THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: May 4, 1995 07:23 AM Thursday; Rod Welch

Received letter from Terry Morford re SDS at PG&E.

1...Summary/Objective
2...Questions


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CONTACTS 
0201 - PG&E, Power Gen Services           415 973 2633 fax 0466
020101 - Mr. Terry A. Morford; Manager =415 973 2633
020102 - Room 1203, Mail Code P12A  =Telephone/fax

SUBJECTS
PG&E Assignment, General, Objectives/scope
PG&E, Power Generation Services
Sales discussions
Difficult to Explain, Too Complex

0806 -    ..
0807 - Summary/Objective
0808 -
080801 - Follow up ref SDS 9 0000.
080802 -
080803 - Received ref DRT 1 from Terry indicating SDS does not align with PG&E
080804 - plans.  Review of the record resulted in several pending issues.
080805 -
080806 -
080807 -
0809 -
0810 -
0811 - Review
0812 -
081201 - Terry's letter on 950427, ref DRT 1 0001 responds to the letter,
081202 - ref DIP 4 0001, confirming understandings from our meeting on 950424,
081203 - ref SDS 8 0001, which was submitted to Terry on 950425. ref SDS 9 0001
081204 -
081205 - Terry found the presentation interesting and informative. ref DRT 1
081206 -
081207 - He does not report any differences with the understandings shown in my
081208 - record at ref SDS 9, confirmed in my letter ref DIP 4. He does not
081209 - indicate that PG&E has found Bill DeHart's memo to Chris, ref DRP 1,
081210 - is incorrect in any respect.
081211 -
081212 - Terry cites "communication documentation" at ref DRT 1 0001
081213 - ..
081214 - Terry believes SDS design does not align with PG&E's information
081215 - technologies, ref DRT 1 0001, reflecting Kent Hea's observation on
081216 - 940728 that PG&E wants to use Microsoft Windows, ref SDS 2 LH4M.
081217 -
081218 - Terry feels Communication Managers to develop intelligence for saving
081219 - time and money conflicts with PG&E culture.  ref DRT 1 0001
081220 -
081221 - This feeling seems to conflict with findings by Chris Snyder and Bill
081222 - DeHart that PG&E needs better management, and PG&E people benefit and
081223 - accept SDS, reported in the meeting on 941130, ref SDS 4 6006  PG&E's
081224 - evaluation received on 950110, ref SDS 6 9482, showed that SDS
081225 - improves management better than anything else PG&E has tried over the
081226 - past 30 years. ref DRP 1 1759
081227 -
081228 - Terry's resistance to trying SDS for improving productivity reflects
081229 - Bill's report on 941228 that PG&E management is unable to grasp
081230 - requirements for improving management. ref SDS 5 9954
081231 -
081232 -    [On 950507 discussed with Bill DeHart. ref SDS 10 0000
081233 -
081234 -    [On 951022 investors worried inflated expectations that Microsoft
081235 -    Windows improves productivity will cause customers like Terry to
081236 -    lose faith in using computers, lowering demand and sales for
081237 -    computers, and this causes computer stock prices to decline.
081238 -    ref SDS 11 3357
081239 -
081240 -
081241 - Questions
081242 -
081243 - Terry's comments invite following questions:
081244 -
081245 -    1.  Bill indicated Terry's input on communication metrics would be
081246 -        helpful on advancing professional development within PMI, ref
081247 -        SDS 8 line 173.
081248 -
081249 -        Since Terry does not address this point, is he thinking about
081250 -        making this evaluation following an SDS demonstration, as
081251 -        mentioned in our discussion, ref SDS 8 line 240.
081252 -
081253 -    2.  Since communication metrics requires using SDS, does he need an
081254 -        SDS demonstration in order to comment on how communication
081255 -        metrics contributes to professional development?
081256 -
081257 -            "Communication documentation" in Terry's letter ref DRT 1
081258 -            line 15, reflects the misconception everyone has before
081259 -            they get experience with SDS, as cited by Bill in our
081260 -            discussion on October 4, 1994, ref SDS 3 line 185.
081261 -
081262 -
081263 -    3.  Since Bill found SDS improves management more than any other
081264 -        effort tried at PG&E over the past 30 years, ref DRP 1 line 25,
081265 -        is a demonstration needed to determine how PG&E's information
081266 -        technologies can be aligned to benefit from this advance?
081267 -
081268 -        How much effort would be required?  What benefits would accrue
081269 -        to the careers of PG&E managers, and how much would PG&E's
081270 -        earnings be expected to increase?
081271 -
081272 -    4.  Should we re-engineer communication to improve productivity and
081273 -        earnings, or re-engineer by reducing staff to cut costs?
081274 -
081275 -    5.  If earnings from communication metrics are increased by using a
081276 -        skilled communication engineer, as in using accountants, elec-
081277 -        trical engineers, janitors, cost engineers and so on, might it
081278 -        be worthwhile to investigate whether increased earnings,
081279 -        justify investing in this skill?
081280 -
081281 -    6.  Has the increase in the flow of information over the last 10
081282 -        years so changed the work environment that a communication
081283 -        engineer is needed to ensure adequate consideration of complex
081284 -        issues, understanding and timely follow up?
081285 -
081286 -        Were Aristotle, Voltaire, Drucker and Covey correct that the
081287 -        source of wealth begins with understanding?
081288 -
081289 -    7.  Is there any evidence showing that using SDS has impeded or
081290 -        would impede pursuit of PG&E's technology improvement program?
081291 -
081292 -    8.  Is there a better way to improve management without using SDS
081293 -        to apply communication metrics?  Do Bill Gates, Lou Gerstner,
081294 -        Phil Kahn, have any ideas that can help PG&E more than SDS?
081295 -
081296 -
081297 -
081298 -
0813 -
Distribution. . . . See "CONTACTS"