THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
rod@welchco.com
S U M M A R Y
DIARY: December 12, 1995 08:20 PM Tuesday;
Rod Welch
Received article correlating "Risk Management" and communications.
1...Summary/Objective
................The Role of Project Risk in Determining
.....................Project Management Approach
.....Command and Control of the Record was analysed on 950607.
.....Supports article on communication primary role of management,
2...Schedule & Cost Control Have Minimal Impact
3...Risk is Undefined
4...Communication
5...Understanding
..................7.Habits of Highly Effective People
.....Listening
......................There isn't enough time
.....Communication Metrics Aids Memory
......................organizational learning
.........Human Memory Good for a Minute
.........False Knowledge
.........Failure to Align = Failure to Understand = Murphy's Law
.....PMBOK and ISO
6...Problem Handling - Rework to Fix Communication Errors
.........................miscommunication
7...High Risk Projects Require Communication Metrics
.....Command & Control of the Record
8...Experienced People, Case Studies, Continual Learning
9...Authority of Project Manager
10...New World Order: New Risks Need New Solution
........................there isn't enough time
....."20 - 80" Management Fails on Information Highway
11...Solutions - What to Buy?
12...Budgeting for Success
13...How do we budget for better communications, understanding and problem
14...How do we convince management that earnings are improved by budgeting
..............
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CONTACTS
SUBJECTS
Risk Management, Re-Engineer Project Management
Modern Project Management (MPM)
Communications, Human Memory
Correlation to accepted practice and
Complexity Creates Risk, Managed by SDS
Communication Largest Risk Most Time of
Reengineer Communication SDS Improves Management Adds Metrics Alignme
Risk Management Communication Biggest Risk in Enterprise Causes Proje
1710 -
1710 - ..
1711 - Summary/Objective
1712 -
171201 - Follow up ref SDS 13 0023.
171202 -
171203 - Reviewed article showing the need for Communication Metrics as a key
171204 - aspect of risk management. A wide ranging study showed communications
171205 - impacts technical, cost and schedule objectives, but the article
171206 - offers no solutions.
171208 - ..
171209 - "Risk" was discussed with KH on 951109, ref SDS 32 1048, and was
171210 - reflected in proposal for ALRS project a few days later on 951112.
171211 - ref SDS 33 8446
171212 -
171213 - [On 990924 explain cause and solution to mistakes. ref SDS 54 0001
171215 - ..
171216 - [On 991001 small mistakes compounded by time, ref SDS 55 3192,
171217 - denial communication main cause of mistakes. ref SDS 55 3588]
171218 -
171219 -
171221 - ..
1713 -
1714 -
1715 - Analysis
1716 -
171601 - Scanned article in the December 1995 issue of Project Management
171602 - Journal on p. 5, ref OF 7 0001, which shows...
171604 - ..
171605 - The Role of Project Risk in Determining
171606 - Project Management Approach
171607 -
171608 - ...which reports a study of factors that impact project success.
171610 - ..
171611 - Risk Management was considered recently on working with Perini at
171612 - ref SDS 25 7878, and earlier on fears that adequate consideration
171613 - of risk in pricing proposals results in higher bids that lose
171614 - assignments, ref SDS 8 9809. This study supports the thesis of
171615 - "Communication Metrics" that effective Risk Management requires
171616 - monitoring communications, ref OF 7 2088, ref OF 7 0432, similar
171617 - to cost and schedule control, ref SDS 10 5005 and ref SDS 13 0023,
171618 - as reflected by Primavera's experience, ref SDS 14 3920.
171619 -
171621 - ..
171622 - Command and Control of the Record was analysed on 950607.
171623 - ref SDS 16 3922
171624 -
171626 - ..
171627 - The article indicates throughout key risk factors that increase costs
171628 - are.....
171629 -
171630 - communication, ref OF 7 9482, ref OF 7 0785
171631 -
171632 - understanding, ref OF 7 0877, ref OF 7 0432
171634 - ..
171635 - problem handling, ref OF 7 9482 (see ref SDS 0 8473)
171636 -
171638 - ..
171639 - Supports article on communication primary role of management,
171640 - reviewed on 940219, ref SDS 7 3553, discussion with Morris on
171641 - 951101 about hiring psychologists to improve communications,
171642 - ref SDS 31 5500, and Raychem's Project of the Year award reported
171643 - on 960117. ref SDS 39 7684.
171645 - ..
171646 - This new evidence supports Kerzner lecture on 950202 identifying
171647 - communication as primary force affecting project success.
171648 - ref SDS 10 8402
171650 - ..
171651 - Problem handling is another way of describing "rework" that drives
171652 - up costs, reported on 930216. ref SDS 3 4633.
171653 -
171654 - [Wasting time in meetings is at ref SDS 40 5902.]
171655 -
171656 - [See role of communication in IT at ref SDS 37 5988.]
171658 - ..
171659 - [On 970418 received report by Corps of Engineers on Com Metrics,
171660 - ref SDS 45 3368.]
171662 - ..
171663 - [On 970707 study by US Air Force found information entropy
171664 - causes cost growth, and all communication system lead to
171665 - information entropy. ref SDS 47 0611.]
171667 - ..
171668 - [Book on management performance says communication primary
171669 - factor, ref SDS 48 6666.]
171671 - ..
171672 - [On 991001 lack of communication alignment caused space ship to
171673 - crash on Mars costing $125M, ref SDS 55 0001, denial that
171674 - delayed release of 820 chipset caused by communication.
171675 - ref SDS 55 3588]
171677 - ..
171678 - The term "communication patterns" is also used. ref OF 7 0688, see
171679 - also ref OF 4 1850, ref OF 4 7390. None of these factors, however,
171680 - are defined in the article.
171681 -
171682 - "Communication Patterns" is explained as the "...directness of
171683 - communication on a project," ref OF 7 0877, but this does not
171684 - explain "communication." It sounds like a consideration of the
171685 - organization chart that sets lines of authority called for in ISO
171686 - 10006, reviewed on 950721. ref SDS 24 2221 While often endless
171687 - hours are devoted to drawing the organization chart showing who
171688 - reports to whom, this does not aid "understanding" or use of what
171689 - is reported.
171690 -
171692 - ..
171693 - Schedule & Cost Control Have Minimal Impact
171694 -
171695 - The author concludes that on complex projects CPM and budget tools,
171696 - including C/SCSC can be used effectively. This point is recognized,
171697 - or at least believed to be a cardinal principle of Modern Project
171698 - Management. Fran Webster reported in an "Olde Curmudgeon" article
171699 - that these methods are a "...small part of PM." (PMnetwork, Sep 1993
171700 - p. 20 para 3).
171702 - ..
171703 - This study shows that communication, understanding and problem
171704 - handling are the strongest factors in the success of all projects.
171705 - The findings reflect the common sense fact that management "work" is
171706 - talking, listening, observing and thinking, through personal
171707 - reflection or writing. Many people think of "communication" as simply
171708 - pursuading people through a gift of gab and the force of personality.
171709 - However, "Communication Metrics" defines "communication" more broadly
171710 - to include...
171712 - ..
171713 - Leadership
171714 - Understanding
171715 - Follow up
171716 -
171717 - ...per definition at ref SDS 13 8492.
171718 - ..
171719 - Obviously the activity that managers do the most, should be
171720 - expected to have the biggest impact on performance. The results of
171721 - the study are supported by the Welcom seminar and its manual which
171722 - notes that "communication" bears on cost, schedule and quality,
171723 - ref SDS 19 8447.
171724 -
171726 - ..
171727 - Risk is Undefined
171728 -
171729 - The study does not clarify the meaning of "risk". If a project does
171730 - not have much impact on organizational fortunes, then regardless of
171731 - how difficult it is, i.e., "risky," the chances of gaining adequate
171732 - organizational support is low. This compounds the risk to others
171733 - whose fortunes may depend heavily on adequate performance of the work.
171734 - Similarly, if a project seems easy but has a high impact on the
171735 - fortunes of the organization, then there is an often overlooked risk,
171736 - that despite the risk of adverse consequences, organizational interest
171737 - will be directed elsewhere, until disaster actually strikes. Then it
171738 - may be too late, e.g., Broadwater Spillway contract.
171739 -
171740 - [Article reviewed later explains "complexity" including human
171741 - interactions as major contributors to risk, ref SDS 38 5988.]
171742 -
171744 - ..
171745 - Communication
171746 -
171747 - What does the author mean by "communication"?
171748 -
171749 - Is it telephones, copy machines, fax, email, forms, meetings,
171750 - pictures? The "Information Highway" makes the meaning of
171751 - "communication" vital to interpreting the study, particularly since
171752 - the study concludes that "communication" is a key component of
171753 - success. ref OF 7 0785 Most likely the study questionnaire had a
171754 - choice of "communication" and left it to each respondent to apply
171755 - personal notions on the assumption that everybody knows what it means.
171756 - Review on 931130 shows Peter Drucker's opinion that "communication"
171757 - means more than increasing the flow of information. ref SDS 5 5567 On
171758 - 950202 analysis of the Kerzner lecture identified forms of
171759 - communication. ref SDS 10 8446
171760 - ..
171761 - So, again, what does communication mean in this study?
171762 -
171763 - [On 970829 book on management practice says communication primary
171764 - factor. ref SDS 48 6666]
171765 -
171766 -
171767 -
171768 -
1718 -
SUBJECTS
Define "Understanding"
Understand, Not Enough Time, Too Noisy
Understanding, Common, Build and Maintain
Listening & Dialog Inadequate
Understanding
Listening & Dialog Skills is Leadership
2508 -
250901 - ..
250902 - Understanding
250903 -
250904 - Similarly, was "Project goal understanding" defined on the study
250905 - questionnaire? How do we "know" a goal is "understood." What is the
250906 - metric of any communication? How do we measure at the end of a
250907 - meeting, call, or after sending an email, what "understanding" has
250908 - taken place about goals, objectives, strategies, conflicts, action
250909 - items? ref OF 4 line 302, ref OF 4 line 326 and discussion on 951027
250910 - with Don Harms on how to acquire "understanding." ref SDS 30 8640.
250911 -
250912 - [Understanding was later defined in relation to how technology
250913 - can support it, in paper for Asilomar, ref SDS 42 8201.]
250915 - ..
250916 - [On 980114 explained "understanding" in revised NWO paper,
250917 - see. ref SDS 51 0000]
250918 - ..
250919 - An example is the NCC PMI Event program. Goals were
250920 - formulated and explained, ref SDS 17 0000. Management proclaimed
250921 - support for goals, ref SDS 22 9562, and on 950612 recommended
250922 - approval by the PMI NCC Board. ref SDS 18 8533. However,
250923 - subsequent events showed the goals were never "understood."
250924 - ref SDS 23 0880, ref SDS 21 8452 How can this be?
250926 - ..
250927 - The idea that building and maintaining "understanding" over time
250928 - is critical to success, ref SDS 13 6007, is supported by
250929 - management and personal effectiveness author Stephen Covey, who
250930 - says in his book...
250932 - ..
250933 -
250934 - 7 Habits of Highly Effective People
250935 -
250936 - ...seek first to understand, then prescribe, ref SDS 2 9577.
250937 -
250938 - Mr. Covey seems to feel "understanding" is important because it is
250939 - a predicate to taking action, which suggests it impacts "problem
250940 - handling." It seems flip to say problems need to be "understood"
250941 - before taking action, but it turns out that "understanding" and
250942 - "problem handling" are related to "communication." These three
250943 - separate factors in the study, are actually a single integrated
250944 - process defined by Communication Metrics.
250945 -
250947 - ..
250948 - Listening
250949 -
250950 - On 921205 Covey offers "empathic listening" to improve
250951 - understanding, ref SDS 2 5903. What does this mean? How do
250952 - managers "listen" to improve communications? How dow we know if
250953 - anybody listened adequately? Is there a metric? In the modern
250954 - world of more meetings, calls, faxes and email, managers say...
250955 -
250957 - ..
250958 -
250959 - There isn't enough time
250960 -
250961 -
250962 - ...to use conventional methods that ensure "understanding",
250963 - ref SDS 27 line 245. How do we get more time to apply the
250964 - sound management practices found to be so important by this
250965 - study?
250966 -
250967 -
250968 -
250969 -
2510 -
SUBJECTS
SDS Explanation
Communication Metrics, Definition
Remembering (Linked Records - Traceability,
Fragile Memory, Align Communications
False Knowledge, Continual Learning
Technology Improves Understanding by
Complexity Thinking Shocking when 1st
Organizational Memory Intelligence Organization Analysis Alignment Su
Invest Intellectual Capital Capture Organizational Memory Who What Wh
4511 -
451201 - ..
451202 - Communication Metrics Aids Memory
451203 -
451204 - The science of "Communication Metrics" says "understanding" means
451205 - connecting information and objectives into a web of "knowledge"
451206 - showing cause and effect based on context of organic subject
451207 - structure. see NWO, ref OF 5 5361, also, the record on 941211,
451208 - ref SDS 9 7388, and defining Com Metrics on 950327. ref SDS 13
451209 - 8492
451211 - ..
451212 - Capturing the record of organizational memory is a continual
451213 - process of learning, what some authorities call....
451214 -
451216 - ..
451217 -
451218 - organizational learning
451219 -
451220 -
451221 - ....which refines accuracy of understanding, because it is never
451222 - fully achieved.
451223 -
451224 - [On 001219 steps using SDS new way of working. ref SDS 56 QT6F
451226 - ..
451227 - SDS helps perform this process faster and more accurately than
451228 - conventional methods, making it practical in today's world to
451229 - improve communication, understanding and problem handling, see
451230 - example of continual learning on 951027. ref SDS 30 8640
451231 -
451233 - ..
451234 - Human Memory Good for a Minute
451235 -
451236 - How does what we said and heard align with what was said a
451237 - minute ago, yesterday at the progress meeting, last night at
451238 - dinner with the boss, 2 days ago in the letter received from a
451239 - customer, last year at the meeting in Paris? ref SDS 2 5553.
451240 - (see discussion with Morris at ref SDS 12 3333) How does it
451241 - align with the contract, company policy, sound management
451242 - practice, e.g., PMBOK, ISO 10006?
451243 -
451244 - [On 960620 applied to paper on Concurrent Discovery,
451245 - ref SDS 41 4851;
451247 - ..
451248 - [On 960721 explained to Morris. ref SDS 43 0896]
451250 - ..
451251 - [On 991001 denial that delayed release of 820 chipset
451252 - caused by communication. ref SDS 55 3588]
451253 -
451255 - ..
451256 - False Knowledge
451257 - Failure to Align = Failure to Understand = Murphy's Law
451258 -
451259 - Most people are good at aligning information within the span
451260 - of a minute. That is one aspect that makes conversation seem
451261 - so attractive. Longer time spans and proliferation of factors
451262 - to align, however, cause failure of understanding, ref SDS 11
451263 - 0550, due to "knowledge creep" ref SDS 28 9403, commonly
451264 - attributed to "Murphy's Law" in the NWO... paper. ref OF 5
451265 - 9449. Thus, complexity gives rise to the risk of remembering
451266 - incorrectly, while believing we have remembered correctly,
451267 - i.e., false knowledge. If we have more to think about, we
451268 - need a way to leverage our ability to think.
451269 - ..
451270 - Communication Metrics discovers misunderstandings and
451271 - fixes them before losses and delays occur.
451272 -
451274 - ..
451275 - PMBOK and ISO
451276 -
451277 - Connecting information and objectives over time is reflected by
451278 - the PMBOK requirement to align communications, ref SDS 25 line
451279 - 671, similar to the ISO 10006 requirement for traceability to
451280 - original sources, ref SDS 25 line 584. If information is not
451281 - connected and/or aligned, then there is no "understanding,"
451282 - communication failed, and we can safely say problems were not
451283 - handled correctly, but rather were compounded. This is why
451284 - improving communications is such a major factor in project success
451285 - as found in the study. There is a big multiplying effect in the
451286 - "process."
451287 -
451288 -
451289 -
451290 -
4513 -
SUBJECTS
Empowerment
Risk Management, Dispute Resolution
Discovery, Strategic Resource
Dispute Resolution
Concurrent Discovery
Experience, Case Studies
5408 -
540901 - ..
540902 - Problem Handling - Rework to Fix Communication Errors
540903 -
540904 - The article indicates "problem handling" is a big part of managing,
540905 - and that communication failures cause the problems due to lack of
540906 - understanding. ref SDS 0 8022 The article says that management
540907 - problems are largely solved through communication. see ref SDS 0 4433
540909 - ..
540910 - What then does "Problem handling" mean? The article does not explain
540911 - how to "communicate" so that understanding is effective, i.e.,
540912 - alignment and feedback metrics disclose misunderstanding before
540913 - mistakes are made so that "problem handling" is unnecessary, as
540914 - explained in the NWO... paper. ref OF 5 7337
540916 - ..
540917 - The major challenge of the modern era is recognizing a problem exists
540918 - in time to take effective action. Cost and schedule control report the
540919 - results of problems that were not recognized in time to avoid delay or
540920 - cost overrun, as developed at the Kerzner lectures on 950202. see
540921 - record at ref SDS 10 0333
540922 -
540923 - [On 971008 report from government on Communication Metrics to
540924 - reduce rework. ref SDS 49 1273]
540926 - ..
540927 - [On 971229 management training film illustrates typical scenarios
540928 - of failed communication causing "problem handling" under the
540929 - common expression "Why is this always happening to me." see the
540930 - record at ref SDS 50 1501]
540932 - ..
540933 - [On 980808 "problem handling" is endemic to managing as indicated
540934 - in the record at ref SDS 53 1125]
540935 - ..
540936 - The author says that increased "monitoring" is needed on high
540937 - risk projects. ref OF 7 3099
540938 -
540939 - [On 990924 explain cause and solution to mistakes. ref SDS 54 0001
540940 -
540941 - [On 991001 NASA space craft crashed on Mars due to simple mistake.
540942 - ref SDS 55 0001]
540944 - ..
540945 - How can we "empower" managers to improve "monitoring."
540946 -
540947 - [See paper on "Concurrent Discovery" to do this, ref SDS 41 1101.]
540948 -
540949 - [On 970418 U.S. Army Corps of Engineers issued report on
540950 - Communication Metrics. ref SDS 45 3368]
540951 - ..
540952 - What should be monitored? How do we monitor the cause of
540953 - problems, which is usually...
540955 - ..
540956 -
540957 - miscommunication
540958 -
540959 - ...so that it can be fixed before it results in extra cost
540960 - and/or schedule delays? ref SDS 13 line 261.
540961 -
540962 - The study generally advocates use of traditional control tools for
540963 - cost and schedule like CPM, Cost Control, C/SCSC, but says nothing
540964 - about communications, repeating the error in the Kerzner lecture
540965 - last February, ref SDS 10 line 171.
540967 - ..
540968 - As noted, monitoring cost and schedule shows the results of failed
540969 - communications. They show there was never any real understanding
540970 - because shared meaning (common connections) broke down over time.
540971 - The knowledge people thought was gained from meetings, calls and
540972 - documents, simply dissipated before it could be applied, ref SDS 11
540973 - line 129.
540974 - ..
540975 - Communication Metrics monitors "understanding" to maintain
540976 - shared meaning for as long as needed. It reveals misunderstanding
540977 - by writing things down and linking them up. When we cannot
540978 - remember what to write down, and when we discover current
540979 - understandings do not align with prior ones, we are alerted to
540980 - investigate and take corrective action to avoid cost and schedule
540981 - impacts that would otherwise show up in monitoring those factors
540982 - at the end of the month.
540983 -
540985 - ..
540986 - High Risk Projects Require Communication Metrics
540987 -
540988 - The author says the study showed that high risk makes communication,
540989 - understanding and problem handling more difficult, ref OF 7 line 469.
540990 - This finding seems axiomatic.
540991 -
540992 - Does it mean that high risk projects have more difficult problems
540993 - than low risk projects?
540995 - ..
540996 - Does it mean that high risk projects have more complex variables
540997 - that are difficult to "understand."
540999 - ..
541000 - Does it mean communication is harder because people resist actions
541001 - that seem likely to result in win/lose outcomes, when they appear
541002 - on the losing end, and the cost of such loss appears higher than
541003 - the benefits of cooperation.
541004 - ..
541005 - Difficult problems and complex variables that significantly
541006 - impact success require special skills to align communications in a way
541007 - that builds mutual trust and minimizes win/lose perceptions, so people
541008 - can work together effectively, i.e., cooperate. This is the role of
541009 - Communication Metrics, ref SDS 13 line 103.
541010 -
541012 - ..
541013 - Command & Control of the Record
541014 -
541015 - This is a special category of contract management needed for high
541016 - risk settings, per ref SDS 16 line 75.
541017 -
541018 - [See report by Corps of Engineers on Communication Metrics issued
541019 - on 970418. ref SDS 45 3368]
541021 - ..
541022 - Experienced People, Case Studies, Continual Learning
541023 -
541024 - The author reports that "experienced" project managers are more
541025 - successful on high risk projects, ref OF 7 line 559. This reflects
541026 - the fact that experience builds skill at communication in the broader
541027 - sense of having learned that when people say they "understand," this
541028 - does not establish the fact of "understanding," per se. Experienced
541029 - managers know that when a lot is going on, a method to monitor
541030 - "understanding" is essential to ensure that actions consistent with
541031 - understanding actually take place.
541032 - ..
541033 - Experienced people have a resource of knowledge (i.e., connected
541034 - information that can predict cause and effect when applied to current
541035 - conditions) to recognize problems early so they can be handled before
541036 - they explode into huge losses and delays that are difficult to remedy
541037 - except through litigation, ref OF 5 line 237. This applies the common
541038 - precept "past is prologue," ref OF 4 line 473.
541040 - ..
541041 - Communication Metrics supports this objective by making "experience"
541042 - more accessible and more accurate, and by revealing more directly when
541043 - deviations arise that require attention, see the example of Perini's
541044 - problems with University Mechanical, ref SDS 25 7878. This applies
541045 - the ISO 10006 requirement for "Continual Learning" which calls for
541046 - capturing the record of daily events so they can be applied as a
541047 - continual "case study." ref SDS 24 line 484.
541048 -
541049 -
541050 -
541051 -
5411 -
SUBJECTS
Authority to Lead Requires Empowerment of
5603 -
560401 - ..
560402 - Authority of Project Manager
560403 -
560404 - The study found that project success is closely linked to giving the
560405 - Project Manager adequate authority to direct the work, ref OF 7 line
560406 - 58, ref OF 7 line 368. This reflects reports from the Information
560407 - Technology sector where project management has been tried without
560408 - providing adequate authority, ref SDS 20 line 266.
560410 - ..
560411 - Absent such authority, communication, understanding and problem
560412 - handling are impeded by social concerns about hierarchy within an
560413 - organization, ref SDS 25 line 43. Feel Good management practice (see
560414 - ref SDS 1 line 148) prevails rather than decisions aimed at meeting
560415 - project objectives, ref OF 4 line 675. Indeed, it is helpful to avoid
560416 - classifying work as using "project management" unless there is clear
560417 - authority for directing the work, ref SDS 20 line 528.
560418 -
560419 - [See support from industry expert, ref SDS 35 line 562.]
560421 - ..
560422 - [See results from Asilomar, ref SDS 43 line 612.]
560423 -
560424 -
560425 -
5605 -
SUBJECTS
New World Order
Time, Not Enough, So Need Communication
21st Century is Near, Need to Begin
New Reality Management Imploding
90% Time Communication Main Factor Management Productivity Success 90
Communication Biggest Risk Most Time of Managers
90% Managers Time Communication
6309 -
631001 - ..
631002 - New World Order: New Risks Need New Solution
631003 -
631004 - The article does not mention an emerging new risk unique to the modern
631005 - era. "Experienced" managers are being overwhelmed by the Information
631006 - Highway because it is beyond their experience, ref OF 5 line 444, as
631007 - explained by the Tofflers' in their widely acclaimed book "Future
631008 - Shock". ref SDS 26 line 96 Information is coming faster than
631009 - "experienced" managers can absorb it so their "experience" is harder
631010 - to apply consistently. Misunderstandings are overlooked causing
631011 - errors, extra cost and delays because...
631013 - ..
631014 -
631015 - there isn't enough time
631016 -
631017 - ...to align communications that alert the "experienced" manager of
631018 - understandings about problems that need to be handled, explained
631019 - during a meeting at Intel on 950927. ref SDS 27 2867
631021 - ..
631022 - This New World Order is evident in the study set out in the article
631023 - reviewed today.
631025 - ..
631026 - It found communication, understanding, and problem handling are the
631027 - paramount determinants of project success. This was not so in the old
631028 - world order. The great challenges building the pyramids were
631029 - technical: how to quarry the rock, get it to the site and assembled
631030 - in the right order. There was a lot less to understand, so there was
631031 - less communication and fewer chances for misunderstanding. A single
631032 - order directed the efforts of thousands. Today, is different. Today,
631033 - more communication means a lot more chances to make a mistake. Faster
631034 - information means a much greater risk that mistakes will propagate
631035 - exponentially.
631036 - ..
631037 - This new, more complex environment increases the demand for
631038 - accuracy, hence Communication Metrics explained in NWO, ref OF 5 2247,
631039 - which necessarily requires new tools, skills and roles explained in
631040 - POIMS, ref OF 4 V8P1, and in NWO. ref OF 5 6369
631041 -
631042 - [On 980307 Andy Grove, Chairman of Intel, explains that successful
631043 - executives loathe change to improve productivity and earnings;
631044 - they like to work on familiar things in familiar ways, and so deny
631045 - the occurance of new realities due to slow, incremental change
631046 - occuring in the daily work environment that render past methods
631047 - and skills that brought success unable to be successful.
631048 - ref SDS 52 2051
631049 -
631050 -
631051 -
631052 -
631053 -
631054 -
631055 -
6311 -
SUBJECTS
20 - 80 Time Management
20 80 Management Method, Leads to Murphy's
20 80 Information Management
6605 -
660601 - ..
660602 - "20 - 80" Management Fails on Information Highway
660603 - -------------------------------------------------
660604 - The popular approach to avoid being overwhelmed by information is
660605 - to focus on the 20% that is critical to 80% of success, as taught
660606 - in MBA programs and executive seminars. On 950426 20 80 method
660607 - was cited as an alternative to SDS. ref SDS 15 4022
660609 - ..
660610 - However, the 20 - 80 approach actually harms communication,
660611 - understanding and problem handling which this study shows are
660612 - essential for success on high risk projects?
660614 - ..
660615 - 20 - 80 sounds simple and "executive." However, the pace of
660616 - modern business life makes it difficult to recognize which 20% of
660617 - information is critical to success; and, today, 20% is a lot more
660618 - information than it was just 10 years ago, much less 20 and 40
660619 - years ago when the "20 - 80" method was formulated, ref SDS 15
660620 - line 210. As the rate of information increases the tendency is to
660621 - fudge by considering 19%, then 15%. Soon people are going from
660622 - meeting to meeting, to phone call to email and have no time to
660623 - think, to ponder, analyse and reflect on possible conflicts in
660624 - what they heard, saw and believed. This new environment greatly
660625 - compounds the risk of error. Little deviations creep in. People
660626 - and organizations gradually drift off course without realizing the
660627 - lack of alignment called for in the PMBOK, ref SDS 24 line 685.
660628 -
660629 - ..
660630 - New risks in the New World Order require a new approach:
660631 - Communication Metrics.
660632 -
660633 -
660634 -
660635 -
6607 -
SUBJECTS
Cost/Benefit of Better Communications
Benefits are Immediate
Budget to Succeed, Empower to be Cost
7205 -
720601 - ..
720602 - Solutions - What to Buy?
720603 -
720604 - The article does not indicate what should be done to improve the
720605 - chances of success. The article concludes:
720606 -
720607 - Project success is significantly influenced by the selected
720608 - management approach, ref OF 7 line 628.
720609 -
720610 - ...but what "approach" should be selected?
720612 - ..
720613 - Managers can buy a CPM program. They can buy a computer and hire an
720614 - engineer to use it on a high risk project. Stakeholders, engineers,
720615 - contractors can budget for this. But the study shows this is only a
720616 - small part of the solution, which was recognized in an article by Fran
720617 - Webster (see PMnetwork, Sep 1993 p. 20 para 3) and also, ref SDS 19
720618 - line 170. What about the bigger part? ref OF 7 line 362.
720619 -
720621 - ..
720622 - Budgeting for Success
720623 -
720624 - How can people improve the dominate factors in success:
720625 -
720626 - communication
720627 - understanding
720628 - problem handling
720630 - ..
720631 - Do we add more forms, change the forms, report more frequently,
720632 - hold more meetings, get more cellular phones, use more email, fax?
720633 - These provide more information. But managers need more knowledge,
720634 - ref SDS 13 line 187. How do we convert more information into the
720635 - knowledge needed to manage high risk projects?
720637 - ..
720638 - What do we buy, who do we hire to improve communications,
720639 - understanding and problem handling called for in the article? The
720640 - author says a better "approach" is needed, ref OF 7 line 629; but,
720641 - what should it be? Hire "smarter" people who work harder? Robert
720642 - MacNamera says the "Best and the Brightest" couldn't get it done.
720643 - ref SDS 15 line 244. Nobody seems to know what to do. POIMS says
720644 - lets automate and integrate to work "smarter" by leveraging our
720645 - capacity to think, remember and communicate.
720646 -
720648 - ..
720649 - How do we budget for better communications, understanding and problem
720650 - handling? ref SDS 34 line 75.
720651 -
720652 - By definition "high risk" requires increased budgets for lawyers,
720653 - insurance, accountants, engineers, managers, ref SDS 13 line 269.
720654 - Organizations budget for risk by increasing the profit margin.
720655 - Some allocate a "contingency" account to buy off mistakes. Firms
720656 - that do not budget for risk on high risk projects do not last.
720657 -
720658 - [See proposal to Turner calculating cost/benefit of
720659 - Communication Manager based on risk avoidance, ref SDS 46
720660 - line 178.]
720662 - ..
720663 - The "risk" budget can be allocated to Communication Metrics so
720664 - mistakes are avoided in the same way extra hours are budgeted for
720665 - cost, schedule and design engineers to pay for re-work to fix
720666 - mistakes. Does it make any sense to budget to avoid mistakes on
720667 - the theory that attendant extra direct costs will be reduced,
720668 - along with the cost of lawyers, accountants, and frustruations?
720669 -
720670 -
720672 - ..
720673 - How do we convince management that earnings are improved by budgeting
720674 - funds to improve the most critical success factors? While this also
720675 - seems axiomatic, it actually requires a major cultural breakthrough.
720676 -
720677 - What analysis persuades management to hire an accountant, design
720678 - engineer, scheduler, carpenter, salesman?
720679 -
720680 - We point out that there is more accounting, designing,
720681 - scheduling, carpentering or selling to do than the boss or the
720682 - present team can handle. So we need another person.
720684 - ..
720685 - This is the current state of play in the New World Order. There is
720686 - too much information for the management team to absorb and integrate
720687 - into the work stream effectively, i.e., for effective "communication."
720688 - We need a new class of folks to support communications, similar to
720689 - cost and schedule engineers, ref SDS 13 line 233.
720691 - ..
720692 - Managers feel they are good communicators, but they are actually good
720693 - "leaders," which is different. They can convince others to do what
720694 - needs to be done, but they cannot maintain shared meaning nor align
720695 - understandings relative to project requirements. Managers don't have
720696 - enough time nor skill with the right tools to keep up with
720697 - communications in the New World Order, per discussion with Intel on
720698 - 950927, ref SDS 27 5002; on 951024 with Kwan Henmi at ref SDS 29 4436.
720699 - Managers feel they have bought computers so fewer people can do more
720700 - work. But this requires pushing the keys on the computer that convert
720701 - information into knowledge. Managers don't know what keys to push.
720702 - It takes a lot of time and concentration to find this out. Managers
720703 - don't have any more time, so we need another person to make the team
720704 - more effective.
720706 - ..
720707 - This study says we need a budget for communicating, understanding and
720708 - problem handling. To make it simple lets call it:
720709 -
720710 - Communication Metrics
720711 -
720712 - [Example from later PMI dinner meeting showed some companies are
720713 - beginning to allocate this budget, ref SDS 36 line 295.]
720715 - ..
720716 - [See where Corps of Engineers decided to call it something else,
720717 - ref SDS 44 line 212.]
720718 -
720719 -
7208 -