Because of the diversity of Directors' views as to
specifically which approaches should be used to provide
better communication of the Corporation's image and position
to our various and differing constituencies, no detailed
agenda for unit activities is suggested here. In that
regard, it should be noted, moreover, that each unit is
.to function not only as an information disseminator, but
also as an intelligence gatherer. Hence, although the
communications activities of each unit can be expected
to include such common options as conferences, meetings,
correspondence, publications, telephone calls, and in-
formal gatherings and briefings, it is preferred that each
activity be tailored insofar as possible -- to particular
individuals and audiences and be based on a continually
improving awareness and understanding of our constituencies
and their needs.

Hence

It should also be noted here that all of the activities
of all of the constituency units must be integrated in
terms of content, packaging, timing, and approach.
it will be required that a close and continued relationship
with the Coordinator be maintained by all Task Force parti-
cipants for the duration of the Task Force activity.

PRESIDENT'S STATEMENT

CLOSED MEETING OF THE BOARD OF DIRECTORS
U.S. SYNTHETIC FUELS CORPORATION

January 20, 1983
Houston, Texas

INTRODUCTION

I will now discuss what I believe to be important considerations pertaining to two key areas with which all of us are concerned, namely, the need for improving Corporate communications and our intention to monitor more closely the development of the comprehensive strategy we are to submit to the Congress in only 17 months. At this time, I want to thank you again for making interview time available and for the forthrightness of your discussions with Bob Coughlan.

I have devoted considerable study to the concerns you expressed during those interviews concerns with which I concur, as I'm sure you know. A lot of work remains to be done before I can come to you with a fully developed plan for solving all of those problems; but I think it will be useful if I share with you now some of the approaches I am working on approaches which I believe will assist us in achieving more discernible progress toward timely. accomplishment of our goals both as a Board and as a Corporation.

-

First, regarding communications between and among members of the Board and, most particularly, between the "outside" Directors and the Chairman and it is clear that there is an urgent need to improve matters. As I see it, the problems are chiefly -

me

-

1.

2.

A requirement for more attention to the interests of all Directors by the "inside" Directors, and

A need for improvement in the mechanics of communication.

I think you will see that both of those deficiencies will be overcome by the measures I will propose for your consideration later in this presentation.

Second, regarding the Corporation's communications with our external constituencies, I am proposing that we, as a Board, with the assistance of selected Corporation staff, make a concerted effort - within the next 60 days to develop and implement a very comprehensive and carefully orchestrated communications process. I will outline for you today considerations I believe most important to the success of such a program. (To insure its effectiveness, the program will also address improvements in the Corporation's internal communications.)

President's Statement
Page Two

January 20, 1983

Third, I want to bring you up to date on what's being done relative to the recommended comprehensive strategy. As you may recall, I -- with your permission -- assumed direct responsibility for making an in-depth review of that activity; and I have made several important changes in how the staff is approaching that task.

Now, I will proceed to address some of the specific concerns we have.

COMMUNICATIONS BETWEEN AND AMONG DIRECTORS

At the Board level, as I mentioned, certainly there must be more attention at Corporation headquarters in making sure that all Directors are kept fully informed at all times. We on the "inside" are committed to doing a better job at that.

Another important step we can take not only will help us keep everyone better informed, but also will provide us with the means for facilitating communications between Board members, as well as with the Corporation staff and with our constituencies. I'm talking now about a secretariat-type function as the focal point for the Corporation's communications network. The unit need not be and will not be large. No new staff will be required, nor will any major reorganization. Such a unit can be implemented with the reassignment of very few personnel and the institution of limited procedural changes. Once installed, however, communications can be coordinated and expedited very effectively.

-

I have available for you a more detailed description of the functions and staffing of the secretariat unit I recommend. If you agree with me that such a unit should be installed, I will initiate action immediately to insure that the unit is operational before the next Board meeting.

COMMUNICATIONS WITH OUR CONSTITUENCIES

Another major concern we all share, of course, is the matter of our communications with our constituencies. I am developing a comprehensive and, I believe, practical program for improving such communications, a program which I intend to propose for your adoption at the next Board meeting. However, I believe there is one other consideration we must also address that impacts directly on the whole matter of communications.

Specifically although we must be concerned about how and what we communicate as a Corporation, we also must concern ourselves with what our

President's Statement
Page Three

January 20, 1983

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message is to be from a programmatic standpoint. All of us here recognize very well the difficulties we face even with our supporters -- because we have not yet been able to put project money at risk as rapidly as the developers of the Energy Security Act may have intended. Perhaps part of that problem has been the internal processes we have used a matter which all of us have been working on in recent months. But, equally important as a message is what can -- and should be expected by the Congress and our other constituencies insofar as our activities for the next 1-1/2 years are concerned. We must decide which national resources, reserves, and technologies we are going to pursue, and the extent and priorities of their development; and we must be able to substantiate clearly and definitively our reasons for so doing. (Such was my intent in sending you the "what" scenario earlier this month. I assume we will be discussing that later today.)

-

The message we give must be convincing to everyone supporters or detractors alike. But we must agree among ourselves first -- and, having done so, we must speak with one voice, at least insofar as our public utterances are concerned. (I probably have more problems with that requirement that any in that I am a total believer in the delegation of authority, responsibility, and accountability -- each interconnected. But I do ask for specific input on means for avoiding conflict and implementing a damage control mechanism, particularly in the outreach initiatives and speeches, lest public utterances be treated improperly by the industry and have exacerbated effects on the pride, confidence, boldness, and understanding of SFC officers and staff.)

To get back to other aspects of our communications situation, I'll just cover briefly some of the principal elements of the communications program now being developed:

1.

-

I intend to propose that we use a carefully coordinated and
integrated approach insofar as the use of all of our personnel
resources is concerned and that includes all of us. I suggest
that each Director participate in a scheduled program that
addresses all constituencies in an orchestrated series of
communications activities. Corporation staff will base the program
on a careful assessment of the interests and needs of our
constituencies and of the most effective means for establishing and
maintaining a meaningful dialogue with them all.

As the program is being developed at present, it will be suggested that each "outside" Director be tasked to participate in at least two scheduled events per month, other than the necessary Board meeting, as well as to be available for ad hoc requirements which

President's Statement
Page Four

January 20, 1983

2.

come up and can be fitted into his business routime. The Chairman
and I will devote more attention than we have in the past to
developing the Corporation's relationships here in Washington, but
will do so as part of the coordinated program under which all of us
will be operating.

In that regard, I intend to make sure that all of us in the
communications forefront are provided with all necessary
institutional materials, meeting coverage, speechwriting, and so
on. Moreover, this will require that in-depth briefings
frequent a basis as any of us request be available on both
in-process and anticipated activities that might impact our
individual or Corporation relations with our various constituencies.

-

on as

My intention is to propose for your consideration establishment of a Synthetic Fuels Information Clearinghouse that will identify this Corporation as the national focal point for information on synthetic fuels. Together with coordination of the Corporation's existing information activities and the existing activities that deal with various of our constituencies, the Clearinghouse would complete the spectrum for informational support in a comprehensive external communications program. Moreover, unlike our existing information programs, which are reactive, the Clearinghouse would be an active, initiative-taking information facility.

I also have available for you a summary of the scope of the functions of the Clearinghouse, which is to be staffed by existing personnel.

INTERNAL COMMUNICATIONS

The communications program under development also addresses improvements I intend Jimmie to require in the Corporation's internal information flow. I am currently reviewing options for an accountability system which will coordinate, facilitate, and enhance the quality and effectiveness of our internal communications so that Corporation staff may be able to respond more efficiently to the policies, plans, and programs established by the Board.

Such is the overview, if you will, of what's now under development for the improvement of our communications. I am prepared to discuss any of those areas in more detail if you wish.