============= Page 1 of 10 ============= Enron's Culture Confidential and Proprietary EXH063-00347 0 GOVERNMENT EXHIBIT 4125 Crim. No. H-04-25 (S-2) ============= Page 2 of 10 ============= Culture Committee Status Committee formed in late March combining Vision/Values, Diversity and Social Responsibility Task Forces Initial group discussions centered around addressing the following issues: PRC Diversity Leadership Abilities Management Skills WorkLife Balance Integrity Group chose to focus on Leadership/ Management/Diversity in addition to Social Responsibility which Kelly Kimberly was already driving Discussions with Jeff steered us to focus on Meritocracy/Sell PRC/Diversity Identified actions in those areas to be presented on September 61h to OTC Management changes in August presented an opportunity to survey employees to determine what issues were most important to them and validate our action plans Confidential and Proprietary EXH063-00348 ============= Page 3 of 10 ============= "Lay It On The Line" The objective of the survey was to understand the overall morale of the employees, the issues they see as critical, and the employee attitude towards Enron's overall image. Demographics of who responded: Total responses 4,013 (20% of employees) Respondents Total Population Functional 32% Commercial vs 12% Responsibility 68% Non-Commercial vs 88% 58% 1-3 years vs 61 % Tenure 23% 3-8 years vs 20% 19% Over 8 years vs 19% 5% VP & Above vs 2% Title 35% Mgr to Sr. Dir. vs 17% 47% Clerical / Sr. Spec. vs 50% 13% Associate/Analyst vs 11% What Employees Like: 3,536 Comments Confidential and Proprietary Other Issues: 2,267 Comments EC24554A0030067 EXH063-00349 ============= Page 4 of 10 ============= To what ..tent do you agree with these statemeni_ Enron is a company I would Lay It On The Line invest my money in. I would recommend Enron Lay It On The Line as a place to work for Pulse 2000 friends and family. High Pert. Norm 2000 Lay It On The Line I am treated with respect. Pulse 2000 High Perf. Norm 2000 Executive Management has Lay It On The Line a clear view of where Enron Pulse 2000 is going and how to get there. High Pert. Norm 2000 My immediate supervisor has Lay It On The Line a clear view of where Enron High Pert. Norm 2000 is going and how to get there. I have talents and skills Lay It On The Line that Enron is not fully High Perf. Norm 2000 utilizing. Enron truly encourages Lay It On The Line people to take risks. High Perf. Norm 2000 I am committeed to staying at Enron. Lay It On The Line High Perf. Norm 2000 0% 80% EXH063-00350 10% 20% 30% 40% 50% 60% 70% ============= Page 5 of 10 ============= Compaq. _, 2001 to 2000, to what extent would yoL ssociate these attributes to Enron? Entrepreneurial Innovative Self-Serving Ethical Trustworthy Concerned for communities Arrogant EXH063-00351 0% 10% 20% - 3n°~----dn1o____sn1,____~ % 70% 80% 90% 100%  More 0 Uncertain  Less ============= Page 6 of 10 ============= From thc...st of issues facing Enron, please identi,, the top 5 that you think need to be addressed in the next 12 months. i --ATM RICE ~A NTERNAL EMPLOYEE MOR L~ PRC EXTERNAL REPUTATION AND IMAGE "WALKING THE TALK" OF INTEGRITY AND RESPECT CALIFORNIA DABHOL THE NEED TO BALANCE WORK AND PERSONAL LIFE GENERAL MANAGEMENT ABILITY EXECUTIVE LEADERSHIP ABILITY COMPENSATION AND BENEFITS RETURN ON INVESTED CAPITAL CUSTOMER RELATIONSHIP MANAGEMENT;THE WAY WE MANAGE AND HANDLE CUSTOMERS MANAGEMENT COMMUNICATION OF IMPORTANT BUSINESS ISSUES AND CHANGES RISK ASSOCIATED WITH SOB MOVEMENTS FOLLOWING RECENT LAYOFFS AND REDEPLOYMENT CLASS SYSTEM - COMMERCIAL VS. COMMERCIAL SUPPORT INTERNAL COST SAVINGS PROCEDURES OTHER WORK ENVIRONMENT PACE OF DEREGULATION DIVERSIy COMMUNITY AND ENVIRONMENTAL RESPONSIBILITY SAFETY IN THE WORKPLACE I 0% 10% 20% 30% 40% 50% 60% 70% I  Commercial  Other Professional and Technical Services 1 ECY4550R0030065 EXH063-00352 ============= Page 7 of 10 ============= Priority of Top 5 Employee:-,Concerns ISSUES IMME 1 1ATP'AC IONS NEXT STEPS NEXT 1N E K % 30 TO 60 DAYS STOCK PRICE ......... C --Forged ranking - Disclosure of rankings - Amount of time involved in process EMPLOYEE MORALE - PRC - Stock Price - Integrity - Restructurings - WorkLife Issues EXTERNAL REPUTATION 1 T GRITY - Layo s - Language - Leadership - Aggressive Acctg Confidential and Proprietary •Koen - Eliminate forced rankings - Disclose all rankings - Eliminate midyear PRC; for feedback only - Rollou what "Excellence performance" means restructurings/layoffs outside of theP_C roo A nounce the Ito Sabbatical rogram orm employee focus gro s- to identify additions causes of orale issues Kean 1 -Communicate that we will provide upper management with to ividua _c c ing r ommunirat tha prom on ~~MR and above `will be andled) \ -§- pirately from PRCwith gem hasis on jeade_r 1p_skills 4~~o .Koenig •Look at Functional versus Business Unit reviews -Use employee committee to i recommend changes to the non-commercial process •Review VP PRC committee to insure adequate representation •Gather info from Focus groups and Implement actions to address issues such as: •Teleworking •Flexible Work Arrangements •More vacation •Flexible Fridays Kean -Identify List of Management Committee Must Do's -Identify incentives to encourage leadership skills in upper management -Share w/ employees how we make money -Determine what change in the Incentives need to occur that encourage aggressive accounting EC24550A0030066 EXH063-00353 ============= Page 8 of 10 ============= Most Frequent Issues & Concerns From Written and Verbal Comments PRC Process Alignment of Rewards Strategy & Executive Leadership Direction Ability People Internal Business Management Processes Diversity Tell the Bad News Confidential and Ptopdetary 0 EXH063-00354 ============= Page 9 of 10 ============= ~1 > Things People Like About Working ct Enron 4100 Ken's Back The People Accountability Compensation Con/ldenllal and Proprlelary Energy Level The Opportunities Excellence Culture - Anything is Possible Being Empowered Working for a Great Company Benefits Freedom maw %% EXH063-00355 ============= Page 10 of 10 ============= Next Steps  Send out employee communication next week regarding survey results Identify Top 5 issues and what we are doing immediately   Start working 30 -- 60 Day Action Plan Form team to address all employee concerns Goal is to have these plans in place by December Conlldenllol And Proprietary 0 0 Develop Employee Focus Groups to continue dialogue (Current Culture Committee to facilitate Focus Groups to get Employee Feedback) Survey again in March EXH063-00356