Performance Management

Promoting an environment that champions high performance and crystal-clear accountability for each business, every manager, and all employees is among our biggest challenges. We've made a decent start and have developed scorecards of key business drivers to track progress. Our business scorecards, performance dialogue, and incentives are now aligned around the key value levers that drive to top-quartile industry performance. The senior leadership team has gone through an intensive assessment and development process, and a new performance management system is being rolled out to employees. Transforming the performance culture of a large organization like TXU takes time and a disciplined, consistent focus, but with the changes we have made and the quality and determination of TXU employees, we are well on our way.

This culture will require top-flight leadership. We have made substantial improvements in our officer group over the past two years. Over 50 percent of the officers who were part of TXU two years ago are no longer with your company. We have recruited more than 15 high-quality executives to head up strategy, retail sales, legal, operations, supply chain, and power plant development, to name a few. We have also promoted more than half a dozen hungry managers who spend each and every day improving this company. Overall, we have grown the earnings per share by 230 percent and market capitalization by 208 percent, and we did it with 20 percent less officers. Although this is a difficult area to precisely measure, I believe our management team is at least twice as good as it was two years ago, and we hope to double its strength and quality over the next three years. Grade: B+