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





September 3, 1998                                                                    04 00067 61 98090301



Mr. Morris E. Jones
Sr. Vice President
Chips & Technologies, Inc
2950 Zanker Road
San Jose, CA  95134

Subject:  Communication Metrics - "How"

Ref:   a. Morris' letter Sep 3, 1998
          b. Welch letter Sep 2, 1998

Dear Morris,
Thanks for your letter today, explaining Communication Metrics generates "intelligence" (ref a). I like your language on how intelligence helps claims management, as shown in the analysis of your letter.

If you have time, could you suggest how "intelligence" can be used more broadly to expand the market for Communication Metrics by improving "communication"?

Andy Grove says in his book that analysis is important to overcome the ambiguity of mental maps. He describes taking copious notes in order to acquire "understanding," which is a dimension of Communication Metrics; but, Grove, also, says it is not easy, it takes time and diligence. Is there some way to help people who believe, as Grove does, that analysis is essential, but, unlike Grove, don't have the time, so that a new role can fill the gap to avoid the crisis you cite that lead to claims in contracts, and lost earnings in general management?

Grove says managers will not admit to themselves they need help. They will say "I'm swamped by calls, meetings and email, but it doesn't cost anything, i.e., it does not impact earnings." How can we overcome denial?

What do you think?

Sincerely,

THE WELCH COMPANY



Rod Welch