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: February 10, 1992 07:10 AM Monday; Rod Welch

Further analysis of DNRC management and Broadwater status.

1...Summary/Objective
2...Controlling the record - Turning out the Lights
.....Discovery is a Powerful Source of Earnings
3...Internal Management Wants Only External Intelligence
4...Search Light of Intelligence on Voith and Power Not DNRC
5...Light of Intelligence on Internal Management Does Not Feel Good
6...Feel Good Management Everybody Doing Their Best Based on Trust
7...More Management is Needed - Can't Keep Head Above Water
...............cannot keep their head "above water"
....Operations Needs Added Support from Project Management
........Balance Between Doing and Thinking Requires Leveling Resources
............Budgeting to Fail
............Not Enough Time to Invest Intellectual Capital
....Power & Voith
8...Managers Fear Accountability Hate Organizational Memory
9...Daily Report & Deliverables Need More Review, Not Less
10...Legal Analysis of Waiver or Implied Acceptance
11...Written Analysis in SDS Raise Issues Not Temperatures


..............
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CONTACTS 

SUBJECTS
Voith Contract Closeout, Engineering Management
Discovery, Advantages and Restraints on saving the Record
SDS Management Theory, Executive Mind Set/Practice
Time - Too Busy Being Busy, Overhead, Management is Unproductive
Budgeting to Fail, Concurrent Discovery
SDS Pressures Performance and Guides it
Scenario Complex Communications
Conventional Management Not Enough Time to
Water under the Bridge, Information Not
Internal Management Needs Metrics

2812 -
2812 -    ..
2813 - Summary/Objective
2814 -
281401 - Follow up
281402 -
281403 - There are a number of interesting issues in Sarah's memo that
281404 - illustrate points Wayne has indicated need attention in DNRC
281405 - management.
281406 -
281407 -
281409 -  ..
2815 -
2816 -
2817 - Analysis DRP 1
2818 -
281801 - This is Sarah's memo to Wayne on the Welch analyses, ref DIP 4 - 5. It
281802 - exemplifies how DNRC staff support can be improved by using SDS to
281803 - organize the record for fast access to check facts and ideas.  The
281804 - concerns raised by ref DRP 1 on the process of internal management are
281805 - addressed in article on POIMS under review by DNRC, ref OF 3 and ref
281806 - SDS 14   Sarah's memo shows why more management resources are needed
281807 - for the near term, rather than less.
281808 -
281810 -  ..
281811 - Controlling the record  - Turning out the Lights
281812 -
281813 - Sarah applies at line 58 the Welch idea of "controlling the record" as
281814 - support for deleting information and ideas in order to avoid harmful
281815 - "discovery" by potential adversaries in possible litigation far in the
281816 - future.
281817 -
281818 -         This is the classic internal v. external management debate
281819 -         posed by Morris on 890809. ref SDS 5 0880.  Turning out the
281820 -         lights to avoid discovery by others reduces the chance of
281821 -         discovering mistakes and opportunities in time to act
281822 -         constructively, based on Sarah's review on 920110. ref SDS 9
281823 -         VK4H
281824 -
281826 -      ..
281827 -     Discovery is a Powerful Source of Earnings
281828 -
281829 -     SDS applies POIMS technology to invest intellectual capital so we
281830 -     can "discover" NOW what is in the project record, analyse its
281831 -     implications and then extend the record in a manner consistent
281832 -     with organizational objectives and contract obligations.  Options
281833 -     and obstacles are considered in order to (a) discover solutions
281834 -     and (b) to establish that what was done was appropriate to the
281835 -     circumstances.  If others cause delay, we issue timely notice to
281836 -     cure, indicate damages being incurred and offer assistance to
281837 -     mitigate the problem.  If we are accused of delay, we report the
281838 -     record showing such position is incorrect.  This method supports
281839 -     the underlying premise of project management:  figuring out what
281840 -     needs to be done, doing it and reporting results.  POIMS calls
281841 -     this cyclical troika:  the "management cycle" of plan, perform,
281842 -     report.
281844 -      ..
281845 -     The alternative to discovering NOW what the record shows and
281846 -     taking steps to deal with it constructively, risks incurring
281847 -     failure, which in turn leads to discovery by others of facts which
281848 -     we overlooked.
281850 -      ..
281851 -     An example of how DNRC staff are applying SDS is seen from Mike
281852 -     Sims records, ref SDS 26 0000, showing failure to capture
281853 -     organizational memory.
281854 -
281855 -
281856 -
281857 -
281859 -  ..
281860 - Internal Management Wants Only External Intelligence
281861 - Search Light of Intelligence on Voith and Power Not DNRC
281862 - Light of Intelligence on Internal Management Does Not Feel Good
281863 - Feel Good Management Everybody Doing Their Best Based on Trust
281864 -
281865 - Follow up ref SDS 9 ZA3F.
281866 -
281867 - We reviewed background showing that DNRC staff feel pressured because
281868 - they are trying to perform Engineering Management with inadequate
281869 - staffing, reported on 920110, ref SDS 9 JW7I, and shown by the growing
281870 - list of action items in SDS, which Tudor should be performing, but was
281871 - fired for failure to perform.  As a result, the easiest solution is to
281872 - turn out the lights which is typical when people feel overworked
281873 - during the transition period of engaging a new Engineer on a project.
281874 - As DNRC gets further into the process of using Power as the Engineer,
281875 - the search light of SDS will focus on Power and ultimately on Voith,
281876 - where it belongs.
281877 -
281878 -      [On 961206 "search light" was turned out years later on another
281879 -      project. ref SDS 32 5002
281880 -
281882 -  ..
281883 - More Management is Needed - Can't Keep Head Above Water
281884 -
281885 - Sarah's memo ref DRP 1 7388 cites need for positive reinforcement of
281886 - Walt and Dave, who....
281887 -
281888 -
281889 -               cannot keep their head "above water"
281890 -
281891 -
281892 - ...because demands to keep the plant running by fixing Voith's
281893 - mistakes, in order to make money, prevent planning for effective
281894 - management submitted on 920118. ref SDS 13 3354  Reflects feelings
281895 - cited on 920110, ref SDS 10 4839, and anticipated on 911011.
281896 - ref SDS 6 NN9F
281898 -        ..
281899 -       [On 100207 1454 Command Commissioning offers services DNRC
281900 -       needed to "independently" align the work building Broadwater Dam
281901 -       with objectives, requirements and commitments ref SDS 38 WX7W
281903 -  ..
281904 - Below, Sarah cites concern about accountability. ref SDS 0 1194
281906 -  ..
281907 - On 880908 detailed records to avoid misunderstanding that cause
281908 - mistakes was explained. ref SDS 1 5100
281910 -  ..
281911 - On 880921 increased scrutiny of Voith's work recommended to Tudor was
281912 - not implemented. ref SDS 2 8526
281914 -  ..
281915 - On 890324 Tudor found SDS methods are "overkill." ref SDS 3 6399
281917 -  ..
281918 - On 911114 Voith did not perform contract schedule and submittal
281919 - requirements, causing a lot of extra work for others. ref SDS 7 3843
281921 -  ..
281922 - On 920128 "Lookout in Crows Nest" reporting danger ahead is not
281923 - welcome news. ref SDS 14 1199
281924 -
281925 -
281926 -       [On 941020 Wayne wondered what went wrong? ref SDS 27 6007]
281928 -        ..
281929 -       [On 950822 analogy letting the past go by like "water under the
281930 -       bridge" makes for bumpy ride down the river, ref SDS 29 9433.]
281932 -        ..
281933 -       [On 990323 case study shows lessons learned. ref SDS 36 4689]
281935 -        ..
281936 -       [On 001207 too many people having too many problems cause
281937 -       productivity, earnings and stock prices to fall. ref SDS 37 V54M
281938 -
281940 -     ..
281941 -    Operations Needs Added Support from Project Management
281942 -
281943 -    Since it is difficult for one person to do both "Operations" and
281944 -    "Project" management, and since there is no evidence that either
281945 -    task will get any easier, should not these functions be separated
281946 -    so that analysis, planning and reporting are not overlooked because
281947 -    of daily demands for implementation?
281948 -
281949 -        [On 960301 years later high tech that came under competitive
281950 -        pressure, and began using cross-functional team leaders to
281951 -        eliminate dedicated managers, ref SDS 31 4692
281953 -     ..
281954 -    This goes to the question of scope and size of the project.
281956 -     ..
281957 -    If it was a simple, uncomplicated project to closeout the
281958 -    Broadwater contract, then it might well be worked with Operations
281959 -    management. However, when management "cannot get its head above
281960 -    water," ref SDS 0 8400, then Project Management methods are
281961 -    warranted.
281962 -
281964 -         ..
281965 -        Balance Between Doing and Thinking Requires Leveling Resources
281966 -
281967 -        Need for better balance allocating resources between management
281968 -        and operations work is seen from Mike Sims' report on plant
281969 -        operations issued 020205, ref SDS 21 0001, which is identical
281970 -        to report for on 920206. ref SDS 22 0001  The report covers
281971 -        important changes made to power plant machinery, but since it
281972 -        was not finished, nor linked to prior work and follow up
281973 -        events, the meaning is unclear and the value of context is
281974 -        lost.  The fact that a subsequent report says exactly the same
281975 -        thing, shows need for better balance between doing and thinking
281976 -        that harms the organization by denying it valuable intellectual
281977 -        capital, explained in POIMS.
281979 -         ..
281980 -        The advantage of applying more management time is apparent from
281981 -        the need for better substance to support decisions.  Mike needs
281982 -        time to think...
281983 -
281984 -             [On 970910 report that executives do not have enough time
281985 -             to think. ref SDS 34 3479]
281987 -             ..
281988 -            Budgeting to Fail
281989 -            Not Enough Time to Invest Intellectual Capital
281990 -
281991 -            Wayne and I discussed this on 920207, ref SDS 25 4857.  All
281992 -            managements struggle with the allocation of time between
281993 -            planning and reporting v. implementation.
281994 -
281995 -            The classic example is a Contractor asks the Superintendent
281996 -            to work with tools in the belief this is cost effective
281997 -            (often a Superintendent is the best mechanic on the job).
281998 -            At first the Contractor is only mildly anoid by lack of
281999 -            documents on problems and opportunities.
282001 -             ..
282002 -            Later the Contractor is disappointed because solutions that
282003 -            seem apparent after the fact were not thought of during the
282004 -            work.  Much later the Contractor is angry and frustrated by
282005 -            an unfavorable legal decision citing lack of proof on what
282006 -            was done, why was reasonable under the circumstances at the
282007 -            time, and whether various alternatives were considered to
282008 -            avoid damages. This tale is often told by two guys on a
282009 -            park bench lamenting the legal system.
282010 -
282011 -               [This seems to have occurred a few years later at
282012 -               ref SDS 19 6007, and ref SDS 30 1100, and discussion
282013 -               with Morris on management as unproductive overhead,
282014 -               ref SDS 31 5040 and further in same record on Pat Welch,
282015 -               ref SDS 31 5069.]
282017 -                ..
282018 -               [On 970726 scenarios illustrate tension to allocate time
282019 -               for planning and doing. ref SDS 33 4579.]
282021 -     ..
282022 -    If more staffing is needed to catch up with operations issues, it
282023 -    should be developed and notice given to Tudor and Voith that extra
282024 -    costs are being incurred relative to the project design, so they
282025 -    can investigate and advise of means by which such extra costs might
282026 -    be avoided in order to reduce their exposure while they attempt to
282027 -    bring the existing conditions into alignment with requirements.
282028 -
282029 -
282030 -
282031 -
2821 -

SUBJECTS
Feel Good Management v. SDS
Accountability is Burdensom for Executives
Feel Good Management - Social Constraints
Communication Manager Raises Issues, Not
SDS Pressures Performance and Guides it
Imploding Management, Fewer People Chasing
Ignorance, Fear, Denial
Case Study Broadwater

4110 -
411101 -     ..
411102 -    Power & Voith
411103 -
411104 -    Power needs no more and no less "positive reinforcement" than does
411105 -    Voith.  Power should produce a plan with staffing levels and
411106 -    projected deliverables that show how it will accomplish its
411107 -    contract to carry out the role of the Engineer set out in the
411108 -    contract between Voith and DNRC, per ref SDS 16 line 080913 and ref
411109 -    SDS 8 line 040719.
411111 -     ..
411112 -    Similarly, Voith should be required to produce its plan, which is
411113 -    rolled into Power's plan, which is ultimately rolled into DNRC's
411114 -    master project closeout plan.
411115 -
411117 -  ..
411118 - Managers Fear Accountability Hate Organizational Memory
411119 - Daily Report & Deliverables Need More Review, Not Less
411120 -
411121 - Sarah says that Power believes concerns about their progress are not
411122 - justified by the complete record, ref DRP 1 5757, as reported above on
411123 - being busy fixing problems to keep the plant running. ref SDS 0 8400
411125 -  ..
411126 - On 911011 problems accepting organizatinoal memory created in SDS were
411127 - anticipated. ref SDS 6 9382
411128 -
411130 -  ..
411131 - On 920110 there was concern about SDS record harming DNRC interests.
411132 - ref SDS 9 9482
411134 -  ..
411135 - She says "Both Dave and Walt hate having Rod looking over their
411136 - shoulders, judging their performance without benefit of the knowledge
411137 - of specifics, or the detriment of actually having other things to do
411138 - immediately, which could slow him down in his apparent quest to prove
411139 - in writing, Walt and Dave are not doing their jobs and Welch is needed
411140 - to save the day."
411142 -      ..
411143 -     If the SDS record lacks knowledge of specifics, then this should
411144 -     be corrected.  We need more knowledge not less.
411146 -      ..
411147 -     This reflects fear of accountability and unwillingness to subject
411148 -     conduct to scrutiny early enough to make corrections in order to
411149 -     avoid the more costly remedy of litigation.
411150 -
411151 -         [On 980405 reviewed fear of accountability. ref SDS 35 5065]
411153 -      ..
411154 -     If Welch were "slowed down" then there would be less intellectual
411155 -     capital captured, less knowledge that enables management to
411156 -     discover early enough to make corrections that "save the day."
411158 -      ..
411159 -     Reducing investment of intellectual capital is the cause of
411160 -     management imploding on itself, discussed in the New World
411161 -     Order... paper. ref OF 4 8303
411163 -      ..
411164 -     It is frustrating to be in the vortex caused by management
411165 -     mistakes of others years earlier.  In this case, the problems Dave
411166 -     and Walt are wrestling with emanate from Tudor's decision to
411167 -     permit Voith to construct the work without approval of shop
411168 -     drawings and other submittals, as reported on 911116. ref SDS 8
411169 -     0001, was made possible by DNRC's decision to "turn out the
411170 -     lights" on SDS requested by Tudor on 890324. ref SDS 3 6399
411171 -     Similarly Tudor's decision to approve the plant when it was not
411172 -     running correctly, and the elimination of an indenpendent start-up
411173 -     Engineer, all contributed to the present conditions of "so many
411174 -     things going wrong" that cascade into continual crisis.
411176 -      ..
411177 -     DNRC's decision to eliminate the Welch support in 1989, removed
411178 -     the opportunity to discover defective management at a time when
411179 -     action could have been taken to avoid defective work that now
411180 -     causes frustration because there is not enough time to do the work
411181 -     and also do the thinking needed to make the work successful.
411183 -      ..
411184 -     Judgements on contract performance require a plan and reports
411185 -     showing actual progress to compare with the plan, as called out in
411186 -     Power's contract proposal.
411188 -      ..
411189 -     If Power is accomplishing its Agreement with DNRC as well as can
411190 -     be expected, then DNRC is being adequately served.  At this time
411191 -     evidence is not apparent in the SDS record, but SDS is not the
411192 -     entire record.  It might be helpful to evaluate the scope and
411193 -     quality of the record that is being produced by Power on this
411194 -     point.  What for example does the document log show?
411196 -      ..
411197 -     The solution to questions based on incomplete information is to
411198 -     complete the record so that inquiries have adequate foundation.
411199 -
411200 -
411202 -  ..
411203 - Legal Analysis of Waiver or Implied Acceptance
411204 -
411205 - Sarah maintains at line 106 that this is a complicated matter.  As a
411206 - result, it would seem that significant care is needed to analyse
411207 - DNRC's position in order to guide decision making by DNRC management.
411209 -      ..
411210 -     A legal brief is the ordinary manner of analysing complicated
411211 -     legal matters.
411212 -
411213 -
411215 -  ..
411216 - Written Analysis in SDS Raise Issues Not Temperatures
411217 -
411218 - Sarah's concern about an alleged intent derived from the SDS record to
411219 - prove derogatory things in writing about the level of effort by
411220 - others.
411221 -
411222 -     Welch holds that written analysis is more likely to discover the
411223 -     path to success than is reliance on mere discussion of facts and
411224 -     implications.  Concepts of POIMS technology express the whole of
411225 -     the Welch effort, and are under review by DNRC management.
411226 -     ref SDS 26 0001
411227 -
411228 -
411229 -
411230 -
411231 -
411232 -
411233 -
411234 -
411235 -
411236 -
411237 -
411238 -
411239 -
4113 -