THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
rodwelch@pacbell.net


S U M M A R Y


DIARY: March 22, 2002 07:13 AM Friday; Rod Welch

Mark Clare comments on calculating savings from Com Metrics.

1...Summary/Objective
..................Knowledge Assets Professional's Guide to Valuation
..................and Financial Management
.......Mark's background is explained at....
................KNOWLEDGE MANAGEMENT: THE BIBLIOGRAPHY
............Knowledge Management and Competitive Intelligence
2...Communication Primary Force of Productivity Needs ROI Theory
.......Need Power Point Presentation for ROI on Com Metrics
3...Theory of Communication Metrics Hard to "Get It" with Limited Time
....................Look before you leap
...........Communication is the biggest risk in enterprise

ACTION ITEMS.................. Click here to comment!

1...So, the question arises about how Mark uses KM to arrest the

CONTACTS 
0201 - Kanisa, Inc.                                                                                                                                                       O-00000799 0606
020101 - Mr. Mark Clare; Knowledge Architect

SUBJECTS
Measuring Communication Issues
Calculate Cost Benefit Level of Effort
Calculation Cost Savings Knowledge Value Equation, Powerpoint Present
Reality Forces Mistakes into Span of Attention
Front-end Invest Planning v. Immediate Action Management Dilemma
ROI Good Management Difficult Calculate Compare Cost Front-end Invest
10:1 ROI Killer Application Cost Effective
Quality Control Management Communication Avoid Mistakes Rework ROI 10
Clare, Mark, Expertise in Technology AI Philosophy Cognitive Science
AI Moved to KM Use Software Build Web Pages for Collaboration Ontolog
AI Fails Intelligence Knowledge Too Complex
AI Cannot Think No Biological Drives Cannot Map Human Experience

3714 -
3714 -    ..
3715 - Summary/Objective
3716 -
371601 - Follow up ref SDS 46 0000, ref SDS 35 0000.
371602 -
371603 - Mark explains his methodologies for calculating ROI on KM can help
371604 - executives as well as call center activity. ref SDS 0 4T3H  Research
371605 - on Mark's book shows he has education and experience for advancing
371606 - from information to a culture of knowledge. ref SDS 0 SY9K  Generally,
371607 - KM has proven to be another marketing description for information
371608 - technology because KM is hard to understand. ref SDS 0 T590  Mark has
371609 - noticed that SDS addresses the quality issue to reduce management
371610 - mistakes. ref SDS 0 573I  Submitted a letter to Mark on formalizing a
371611 - calculation of ROI on improving communication. ref SDS 0 JO8G  Mark
371612 - requests clarification of Com Metrics, reflecting Andy Grove's idea
371613 - that study is needed to grasp strategic inflection points. ref SDS 0
371614 - G49N  Difficulty understanding the transition from information to a
371615 - culture of knowledge is common for busy people. ref SDS 0 ST9J  The
371616 - core issue to discuss with Mark is calculating the "price people pay"
371617 - for relying on common sense when there is not enough time for adding
371618 - intelligence to information, and the consequent business opportunity
371619 - using SDS for empowering people to solve this problem. ref SDS 0 JS5K
371620 -
371621 -     [On 020326 called Mark to discuss these issues. ref SDS 47 0001
371623 -      ..
371624 -     [On 020329 Mark proposes telecon on 200404 or 200405. ref SDS 48
371625 -     0001
371627 -      ..
371628 -     [On 020408 Mark proposes telecon in May 2002. ref SDS 49 0001
371630 -      ..
371631 -     [On 020607 Mark suggests meeting at conference in San Francisco to
371632 -     discuss calculating ROI for KM. ref SDS 51 0001
371633 -
371634 -
371636 -  ..
3717 -
3718 - Progress
3719 -
371901 - Received ref DRT 1 0001 from Mark responding to my letter and call
371902 - yesterday, ref DIP 1 0001, on his calculation of ROI for KM.
371903 - ref SDS 46 QO5L
371905 -  ..
371906 - Mark explains....
371907 -
371908 -   1.  Powerpoint presentation is a framework for calculating ROI for
371909 -       KM that is not restricted to call center scenarios. ref DRT 1
371910 -       KV5O  I selected that focus for Braintrust because it is the
371911 -       primary concern new employer Kanisa. ref DRT 1 PS6H
371912 -
371913 -          This supports understanding on 020321 that Kanisa is a call
371914 -          center support web operation. ref SDS 46 526F
371916 -        ..
371917 -   2.  Most of the applications I have done are for KM strategies,
371918 -       programs or projects outside of customer service. ref DRT 1 GY6K
371920 -        ..
371921 -   3.  The bulk of my efforts are aimed at the CEO/strategy level not
371922 -       the business process or project level. ref DRT 1 IY6N
371923 -
371924 -          [On 020607 Mark suggests meeting at conference in San
371925 -          Francisco to discuss calculating ROI for KM. ref SDS 51 0001
371926 -
371927 -          [On 020610 John Maloney contends KM is not effective for
371928 -          saving time and money. ref SDS 52 3B6K
371930 -           ..
371931 -          [On 020703 received letter from John inviting attendance at a
371932 -          conference on financial advantages of KM. ref SDS 53 9K4H
371934 -        ..
371935 -   4.  Furthermore, the approach in the slides is a simplified version,
371936 -       the full deal includes real option theory as well as discounted
371937 -       cash flow to understand the cost, benefits and risks of KM.
371938 -       ref DRT 1 LI7G
371940 -           ..
371941 -          This does not directly address developing ROI for better
371942 -          management by a system of metrics for communication, per
371943 -          record on 020321. ref SDS 46 XV8I and ref SDS 46 OX4M
371945 -           ..
371946 -          In the response letter, ask if Mark has looked at the USACE
371947 -          report, ref DRP 1 0001, that has a calculation, ref DIT 1
371948 -          UO6G, cited in the letter, ref DIP 1 009N, submitted to Mark
371949 -          yesterday? ref SDS 46 009N
371951 -           ..
371952 -          Also cite cost saving analysis in NWO, ref OF 2 0110,
371953 -          including a theory of "rework, ref OF 2 6915, mentioned in
371954 -          review of Mark's Power Point presentation yesterday,
371955 -          ref DIT 1 QH6M, but not cited in the letter to Mark.
371956 -          ref SDS 46 IX6I
371958 -        ..
371959 -   5.  This is all discussed in the book John referenced. There is a
371960 -       "look inside" (about 30 pages) on Amazon. ref DRT 1 KJ7K
371961 -
371962 -                  Knowledge Assets Professional's Guide to Valuation
371963 -                  and Financial Management
371964 -
371965 -            Mark Clare and Arthur W. Detore
371966 -
371967 -         http://www.amazon.com/exec/obidos/ASIN/0156070006/qid=1016799482/sr=1-5/ref=sr_1_5/103-6544922-4078218
371969 -        ..
371970 -       Mark's background is explained at....
371971 -
371972 -         http://www.amazon.com/exec/obidos/tg/stores/detail/-/books/0156070006/reviews/qid=1018214669/ref=sr_11_0_1/104-6868819-6549550
371973 -
371974 -          Mark Clare, M.A., M.S., is assistant vice president of
371975 -          strategic planning and knowledge management at Lincoln Re,
371976 -          where he designs, implements, and helps direct knowledge
371977 -          management activities. He also assists with the company's
371978 -          integrated planning process.
371980 -           ..
371981 -          Mr. Clare joined Lincoln National in 1990 as manager of the
371982 -          corporate artificial intelligence (AI) group. He has held a
371983 -          variety of positions in knowledge management and information
371984 -          systems for Lincoln Life and Participated in its
371985 -          reengineering project. Before joining Lincoln, he held AI
371986 -          positions at Navistar International and 3M.
371988 -               ..
371989 -              Mark's AI experience and education in philosophy, physics
371990 -              and cognitive science is similar to Mike Poremba reported
371991 -              on 020301. ref SDS 45 P64K
371993 -               ..
371994 -              This background and training are useful for reviewing
371995 -              POIMS to understand how a system of Com Metrics enabled
371996 -              by SDS, ref OF 1 1106, helps save time and money, as
371997 -              reported by USACE. ref DRP 1 0001
371999 -           ..
372000 -          Mr. Clare holds a bachelor's degree in physics from Ball
372001 -          State University, where he also earned two master's degrees:
372002 -          one in philosophy with an emphasis on theories of knowledge
372003 -          and the other in physics with an emphasis on quantum
372004 -          mechanics. He also completed a study of cognitive science
372005 -          under a fellowship at the University of Minnesota. He is
372006 -          listed as one of three inventors on a software patent at 3M.
372008 -        ..
372009 -       Mark's co-author, Arthur W. DeTore, M.D., M.B.A is also a Vice
372010 -       President with Lincoln National and director of strategic
372011 -       planning.
372013 -        ..
372014 -       A review of the book available at....
372015 -
372016 -         http://www.knowledgepoint.com.au/knowledge_management_tools/books.htm
372017 -
372018 -       ....says there is a CD, and comments....
372019 -
372020 -          This book is a practical guide to an investment-oriented
372021 -          approach to the valuation of knowledge management (KM)
372022 -          strategies and projects.  It is not a how-to book on the
372023 -          accounting, appraisal-oriented, or intellectual capital
372024 -          approaches to the valuation of intangible assets. Instead, it
372025 -          focuses on how best to leverage knowledge assets to create
372026 -          real economic value. Most managers are interested in results.
372027 -          This book shows how to demonstrate those results by driving
372028 -          knowledge assets more directly and visibly into the financial
372029 -          statements of the organization.
372031 -           ..
372032 -          The purpose of the book is to provide a rigorous financial
372033 -          framework for analysing the value that can be created and
372034 -          protected by investing in the knowledge assets of an
372035 -          organization. The valuation methodology presented in this
372036 -          book provides the tools you need to get the most from your
372037 -          firm's investment in knowledge management. Specifically, we
372038 -          will combine selected tools from value-based management and
372039 -          financial economics with proven and unique models from
372040 -          knowledge management to create a method for valuing knowledge
372041 -          strategies, KM programs, and specific KM projects.
372043 -           ..
372044 -          The book is written in four parts. Part I focuses on
372045 -          essential background material in knowledge management,
372046 -          finance, economics, and organizational theory. Part II uses
372047 -          the background material to develop a formal treatment of
372048 -          knowledge management and the KM valuation methodology. In
372049 -          Part III, the KM methodology is applied to over a dozen
372050 -          real-world valuation challenges in knowledge products,
372051 -          intellectual property, and knowledge work. Part IV focuses on
372052 -          active research challenges in knowledge management and KM
372054 -        ..
372055 -       A core issue is how Mark distinguishes KM from Information
372056 -       Technology (IT), as set out in POIMS, ref OF 1 O87L, and per
372057 -       review on 980226 of IBM's efforts to market business
372058 -       intelligence. ref SDS 22 2716  For example, researching Mark's
372059 -       book led to work at....
372060 -
372061 -           http://domin.dom.edu/faculty/SRIKANT/lis880/kmbib.html
372063 -        ..
372064 -       ...under the title....
372065 -
372066 -
372067 -                KNOWLEDGE MANAGEMENT: THE BIBLIOGRAPHY
372068 -
372070 -        ..
372071 -       This location has a sub-title....
372072 -
372073 -
372074 -            Knowledge Management and Competitive Intelligence
372075 -
372076 -
372077 -           http://domin.dom.edu/faculty/SRIKANT/lis880/kmbib.html#CompetitiveIntelligence
372079 -        ..
372080 -       ....that says in part...
372081 -
372082 -          The acquisition of knowledge is the core function of
372083 -          Knowledge Management. Does it matter how this information is
372084 -          acquired?
372086 -        ..
372087 -       Thus, it appears this paper merely uses KM as an alternate
372088 -       expression of information acquisition, which has proven to be
372089 -       marginally useful at best, and can be argued is the cause of the
372090 -       current recession due to information overload.
372092 -        ..
372093 -       Moreover, the paper describes "intelligence" as information
372094 -       gathered on competitors, whereas the "intelligence" that is
372095 -       really needed is to create a common, accurate understanding from
372096 -       internal communication, per POIMS. ref OF 1 V8P1
372098 -        ..
372099 -       So, the question arises about how Mark uses KM to arrest the
372100 -       pandemic caused by IT compounding meaning drift that makes daily
372101 -       management an Alice in Wonderland of bumbling noted by Kissinger
372102 -       in the record on 940609? ref SDS 5 4238
372104 -  ..
372105 - Mark continues...
372106 -
372107 -   6.  Concerning risk management aspects of KM-- The slant I bring to
372108 -       that is that most of the knowledge (or intangible) risks an
372109 -       organization faces are rooted in the contingent nature of their
372110 -       claims to knowledge (i.e. what if they are wrong). I see you
372111 -       talk about this on your website too (the cost of mistakes).
372112 -       ref DRT 1 JL8H
372113 -
372114 -           It helps to get a link to something that Mark associated
372115 -           with his work, so there is broader context.  Not only are
372116 -           mistakes mentioned throughout the Welch publications, but
372117 -           the root cause of mistakes in meaning drift that can be
372118 -           corrected by Com Metrics is also discussed, and was
372119 -           mentioned in the letter to Mark yesterday. ref SDS 46 XV8I
372121 -        ..
372122 -   7.  My book looks at quality costs from a KM perspective but it also
372123 -       gives the general KM valuation framework that can be used to
372124 -       estimate the economic value at risk around any given assumption
372125 -       in the KM program. ref DRT 1 TL8N  So I am looking at the link
372126 -       between the contingent nature of empirical claims (I think we
372127 -       need x level in inventory) and where the organization puts its
372128 -       money down (build x units) as the key intellectual risk that
372129 -       must be managed.
372131 -            ..
372132 -           Focus on "quality" aspects of management is a good step, as
372133 -           explained in POIMS.
372135 -            ..
372136 -           How doe Mark's analysis and methodology relate to....
372137 -
372138 -             a.  Henry Kissinger's concern that management is an Alice
372139 -                 in Wonderland of continual bumbling, reported on
372140 -                 940609? ref SDS 5 4238
372142 -                  ..
372143 -             b.  Report on 960204 that managers waste 70% of the day in
372144 -                 unproductive meetings. ref SDS 7 5222
372146 -                  ..
372147 -             c.  High cost of medical mistakes caused by failed
372148 -                 communication, reported on 990912, ref SDS 31 0960,
372150 -                  ..
372151 -                 On 990924 "meaning drift" that causes communication to
372152 -                 fail in medical practice is pandemic throughout
372153 -                 business and government, ref SDS 32 5576,
372155 -        ..
372156 -   8.  This has been particularly popular with CFOs and other financial
372157 -       managers because it gives more credibility to putting hard
372158 -       numbers to the intangible benefits of KM. It is also a cool way
372159 -       to find one of the "sweet spots" for KM. ref DRT 1 GM9L
372160 -
372161 -
372162 -
372163 -
372164 -
372165 -
372166 -
3722 -

SUBJECTS
USACE Report Showing ROI Using SDS for Com Metrics is 10:1 by Reducin
Enabling Force for Adding Intelligence to Information that Generates

3904 -
390501 -  ..
390502 - Communication Primary Force of Productivity Needs ROI Theory
390503 -
390504 - Submitted ref DIT 1 0001 to Mark per above, and point out that....
390505 -
390506 -   1.  Since communication is the dominate activity in management,
390507 -       ref DIT 1 QI7J, as explained in letter on anthropological
390508 -       origins of communication as 8th, 9th and 10th wonders of the
390509 -       world on 020117, ref SDS 43 VP4H, that is where calculations
390510 -       need to focus for demonstrating economics of front-end
390511 -       investment for helping doctors and patients be stronger partners
390512 -       in medical management by implementing established standards for
390513 -       Com Metrics, explained on 990625. ref SDS 29 0889
390515 -        ..
390516 -   2.  The same issue occurs with CEOs illustrated by the Enron matter
390517 -       showing need for Com Metrics, ref DIT 1 F68I, as related in an
390518 -       article in Fortune reviewed the same day on 990625. ref SDS 30
390519 -       7344
390520 -       ..
390521 -   3.  Mark's work can be a powerful enabling force to save
390522 -       millions in tax payer dollars that are wasted every day, as
390523 -       illustrated by the example in the record on 011006 relating work
390524 -       on the space station program. ref SDS 42 O99K which reflects
390525 -       problems at Microsoft, IBM, Aetna, GE, Enron, Intel, et al,
390526 -       under the general proposition that communication has become the
390527 -       biggest risk in enterprise. ref DIT 1 569F  Since people feel
390528 -       communication is their biggest asset, Mark's presentation can
390529 -       help boards of directors direct investment toward formulation of
390530 -       intellectual capital, as set out in POIMS, ref OF 1 1101, that
390531 -       is essential to make traditional investments productive under
390532 -       Drucker's rule about the role of knowledge work in the 21st
390533 -       century, as reviewed on November 30, 1993. ref SDS 4 9666
390535 -        ..
390536 -   4.  Drucker's ideas and your work are particularly important
390537 -       where large sums are invested, as at DOD. ref DIT 1 T75I  On
390538 -       010608 I received a letter from someone at DCMA, which is the
390539 -       procurement arm of DOD, noting that SDS shows ability to solve
390540 -       the core communication problem that afflicts modern management.
390541 -       ref SDS 38 RS4J
390543 -        ..
390544 -   5.  As you can see from review of the record on 010608, ref DIT 1
390545 -       G66F, there is a link to a later record on 010730 explaining
390546 -       people have lost confidence in KM. ref SDS 39 2N5K
390548 -        ..
390549 -       Need Power Point Presentation for ROI on Com Metrics
390551 -        ..
390552 -   6.  This occurs because there is not enough experience with
390553 -       SDS that demonstrates the benefit of converting information into
390554 -       knowledge. ref DIT 1 VF6L  As a result, to make for lack of
390555 -       direct experience, people need a simple way to grasp the
390556 -       economics of working intelligently, as explained further in the
390557 -       record on 010730. ref SDS 39 ZR5G
390559 -        ..
390560 -   7.  It occurs to me that you could make a dent in overcoming fear of
390561 -       improving management by addressing cost benefits of Com Metrics.
390562 -       ref DIT 1 KB3K  The people at DOD, Microsoft, IBM, Enron and so
390563 -       on like Power Point presentations, as you prepared for the call
390564 -       center scenario.  Do you think a similar presentation could come
390565 -       up with a bottom line to show an income stream from adding
390566 -       intelligence to management by adding a new work role for Com
390567 -       Metrics?  This would help a lot of people.
390568 -
390569 -
390570 -
390571 -
3906 -

SUBJECTS
Theory Communication ROI SDS for Com Metrics 10:1 by Reducing Mistake
Doesn't Get It Understand Theory of Communication Enabled by SDS
Doesn't Get It New Way Thinking Working Ignorance Cognitive Science M
New Way Working Connections Augment Intelligence Don't Boggle Mind wi
Frustrated Language SDS Com Metrics Terminology Foreign Terminology I
Frustrated KM Too Difficult Giving Up Technology Cannot Improve Manag
Ignorance Fear Innovation Loop Knowledge Avoids Mistakes Brings Accou
New Way Thinking Working Intelligently Just Don't Get It Ignorance Fe

6510 -
651101 -  ..
651102 - Theory of Communication Metrics Hard to "Get It" with Limited Time
651103 -
651104 -
6512 -
6513 -
6514 - 1521
6516 -    ..
651601 - Received ref DRT 1 0001 from Mark responding to the letter submitted
651602 - earlier this morning, ref DIT 1 0001, per above. ref SDS 0 JO8G
651603 - ..
651604 - Mark says...
651605 -
651606 -    Took a quick look through the links you provided and I'm not sure I
651607 -    get it.  Sounds like you are talking about quantifying the economic
651608 -    benefits of improving management and knowledge worker communication
651609 -    through a structured approach you call Com Metrics. I certainly
651610 -    agree with the basic thesis but I am not sure what the steps and
651611 -    constructs of Com Metrics are?
651613 -     ..
651614 -    Would you please outline them for me?
651615 -
651616 -      [On 020408 Mark proposes following up in May, rather than in
651617 -      April; he does not indicate contining problems understanding
651618 -      theory of Com Metrics and how this saves time and money that can
651619 -      which needs to calculate ROI. ref SDS 49 0001
651621 -       ..
651622 -      [On 020607 Mark proposes meeting in July; again does not cite
651623 -      problem understanding theory of Com Metrics. ref SDS 51 0001
651624 - ..
651625 - Basic construct of using SDS for Communication Metrics is to
651626 - support Mark's idea on strengthening the quality of management, noted
651627 - above, ref SDS 0 KM6G, by enabling executives to "be prepared" under
651628 - the common rule...
651629 -
651630 -                    Look before you leap
651631 -
651632 -
651633 - ...shown in the record on 001219. ref SDS 37 FO5M  The need for this
651634 - support is evident from the article in Fortune reviewed on 990625.
651635 - ref SDS 30 7344
651636 - ..
651637 - Steps using SDS to perform Com Metrics under this construct are
651638 - also shown in the record on 001219. ref SDS 37 4W4L
651639 -
651640 -      [On 020326 called Mark to discuss. ref SDS 47 0001
651641 - ..
651642 - Another construct is that....
651643 -
651644 -
651645 -           Communication is the biggest risk in enterprise
651646 -
651647 -
651648 - ...where every meeting, every call, every email sows the seeds of
651649 - error, conflict, crisis and calamity under an emerging environment of
651650 - chronic information overload that presents a paradigm shift of the
651651 - millennium for reasons set out in POIMS. ref OF 1 R69H
651652 - ..
651653 - The paper on 990924 explaining the crisis in health care
651654 - illustrates this opportunity. ref DIP 2 0001  The general problem was
651655 - described by Henry Kissinger on 940609 as an "Alice in Wonderland" of
651656 - continual bumbling. ref SDS 5 4238
651657 - ..
651658 - Since that time the problem has worsened as IT gains wider use,
651659 - illustrated by the record on 011003. ref SDS 41 EC5N  Examples in the
651660 - business community are....
651661 -
651662 -      Aerospace company................................. 011006, ref SDS 42 O99K
651663 -      Enron.................................. 020204, ref SDS 44 0001
651665 -  ..
651666 - Examples in government....
651667 -
651668 -      National security fails................ 019911, ref SDS 40 0001
651669 -      Mars probe crashed..................... 991001, ref SDS 33 0001
651670 -      National security needs intelligence... 980818, ref SDS 24 1173
651671 -      Columbia Space Shuttle explodes........ 921021, ref SDS 2 4499
651672 - ..
651673 - Other examples of a growing pandemic are reported on 950327.
651674 - ref SDS 6 0200
651676 -  ..
651677 - This paradigm shift explained in POIMS, ref OF 1 PS7G, presents a
651678 - significant opportunity for Mark to develop equations on economic
651679 - implications of failing to work intelligently by failing to align
651680 - communications with objectives, requirements and commitments.  Once
651681 - people are empowered with the economics of failed communication, which
651682 - has been hidden up until now by ignorance, fear and denial, a market
651683 - for solutions will grow which people can no longer afford to ignore
651684 - and deny.
651685 - ..
651686 - Answering Mark's question requires two (2) basic points...
651687 -
651688 -    1.  People have difficulty with Com Metrics because there is not
651689 -        enough time to think and grasp critical differences between
651690 -        information and knowledge, as reported on 970910. ref SDS 18
651691 -        3479  For example....
651692 -            ..
651693 -        a.  On 000716 Professor Joseph Ransdell explained that
651694 -            the SDS theory of communication has eluded discovery since
651695 -            the 17th century, so patience is required to help people
651696 -            "get it." ref SDS 36 7838  Earlier on 991025 Peter Drucker
651697 -            noted that technology must routinize aspects of cognitive
651698 -            science. ref SDS 34 8925  This design is explained in
651699 -            POIMS, ref OF 1 0367, but so far it has proven difficult
651700 -            for people to understand.
651701 -            ..
651702 -        b.  SDS was demonstrated for performing Communication
651703 -            Metrics to Dave Vannier at Intel on 950927 because Dave had
651704 -            made published comments showing awareness and desire to use
651705 -            technology productively. ref SDS 10 8943
651707 -             ..
651708 -            However, Dave did not "get it" for several more years.  On
651709 -            960507 he cited defects in SDS. ref SDS 12 1111  Continued
651710 -            sporadic exposure led to Dave's letter on 990422 noting
651711 -            that Com Metrics accomplishes Intel's goals for using
651712 -            technology to improve management. ref SDS 37 8400  However,
651713 -            by that time Dave realized his colleagues at Intel "don't
651714 -            get it," something Andy Grove warned about in his book
651715 -            reviewed on 980307. ref SDS 23 2648
651716 -            ..
651717 -        c.  Com Metrics was explained to Tom Keesling at USACE,
651718 -            and Tom was instrumental in letting a contract to use SDS
651719 -            for Com Metrics, as reported on 960913. ref SDS 13 7734
651720 -            However, Tom did not really "get it" either until several
651721 -            months of exposure on the job every day after his boss
651722 -            directed on 960924 that SDS be used to support daily
651723 -            communication. ref SDS 14 4454  Only after Tom was
651724 -            empowered to acquire experience, did he finally "get it,"
651725 -            as reported on 961101. ref SDS 15 8888
651726 -        ..
651727 -    2.  Empowering people to "get it" is aided by a calculation
651728 -        showing the price people pay when they fail to use SDS for
651729 -        working intelligently.  Work by USACE shows a methodology that
651730 -        might be refined by Mark. ref DRP 1 0001
651731 -
651732 -            [On 020531 letter to Gary requesting data from the
651733 -            case study on the ISS Software project Aerospace company is doing
651734 -            under contract to NASA, will help Mark do a credible
651735 -            calculation of ROI for Com Metrics. ref SDS 50 7F6F
651736 -        ..
651737 -        Jeremy Campbell explains cognitive science shows that
651738 -        people "pay a price" for bad mangement when limited span of
651739 -        attention relies on common sense to expand information, rather
651740 -        than pay the cost of working intelligently needed for good
651741 -        management, reviewed on 900303. ref SDS 1 4456  Steven Pinker
651742 -        at MIT makes the same point, reviewed on 990329. ref SDS 28
651743 -        3196
651745 -         ..
651746 -        As shown above, taxpayers pay a heavy price due to failure of
651747 -        communication at Aerospace company, at NASA; employees paid a heavy price
651748 -        at Enron, patients pay a heavy price due to bumbling in medical
651749 -        practice, and everyone pays a heavy price due to bumbling in
651750 -        national security. ref SDS 0 44EO
651751 -        ..
651752 -        Who then can calculate the price people pay that is
651753 -        "saved" by using SDS to work intelligently, given the lack of
651754 -        tradition in business for using an intelligence role, as set
651755 -        out in POIMS. ref OF 1 5820
651757 -         ..
651758 -        What is the methodology for calculating the price people pay,
651759 -        and the consequent cost savings from working intelligently?
651761 -         ..
651762 -        The busniess case for making this calculation is seen in the
651763 -        record on 011006 citing lost income at Aerospace company. ref SDS 42 O99K
651764 -        Earlier on 010608 a contact from DCMA relates the broader need
651765 -        in government procurement for the SDS solution. ref SDS 38 0001
651767 -       ..
651768 -      [On 020408 submitted letter to Mark linked to this record that
651769 -      clarifies the strategic opportunity to strengthen daily
651770 -      management by adding "metrics" to communication as a direct
651771 -      solution to meaning drift. ref SDS 49 0001
651773 -       ..
651774 -      [On 020607 Mark proposes meeting at KM event in the city to
651775 -      discuss calculating ROI from paying the cost of good management
651776 -      to avoid paying the price of bad management. ref SDS 51 0001
651777 -
651778 -
651779 -
651780 -
651781 -
651782 -
651783 -
651784 -
651785 -
6518 -
Distribution. . . . See "CONTACTS"