THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
S U M M A R Y
DIARY: April 24, 1995 02:00 PM Monday;
Visited Terry Morford at PG&E with Bill DeHart re SDS.
3...New Business Practice or Crutch?
7...Communication Metrics & SDS
8...Communication Metrics & PMI Standards
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0202 - PG&E, Power Gen Services 415 973 2633 fax 0466 O-00000592 0101
020201 - Mr. Terry A. Morford; Manager =415 973 2633
020202 - Room 1203, Mail Code P12A =Telephone/fax
PG&E Assignment, General, Objectives/scope
PG&E, Power Generation Services
0605 - ..
0606 - Summary/Objective
060701 - Follow up ref SDS 24 0000, ref SDS 22 0000.
060703 - Used information from discussion with Bill today at ref SDS 25 line
060704 - 55, to explain POIMS and Communication Metrics.
060706 - Will follow up in a week or so re SDS demonstration.
0610 - Discussion
061101 - Bill explained his objective to clarify how SDS supported project
061102 - management, and how organizational changes at PG&E impacted evaluation
061103 - of SDS. He mentioned "communication metrics" evolved from the PG&E
061104 - experience, to assist users and non-users in understanding what SDS
061105 - does and how it improves productivity and earnings, ref SDS 10 line
061106 - 111.
061108 - Terry noted that "communications" is about 60% of "management," and so
061109 - methods to improve it are helpful.
061112 - Training
061114 - He asked how SDS is applied and how much training is required.
061116 - I explained the idea of using a "communication engineer" similar to
061117 - cost and schedule engineers, per ref SDS 15 line 116. Terry noted
061118 - that training time depends on the circumstances of individual
061119 - trainees.
061121 - I agreed; the key to learning SDS is having a management background
061122 - in order to understand all of the practices that are integrated in
061123 - SDS, and why this is necessary. It can take several weeks to
061124 - several months to acquire the skill of using SDS functionality,
061125 - depending upon how much time a particular manager can devote to
061126 - training.
061128 - Bill said that writing skill is needed to craft the record so it is
061129 - useful as a routine management tool to rely on instead of personal
061130 - recall. Some aspects of "writing" in SDS must/can be taught. Other
061131 - aspects must/can ONLY be acquired by exposure to the SDS record and
061132 - observing how it turns out to be applied over time.
061134 - This entails "transitioning" a new user to adopt the principles
061135 - inherent in SDS, principally measuring and capturing understanding,
061136 - and linking daily work to its antecedents. The communication
061137 - engineer builds a record that becomes valuable to the organization,
061138 - and this provides incentive for the new user to learn to access it
061139 - as a result of seeing how it improves earnings. New Users soon want
061140 - this power.
061142 - This effort can take from 2 to 6 months, and should be applied in
061143 - an OJT environment, supplemented by dedicated training, as
061144 - recommended by Bill's memo to Chris Snyder, ref DRP 2 line 37.
061147 - New Business Practice or Crutch?
061149 - Terry asked if the communication engineer becomes a crutch for the
061150 - organization?
061152 - Bill mentioned this was a concern he had initially in deciding to
061153 - try SDS. He recalled expecting Welch would have to spend weeks or
061154 - even months loading a lot of prior information in order for SDS to
061155 - become useful. This was not the case. SDS is like hiring a new
061156 - executive. History is incorporated as needed.
061158 - He said SDS with Welch providing communication engineering began to
061159 - immediately improve project performance, reported to Chris Snyder,
061160 - ref SDS 4 line 103, (explained also in the POIMS and New World
061161 - Order... papers; examples are in the SDS record which can be seen
061162 - in a demonstration of the program, see "SDS Demonstration" below).
061164 - Whether this is a "crutch," is a business decision, similar to
061165 - deciding if an organization needs an accountant, electrical
061166 - engineer, environmental specialist, and so on. The POIMS and New
061167 - World Order... papers set out a thesis that the management
061168 - environment is changing. Communication metrics can be seen as the
061169 - cost of succeeding in the changed environment.
061171 - The key questions are:
061173 - Is the business environment changing?
061174 - What is the change?
061175 - What can managers do to meet the challenge of change?
061176 - What will happen if the challenge of change is ignored?
061179 - Professional Development
061181 - Terry asked if SDS is applied by a new skill person, or perhaps a
061182 - documentation clerk; or, is this a skill the manager is intended to
061183 - acquire?
061185 - I explained that ultimately the goal is to lift the skill of the
061186 - executive and executive support. PG&E's project managers are
061187 - skilled in cost and schedule control, but are supported in this by
061188 - project analysts. The aim is to integrate cost, schedule and
061189 - communications, per Kerzner lecture review, ref SDS 11 line 178.
061191 - I was Bill's documentation clerk/analyst because I know how to use
061192 - SDS and how to manage organizations. I also know the value of
061193 - capturing the record in a certain way, that others have not yet had
061194 - the opportunity to recognize.
061196 - Bill advised that one objective of our visit today is to get
061197 - Terry's input on the advisability of adding communication metrics
061198 - to the professional development program within PMI.
061201 - Generic Application
061203 - Terry indicated communication metrics applies to more than projects.
061206 - Hardware
061208 - Terry asked about the computer platform?
061210 - Bill advised SDS is a DOS application which he runs under Windows.
061213 - Communication Metrics & SDS
061215 - Terry asked if communication metrics can be applied without SDS?
061217 - I explained this is a new science that requires "integrating" key
061218 - management practices (see POIMS paper p. 2 "Investing Intellectual
061219 - Capital" ref OF 1 line 147), and this can only be done by automa-
061220 - tion. There is no manual analog. Similarly, the objectives of
061221 - discovering gaps in understanding before taking action in order to
061222 - avoid the cost of misunderstanding, and scheduling follow up, both
061223 - require a fast, supple means to capture, organize, link, identify
061224 - and verify accuracy and consistency of the record. This also
061225 - requires automation. There is no other way to do these things.
061227 - Therefore, POIMS criteria requires "automated integration" of
061228 - traditional management of time, information, people and documents.
061229 - The design of this automation is critical to making these
061230 - components work together smoothly, ref OF 1 line 23.
061233 - Communication Metrics & PMI Standards
061235 - Bill feels PMI should investigate applying POIMS criteria to support
061236 - communications, similar to C/SCSC for cost and schedule.
061238 - He cited the limited treatment of communications in the PMBOK.
061240 - We considered the general phenomena of management experts routinely
061241 - pointing out at training events the importance of communications,
061242 - but being unable to offer concrete improvements. An example is the
061243 - recent Kerzner International Video Conference attended by PG&E in
061244 - February, 1995, ref SDS 11 line 156. A major problem cited by many
061245 - executives and others in the organizational hierarchy is having too
061246 - many meetings and not enough time to work.
061248 - PG&E Example
061250 - I mentioned that the SDS record shows how PG&E, as at other organi-
061251 - zations, much of the time in meetings devoted to reviewing con-
061252 - flicting recollections about who said what at prior meetings, is
061253 - solved by SDS. An example with Glenn West, Pam Tehari and others,
061254 - is at ref SDS 7 line 143.
061257 - Follow Up
061259 - Terry wants to consider our discussion today, and review the papers on
061260 - POIMS, ref OF 1 line 10, and ref OF 2 line 12, which I submitted at
061261 - the conclusion of the meeting today.
061263 - He asked how long the SDS demonstration takes. I indicated this can
061264 - take from 30 - 90 minutes depending upon questions. Our meeting today
061265 - will expedite the standard demonstration which normally includes
061266 - explanation of concepts.
061268 - Terry wants to discuss this later in the week or perhaps next week.
061271 - ..
061272 - SDS Demonstration
061274 - Per analysis at ref SDS 25 line 55, deferred following until after
061275 - Terry has a chance to digest our discussion today and the
061276 - documentation on POIMS submitted today.
061278 - Use presentation to City of San Francisco, DS 13 2123.
061280 - Review original presentation to Bill at ref1 8490.
061282 - Review presentation to Chris, Bill and Kent Hea for objectives
061283 - for SDS project at PG&E, ref SDS 2 8300.
061285 - Evaluation by PG&E at ref SDS 4 7777ref SDS 5 6006.
061288 - Comment by PG&E customer CDWR at ref SD920, and at ref SDS
061289 - 6 8841.
061291 - Typical management situation where SDS saves time and avoids
061292 - mistakes, ref SDS 9 8987.