| Date: Thu, 21 Mar 2002 13:38:39 -0800 | 03 00050 61 02032101 |
Mr. Mark Clare
Knowledge Architect
mark.clare@kanisa.com
Kanisa, Inc.
19925 Stevens Creek Blvd
Cupertino, CA 95014
..
| Subject: | Cost Benefits of KM |
|
Solving Knowledge Value Equation, |
Dear Mark,
This confirms the voice mail message I just left.
..
John Maloney forwarded your Power Point presentation on calculating cost
benefits of KM based on call center scenarios. Normally, I am not a fan of
Power Point material, but your work is a little more helpful than most, at
least it get us into the subject.
..
My work centers on a basic theory that communication is the biggest risk
in management due to
meaning drift.
(see a few para in POIMS to get the idea).
..
The people at risk are not in the call center but in the board room, the
engineering room and the operating room. The CEO, program and project managers
who encounter a lot of details get mixed up everyday, as seen from the record
on
Enron
(see a few para in the report on February 4, 2002).
..
The U.S. Army Corps of Engineers published a
calculation on cost savings
from improving communication
based on reducing mistakes that cause rework. The
challenge is that costs to improve management by converting daily information
into useful knowledge accrue regularly and immediately, while costs of bad
management are deferred and come in huge losses, as occurred to Enron and on
September 11, 2002 when
tragedy struck America.
..
The problem is evident in medical practice, engineering, everywhere that
is heavily dependent on communication, however, it is hard for folks to grasp
cost benefits. It occurred to me that your approach might strengthen the
presentation published by USACE, specifically on reducing the cost of
rework.
..
Just wondered if you have done any calculations along these lines, or can
point to other efforts that extend your excellent presentation more broadly.
This kind of thing would be of great interest to investors, sureties and others
with value at risk who need help understanding investment in good management.
..
Thanks.
Sincerely,
THE WELCH COMPANY
Rod Welch
rowelch@attglobal.net