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


S U M M A R Y


DIARY: August 19, 1997 11:05 AM Tuesday; Rod Welch

Called Tom on Luster review of Communication Metrics.

1...Summary/Objective
2...We noted timeliness of COE's study from high risk business environment
3...Reflects "imploding management" from the Information Highway effect,
4...I advised of having contacted Jim Jones, Deputy Chief, Construction


..............
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CONTACTS 
0201 - Corps of Engineers, SFD            415 977 8400 fax 8483
020101 - Mr. Thompson F. Keesling, Architect; Assistant Chief =415 977 8473/8701
020102 - Construction Operations Division   =415 977 8480
0202 - Stanford Const Eng Mngmnt          415 723 3074
020201 - Mr. Paul Teicholz; Integrated Facilities Program =415 723 6486
020202 - Construction Engineering & Management Program

SUBJECTS
Keesling Develop District PM Process,
Integrate Comm Metrics, CCA Guide
Comm Metrics, RMS/Paragon Comparison
Psychologically Demanding to Discover Error
Boring Communication Metrics, Crisis are

2207 -    ..
2208 - Summary/Objective
2209 -
220901 - Followed up work at ref SDS 4 line 83, ref SDS 3 line 70.
220902 -
220903 - Tom is planning to commission a study that will cover Communication
220904 - Metrics.  Discussed scope and suggested he contact Paul at Stanford
220905 - for possible related support.  Notified Paul of possible contact from
220906 - Corps of Engineers.
220907 -
220908 - Submitted ref DIT 1 0000 confirming these discussions.  Included this
220909 - record, and the discussion with John Lettieri at Marsh & McLennan...
220910 - ref SDS 12 0000, and with Turner, ref SDS 5 0000, per letter prepared
220911 - at ref SDS 13 0000.
220912 -
220913 -      [On 970820 IMS program could be studied. ref SDS 16 3528]
220914 -
220915 -      [On 970911 study is not proceding with study. ref SDS 17 8851]
220916 -
220917 -
220918 -  ..
2210 -
2211 -
2212 - Discussion
2213 -
221301 - Tom said Luster's contract is now final.  Rich Estes is on vacation
221302 - this week.
221303 -
221304 - Tom plans to meet with Rich next week about developing a specific task
221305 - order for Luster to perform a study of Communication Metrics, RMS and
221306 - Paragon, to show how they relate, per CE's report, ref DRP 1 5005, and
221307 - ref DRP 1 5002.
221308 -
221309 - The District's scope of services for Communication Metrics, that used
221310 - the Richmond project as a prototype, calls for research and planning
221311 - to implement RMS. ref DRP 1 6499 and ref DRP 1 4820
221312 -
221313 -      [On 970915 Tom is not proceding with study. ref SDS 17 8851]
221314 -
221315 - Consideration should be given to including Lotus Notes and Expedition
221316 - in the study, in order to recognize current industry "standards" for
221317 - management support, that perform similar tasks to RMS and Paragon.
221318 - Lotus Organizer is another popular "solution" that may warrant comment
221319 - in the study, depending on the goals of Luster's assignment. COE has
221320 - experience with Lotus Notes.  How will RMS and/or Paragon work better
221321 - than the District's experience with Lotus Notes?
221322 -
221323 - Luster's report should cover how these business systems individually
221324 - and/or in any combination support consistent use of good management
221325 - practices, e.g., using the Construction Contract Administration (CCA)
221326 - Guide, requested by Max Blodgett on 961204, ref SDS 2 line 236.  This
221327 - requires a working definition of "good management."  The Project
221328 - Management Body of knowledge, PMBOK, ISO 10006 Project Management
221329 - criteria, and Deming's TQM writings identify a key management cycle:
221330 -
221331 -                    Plan, Perform, Report
221332 -
221333 -     .., ref SDS 1 line 304.  These sources also identify in varying
221334 -     forms a concept of "continual learning," supported by processes
221335 -     that accomplish:
221336 -
221337 -                Traceability to original sources
221338 -
221339 -     ...ref SDS 1 line 510 and ref SDS 1 line 626.  The District's
221340 -     report on Communication Metrics describes a need for effective:
221341 -
221342 -                     Business Intelligence
221343 -
221344 -     ...that organizes and analyses information so that cause and
221345 -     effect and needed actions are revealed, ref DRP 1 line 113.
221346 -
221347 - These criteria may provide a framework for Luster's study to identify
221348 - business systems that support these "good management" processes.
221349 -
221350 - Luster's report will support Tom's assignment to develop automated
221351 - management for the District, and to review District project management
221352 - processes, as set out in the draft memo to DE dated 970530, ref OF 1
221353 - line 56.
221354 -
221355 - We noted timeliness of COE's study from high risk business environment
221356 - cited by surety managers Rick Sterns ref SDS 11 line 84, and John
221357 - Lettieri, Senior VP with Marsh McLennan, ref SDS 12 line 135, as
221358 - evidenced by Guy F. Atkinson failing.  Tom had heard about Atkinson
221359 - filing bankruptcy.
221360 -
221361 - Reflects "imploding management" from the Information Highway effect,
221362 - set out in the NWO... paper, and also "Information Entropy" postulated
221363 - by the U.S. Air Force Institute of Technology paper on cost and
221364 - schedule growth that occur on major projects, ref SDS 7 line 314.  I
221365 - mentioned discussions on 970728 with Intel that poor management is
221366 - epidemic due to new realities of business conditions.  Only limitless
221367 - funds can buy-off the effects, as at an Intel or the government, ref
221368 - SDS 10 line 345.
221369 -
221370 - Tom recalled we discussed the AFIT paper on 970708, ref SDS 8 line
221371 - 113.
221372 -
221373 - I related Max Wideman's observation yesterday that the executive
221374 - mindset inhibits proactive efforts to avoid problems, because "crisis
221375 - management" is more fun, ref SDS 15 line 128.  Crisis management
221376 - involves giving orders and taking immediate action through talk, talk,
221377 - talk.  Whereas, Communication Metrics requires discipline to write
221378 - things down and link them up to discover impending problems, gaps in
221379 - planning, additional steps needed for success.  Proactive management
221380 - is boring; its no fun, i.e., it is psychologically demanding, and so
221381 - needs a specialist, per discussion with the District Engineer on
221382 - 970624, ref SDS 6 line 423.
221383 -
221384 -  ..
221385 -
221386 - I advised of having contacted Jim Jones, Deputy Chief, Construction
221387 - Division at CEMP-C, and that I am sending him the District's report on
221388 - Communication Metrics. ref SDS 14 3887
221389 -
221390 -
221391 -
221392 -
221393 -  ..
2214 -
2215 -
2216 - 1127 called Tom back
2217 -
221701 - I suggested Tom consider asking Luster to contact Ray Levitt and Paul
221702 - Teicholz at Stanford to see if their approach to metrics for
221703 - communication might contribute to COE's proposed study.  Actually, Ray
221704 - asks that Paul handle this interaction, ref SDS 9 line 80.
221705 -
221706 - We briefly considered Ray's approach to evaluating communication flows
221707 - for determining management effectiveness and changes for improvement,
221708 - based on the Virtual Design Team (VDT) program Ray's team developed at
221709 - Stanford.  Advised of discussions with Paul per Ray's request, and
221710 - their invitation for me to work with them on solving the communication
221711 - problem, ref SDS 9 line 128.  Actually, the record indicates I sent a
221712 - copy of Paul's letter to Tom on 970724, ref SDS 9 line 149.
221713 -
221714 - I will send Tom an email with their phone numbers and Internet
221715 - address, along with some background.
221716 -
221717 - Ray has requested that initial contacts be with Paul.
221718 -
221719 -     Paul Teicholz        415 723 6486; Teicholz@cive.stanford.edu
221720 -     Integrated Facilities Program
221721 -     Civil Engineering Department
221722 -     Terman Engineering Center, M50
221723 -     Stanford University
221724 -     Stanford, CA  94305 4020
221725 -
221726 -     Ray Levitt, PhD      415 723 2677; levitt@ce.stanford.edu
221727 -
221728 -      [See where Tom indicates he is not proceding with the study,
221729 -      ref SDS 17 line 84.]
221730 -
221731 -
221732 -
2218 -
2219 -
2220 - 1141 called Paul
2221 -
222101 - Left message of having suggested that COE contact Paul about possible
222102 - correlation with and/or support by Stanford's business communication
222103 - work, for the San Francisco District's study of business systems.
222104 -
222105 -      [See where Tom indicates he is not proceding with the study, ref
222106 -      SDS 17 line 84.]
222107 -
222108 -
2222 -
Distribution. . . . See "CONTACTS"