt & Communications Steering Committee Meeting Workshops

7. Deliverables • Business case for the IFPO project • “To Be” process maps • Integrated closing timetable • Recommendations for improvement • Coordination with the Shared Services areas • Local team skills (and confidence) enhancements • JDE input and reporting • Implementation plan • Performance management and scorecarding for alignment with Country objectives and continuous improvement • Other work products • As-Is process maps • Interview notes • Best practices documentation

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