Management Insights (continued)

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Outsourcing - A Panacea, or a Path to Customer Dissatisfaction?
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Outsourcing can be a sound business move, but it can also become a CEO's personal nightmare. While the principal reasons for outsourcing remain relatively stable, none of them excuse the abdication of customer service responsibility. Senior management should not expect to be relieved of the business responsibility to monitor, evaluate and control subcontractor performance for both internal and external customers.

Briefing Employees on Financial Education and Retirement Planning Makes Sound Business Sense
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Studies show that most employees are ill prepared to assume responsibility for retirement needs, exposing both employees and enterprises to adverse and costly impacts. A strong business case supports instituting an ongoing employee financial education and retirement planning program (FE&RPP).

The Jointly-Owned NucOpCo - Formation Barriers & Difficulties
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The concepts of "cost sharing" and leveraging "lessons learned" are sound and should be very appealing to nuclear plant owners faced with a very robust and competitive power generation market. However, significant barriers exist in addressing generating unit differences, assuring adequate executive oversight and completing thorough analysis and planning. These barriers stand in the way of executive and board action.

The Jointly-Owned NucGenCo - Formation Issues & Considerations
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Nuclear Generating Companies expand conceptually on the Nuclear Operating Companies discussed in an earlier Management Insight. Substantial benefits similar to the "JNOC" may be available to the owners of a "GENCO", with the important addition of risk sharing of both costs and generation output. However, these added benefits present additional opportunity for formation risks, imbalances and disincentives.

Utility Diversification into Telecommunications
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Electric Utilities have potential opportunities to expand their service offerings outside of traditional generation and distribution, and may be in a good position to provide a broad range of telecommunications services. This article focuses on the "pluses" in the value generation and executive decision making processes.

Utility Telecommunications - Now or Never
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Technological, cost and business/marketplace risks exist for utilities considering entrance into telecommunication offerings. A proposed rationale for entrance is presented, with the caveat that the window of opportunity may be closing rapidly.

Due Diligence in Asset Acquisition - Overlooked Valuations
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Key areas of the due diligence process are summarized. One particular area of potential valuation, the value proposition brought forth by management in the merger, is often under-emphasized. A "Management & Culture Review" process step, with attendant key success factors, is presented as a method to improve overall due diligence and merger success.