Positioning for Growth Evaluation of Roles & Responsibilities Integrating Roles Workshop

1. Positioning for Growth Evaluation of Roles & Responsibilities Integrating Roles Workshop Houston, August 14, 2006

2. Suggested Approach Sequence: • Organization Guiding Principles • Group Level Customer Excellence Key Indicators • Current Roles & Organization Structure • Clarification of Gray Areas - Exercise • Application of the Responsibility Matrix • Steps to Complete Review of the Organization

3. Guiding Principles • A customer focus facilitated by our customer excellence approach • Structure that has checks and balances • No mavericks, cowboys or similar type individuals • A balanced structure with defined/appropriate responsibilities, accountabilities and ownership • Taking ownership in the business is not only about the individual or the individual’s department but, more importantly, is defined by and tied to the success or failure of the organization as a whole. Therefore, activities which limit communication of information from one area to another or working in a silo mentality may allow one person to meet their specific objectives, but they do not meet the overall objectives of business ownership • Innovative/flexible work product and environment • Most of all . . . Communications among the groups • Allow the informal organization to thrive and not be impaired by the formal organization

4. Group Level Customer Excellence Key Indicators

5. Senior Vice President and Chief Commercial Officer A D CEGT/MRT Vice President Of Marketing B Vice President Of Business Development C Director of Financial Analysis And Planning Director Customer Strategic Development E (Generally capital related) 1. Develop New Business - SESH - C-P - MCX - Others as they develop 1 Manage core capacity A. System control - On/off Mkt B. Contract Admin Micro/Macro Supply & & Capacity studies 1. Integrity of economic model 2. Supply attachment 3. BD and Project support 1. Customer excellence 2. Client services 3. Special projects - Large customer needs - Interface w/CEFS - Coordination between groups 4. EC interface Integrating Roles & Gray Areas Worksheet F - Rate/Regulatory - IT Function - Acc’t / Budgets Support roles pertaining to areas above: 1. Rate/Regulatory 2. IT 3. Acc’ts & Budgets 1. Are you responsible (Formally or informally) for any other functions??? 2. Gray Areas Exercise… Who do you spend most time coordinating with to get your key functions done?

6. Responsibility Matrix - Example 2. Gray Areas Exercise… Who do you spend most time coordinating with to get your key functions done? Are your respective roles clear? If not, where not?

7. Planned Next Steps • Discuss and define organization roles with direct reports • Clarify “gray areas” in roles and responsibilities with responsibility matrix • Using the CE indicators, prioritize activities and tasks to allow employees to spend more time with customer issues and/or customers • Define a “Top down” cascaded set of measures that helps integrate the activities of the functions • Managers to then define roles & job description within each department • Change roles and develop rotation plan as necessary by examining the organization and work content to ensure current and future workload has efficiency, clarity and balance to meet all of our changing needs • Communicate results to the entire organization