THE WELCH COMPANY

440 Davis Court #1602

San Francisco, CA  94111-2496

415 781 5700






October 10, 1997                                                                     03 00050 97101001



Mr. Henry J. Hatch
President
Fluor Daniel Corporation
2920 George Washington Way
Mail Stop H5-20
Richland, WA  99352

Subject:  Communication Metrics
                 Cost Savings Report, USACE HQ Oct 7, 1997

Ref:   a. CESPN memo to CEMP-CP Oct 8, 1997
          b. Welch letter to Hatch Jul 10, 1997
          c. Welch letter to Hatch Apr 24, 1997
          d. Communication Metrics Report Mar 18, 1997

Dear Hank,


Just an update on progress with Communication Metrics.  Wednesday, Tom Keesling
in the San Francisco District issed the attached

report
to Jim Jones, ref a.
Jim requested the report to evaluate Communication Metrics for wider use in the
Corps of Engineers based on cost reduction potential.




Communication Metrics sharply reduces costs, where other methods fail, because
it adds

"intelligence"
that adds value to information.  Since communication is
the dominant activity of business and it is growing in importance, improving it
makes a big improvement in cost and performance.  Leadership, however, is the
Rossette stone that permits this powerful idea to become a productive force.




Sincerely,


THE WELCH COMPANY






Rod Welch