440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700

[Submitted via Internet]

October 27, 1997                                    04 00061 97102701

Mr. Gordon Smith
Chief Executive Officer
Pacific Gas and Electric Company
77 Beale Street
San Francisco, CA  94177

Subject:  Communication Metrics

Ref:   a. R Jackson Email Steve Buck Oct 14, 1997
          b. G Smith Email Russ Jackson Oct 13, 1997
          c. S Buck Email Gordon Smith Oct 12, 1997
          d. Welch Email Steve Buck Oct 12, 1997
          e. G Smith Email PG&Eers Sep 5, 1997

Dear Gordon
On Oct 13, you requested comments from Russ Jackson on an initiative to improve communications, ref b. Russ notified Steve Buck on Oct 14 that you reviewed Steve's submission, ref c, d, on your request for ideas, ref e.

The U.S. Army Corps of Engineers reported on Oct 8, 1997 that adding "metrics" to communication reduces overhead expense in the range of 6% and improves field operations at higher rates. A pilot program for a month or so can show that Communication Metrics accomplishes your goal to improve results at PG&E. If you received comments from Russ, these might be forwarded to me for anaysis toward initiating a pilot program at PG&E.

If you have not received comments, it reflects information overload ("entropy") cited by the U.S. Air Force Institute of Technology. The changing business environment causes communication to tend toward disorder over time. Management is overwhelmed and degrades to "guess and gossip" which stifles initiative and reduces earnings.

Mr. Gordon Smith                                                   Page 2 of 2
Subject:  Communication Metrics

Since communication is the engine of leadership, adding metrics at the highest level produces the biggest impact. Therefore, when you reported on Sep 5, 1997 on the need to improve communication, ref e, it seemed appropriate to present this opportunity to leverage your voice. Please advise of the best way for PG&E to review Communication Metrics.



Rod Welch

cc: Russ Jackson