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


S U M M A R Y


DIARY: April 21, 1996 06:56 AM Sunday; Rod Welch

Develop proposal to Intel re Communication Metrics.

1...Summary/Objective
2...Asilomar
3...Goal: "Operating System for People and Organizations"
4...Vision: Next Step in March of Civilization
5...Technology That Lifts Capacity to Think, Remember and Communicate
.....Implosion of Management Shows Need for Automated Knowledge
.....Downsizing Shows Current Methods Need Improvement
.....Intel Leverages Power of Microcosm; Transcends Microsoft's Grip
6...Business Case: Intel Can Secure and Grow its Markets
.....Technology + Management Science = Innovation
.....Cultural/Political Synergy Receptive to Leadership
.....Intel Should Lead to Control Its Future
7...Strategy: Pilot Test SDS
8...Establish Standard for POIMS Technology; Lead on Implementation
9...Tactics: Andy Grove Management Method Supported by Technology
.....Evaluate Prototype: SDS Study at Intel
.....Timing is Opportune
10...Budgeting
.....Investing $100K instead of $3.5B to Discover Opportunity


..............
Click here to comment!

CONTACTS 
0201 - Intel Corporation                  408 765 8080 fax or 800...
020101 - Mr. David S. Vannier; Director of Mobile Architecture =408 765 4608
020102 - Mobile & Handheld Products Group   =408 765 5072 fax

SUBJECTS
PMI Event Program, Planning
SDS Marketing, Study, Intel
Proposal, Contract & Support
Operating System for People & Organizations
Intel, SDS Study

0907 -    ..
0908 - Summary/Objective
0909 -
090901 - Follow up ref SDS 18 0000, ref SDS 16 0000.
090902 -
090903 - Developed proposal for Intel to do the Communication Metrics study
090904 - discussed with David in January and with Marcy in March.
090905 -
090906 -    [Completed and submitted at ref SDS 25 4584.  Discussed with David
090907 -    on 960507. ref SDS 26 8358]
090908 -
090909 -    [See rejection on 960523. ref SDS 29 4933]
090910 -
090911 -
090912 -  ..
0910 -
0911 -
0912 - Progress
0913 -
091301 - Need to submit study ideas to Dave Vannier per discussion with Marcy
091302 - in the meeting on 960326, ref SDS 17 line 756, and following up on
091303 - original objectives at ref SDS 8 line 102, ref SDS 9 line 666. This
091304 - responds to Intel's need for application to apply the power of faster
091305 - processors, ref SDS 11 5840.
091306 -
091307 - I also want to submit a possible quote Andy Grove can release to
091308 - support Asilomar, per my call to Dave last week, ref SDS 23 line 207
091309 - on the letter to PMI Communications for an article to publicize
091310 - Asilomar.
091311 -
091312 -     If accepted, the quote will be released in the July PMNETwork
091313 -     which will be in the hands of readers by about mid-June, ref SDS
091314 -     23 line 241.
091315 - ..
091316 - This effort has two related goals for Welch:
091317 -
091318 -  •  Enable Intel to pilot test SDS for accomplishing their objective
091319 -     of applying technology usefully to support management, ref SDS 7
091320 -     line 381, and at ref SDS 7 line 429.
091321 -
091322 -     I am recommending that SDS be used to support Dave because his
091323 -     schedule the past few months shows SDS can be effective.
091324 -
091325 -  •  <0051 Formulate a businesses relationship to exploit Intel's
091326 -     knowledge of the power of the microcosm to apply technology that
091327 -     provides a better operating system for people and organizations
091328 -     under POIMS theory, ref SDS 7 line 1016 and Intel's need for new
091329 -     application to use faster processors, ref SDS 11 line 109.
091330 -
091331 - Will use discussion with Morris on Andy Grove's reputation for having
091332 - strong management practices, ref SDS 19 line 84, and the letter to PMI
091333 - Communications ref DIP 13 line 30, on Asilomar and the NWO paper,
091334 - submitted at ref SDS 23 line 129.  Will apply ideas discussed
091335 - initially with David at ref SDS 7 line 401, ref SDS 7 line 941 on
091336 - Intel's strategies, plans, actions to grow its markets; for the
091337 - academic study discussed with SCU at ref SDS 9 line 76, and later with
091338 - David at ref SDS 10 line 227.  Will use industry analysis that Intel
091339 - needs new application, ref SDS 11 line 108.
091340 -
091341 -
091342 -  ..
091343 - Asilomar
091344 -
091345 - This proposal can position Intel to incorporate SDS into its Asilomar
091346 - presentation to, for example, demonstrate the "paperless office", see
091347 - ref SDS 17 0550, ref SDS 17 1007.  However, it is not intended that
091348 - Intel has any duty to do so.  PMI wants Intel to bring forward its
091349 - vision of the future, regardless of whether SDS and Communication
091350 - Metrics fit into Intel's thinking.
091351 -
091352 - Marcy expressed concern that SDS is a DOS program, and this seems
091353 - inimical to demonstrating future technology, ref SDS 17 6022.  That
091354 - concern can be treated by explaining SDS is a first generation
091355 - prototype of the functionality needed to make technology useful.  So
091356 - it is a baseline which attendees can criticize for input on what more
091357 - is needed to achieve the paperless office.  This can be contrasted,
091358 - with, for example, Lotus Notes which is an excellent W95 program, ref
091359 - SDS 17 line 707.  How can LN and other solutions be used all day by
091360 - Andy Grove or Dave Vannier to improve earnings as a better operating
091361 - system for people and organizations? ref SDS 7 line 608  So Intel can
091362 - present a variety of solutions, and of course can elect not to present
091363 - or mention SDS at all.  This proposal merely positions Intel to make
091364 - this judgement, per ref SDS 17 line 756.
091365 -
091366 -
091367 -
091368 -  ..
0914 -
0915 -
0916 - Proposal
0917 -
091701 -  ..
091702 - Goal:  "Operating System for People and Organizations"
091703 -
091704 - Form business relationship between Welch and Intel to make SDS the
091705 - next advance in knowledge tools under POIMS technology to support the
091706 - management science of Communication Metrics, as explained in the New
091707 - World Order paper submitted to Intel at the meeting on 950927,
091708 -
091709 - Dave's Byte article establishes goal. ref SDS 7 8943
091710 -
091711 - Operating System for People and Organizations was explained on 950927.
091712 - ref SDS 7 8226
091713 -
091714 -      [On 990427 NSF proposal for Enterprise Management addresses this
091715 -      goal.
091716 - ..
091717 - This solves defects in the Information Highway which cause poor
091718 - management, by accomplishing the goal in David's Byte article for
091719 - technology to support the management process, ref SDS 7 line 380.
091720 -
091721 -
091722 -
091723 -  ..
091724 - Vision:  Next Step in March of Civilization
091725 - Technology That Lifts Capacity to Think, Remember and Communicate
091726 -
091727 - Technology that integrates time, information and meaning can lift the
091728 - capacity to think, remember and communicate.  This can be called
091729 - "automated management," or "automated knowledge" which is the next
091730 - step in the march of civilization, extending the power of the alphabet
091731 - to convert information into useful knowledge, ref OF 1 line 40.
091732 -
091733 -
091734 -      ..
091735 -     Implosion of Management Shows Need for Automated Knowledge
091736 -
091737 -     For 5,000 years the alphabet has been the primary means of
091738 -     converting information into knowledge and ideas.  Now with the
091739 -     advent of the Information Highway, conventional use of the
091740 -     alphabet has taken civilization as far as it can in its present
091741 -     form, as seen from the common excuse for not using it:
091742 -
091743 -                      "There isn't enough time...
091744 -
091745 -     ...for managers to prepare for meetings, to write up the meeting
091746 -     notes, to read the record; i.e., there isn't enough time to read
091747 -     and write under current technology, ref SDS 14 line 109.
091748 -
091749 -     Since there is not enough time to handle the information flow,
091750 -     technology is needed that integrates time and information to
091751 -     automate the power of the mind the way automobiles increase the
091752 -     power of muscles to carry more groceries farther and faster home
091753 -     from the store, ref SDS 13 line 438.
091754 -     ..
091755 -     Managers are forced to work at a summary level and this
091756 -     results in cursory understandings and hurried follow up that cause
091757 -     errors, re-work, and missed opportunities, eventually leading to
091758 -     losses and downsizing.  Summary must be linked to details
091759 -     automatically, per discussion with Marcy, ref SDS 17 line 538.
091760 -
091761 -
091762 -      ..
091763 -     Downsizing Shows Current Methods Need Improvement
091764 -
091765 -     Associated Press reported on Feb 4, 1996 that managers are wasting
091766 -     70% of the day in meetings, ref SDS 12 line 90.
091767 -
091768 -     WSJ reports on Mar 15, 1996 that endless meetings are used to
091769 -     coordinate and communicate, ref SDS 15 line 185.
091770 -
091771 -     HBR article says email degrades communications, ref SDS 2 line
091772 -     223.
091773 -
091774 -     April 1, 1996 Fortune articles report 60% of businesses surveyed
091775 -     plan downsizing in coming year.
091776 -
091777 -
091778 -      ..
091779 -     Intel Leverages Power of Microcosm; Transcends Microsoft's Grip
091780 -
091781 -     Technology can create a better operating system for people and
091782 -     organizations, as David Vannier forecast in the 1990 Byte interview
091783 -     on the "Paperless Office." ref SDS 7 line 381.
091784 -
091785 -     IBM gave Microsoft a monopoly on the operating system for personal
091786 -     computers.  Intel can apply its unique knowledge and talents to
091787 -     harness the "power of the microcosm" in a way that transcends
091788 -     industry dependance on a dominant operating system for computers,
091789 -     ref SDS 5 line 237.  Intel has the standing to advance a new
091790 -     concept of empowerment that gives people and organizations control
091791 -     over lower levels of organic structure, called knowledge, ideas,
091792 -     common sense, wisdom and vision, ref SDS 6 line 293.
091793 -
091794 -         [See support that others are seeking this solution, ref SDS 24
091795 -         line 30; microcosm analysed at ref SDS 28 line 119.]
091796 -
091797 -     Intel's microprocessors can empower people to convert "straw into
091798 -     gold," turn the "water into wine" ref SDS 21 line 346, through a
091799 -     new operating system for people and organizations called POIMS:
091800 -
091801 -         Personal and Organizational Integrated Management System
091802 -
091803 -     ...cited in the New World Order paper, and described in the paper
091804 -     "The Art of Automated Management for the 21st Century," citing
091805 -     the theory:
091806 -
091807 -                 Time is money; knowledge is power
091808 -
091809 -
091810 -  ..
091811 - Business Case: Intel Can Secure and Grow its Markets
091812 -
091813 - On 960304 article in Forbes, says that Avram Miller, Intel's VP
091814 - Corporate Business Development, feels personal computers can be
091815 - applied usefully. ref SDS 13 8583
091816 -
091817 - Intel can lead the way in developing and deploying technology to
091818 - secure and grow its markets by making its technology an extension of
091819 - learning to read and write, i.e., the alphabet.
091820 -
091821 - Once, the cultural case is established for the correlation between
091822 - time, information and meaning the demand to lift the capacity to
091823 - think, remember and communicate comprises a limitless market, as seen
091824 - from David Vannier's interview in Byte magazine, ref SDS 7 8943.
091825 -
091826 - There is a strong emotional desire for personal computers to support
091827 - the personal tasks of thinking, remembering and communicating, ref SDS
091828 - 7 line 506.
091829 -
091830 -      ..
091831 -     Technology + Management Science = Innovation
091832 -
091833 -     Only a combination of technology and management science, described
091834 -     in the New World Order paper as Communication Metrics, can achieve
091835 -     the "innovative marketing" engine which Peter Drucker says drives
091836 -     progress.  We need mobile architecture, workstations, security,
091837 -     connectivity, plus software and work practices to support the
091838 -     lifestyle change described in David's Byte article, essential for
091839 -     a better world order.
091840 -
091841 -
091842 -      ..
091843 -     Cultural/Political Synergy Receptive to Leadership
091844 -
091845 -     The epidemic of downsizing creates a cultural synergy embodied by
091846 -     the current political push to apply computers in schools that can
091847 -     be exploited by Intel. As well, the push to use the Internet and
091848 -     email to increase the flow of information is making people realize
091849 -     that more information requires connections with time and meaning
091850 -     that create knowledge, common sense, wisdom and vision.
091851 -
091852 -
091853 -      ..
091854 -     Intel Should Lead to Control Its Future
091855 -
091856 -     Intel cannot wait for others to lead. Nobody else has a clue about
091857 -     how to solve the time/information dilemma.  If Intel does not take
091858 -     the lead, the industry, and with it the whole of western
091859 -     civilization, will continue to grind toward horrific stagnation as
091860 -     people and organizations suffer the insidious implosion caused by
091861 -     the Information Highway, absent the tools to convert information
091862 -     into knowledge.
091863 -
091864 -     As Intel awakened the world to the power of the microcosm, so it
091865 -     must now lead in awakening the world to the useful application of
091866 -     that power to the goals in David's Byte article.
091867 -
091868 -
091869 -  ..
091870 - Strategy:  Pilot Test SDS
091871 - Establish Standard for POIMS Technology; Lead on Implementation
091872 -
091873 - Prove the technology in pilot tests of the SDS prototype, per
091874 - ref SDS 7 line 429; set the standard for the technology and lead the
091875 - way in showing how technology can empower leadership.  Support the
091876 - groundwork for cultural change that extends basic education in using
091877 - the alphabet.
091878 -
091879 -      [See use of pilot testing by IT industry, ref SDS 30 line 151.]
091880 -
091881 -      [On 980307 Andy Grove recommends experimenting with new methods.
091882 -      ref SDS 31 3416]
091883 -
091884 - Transcend operating system war.  Leave others to battle over operating
091885 - systems for computers - Intel can lead in making computers into
091886 - "operating systems for people and organizations."
091887 -
091888 - Associate Intel with what people want:  better knowledge tools for
091889 - better management and earnings, per meeting with David at, ref SDS 7
091890 - line 506, ref SDS 7 line 537.
091891 -
091892 - This effort initially entails three (3) studies:
091893 -
091894 -    1.  Prove SDS methodology using Welch as a "Communication Manager"
091895 -        to support David or another executive at Intel for 3 - 6
091896 -        months, similar to PG&E study, ref DRP 1 line 16.
091897 -
091898 -    2.  At large study to prove Communication Managers can be "grown"
091899 -        with the help of technology to accomplish the Welch Management
091900 -        Method, also called the Andy Grove Management Method, and
091901 -        General Vernon Walter's Leadership Aide role.
091902 -
091903 -    3.  Education study to prove Communication Metrics can lift the
091904 -        capacity to think, remember and communicate by teaching a new
091905 -        level of basic education at the high school level to supplement
091906 -        learning the alphabet and grammar, commonly called reading and
091907 -        writing.
091908 -
091909 -
091910 -  ..
091911 - Tactics: Andy Grove Management Method Supported by Technology
091912 -
091913 - As a first step, based on Morris's comment on 960401, ref SDS 19
091914 - 3703, submit up the chain of command an inquiry to see if Andy Grove
091915 - will join General Henry J. Hatch, VP Fluor Daniel, former commander of
091916 - the Corps of Engineers ref SDS 20 3853, in supporting the Asilomar
091917 - Conference with a quote to be released in the PMI publications along
091918 - the following lines:
091919 -
091920 -         [On 960507 discussed with David. ref SDS 26 5849.]
091921 -
091922 -     Join my team at Asilomar to hear how technology can support
091923 -     leadership.  One of your speakers, Morris Jones, called it the
091924 -     "Welch Management Method" in 1991, and worried that too few
091925 -     executives use it.  PMI's new PMBOK calls it "plan, execute,
091926 -     control."  Deming called it "plan, do, study, act."  By whatever
091927 -     name, I've been working to integrate management fundamentals since
091928 -     the 1960's, so some here at Intel talk about the "Grove Management
091929 -     Method."  Where are we now?  What does the future hold?  Intel is
091930 -     working on a better partnership between technology and leadership,
091931 -     and seeks your input at Asilomar.
091932 -
091933 - The reference to Morris Jones is from telecon on 911123. ref SDS 1
091934 - 4930,
091935 -
091936 - The process of gaining approval for such a quote would build awareness
091937 - within Intel for Communication Metrics terminology and prospects of
091938 - accomplishing these goals, following up David's interview in Byte on
091939 - the "Paperless Office." ref SDS 7 line 381.  We can give another
091940 - demonstration or two of SDS, if needed, since the process of linking
091941 - summary to detail, and integrating time, information and meaning, are
091942 - new capabilities, and so are culturally divergent from existing
091943 - practice.  Intel's management, as elsewhere, will need to be educated
091944 - about the power of POIMS and the need for a new management science.
091945 -
091946 -        [Discussed with David at ref SDS 26 5849.]
091947 -
091948 -        [See follow up at ref SDS 27 3889.]
091949 -
091950 -
091951 -      ..
091952 -     Evaluate Prototype:  SDS Study at Intel
091953 -
091954 -     Since SDS is the only program that accomplishes POIMS, I propose
091955 -     doing an initial test at Intel over a number of months so you can
091956 -     assess the current state of the art, and determine if the claims
091957 -     for the technology warrant further effort, investment and wider
091958 -     application at Intel.
091959 -
091960 -     If the test proves successful, as I suspect based on results at
091961 -     PG&E, ref DRP 1 line 25, Intel can...
091962 -
091963 -       •  Report on its findings at Asilomar, showing leadership in
091964 -          testing cutting edge technology.
091965 -
091966 -       •  Sponsor an at large study to evaluate the prospects of
091967 -          growing Communication Managers capable of supporting the
091968 -          "Andy Grove Management" method using technology.
091969 -
091970 -          This is the idea of donating an "executive dream workstation"
091971 -          or notebook, that was raised earlier, but encountered a
091972 -          challenge of avoiding favoritism among Intel's customers.
091973 -
091974 -       •  Sponsor an academic study, possibly in conjunction with other
091975 -          industry giants, e.g., IBM, Bechtal, Cheveron, BOA, etc.
091976 -
091977 -
091978 -      ..
091979 -     Timing is Opportune
091980 -
091981 -     Costs of computers continue to decline, so the prospects that
091982 -     technology can be applied more widely similar to pen and paper,
091983 -     are realistic.
091984 -
091985 -     The personal computer industry is searching for a new direction to
091986 -     avoid dependence on a single source operating system.
091987 -
091988 -     Worries about downsizing open people's minds to the prospect that
091989 -     current technologies and methods are not working as well as hoped.
091990 -     TQM, PM, Workgroups, LANS, Email, Internet, Windows 95 and so on
091991 -     have not improved management because they do not address the core
091992 -     need to lift the capacity to think, remember and communicate which
091993 -     only integrating time and information can accomplish.  This
091994 -     history lowers cultural resistance to the kind of change in
091995 -     technology and management science that are needed to improve
091996 -     productivity and earnings.
091997 -
091998 -
091999 -
092000 -  ..
092001 - Budgeting
092002 -
092003 - The initial prototype test using SDS at Intel would cost from $50K -
092004 - $100K for a 3 - 6 month test.
092005 -
092006 -     Since the test will apply Communication Metrics to improve Intel's
092007 -     management, and management is the source of earnings, if it is
092008 -     successful, the test should increase income.  Like an engineer,
092009 -     accountant, marketing manager, if Communication Metrics does not
092010 -     increase income, then it is of no value.
092011 -
092012 -     In any case, for budgeting purposes, $100K should be allocated
092013 -     from the marketing budget to evaluate the viability of building a
092014 -     market for a new Operating System for People and Organizations.
092015 -
092016 -
092017 -      ..
092018 -     Investing $100K instead of $3.5B to Discover Opportunity
092019 -
092020 -     IBM saw SDS in November 1994 and announced it integrated its
092021 -     Workflow and Management Communication tools, ref SDS 3 line 201.
092022 -     It then invested $3.5B to buy Lotus Notes, hoping to accomplish
092023 -     SDS functionality using LN's existing market position. This hope
092024 -     is not being realized because LN does not integrate time,
092025 -     information and meaning and so cannot lift the capacity to think,
092026 -     remember and communicate, as contemplated by David's Byte
092027 -     interview.  Intel can investigate this opportunity by investing
092028 -     $100K instead of $3.5B.
092029 -
092030 -
092031 -
092032 - The budget for an at large test would be $100K - $200K and could
092033 - actually be done internally at Intel.  It would entail training others
092034 - to become a Communication Manager/Leadership Aide.  The goal is to
092035 - discover the level of effort to transfer the Andy Grove Management
092036 - method to someone else, using the support of technology.
092037 -
092038 -     If this is successful the results would be published, and the
092039 -     process could be incorporated into MBA and executive training
092040 -     programs, such as PMI's PMP training, GWU, GGU, Stanford, etc.
092041 -
092042 -
092043 - The budget for an academic test would be from $1M to $2M for a three
092044 - year program to teach Communication Metrics to a control group of
092045 - students beginning in the 10th grade as part of conventional academic
092046 - training to extend the power of using the alphabet to think, remember
092047 - and communicate.
092048 -
092049 -     This effort requires a team of academics in psychology, cognitive
092050 -     science, mathematics, computer science.  It needs executives for
092051 -     oversight and a high school for a laboratory.
092052 -
092053 -
092054 -
092055 -
0921 -
Distribution. . . . See "CONTACTS"