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Organization

In 2009, Enel altered the Group’s organizational structure in order to increase the efficacy of a number of strategic processes; in particular:

  •  in the area of corporate functions:

    • the Group Risk Managementfunction was created and given the mission to ensure the effective implementation and management of the risk management process for the Group as concerns all financial, operational, business and other risks;

    • at the same time, the Finance function was grouped with Administration, Planning & Control, which was then renamed Administration, Finance & Control;

  • in the operations area, the Upstream Gas unit was created, reporting directly to the chief executive officer, with the mission of developing and managing the upstream gas segment for the Group.

Also within operations:

  • the organization, processes and procedures for the new Renewable Energy Division have been redesigned in line with the Enel Integration Handbook of 2008;

  • the organization and processes of the Sales Division have been redesigned in order to separate the processes of the free market from those of the enhanced protection market and to achieve greater efficiency in the organization and processes of the various sales chains;

  • work has continued towards achieving the functional separation of the distribution activities of the Infrastructure and Networks Division in line with unbundling regulations.

As concerns international operations, work continues on the integration and rationalization of the businesses acquired, particularly in Slovakia and Romania, while in Russia a new organizational structure for Enel OGK-5 has been defined.

In terms of integration, the following projects have begun:

  • Global in Enel, aimed at creating a new corporate intranet in order to promote the sharing of projects, culture and best practices within the Group, thereby enhancing the sense of team and involvement in company strategies;

  • Enel and Endesa Performance Improvement, aimed at creating value through initiatives to achieve synergies, implementing programs of operational excellence and aligning significant processes. One of the project’s objectives is to create a “coordination handbook”, i.e. a set of policies covering the processes of planning, coordination and control for which it is necessary to ensure the coordinated management between Enel and Endesa in terms of authorizations, the flow of information,timing, etc.;

  • Nine Points for Safety, aimed at improving the organization and processes for managing workplace safety.

Also ongoing is the project aimed at defining a new model for managing enterprise business processmodeling. This project has the ambitious goal of integrating the various methods of representing the Enel processes adopted by the line area, by auditing, by administration and by ICT. This integration will make it possible to keep the various methods constantly aligned, thereby achieving a significant benefit both in terms of compliance and in process definition, analysis and updating.

Finally, the Zenith project is continuing throughout the Group. This project is an essential point of reference in the programs of operational excellence and contributed to taking the Group’s performance for 2008 to levels of excellence. In 2009, in the current climate of great economic uncertainty and so as to make another leap forward in process excellence, the Zenith project entered a new phase which has led to the definition of new actions and to the extension of the project to all of the Group’s new businesses, for a potential improvement of some €2.7 billion over the course of 2009-2011.