| Date: Fri, 22 Mar 2002 07:38:36 -0800 | 03 00050 61 02032201 |
Mr. Mark Clare
Knowledge Architect
mark.clare@kanisa.com
Kanisa, Inc.
19925 Stevens Creek Blvd
Cupertino, CA 95014
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| Subject: | Cost Benefits of KM |
Dear Mark,
Thanks for
your letter
today fleshing out the scope of your work on the
economics of Knowledge Management. Your book sounds exciting.
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Did you have a chance to look at the calculations of cost savings for
adding business metrics to the communication stream as a form of
quality control for management,
as shown in the USACE report?
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Another formulation of cost savings from Com Metrics is in the
New World Order...
paper based on a theory of
"rework" explained further in NWO.
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Since communication is the dominate activity in management that is
where calculations need to focus for demonstrating the economics
of front-end investment for helping doctors and patients be stronger
partners in medical management by implementing
established standards
for Com Metrics,
explained on June 25, 1999.
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The same issue causes
CEOs to fail, showing demand for Com Metrics in the modern age is
universal, as related in an article by Fortune reviewed the same day on June
25, 1999. Recent disclosures of failed management at Enron illustrate
the bumbling that worried Kissinger in the record on June 9, 1994.
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I see your work as a potentially powerful enabling force to save billions in
tax payer dollars that is wasted every day, illustrated by the example in the
record on October 6, 2001 relating work on the
space station program,
which
reflects problems at Microsoft, IBM, Aetna, GE, Enron, Intel, et al, under the
general proposition that communication has become the biggest risk in
enterprise. Since people feel communication is their biggest asset, your form
of presentation can help boards of directors direct investment toward
formulation of
intellectual capital,
as set out in POIMS
that is essential to make traditional investments productive under
Drucker's rule about the role of
knowledge work
in the 21st century,
as reviewed on November 30, 1993.
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Drucker's ideas and your work are particularly important where large sums
are invested, as at DOD. On June 8, 2001, I received a letter from someone at
DCMA, which is the procurement arm of DOD, noting that SDS shows ability to
solve the core communication problem
that afflicts modern management.
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As you can see from the record on June 8, 2001 there is a link to a later
record on July 30, 2001 explaining
people have lost confidence in KM.
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This occurs because there is not enough experience with SDS that
demonstrates the benefit of converting information into knowledge. As a
result, to make up for lack of direct experience, people need a simple way to
grasp the
economics of working intelligently,
as explained further in the
record on July 30, 2001.
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It occurs to me that you could make a dent in overcoming fear of improving
management by addressing cost benefits of Com Metrics. The people at DOD,
Microsoft, IBM, Enron and so on, like Power Point presentations, as you
prepared for the call center scenario. Do you think a similar presentation
could come up with a bottom line to show an income stream from adding
intelligence to management by adding a new work role for Com Metrics? This
would help a lot of people.
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Thanks.
Sincerely,
THE WELCH COMPANY
Rod Welch
rowelch@attglobal.net
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