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


S U M M A R Y


DIARY: July 11, 1997 10:39 AM Friday; Rod Welch

Began calculation for added value of Communication Metrics.

1...Summary/Objective


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SUBJECTS
Cost/Benefit of Better Communications
Cost Benefit - Increase Usefulness, Reduce
Measuring Communication Issues
Money, Improving Earnings
Cost Effective SDS Saves Time

0807 -    ..
0808 - Summary/Objective
0809 -
080901 - Follow up ref SDS 25 0000, ref SDS 24 0000.
080902 -
080903 - Began a spreadsheet to calculate the risk of error and consequent NPV
080904 - of avoided extra cost based on the number of communications that occur
080905 - on a project from one month to the next.  This will answer Steve
080906 - Rule's question about calculating added value, ref SDS 15 line 85.
080907 -
080908 - It will recognize value at risk, reviewed on 970703. ref SDS 21 9800
080909 -
080910 - Want to reflect research performed the past few weeks, per the
080911 - references in Other Files listed herein.  A key objective is to
080912 - demonstrate the entropy cited in the paper by Air Force Institute of
080913 - Technology at ref SDS 24 line 302, that supports an "entropic cost
080914 - model," per ref OF 3 line 142, and corresponding benefit of investing
080915 - time for Communication Metrics to build and maintain shared meaning,
080916 - align communications, and manage the record to facilitate preparation.
080917 -
080918 - This model should provide a method by which the uncertainty of
080919 - information can be quantified in a structured manner. The method will
080920 - be useful for determining staffing to avoid being overwhelmed, and the
080921 - impact of adding Communication Metrics.  It will provide an alternate
080922 - basis, or cross-check, to estimate the cost of "managing" from
080923 - traditional order of magnitude calculations prepared based on a
080924 - percentage of direct cost.  The need arises because typically
080925 - "overhead" staff is set as a percentage of direct cost, per discussion
080926 - with Steve at Turner, ref SDS 13 line 126, and additional staff is not
080927 - provided until it is much too late to avoid the problem of noise, ref
080928 - SDS 24 line 280.
080929 -
080930 -      [See letter to Ray Levitt for research on communication errors,
080931 -      ref SDS 27 line 91.]
080932 -
080933 - The first approach will be to experiment to determine the rate of
080934 - growth in communications, based on initial parameters.
080935 -
080936 - Tried estimating the number of communications based on the number of
080937 - events where information is transferred between people.
080938 -
080939 -                                  T    I    M    E
080940 -          Frequ- Parti-  Sub-  Man- Pre-                       W/O M & P
080941 -          ency   cipants jects age  pare  Event Total Errors Total Errors
080942 -
080943 - Meetings
080944 - Discussions
080945 - Calls
080946 - Email
080947 - Documents
080948 -
080949 -     We need a column for exposure and then set error rates based on
080950 -     the amount of preparation that can be done.  Preparation will be
080951 -     a function of time invested to manage the record.
080952 -
080953 -     Want to calculate the growth in staffing requirements as a
080954 -     function of the number of subjects and participants involved.
080955 -
080956 -     [See follow up on analysing spreadsheet factors, ref SDS 28 line
080957 -     47.]
080958 -
080959 -
080960 -
080961 -
080962 -