THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
rodwelch@pacbell.net


S U M M A R Y


DIARY: June 24, 1997 08:19 AM Tuesday; Rod Welch

Called Steve at Turner re Communication Metrics.

1...Summary/Objective
2...Steve has not had enough time to read the Corps of Engineers report,
3...A Project Manager is an additonal expense, since previously, firms
4...Steve suggested I do a few meetings for projects Turner has underway


..............
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CONTACTS 
0201 - Turner Const. SF                                                                                                                                                   O-00000110 0401
020101 - Mr. Steve Rule; Territory Engineer

SUBJECTS
Proposal, Contract & Support
Turner, San Francisco
Cost/Benefit of Better Communications
Market Fears Being First to Use New Methods
Communication Manager Fewer People More
Cost Benefit - Increase Usefulness, Reduce

1408 -
1408 -    ..
1409 - Summary/Objective
1410 -
141001 - Follow up ref SDS 18 0000, ref SDS 17 0000.
141002 -
141003 - Steve has not had time to review cost/benefit of Communication
141004 - Metrics.  He wants methods that make Turner more competitive.  We
141005 - discussed the history of introducing new management methods to
141006 - accomplish Turner's goal, and that Communication Metrics extends that
141007 - tradition.  Steve suggested I use Communication Metrics on a few
141008 - meetings for Turner projects to create work product to show clients.
141010 -  ..
141011 - Prepared ref DIT 1 0000 to confirm the planning discussed today, and
141012 - provide an example of a project meeting, which Steve feels would be
141013 - helpful to demonstrate this capability.
141014 -
141015 -
141016 -
141018 -  ..
1411 -
1412 -
1413 - Discussion
1414 -
141401 - Steve has not had enough time to read the Corps of Engineers report,
141402 - submitted by my letter ref DIP 4 0000 on 970509, ref SDS 10 0000.
141403 -
141404 - He has not had a chance to read ref DIP 5 0000, discussing his idea to
141405 - show a cost/benefit analysis of how Communication Metrics improves
141406 - Turner's competitive posture, as indicated by notes of the meeting
141407 - with Intel, ref SDS 15 2701.
141408 -
141409 -      [On 970711 began spreadsheet to calculate cost/benefit of
141410 -      Communication Metrics, ref SDS 21 0000.]
141412 -       ..
141413 -      [On 970922 called Steve. ref SDS 22 1220.]
141414 - ..
141415 - Steve said Turner's clients are cost conscious, and so he thinks
141416 - they will not support the cost of a work role for Communication
141417 - Metrics without an explanation of cost savings, as we discussed on
141418 - 970620. ref SDS 18 4775
141419 -
141420 -      [On 9710008 government issued cost saving report on Communication
141421 -      Metrics. ref SDS 23 2979]
141423 -       ..
141424 -      [On 971010 submitted report to Steve. ref SDS 24 1850]
141426 -  ..
141428 -  ..
141429 - A Project Manager is an additonal expense, since previously, firms
141430 - used a Project Engineer, Construction Managers, Procurement and
141431 - Controls Managers, then decided that it cost less money to hire a
141432 - Project Manager because the project environment was too complex and so
141433 - needed a central authority to coordinate the work of formerly
141434 - disparate work groups.  Similarly, the cost of the Scheduling Engineer
141435 - does not increase the cost of the project.  It reduces the cost,
141436 - otherwise nobody would perform cost and schedule control.
141438 -  ..
141439 - The same analysis holds for Communication Metrics.
141441 -  ..
141442 - On 970620 we discussed changes in the business environment since
141443 - Project Managers and Cost and Schedule Engineers were recognized as
141444 - essential investments to properly manage the work. ref SDS 18 3510
141446 -  ..
141447 - The new reality, cited by Peter Drucker and others, is the Information
141448 - Highway that adds risk and opportunity. see 931130, ref SDS 2 1855
141449 -
141450 -      [On 980307 Andy Grove's book explains Internet as a "Strategic
141451 -      Inflection Point" - ref SDS 26 3151]
141453 -  ..
141454 - A Communication Manager avoids the increased risk of error, and, also,
141455 - improves the management of the project, as reported by the U.S. Army
141456 - Corps of Engineers on 970418. ref SDS 9 3368
141458 -  ..
141459 - I suggested that the cost of Communication Metrics can be charged as
141460 - part of project controls and so may fit within existing project cost
141461 - parameters, as reviewed on 970620. ref SDS 18 3855  This can be seen
141462 - from the Corps of Engineers report, exhibit E.
141463 - ..
141464 - Communication Metrics can be presented as an option to show that
141465 - Turner can significantly differentiate itself from competitors who
141466 - claim to be good "communicators" but cannot perform Communication
141467 - Metrics, as discussed on 970604. ref SDS 18 6498
141469 -  ..
141470 - Steve said Turner is always seeking ways to differentiate itself from
141471 - the competition.
141472 -
141473 -
141474 -      [On 971008 governemnt issued cost saving report on Communication
141475 -      Metrics. ref SDS 23 0000]
141477 -       ..
141478 -      [On 971010 submitted report to Steve. ref SDS 24 1850]
141479 - ..
141480 - I suggested that we do some joint marketing meetings so Turner's
141481 - customers can experience the difference between working conventionally
141482 - and working with the new technology advance of Communication Metrics.
141484 -  ..
141485 - Steve suggested I do a few meetings for projects Turner has underway
141486 - to prepare some deliverables he can show to customers.
141487 -
141488 -     Deliverables for Communication Metrics are shown in the scope of
141489 -     services under Appendix D of the government's report issued on
141490 -     970328. ref DRP 1 7402
141492 -      ..
141493 -     We did not discuss that if we show a prospective stakeholder notes
141494 -     of a meeting they did not attend, then we could get a reaction
141495 -     that this looks like a lot of extra work and expense, since it
141496 -     will be different from what they are used to seeing.
141497 -     ..
141498 -     However, if we submit notes and Action Items of meetings
141499 -     with the customer/stakeholder, they will have a better chance to
141500 -     see added value from the 4 or 5 items that need to be done that
141501 -     were not mentioned at the meeting, but which become evident from
141502 -     analysis and linking understandings to original sources.
141503 -     Customers can see that Turner has power and vision that your
141504 -     competitors lack.
141506 -      ..
141507 -     Managers for the U.S. Army Corps of Engineers have had this
141508 -     experience, as reported for example on 961105. ref SDS 8 1220
141509 -
141511 -  ..
1416 -
1417 -
1418 - 0857 called Ed Traille
1419 -   ..
141901 - Left message requesting help to prepare a value added
141902 - calculation for the Communication Manager, similar to a Project
141903 - Manager and/or Cost and Schedule Engineer.
141905 -  ..
141906 - I suggested doing a NPV of Risk Management criteria for projects.
141907 -
141908 -     [On 970625 Ed is not familiar with this method. ref SDS 19 5849]
141909 -
141911 -  ..
1420 -
1421 -
1422 - 0905 called Bill Duncan
1423 -
142301 - Left voice mail message for Bill asking if he could help prepare a
142302 - calculation of added value for a Communication Manager, similar to the
142303 - calculation for a Project Manager or Cost/Schedule Engineer.
142304 - ..
142305 - I suggested doing a NPV of Risk Management criteria for
142306 - projects.
142308 -  ..
142309 - Advised of having heard Bill speak at PMI event on 950420 in Pheonix.
142310 - ref SDS 3 5499
142311 -
142313 -  ..
1424 -
1425 -
1426 - 0920 Prepared Letter to Turner
1427 -
142701 - Prepared ref DIT 1 0000 to summarize our discussion per above. Did not
142702 - include this record.
142703 -
142705 -  ..
1428 -
1429 -
1430 - 1138 Delivered letter
1431 -   ..
143101 - Hand delivered the letter to Steve's office.  He is out until
143102 - tomorrow.
143104 -  ..
1432 -
1433 -
1434 - 1407 Bill called back
1435 -
143501 - Explained objective to identify risks that can be quantified to show
143502 - the effect of failed communications.  One is the complexity of the
143503 - work, the technology, the environmental and regulatory environment and
143504 - the organizational structure.  Bill is unfamiliar with calculating
143505 - the added value of a Project Manager, Cost or Schedule Engineer, or
143506 - an accountant.  He suggested contacting Max Wideman, but did not have
143507 - a number.
143508 -
143509 -      [See follow up contacting Max, ref SDS 20 line 160.]
143510 - ..
143511 - I explained an overview of Communication Metrics and the
143512 - favorable evaluation by the Corps of Engineers.
143513 -
143514 -
1436 -
Distribution. . . . See "CONTACTS"