CONTACTS 
0201 - CDWR, Div Op. & Maint.                                                                                                                                             O-00000557 0201
020101 - Ms. Lori Brown, E.E.
020102 - Project Manager PG&E Contract, Coastal Branch, Phase II
0202 - PG&E Transm Contracts                                                                                                                                              O-00000558 0201
020201 - Mr. Kevin Coffee, E.E.
020202 - Contract Manager, Rm 2334 Mail Code B23A
020203 - Transmission Contracts

SUBJECTS
Central Coast Aqueduct, PG&E
Coordination TL and Pipeline Construction
PG&E submit letter on need for final grades
CDWR SDS Improves Project Management Better than Other Methods PG&E

2006 -
2006 -    ..
2007 - Summary/Objective
2008 -
200801 - Follow up ref SDS 20 0000.
200802 -
200803 - Left message with Jennifer for Lori to call.  Lori is in SF again
200804 - today.
200806 -  ..
200807 - Talked to Lori and Kevin Coffee late in afternoon, and decided Welch
200808 - should follow up separately with the PM for the pipeline contract.
200809 -
200811 -  ..
2009 -
2010 -
2011 - 1445 Lori called back
2012 -
201201 - Lori left a message that she called back because I left a message to
201202 - call her ASAP.
201204 -  ..
201205 - I need to send her the evaluation by Bill Dehart.
201206 -
201207 -
201209 -  ..
2013 -
2014 -
2015 - 1510 called Lori back
2016 -
201601 - As expected, she has not been able to set up a meeting with the
201602 - manager for the pipeline project.  Lori said she has mentioned the
201603 - Welch company and SDS that improved management for PG&E on the CDWR
201604 - project.  Don has evidently indicated to Lori she should put me in
201605 - touch with Will who is in charge of Cost and Schedule control software
201606 - tools.
201608 -  ..
201609 - Lori feels this is a mistake, because SDS is a broader application
201610 - than cost and schedule control which is typically performed by an
201611 - engineer looking at numbers.  SDS deals with history, analysis and
201612 - commitments that require communication skill, which is not common to
201613 - engineers, but an essential predicate to get the numbers to come out
201614 - correctly at the end of the job.
201616 -  ..
201617 - Lori asked me to attend the meeting with PG&E on 950209 1300.  She
201618 - expects Don Herdoscia will attend, who is fairly senior in management
201619 - for the California Department of Water Resources (CDWR).  Lori plans
201620 - to include on the meeting agenda consideration of SDS, and since the
201621 - team from PG&E and from CDWR are familiar with the benefits of SDS,
201622 - they can explain to Don how they have been helped and suggest that
201623 - CDWR continue this support, as related on 941208. ref SDS 7 1183
201625 -  ..
201626 - We considered that PG&E would likely feel uncomfortable with me
201627 - attending a meeting, because it creates pressure on the new management
201628 - team to use good management.  I asked Lori to call Kevin, PG&E's
201629 - contract manager, and let him know about her idea.
201631 -  ..
201632 - Lori will call Kevin and if they want to talk to me, we can have a
201633 - conference call.
201635 -  ..
201636 - Lori said construction on the CDWR project with PG&E is expected to
201637 - begin oa 950215, so she is anxious to get SDS back on board.  CDWR has
201638 - received an updated CPM schedule from PG&E, evidently following up our
201639 - review by telephone on 941214. ref SDS 11 0001
201641 -  ..
201642 - Lori said that PG&E cancelled the review meeting at the project site
201643 - which we had planned to present the schedule and get input.  There was
201644 - a progress meeting last week in Sacramento, but so far PG&E has not
201645 - submitted a record, as was done earlier using SDS.
201647 -  ..
201648 - Lori was told recently that PG&E has not continued to prepare SDS
201649 - records for the project.  She feels PG&E is starting to fall back into
201650 - prior problems, reviewed on 941005. ref SDS 4 0001  That is why she
201651 - wants me to attend the meeting on 940209.
201653 -  ..
201654 - I suggested again that we need to get PG&E's input in advance of me
201655 - showing up at their meeting, otherwise relations could suffer.
201656 -
201657 -
201659 -  ..
2017 -
2018 -
2019 - 1601 Lori called back
2020 -
202001 - Actually, Kevin placed a conference call to Lori and I.
202002 -
202003 - Kevin said he has asked around and has been told it would not be
202004 - appropriate for Welch to attend the meeting between PG&E and CDWR on
202005 - 950209, because PG&E has elected not to continue using SDS, contrary
202006 - to planning on 941208. ref SDS 7 1183  Kevin explained that the new
202007 - management team feels SDS is not needed so they prefer that CDWR not
202008 - use SDS on their project with PG&E because it would take too much time
202009 - for everyone to review everything.
202010 -
202011 -     [On 970908 PG&E management wants to improve communication.
202012 -     ref SDS 21 8572
202014 -  ..
202015 - Lori said CDWR found that having everyone review SDS records is
202016 - helpful because action items and connections to context helps people
202017 - understand the same story.  In a big organization that's hard to do.
202018 - Without SDS everybody is constantly mixed up telling a different story
202019 - and this causes people to take conflicting actions, which then have to
202020 - be fixed, causing extra expense and delay that makes people angry. She
202021 - recalled Bill saying that SDS was helpful for PG&E in keeping the work
202022 - on track, as discussed on 940901. ref SDS 3 4920  Lori asked how PG&E
202023 - plans to keep the project on track without SDS?
202024 -
202025 -     [On 050517 PhD student requests support for doctorial paper on
202026 -     cognitive overhead; review cost savings based on theory of rework.
202027 -     ref SDS 23 NG5J
202029 -      ..
202030 -     [On 050517 case study cognitive overhead shows culture resists due
202031 -     diligence to collaborate, communicate, investigate, study,
202032 -     analyse, and verify accuracy that levearages experience for taking
202033 -     effective action, because people do not have time to think.
202034 -     ref SDS 23 PY4U
202036 -  ..
202037 - Kevin said that Bill has retired from PG&E, and so the new team will
202038 - use PG&E standard procedures for managing all their projects.
202040 -  ..
202041 - Lori said that previously this was not successful.  CDWR asked PG&E to
202042 - improve management because the standard management procedures were not
202043 - working.  As a result, PG&E removed the project manager and assigned
202044 - Bill DeHart, and he in turn started using SDS.  These changes were
202045 - successful, as reported on 941005. ref SDS 4 0001  That is why PG&E
202046 - was asked, following the progress meeting on 941208, when Bill
202047 - announced his retirement, about PG&E plans to continue using SDS, and
202048 - was told that PG&E planned to do so. ref SDS 7 1183
202050 -  ..
202051 - Kevin said PG&E made another change after meeting with the State on
202052 - 941208.  There has been a lot of downsizing and so different people
202053 - are running things now.  They don't want to use SDS anymore. It is
202054 - hard to explain to the new people why PG&E should pay Welch for
202055 - preparing the record, and it takes more time for everyone to read
202056 - everything, which costs more money, and right now PG&E is trying to
202057 - cut costs, so reducing communication expense makes sense to the new
202058 - people.
202060 -  ..
202061 - Lori asked how the new PG&E team will avoid prior problems that caused
202062 - delays and extra expense for everyone because things were not getting
202063 - done.  She noted evidence that things are already beginning to slip,
202064 - per above. ref SDS 0 EF4J
202066 -  ..
202067 - Kevin explained that the new team plans to work harder using standard
202068 - management procedures to accomplish SDS support at less expense.
202069 - Staff are attending conferences on project management and going to
202070 - seminars on listening and communication skills.  This is a lot cheaper
202071 - than using SDS.
202073 -  ..
202074 - Lori said PG&E has been trying to use good management, diligence,
202075 - attend seminars and training for years, just like a lot of people with
202076 - the State of California get professional training and attend seminars
202077 - to improve management, but none of that worked as well as using SDS.
202079 -  ..
202080 - Lori noted that the State was paying for SDS support, which was the
202081 - purpose of the meeting Kevin attended, along with Bill DeHart, on
202082 - 940901. ref SDS 3 BV3Y  On 941208 the State wanted to continue paying
202083 - for this support in order to ensure that the Central Coast Aquaduct
202084 - project stays on track. ref SDS 7 1183  So what's the problem?  SDS is
202085 - not costing PG&E anything, and CDWR has determined that SDS is saving
202086 - everybody a lot of time and money, otherwise we would not be talking
202087 - about it today.
202089 -  ..
202090 - Kevin suggested the State use SDS on other projects, rather than on
202091 - PG&E's project with CDWR because that would embarrass the new team.
202092 -
202093 -     [On 050517 case study cognitive overhead shows culture resists due
202094 -     diligence to collaborate, communicate, investigate, study,
202095 -     analyse, and verify accuracy that levearages experience for taking
202096 -     effective action, because people do not have time to think.
202097 -     ref SDS 23 PY4U
202099 -  ..
202100 - Kevin wants to avoid forcing people to use a method they don't
202101 - understand, even though they don't need to understand SDS in order for
202102 - PG&E and the State to save time and money using SDS, illustrated
202103 - Lori's meeting with PG&E on 940901. ref SDS 3 4920  He feels that
202104 - since PG&E is downsizing, leadership is in flux; people are edgy and
202105 - anxious about holding onto their job, and busier than ever because of
202106 - fewer people.  This makes it hard to explain why SDS works better than
202107 - using Microsoft programs that everybody already knows, because you
202108 - need experience and/or training to understand SDS advantages, because
202109 - management is a very complex subject (noted by Drucker - people have
202110 - given up, reported on 931130, ref SDS 2 3851  Since none of the new
202111 - people now in charge have experience with SDS, it is easier to make
202112 - everbody feel good by not bringing up a difficult subject that makes
202113 - people feel insecure about their management practice, when they see
202114 - all the things SDS does to save time and money that they are not
202115 - doing, because good management takes a lot of time using methods and
202116 - tools everybody already knows, instead of using SDS.
202118 -  ..
202119 - Kevin feels that Bill's training and experience in project management,
202120 - and experience working on prior PG&E efforts to use technology for
202121 - improving management, enabled him to more readily grasp advantages,
202122 - and explain how SDS avoids past failures.  Bill's boss relied on
202123 - Bill's judgement to approve using SDS, and later, once underway,
202124 - everybody that used SDS records reported this was very helpful, as
202125 - Lori related on 941208. ref SDS 7 1183  But none of those people have
202126 - authority to approve continued use of SDS at PG&E as planned on
202127 - 941130. ref SDS 6 BT8K  Since Bill's retirement, nobody else has the
202128 - ability to explain SDS to PG&E management, as he did on 941010,
202129 - ref SDS 5 1870, and so everybody is too busy and too afraid to try.
202130 -
202131 -     [On 980405 fear of accountability is another cultural barrier to
202132 -     trying SDS, ref SDS 22 5065, in order to discover people get
202133 -     credit for saving time and money. ref SDS 22 1491
202135 -  ..
202136 - Lori said it is important to maintain good relations, mentioned
202137 - earlier this morning when she asked Rod to attend a meeting next month
202138 - with PG&E on 940209, per above. ref SDS 0 SY3J  Lori has run into
202139 - similar difficulties attempting to get senior managers to study how
202140 - SDS has saved the State time and money.  She was hoping Kevin and
202141 - others at PG&E, who have experience with SDS, could help get attention
202142 - of upper managers in State government, who plan to attend the next
202143 - progress meeting with PG&E on 940209, and would likely listen to PG&E
202144 - people about this kind of issue.  But, since everyone is concerned
202145 - about cultural backlash, guess we cannot make progress in this way.
202147 -  ..
202148 - Lori suggested that Rod contact Don Herdoscia directly about using SDS
202149 - on other CDWR projects.
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