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: October 10, 1994 10:08 AM Monday; Rod Welch

Met with Chris on future of SDS for PG&E assignment, CO #2.

1...Summary/Objective
2...Para Manager & Executive Support
3...SDS Improves Productivity Retool Skills New Professional Role
.......................Communication Metrics
.....SDS Enables Using Good Management Consistently
.....SDS Comm Support Expands PG&E's Project Analyst Role
.....Retool Skills New Professional Work Role Communication Analyst
.....Project Analyst Role Expanded to Use SDS for Communication Support
...........................Spreadsheet for Knowledge
..............."So let it be written, so let it be done!"
4...Other Projects & Managers
......Opportunities & Cost Savings
5...Transitioning New Project Manager
6...Administrative Support
7...Cost Savings Opportunities on Line Protection Work


..............
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CONTACTS 
0201 - PG&E Proj Mngmnt Transm Sys                                                                                                                                    O-00000329 0201
020101 - Mr. Bill DeHart, PMP
020102 - Project Manager, Room 1183B-V11C
020103 - Project Management Group
0202 - PG&E Proj Mngmnt Transm Sys                                                                                                                                    O-00000329 0202
020201 - Mr. Christopher A. Snyder,P.E., PMP
020202 - Director, Project Management, Room 1161B-V11C
020203 - Project Management Group

SUBJECTS
Contract Terms; Period
Change Orders, Extend period and budget
Expand work on CDWR project, Objectives/scope
Management productivity & Teamwork, Para Manager
Communication Manager Ensures Time is
Communication Manager Pilot for SDS
Time Managers Can't Learn SDS, Need
Managers Mostly Talk and Listen
Knowledge Worker Communication Manager
Backhoe Digging Faster Than Dirt Moved to Proper Location
Pharoah's Cost Control Problem

2313 -
2313 -    ..
2314 - Summary/Objective
2315 -
231501 - Follow up work at ref SDS 17 0000.
231502 -
231503 - Explained progress with SDS and set objectives in the next 3 months.
231504 - Will issue a change order to use SDS on CDWR project through the end
231505 - of the year, and will investigate opportunities to expand use.
231506 -
231507 -
231508 -
231510 -  ..
2316 -
2317 -
2318 - Discussion
2319 -
231901 - Bill recommended PG&E issue change order #2 for continued SDS support
231902 - on CDWR project per understandings yesterday, ref SDS 17 0001, for the
231903 - reasons developed on 940928, ref SDS 13 0899 and the evaluation on
231904 - 941004. ref SDS 15 4920
231906 -  ..
231907 - The cost will be $15,000 plus an amount for monthly expenses (e.g.
231908 - travel, computer).
231910 -  ..
231911 - Considered using SDS more broadly according to the planning on 941009.
231912 - ref SDS 17 0001.
231913 -
231915 -  ..
231916 - Para Manager & Executive Support
231917 -
231918 - Bill said he has not had time for training due to a heavy travel
231919 - schedule.  Therefore, Rod has done the analysis using SDS, to
231920 - supplement work by Bill's Project Analyst on cost and schedule.  This
231921 - is consistent with the evaluation plan Rod layed out in entering the
231922 - contract with PG&E at ref SDS 6 8300.  Bill reported he is accessing
231923 - SDS at work and at home over the PG&E network.  This saves time in
231924 - phone calls and printing and handling documents. SDS records are
231925 - distributed to project staff via PG&E's network.  It is mailed and
231926 - faxed for review with CDWR on content and status of action items. We
231927 - have discussed expediting distribution to CDWR via the Internet.
231928 -
231929 -     [On 971210 Bill reviewed enhancement that delivers work product in
231930 -     the form of "intelligence" via Internet, that makes it faster and
231931 -     easier for managers to use SDS. ref SDS 25 0000]
231933 -      ..
231934 -     [On 000709 Bill endorsed SDS organization for better productivity
231935 -     than using other methods. ref SDS 26 0784
231937 -      ..
231938 -     [On 030708 Jerry Nord explains opportunity to strengthen Technical
231939 -     Advisor role at CSG by developing skills for Com Metrics.
231940 -     ref SDS 30 P67I
231941 -
231942 -
231943 -
231944 -
231945 -
231946 -
2320 -

SUBJECTS
Explaining SDS, POIMS, Management productivity
PG&E Meeting Explain Accurate Record Maintain Alignment Critical to
Writing Predicate to Action So Let It Be Written, So Let It Be Done,

6705 -
670601 -  ..
670602 - SDS Improves Productivity Retool Skills New Professional Role
670603 -
670604 - Chris asked how SDS improved PG&E management with just one person
670605 - doing data entry for 2 months?  (see also question from meeting at
670606 - Sandia Lab on 940721, ref SDS 4 8856; and explanation about advantages
670607 - of...
670609 -                        ..
670610 -                       Communication Metrics
670611 -
670612 - ...ref SDS 22 0333).
670613 -
670615 -      ..
670616 -     SDS Enables Using Good Management Consistently
670617 -
670618 -     Bill said the SDS design organizes and links information so it is
670619 -     easier to use good management consistently, as found by CDWR in a
670620 -     meeting on 940901. ref SDS 9 9009
670621 -
670622 -         [On 941130 other PG&E departments concurred. ref SDS 19 0003
670624 -          ..
670625 -         [On 000709 Bill explained SDS provides natural organization
670626 -         that aids understanding. ref SDS 26 0784
670628 -          ..
670629 -         [On 001219 steps using SDS new way of working. ref SDS 28 QT6F
670631 -      ..
670632 -     CDWR's Central Coast Aquaduct project is difficult because design,
670633 -     construction and polictial issues are complex.  SDS provides
670634 -     uniform, comprehensive understanding among the many business
670635 -     elements at CDWR and PG&E about objectives, tasks, problems and
670636 -     commitments.  This requires strong, proactive management.
670637 -
670638 -
670640 -      ..
670641 -     SDS Comm Support Expands PG&E's Project Analyst Role
670642 -     Retool Skills New Professional Work Role Communication Analyst
670643 -     Project Analyst Role Expanded to Use SDS for Communication Support
670644 -
670645 -     SDS reduces reliance on handwritten notes and recollections that
670646 -     seem adequate at the time events take place (e.g., meetings, phone
670647 -     calls, documents, E-mail), but later turn out to be incorrect and
670648 -     incomplete.  SDS provides clear, concise and complete information
670649 -     when needed.  Linking project objectives with dialog, documents,
670650 -     contract provisions and scheduled activities, focuses work on
670651 -     critical action items and provides context so people understand
670652 -     scope and implications.
670654 -      ..
670655 -     When PG&E and CDWR staff see correlations of daily communications
670656 -     with prior project history in the SDS record, ideas and solutions
670657 -     are spawned to support decisions that are consistent with project
670658 -     requirements. ref SDS 16 1569
670660 -      ..
670661 -     Bill said the result using SDS for communication is fewer mistakes
670662 -     and better coordination within PG&E and with our customer, the
670663 -     State of California Department of Water Resources (CDWR), so that
670664 -     work gets done correctly and on time.  This saves money.
670665 -
670666 -          [On 971008 USACE published a report showing Com Metrics saves
670667 -          time and money at the rate of 10:1. ref SDS 24 2979
670669 -      ..
670670 -     Chris said that PG&E VPs, Directors and Project Managers are
670671 -     supposed to do this.  That is why these roles were formulated at
670672 -     PG&E.  In the case of project management, PG&E learned over time
670673 -     that a central authority was needed to direct, synthesize and
670674 -     coordinate work in multiple departments for accomplishing complex
670675 -     projects. Things were falling through the cracks, because
670676 -     decisions were based on internal departmental interests rather
670677 -     than allocating resources to meet company commitements that
670678 -     required a balance of cross-functional resources.
670679 -
670680 -          [On 970908 memo from PG&E's CEO requests ideas for improving
670681 -          communication. ref SDS 23 8572
670683 -      ..
670684 -     Project and Program Managers are hired and trained to do this
670685 -     coordination, which is largely communication.  So, why do we need
670686 -     a Communication Manager using SDS to do the same thing?
670688 -      ..
670689 -     Bill explained that managers deal with people, make decisions and
670690 -     deploy resources through a constant stream of meetings, calls and
670691 -     email.  There is no time for analysis and deliberation to identify
670692 -     correlations, implications and nuance by writing up the story of
670693 -     daily work and organizing the record accoring the context of
670694 -     objectives, requirements and commitments.
670696 -      ..
670697 -     A Communication Manager fills this gap for communication, similar
670698 -     to the way we use accountants to align daily finances so that
670699 -     deals, decisions and deployments are effective by ensuring
670700 -     understanding and follow up.  Attending constant meetings, and
670701 -     being on the phone to exercise the authority Chris cites today, is
670702 -     more effective using SDS to capture critical details and track
670703 -     action items. This solves communication problems when people won't
670704 -     listen. reported on 890809, ref SDS 2 CJ9J
670706 -      ..
670707 -     Bill said SDS improves management by aligning communication with
670708 -     objectives, requirements and commitments.  Meetings calls and
670709 -     documents, especially email these days, are used to plan and
670710 -     direct work that occurs days, weeks and months later.  Maintaining
670711 -     alignment of communication in SDS over long time spans increases
670712 -     the chance that work performed even years later will get done on
670713 -     time and within budget, rather than drift off course causing delay
670714 -     and extra cost.
670716 -      ..
670717 -     Chris commented that delay and extra cost are a continual problem
670718 -     that frustrates leadership, but asked why Project Managers can't
670719 -     align the work without SDS, simply by working harder to be more
670720 -     careful to avoid mistakes?
670722 -      ..
670723 -     He asked why increase costs to pay for a Communication Analyst,
670724 -     when this role wasn't needed previously?  [Note: on 940726 PG&E
670725 -     agreed to pilot test SDS using a Com Analyst role. ref SDS 5 UP6O]
670726 -
670727 -         [On 941209 example conventional management. ref SDS 20 0899
670729 -      ..
670730 -     Bill agreed that Project and Program Managers can organize and
670731 -     align the work without SDS, just like they can allocate resources
670732 -     to meet cost and schedule objectives without using spreadsheet and
670733 -     CPM programs, and without hiring cost and schedule engineers, and
670734 -     without accountants and lawyers.  So, too, people can walk to the
670735 -     store rather than buy a car to drive.  People can get things done
670736 -     on their own, but technology and skills help.  The only reason to
670737 -     pay for a car and gasoline, or to pay for cost and schedule
670738 -     engineers, or to hire a department manager is to add value for
670739 -     getting the work done at less cost than if investment is not made.
670740 -     Investing always requires getting a return on the investment.
670742 -      ..
670743 -     Bill explained SDS empowers people to align daily work much better
670744 -     than using conventional information technologies and practices,
670745 -     like wordprocessing, handwriting, personal memory, powerpoint
670746 -     files, shorthand, stenographers, secretaries and tape recordings.
670747 -     The design for personal and organizational memory (see POIMS,
670748 -     ref OF 1 01TU, leverages common skills for organizing and aligning
670749 -     communication, similar to the way a spreadsheet program leverages
670750 -     the power of an accountant to organize and align finances, and so
670751 -     can be described as a...
670753 -                            ..
670754 -                           Spreadsheet for Knowledge
670755 -
670756 -     ...that enables concurrent discovery so that a Communication
670757 -     Analyst can identify problems proactively to avoid mistakes, which
670758 -     otherwise cause delay, extra cost, conflict and crisis.  This
670759 -     reduces need for lawyers and formal dispute resolution.
670761 -      ..
670762 -     Chris commented that the Communication Analyst complements the
670763 -     role PG&E adopted a few years ago of supporting Project Managers
670764 -     with an Analyst for Cost and Schedule Control.  Bill agreed,
670765 -     noting that SDS integrate cost, schedule and communication, and
670766 -     since communication takes up about 90% of the time managing daily
670767 -     work, adding alignment and organization to the dominate task of
670768 -     communication, greatly improves productivity on getting things
670769 -     done to save time and money.
670771 -      ..
670772 -     Chris asked if there is a precedent for the theory that investing
670773 -     time and money to improve communication makes getting things done
670774 -     faster and easier to save time and money?
670776 -      ..
670777 -     A common example, can be seen from the Pharoahs in Egypt.  They
670778 -     had a work role for a project manager to build the pyramids, but,
670779 -     also, used a scribe, explained in NWO, ref OF 3 1H4O, to maintain
670780 -     the record under the rule credited to Rameses II...
670782 -                ..
670783 -               "So let it be written, so let it be done!"
670785 -      ..
670786 -     If the Pharoah's project manager had backhoes, cranes, bulldozers
670787 -     and trucks the job would have cost a lot less, even though each of
670788 -     these technologies cost a lot of money.
670789 -
670790 -          [On 020522 discussed growth of new work roles that evolve
670791 -          with disruptive technologies, citing Rameses II. ref SDS 29
670792 -          1J4H
670794 -           ..
670795 -          [On 000723 applied to history of SDS and Com Metrics.
670796 -          ref SDS 27 JV5K
670798 -           ..
670799 -          [On 040505 Paris peace conference in 1919 heads of state
670800 -          began holding meetings hoping to avoid keeping records, but
670801 -          found the top people in the world could not remember enough
670802 -          to perform daily work; eventually leadership yielded to an
670803 -          even stronger fear of accountable for failing to get anything
670804 -          done, and so a record of organizational memory was prepared
670805 -          and this change in management practice yielded results that
670806 -          expedited progress. ref SDS 31 MQ49
670808 -      ..
670809 -     Today, PG&E's project managers have all of these tools. This has
670810 -     drastically changed the character of management in the modern era.
670811 -     Rather than moving dirt, most of the work today is managing
670812 -     information piling up on desks, in files and computers. We can do
670813 -     it with more people, but SDS integrates powerful methods that do
670814 -     the job a lot better using a modern "scribe" to complement the
670815 -     Project Manager's task of leading the team, by ensuring that
670816 -     leadership is understood and followed up.  An easy way to think of
670817 -     the Com Manager is that this role improves listening, as reported
670818 -     on 890809. ref SDS 2 CJ9J
670820 -      ..
670821 -     Chris said PG&E responded to change in the business environment by
670822 -     providing cost and schedule engineers, which is now integrated in
670823 -     the Project Analyst role to assist Project Managers.  He asked why
670824 -     another level of support is needed for communication?
670826 -      ..
670827 -     Bill noted that cost and schedule are powerful business metrics,
670828 -     but only comprise about 10% of responsibilities assigned to a
670829 -     project manager.  The other 90% of the job that impacts getting
670830 -     things done on time and within budget is communication. Help on
670831 -     the biggest part of the job has the biggest impact on saving time
670832 -     and money.
670834 -      ..
670835 -     Chris said he doesn't get it.  He feels it is up to the project
670836 -     manager to make sure everyone pays attention and understands daily
670837 -     communication.
670839 -      ..
670840 -     Bill noted PG&E staff feel SDS has improved management by keeping
670841 -     things organized in a common story.  Shared meaning from a common
670842 -     story avoids people taking conflicting actions that cause delay
670843 -     and extra cost.
670845 -      ..
670846 -     On 940901 CDWR requested that PG&E continue using SDS, ref SDS 9
670847 -     4920, per discussion on 941004, ref SDS 15 4920, concerning Bill's
670848 -     memo dated 940727. ref DRP 2 0000
670849 -
670850 -          [On 941130 Chris Snyder cited approval by Pam Tahari and
670851 -          other PG&E staff on benefits of SDS. ref SDS 19 0003
670853 -           ..
670854 -          [On 000709 Bill confirmed SDS is more effective than other
670855 -          tools. ref SDS 26 1029
670857 -      ..
670858 -     SDS provides synergy between managers and organizations using the
670859 -     management cycle....
670861 -                   ..
670862 -                  +--- Plan ---------------- Perform ---+
670863 -                  |                                     |
670864 -                  |                                     |
670865 -                  |                                     |
670866 -                  +-------------- Report ---------------+
670867 -
670868 -
670869 -     ...that reveals correlations, implications and opportunities for
670870 -     saving time and money that are otherwise hidden in an avalanche of
670871 -     information due to limited span of attention. see POIMS.
670872 -     ref OF 1 6649
670874 -      ..
670875 -     Learning and using SDS takes time, like an accountant who uses a
670876 -     spreadsheet program to provide support, because a Project Manager
670877 -     does not have enough time.  Similarly, a Communication Manager has
670878 -     special skills for providing effective support that makes everyone
670879 -     else more productive, because the Project Manager does not have
670880 -     enough time, per above. ref SDS 0 0042
670881 -
670882 -
670883 -
670884 -
670885 -
670886 -
670887 -
6709 -

SUBJECTS
Contract Terms; Period
Change Orders, Extend period and budget
Expand work on CDWR project, Objectives/scope

7005 -
7006 -   ..
700601 - Chris asked Bill to prepare a change order and to submit a note
700602 - to him about looking for other projects where SDS can be applied over
700603 - the next few months to finance the other half of Welch's time.
700605 -  ..
700606 - Other Projects & Managers
700607 -
700608 - There was consideration of using SDS to support Bob Masuoka in the
700609 - Land Department.  Bill said Bob has expressed interest in using SDS
700610 - on sorting out the new requirements for General Order 131-D.
700611 -
700612 - On 940824 Mike Emery asked to try SDS. ref SDS 8 9668
700614 -  ..
700615 - SDS could also be useful in Contracts. Chris asked if Kevin Coffee is
700616 - familiar with SDS?
700617 - ..
700618 - Bill explained that Kevin has been part of the SDS review
700619 - process, but he has not yet discussed with Kevin using SDS in the
700620 - Contracts Department [there was a general discussion on this point
700621 - with Kevin driving back from a meeting with CDWR on 940818,
700622 - ref SDS 7 9558.]
700623 -
700625 -       ..
700626 -      Opportunities & Cost Savings
700627 -
700628 -      The SDS process of correlating work performed with contract
700629 -      requirements, has however revealed a number of cost and schedul-
700630 -      ing opportunities that would benefit PG&E and it customer, CDWR
700631 -      (these were explained per ref SDS 14 0000) --- see discussion in
700632 -      next record segment. ref SDS 0 1377
700634 -       ..
700635 -      [On 941211 similar issues came into the record. ref SDS 21 0000]
700636 -
700638 -  ..
700639 - Transitioning New Project Manager
700640 -
700641 - Bill indicated he is giving strong consideration to accepting PG&E's
700642 - offer for early retirement.  He feels the SDS record will help the new
700643 - project manager understand project status and maintain current
700644 - progress.
700646 -  ..
700647 - Administrative Support
700648 -
700649 - Another objective for the change order will be to develop SDS skill
700650 - for the PM Analyst position.
700651 -
700652 -
700653 -
7007 -
7009 - X456
7010 - 1115 Change Order
7011 -   ..
701101 - After meeting with Chris, I asked about follow up.  Bill plans
701102 - to call Bob Masuoka and/or Kevin Coffee about providing additional
701103 - budget for SDS through the end of the year?
701104 -
701105 -     He wants to do this Wednesday, 941012.  Scheduled follow up task.
701107 -  ..
701108 - He called Material and Fleet department to request that Karen prepare
701109 - another change order.
701110 -
701111 -
701112 -
7012 -

SUBJECTS
Project Manager, Bill DeHart
Line Protection Equipment, Section 6.2
Energize & Test,
Interface with CDWR Activities
CDWR Schedule, GO 131-D

7907 -
790801 -  ..
790802 - Cost Savings Opportunities on Line Protection Work
790803 -
790804 - We discussed some of the details about the CDWR job that have to be
790805 - worked out, including Line Protection and Energizing and Testing.
790806 -
790807 - We reviewed potential for cost savings on these matters developed on
790808 - 940926. ref SDS 14 0000
790810 -  ..
790811 - Bill feels these issues and the transition of a new manager when he
790812 - leaves at the end of the year, will be helped by SDS.
790814 -  ..
790815 - Advised of Bob Masuoka's work on GO 131 D activities, and on need to
790816 - get permit to cross aqueduct.
790817 -
790818 -
790819 -
790820 -
7909 -

SUBJECTS
Administration

8003 -
8004 - Summary/Objective
800501 -  ..
800502 - Bill will ask Jim Serchak to get me a plastic access card, so I can
800503 - get into the building off hours without needing Jim to make
800504 - arrangements on each occurrence.
800505 -
800506 -     [Followed up at ref SDS 18 line 48.]
800507 -
800508 -
800509 -
800510 -
800511 -
800512 -
800513 -
800514 -
8006 -
Distribution. . . . See "CONTACTS"