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


S U M M A R Y


DIARY: September 29, 1997 12:48 PM Monday; Rod Welch

Meeting with Tom at Corps of Engineers on cost savings analysis.

1...Summary/Objective


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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
020102 - Construction Operations Division =415 977 8480
0202 - Corps of Engineers, SFD            415 977 8400 fax 8483
020201 - Mr. Max R. Blodgett, II, P.E., L.S.
020202 - Chief =415 977 8444; Construction Operations Division =415 977 8480

SUBJECTS
COE Evaluation Communication Metrics
Analysis, Review, Research
Institutionalize Communication Metrics
CE HQ Evaluation
Calculate Risk Management Exposure NPV
Public Relations Savings Improved by

1108 -    ..
1109 - Summary/Objective
1110 -
111001 - Follow up ref SDS 28 0000, ref SDS 27 0000.
111002 -
111003 - Considered how to formulate an estimate of savings from Communiation
111004 - Metrics.  Discussed need to get a format from Jim Jones for presenting
111005 - cost savings from Communication Metrics.  Tom will draft a letter to
111006 - Jim requesting this format.  He will send me the draft for comments
111007 - prior to sending to Jim.
111008 - ..
111009 - Submitted ref DIT 1 line 30 discussing cost savings from the
111010 - Public Relations office that is common in the Corps of Engineers.
111011 -
111012 -
111013 -
1111 -
1112 -
1113 - Discussion
1114 -
111401 - Discussed the letter to Jim, ref DIP 7 line 30 with copies to Tom and
111402 - Max, transmitting the record at ref SDS 25 line 86.
111403 -
111404 - Tom feels we can use the format for calculating cost savings of the
111405 - Project Manager role, to calculate the cost savings for a
111406 - Communication Manager.
111407 -
111408 - He explained that operations are priced as a function of project
111409 - costs, using a multiplier, so the distinction that Jim seeks between
111410 - project and operations costs is unclear.  The multiplier seems to be
111411 - significant, about 300%.
111412 -
111413 - I suggested calling Jim and asking what he has in mind.  We did not
111414 - have time while I was meeting with Tom to call Jim.
111415 -
111416 - Tom plans to prepare a memo tomorrow morning requesting clarification
111417 - from Jim on the format to calculate cost savings. He will send it to
111418 - me for comment before he submits it to Jim.
111419 -
111420 -      [Draft from Tom was received on 971001, ref SDS 29 line 123.]
111421 -
111422 - Tom seemed to indicate the labor cost for the District is about $7M
111423 - per year.  There are a lot of other costs for administrative supplies
111424 - and support services.
111425 -
111426 - We considered developing project savings on the Oakland Harbor
111427 - project, then using an adjusted percentage to the District Operating
111428 - budget, and observing the savings reflects growth potential for the
111429 - District in project volume without increasing staff.
111430 -
111431 - Tom seemed to indicate there is consideration to consolidate some
111432 - operations within Divisions, under the "virtual" district concept. One
111433 - scenario could result in the Sacramento District being responsible for
111434 - all construction in the San Francisco District.  This is part of the
111435 - consideration in the meeting he is attending on Thursday and Friday in
111436 - Burlingame.  Jack Farless is also attending those meetings.
111437 -
111438 -
111439 -
111440 -
111441 -
1115 -
1116 -
1117 - 2214 submitted letter on Public Affairs/Relations
1118 -
111801 - This evening, I sent Tom ref DIT 1 line 35 suggesting another way to
111802 - evaluate the cost savings from Communication Metrics is to evaluate
111803 - the value of communication by the Public Relations/Affairs department.
111804 - If similar effort were made to help those resposnsible for doing the
111805 - work, understand the "story" and to develop a constructive explanation
111806 - of what transpires, would the savings from better communication
111807 - increase?
111808 -
111809 -      [See response from Tom on 971001, ref SDS 29 line 123.]
111810 -
111811 -
111812 -
111813 -
Distribution. . . . See "CONTACTS"