CONTACTS 

SUBJECTS
Corps of Engineers, 970115
Richmond Harbor Deepening
Communication Metrics
PPM and Automated Management Contract
CSB, Sausalito Office
Operations Changes in Organization, DE's Changes
One Door to Corps Organization Flatter DE's Op Plan Organization Chan

1609 -
1609 -    ..
1610 - Summary/Objective
1611 -
161101 - Follow up ref SDS 30 0000, ref SDS 29 0000.
161102 - ..
161103 - DE proposes changing District to a flatter organization that
161104 - gives Project Management greater influence on functions that make
161105 - projects succeed.  Pay grades are increased in conformance with
161106 - increased mission and Corps wide standards.  Capability will be
161107 - improved through training, hiring and new business processes,
161108 - including a system of metrics.  These changes will enable the District
161109 - to carry out Corps of Engineers policy of "One Door to the Corps."
161110 -
161112 -  ..
1612 -
1613 -
1614 - Background
1615 -
161501 - Yesterday, on 970521 Tom Keesling provided a copy of an "Operation
161502 - Plan, ref DRP 5 line 13, prepared by DE. ref SDS 30 6883  It is
161503 - undated because it came off of the LAN/Internet, and these documents
161504 - do not have the date.  Tom said he got it on 970516, so I created a
161505 - file and gave it that date.
161507 -  ..
161508 - The plan reflects discussions on 970501 with Max about changes in the
161509 - organization that are under consideration. ref SDS 18 8852
161510 -
161511 -
161512 -
161514 -  ..
1616 -
1617 -
1618 - Analysis
1619 -
161901 - General
161902 -
161903 - There are some minor outline errors in the original document that are
161904 - corrected for purposes of citing the document.
161905 -
161906 -      Para 1c is shown as 1b with the result that there are two items
161907 -      for 1b in the original.  This is corrected and the following
161908 -      para are adjusted.
161910 -       ..
161911 -      Para 3c7)a) is shown as 3c7)a.  It is conformed to the format
161912 -      for the next level per para 3c8)a).
161913 -
161915 -  ..
161916 - Operation Plan Revises Organization Structure and Pay Grades
161917 -
161918 - The subject of the document seems to reflect it is about operating the
161919 - District, and this results in a discussion, beginning in para 1
161920 - "Situation" ref DRP 5 line 37, about...
161921 -
161922 -                   •  Organizational Structure
161923 -                   •  Business Processes
161925 -  ..
161926 - The document seems primarily devoted to changing the organization
161927 - structure and this includes raising pay grades, ref DRP 5 line 118,
161928 - commensurate with increased mission and responsibilities, ref DRP 5
161929 - line 393.  Grade increases are of major concern in the District, as
161930 - evidenced by 32% turnover rate cited in the report, ref DRP 5 line
161931 - 919, and so this plan should be welcomed by District staff.
161933 -  ..
161934 - Operation Plan intends to improve managerial expertise and business
161935 - processes, ref DRP 5 line 140 in following areas:
161936 -
161937 -       •  Customer Service, ref DRP 5 line 129
161938 -       •  Product Delivery
161939 -
161940 -       Not sure where these objectives are described, except the plan
161941 -       for vertical and horizontal integration, which itself does not
161942 -       identify specific improvements of service capability relative to
161943 -       customer needs.
161945 -        ..
161946 -       Enhancing project management is described in Annex A, ref DRP 5
161947 -       line 429.
161948 -
161949 -
161951 -     ..
161952 -    District's Mission Has Changed
161953 -
161954 -    The reason for changing the organization structure and raising pay
161955 -    grades is that the current organization was structured to meet a
161956 -    mission that has "radically" changed over the past four years. ref
161957 -    DRP 5 line 35.
161958 -
161960 -     ..
161961 -    Key Changes
161962 -
161963 -    The mission and capability of CESPN has deterioriated over past 15
161964 -    years, ref DRP 5 line 142, reflecting intent to close the District,
161965 -    ref DRP 5 line 894.
161966 -
161967 -        [CESP reports on 971104 intent to transfer Construction to
161968 -        Sacramento. ref SDS 42 0841
161970 -     ..
161971 -    CESPN did not close and in past 4 years mission and personnel
161972 -    strength has increased by 70%, and volume of work has increased by
161973 -    100%, ref DRP 5 line 393.
161975 -     ..
161976 -    Business climate is changing due to new information technologies
161977 -    and CESPN must respond, ref DRP 5 line 67;
161979 -     ..
161980 -    Geographic Template Organization Model Proposed, Virtual District
161981 -
161982 -    "One Door to the Corps" policy means District mission will grow
161983 -    because each District will perform all of the work within its
161984 -    geographic area and so the San Francisco District will begin doing
161985 -    projects that are now being, and have in the recent past been,
161986 -    performed by other Districts under a "poaching" procedure, ref DRP
161987 -    5 line 84.
161989 -     ..
161990 -    This ideas was reviewed in a recent article on efforts by the South
161991 -    Atlantic Division to develop a concept of a...
161992 -
161993 -                          "virtual district"
161994 -
161995 -    ...in PM Network, ref SDS 20 1233.
161997 -     ..
161998 -    See discussion below on "Horizontal Integration. ref SDS 0 5098
161999 -
162000 -        Though not expressly mentioned aspects of changing business
162001 -        climate include "downsizing of government.
162002 -
162003 -        Cost sharing projects require greater attention to serving
162004 -        "customers."
162006 -         ..
162007 -        CESPN is fielding a number of new automated systems this year
162008 -        and this will negatively impact District ability to perform
162009 -        basic functions, due to learning curve, ref DRP 5 line 47.
162010 -
162011 -
162013 -  ..
162014 - Input from Staff on Needs and Opportunities
162015 -
162016 - It is not evident from the report that it draws on information from
162017 - managers responsible for the work with respect to mission, personnel
162018 - strength needed to meet increased requirements, nor changes in
162019 - organizational structure and businesses processes.  This may reflect
162020 - overworked staff who do not have time to develop this information, as
162021 - reflected by larger increases in work load relative to staffing. The
162022 - report says a number of management positions have not been filled, ref
162023 - DRP 5 line 440, and there has been 32% turnover in the District. There
162024 - have been a number of reports that CESPN staff have not had enough
162025 - time to perform planning.
162026 -
162027 -
162029 -  ..
162030 - Correlation with Record of Creating Current Organization
162031 -
162032 - The report does not cite the record of establishing the existing
162033 - organization to show how current conditions correlate to original
162034 - reasoning.  Someone advanced reasons of increased efficiency to
162035 - establish the current organization structure.  What was defective in
162036 - the original reasoning or what has changed that prevents the existing
162037 - organization structure from meeting current conditions?
162038 -
162039 -
162041 -  ..
162042 - Objective:  Change Organization to Meet New Realities
162043 -
162044 - The report cites a vision set for CE by Chief of Engineers, apparently
162045 - in reference 1 of the report which is an open letter dated 970214.
162046 - This vision is quoted in full under para 1c1)
162047 -
162049 -       ..
162050 -      Vision for USACE Implemented by Operation Plan for CESPN
162051 -
162052 -      ...bold, vibrant organization, ref DRP 5 line 59
162053 -
162054 -         This is cited in the plan to make project management, ref DRP
162055 -         5 line 376, ref DRP 5 line 437, more authority, ref DRP 5 line
162056 -         430.
162057 -
162058 -      ...operates as a team, ref DRP 5 line 65.
162059 -
162060 -      ...always strategically planning for future, ref DRP 5 line 65
162061 -
162062 -      ...has worldwide reputation for excellence and mission
162063 -      accomplishment, ref DRP 5 line 60
162064 -
162065 -      ...is embraced by the Army as critical to success, ref DRP 5 line
162066 -      61
162067 -
162068 -      ...people striving to join Corps of Engineers ref DRP 5 line 61.
162069 -
162070 -      ...receives prestigious awards for customer satisfaction, quality
162071 -      and design excellence ref DRP 5 line 63.
162072 -      ..
162073 -      ...get out in front of changes required by technology and
162074 -      future realities, ref DRP 5 line 67
162075 -
162076 -          Intel's plan issued on 960627 for the Asilomar Conference set
162077 -          out new realities of technology that impact leadership (see
162078 -          ref SDS 5 2165), which reflect Peter Drucker's view that
162079 -          changes in management environment require structural changes
162080 -          in the practice of daily management. ref SDS 2 1855
162082 -           ..
162083 -          [On 971007 cited CECG's call to prepare for "new realities,"
162084 -          in cost savings report on Communication Metrics. ref SDS 36
162085 -          4775]
162087 -           ..
162088 -          [On 971017 discussed Communication Metrics to enable USACE to
162089 -          prepare for future realities of 21st century, ref SDS 38
162090 -          2227.]
162092 -           ..
162093 -          [On 971125 used CECG's direction to USACE for planning
162094 -          presentation on Communication Metrics to HQUSACE. ref SDS 43
162095 -          3246]
162097 -           ..
162098 -          [On 971202 HQUSACE staff were not aware of "new realities"
162099 -          ref SDS 44 3231]
162101 -           ..
162102 -          [On 980101 CSPN broadcast CEO Forum on "Management in the
162103 -          21st Century," ref SDS 45 2785]
162104 -
162106 -       ..
162107 -      Methods
162108 -
162109 -      ...strike out boldly, ref DRP 5 line 68
162110 -
162111 -      ...dramatically transform our approach to our customers, business
162112 -      and processes, ref DRP 5 line 68
162113 -
162114 -          Apart from applying a "geographic template" there are no
162115 -          apparent specific changes set out in the Operation Plan to
162116 -          Customers, business and processes.  The differentiation
162117 -          between "business" and "processes" is unclear.  Elsewhere in
162118 -          the report "business" and "process" are used together as a
162119 -          single element.
162120 -
162121 -      ...efforts must be coordinated, unified and holistic, ref DRP 5
162122 -      line 70
162123 -
162124 -          How does this differ from current practice?  Need an example
162125 -          to clarify meaning.
162126 -
162127 -      ...success requires carefully sculpted, aggressive plan, ref DRP
162128 -      5 line 72
162130 -           ..
162131 -          The 970909 completion date is aggressive.
162132 -      ..
162133 -      ...use of Internet and Intranets to improve communications
162134 -      and information management, ref DRP 5 line 274, and ref DRP 5
162135 -      line 313, per below. ref SDS 0 4021
162136 -
162137 -           [See support from PMI Journal 970901, ref SDS 40 1211.]
162139 -       ..
162140 -      Schedule - Complete by 970909
162141 -
162142 -      DE plans to implement Corps Plus Strategy NLT 970909.
162143 -
162144 -      Apart from this target date, there are no connections showing the
162145 -      sequence of steps needed to achieve the 970909 target date.
162146 -
162147 -
162149 -  ..
162150 - Quality Control Not Evident in Re-Organization Plan
162151 -
162152 - Cost and schedule engineering are identified in the plan, ref DRP 5
162153 - line 671, but "Inspection" and IMO are not expressly identified nor
162154 - discussed.
162155 -
162156 - Quality Control is discussed as a responsibility that was shifted from
162157 - Division back to the District, ref DRP 5 line 580, but there is no
162158 - mention in the plan of how this responsibility will be improved under
162159 - the plan.  Where is it being performed now, and how will the new
162160 - organization improve it?
162161 -
162162 -
162164 -  ..
162165 - Capability of District to be Improved in Three Phases
162166 -
162167 - The mission to improve service to customer and product delivery in
162168 - para 2, ref DRP 5 line 128, is to be accomplished with a three phased
162169 - plan
162170 -
162171 -      1.  Foundation Development
162172 -      2.  Corps Plus
162173 -      3.  One Door to the Corps
162175 -    ..
162176 -   Phase 1 improves capability to perform existing mission by
162177 -   improving four key areas:
162178 -
162179 -          1.  Vertical Integration
162180 -          2.  Horizontal Integration
162181 -          3.  Project Management
162182 -          4.  Technical Expertise
162183 -  ..
162184 -      Vertical Integration (Flattening Organization Structure)
162185 -      ref SDS 0 2723
162186 -
162187 -          Redefines District task organization to focus on three core
162188 -          responsibilities:
162189 -
162190 -              Project Delivery
162191 -              Operation
162192 -              Regulation
162193 -
162194 -          Vertical integration is explained in Annex A, ref DRP 5 line
162195 -          169, which is at ref DRP 5 line 374 and seems to be the
162196 -          argument for changing (flattening) the organization
162197 -          structure. ref DRP 5 line 424.
162198 -
162199 -              It is not clear what the relation is between the
162200 -              District's mission to provide service and product
162201 -              delivery and these three core items?
162203 -               ..
162204 -              [See article on risk management considerations that arise
162205 -              from "flatter" organizations, ref SDS 33 line 136,
162206 -              article by Intel manager on benefits of flat structure to
162207 -              provide "empowerment," ref SDS 34 line 125, but empowered
162208 -              teams present management problems using new businesses
162209 -              processes, ref SDS 34 line 165, which is an objective of
162210 -              DE's plan; article in Wired magazine reporting TQM,
162211 -              empowerment have not worked as well as hoped, ref SDS 3
162212 -              line 244.]
162214 -               ..
162215 -              [See use of Communication Metrics that increases span of
162216 -              attention which may make it possible for managers to
162217 -              manage more people, i.e., expand the span of management
162218 -              control, ref SDS 37 line 128.]
162220 -       ..
162221 -      Horizontal Integration - Geogrpahic Template
162222 -
162223 -          This is to be accomplished by "regionalizing" which seems to
162224 -          reflect discussions of a geographic template, per above, see
162225 -          ref SDS 0 6488.  It is discussed in the DE's execution plan
162226 -          at ref DRP 5 8455, which may been mentioned by Max on 961011,
162227 -          ref SDS 6 7777.
162229 -        ..
162230 -       [Geographic Template seems to be a new buz word, see for example
162231 -       review on 980630 of article on using the Internet to apply "best
162232 -       practices" across a geographic template. ref SDS 47 1311]
162233 -
162235 -  ..
162236 - New Technologies, New Realities
162237 - Communications and Information Management Improved by Internet
162238 -
162239 - Information management is disucssed under Public Affairs, ref DRP 5
162240 - line 274, and under Command and Signal the plan proposes the Internet
162241 - and Intranets to improve communications and information management,
162242 - ref DRP 5 line 313, as a means to meet new realities, cited above. see
162243 - ref SDS 0 8278 and ref SDS 0 2029.
162244 -
162245 -        [See support from PMI Journal 971021, ref SDS 40 1211.]
162246 -
162248 -  ..
162249 - Metrics to Determine Effectiveness
162250 -
162251 - The report sets an objective to develop a system of metrics to
162252 - determine effectiveness of organizations in the District, ref DRP 5
162253 - line 286.
162254 -
162255 -      There is no explanation of how metrics can improve effectiveness
162256 -      of management, leadership, nor how to evaluate cost/benefit of
162257 -      the metrics.
162259 -       ..
162260 -      [On 970526 Morris put forward a similar idea of communication
162261 -      metrics as a report to management. ref SDS 32 4132]
162263 -       ..
162264 -      [On 971021 reviewed professional article on using Internet to
162265 -      support project management. ref SDS 39 1211]
162267 -       ..
162268 -      [On 971030 discussed with Max CESPN progress on developing
162269 -      "business metrics," ref SDS 41 2284; and with Tom at ref SDS 41
162270 -      1344.]
162272 -       ..
162273 -      [On 980321 successful test of Communication Metrics Web site to
162274 -      deliver business intelligence. ref SDS 46 4345]
162276 -  ..
162277 - The plan proposes a report on the percentage of work hours billed to
162278 - a project. ref DRP 5 line 290.
162279 -
162280 -      There is no explanation of how this "metric" will improve the
162281 -      work being billed, nor improve a business process, which is the
162282 -      goal of the operation plan, ref DRP 5 line 129.
162284 -     ..
162285 -    [See meeting with Max on 971006 where USACE had meetings in
162286 -    Burlingame on business metrics, ref SDS 35 4820.]
162288 -     ..
162289 -    [Discussed with Max and Tom on 971030 using Communication Metrics
162290 -    to support a system of business metrics, ref SDS 41 2284.]
162291 -
162293 -  ..
162294 - Organization Changes Enhance Project Management Authority
162295 -
162296 - Changes in organization are aimed at improving project management, see
162297 - ref DRP 5 line 376 and ref DRP 5 line 429, by flattening the
162298 - structure, ref DRP 5 line 424, and giving the Project Manager
162299 - supervisory control over functions that make projects happen. ref DRP
162300 - 5 line 431.
162302 -  ..
162303 - The Project Management Division is expanded in the new organizational
162304 - structure.  The existing PPMD has two elements, ref DRP 5 line 499.
162305 - and Construction Operations (CON OPS) has 6 elements.  The proposed
162306 - new structure gives the head of PPMD a new title "Deputy District
162307 - Engineer," and adds responsiblity for 4 major elements comprised of
162308 - planning, engineering and construction, ref DRP 5 line 499.
162309 -
162310 -      [On 970525 reviewed article proposing general use of Project
162311 -      Office, ref SDS 31 6902.]
162312 -
162314 -  ..
162315 - Objections Reflect Fear of Change, Plan Supports HQUSACE Objectives
162316 -
162317 - Objections from "stovepipes" to change in current control of the
162318 - organization are obviated by the merits of the plan, ref DRP 5 line
162319 - 382.  The proposed changes are reported as conforming to HQUSACE and
162320 - NPR objectives for supervisory ratios and organizational structures,
162321 - ref DRP 5 line 386.
162322 -
162323 -
162325 -  ..
162326 - Changes Reflect USACE Command Objectives, Current SFD Conditions
162327 -
162328 - These changes are bold, ref DRP 5 line 437, consistent with USACE
162329 - command objectives, ref DRP 5 line 59, and ref DRP 5 line 68, and
162330 - reflect unique opportunities available to the San Francisco District
162331 - to fill vacant, authorized positions, ref DRP 5 line 439.
162332 -
162333 -        [CESP reports on 971104 intent to transfer Construction to
162334 -        Sacramento, ref SDS 42 0841.]
162336 -  ..
162337 - Changes to Internal Procedures Do Not Require USACE Approval
162338 -
162339 - The operation plan advises of changes that will be made to internal
162340 - procedures for improving product delivery and responsiveness to
162341 - customers, ref DRP 5 line 378.
162342 -
162343 - The changes are not identified in the Operation Plan because they do
162344 - not require approval by USACE.
162345 -
162346 -
162347 -
1624 -