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
Feel Good Management Elevates Style Over
Correcting Corrections, Overcome by SDS
Rework Cycle Due to Miss-communication
History Chronology, Causation, Experience,
Align Communications Metrics Avoid
Rework Due to Limited Span of Attention
Rework Avoid Cost Benefit Communication
Making more money

2415 -    ..
2416 - Summary/Objective
2417 -
241701 - Follow up ref SDS 39 3354, ref SDS 38 6788.
241702 -
241703 - Finalized formatting in file ref OF 1 line 22. It is the first draft
241704 - of a report to Jim Jones detailing cost savings from Communication
241705 - Metrics, which Jim requested on 970926, ref SDS 33 line 132.
241706 -
241707 - Prepared ref DIT 1 line 30 transmittng the analysis, ref OF 1 line 22,
241708 - which has a format for explaining cost savings on Communication
241709 - Metrics, prepared at ref SDS 39 line 109 and begun at ref SDS 38 line
241710 - 104.
241711 -
241712 - Took it to Tom's office.  He was not in, and may not have come in
241713 - today because he had a meeting in Burlingame.
241714 -
241715 -      [See submission of revisions the next day, ref SDS 41 line 102,
241716 -      prepared below after making this submission.]
241717 -
241718 -      [See submission for peer review at, ref SDS 40 line 87.]
241719 -
241720 -      [On 971008 received government's report. ref SDS 43 2979]
241721 -
241722 -
241723 -
241724 -
241725 -  ..
2418 -
2419 -
2420 - 1919 revised analysis memo
2421 -
242101 - Revised the proposed memo to transmit the cost savings analysis to
242102 - Jim, ref OF 1 2435, submitted to Tom this morning via ref DIT 1 2222.
242103 -
242104 - Adjusted references since the original ref c, was to COMBASE which
242105 - came from the memo used as a template and so had to be deleted.
242106 -
242107 - Added explanation of the source of the cost savings in a new para 8
242108 - that introduces the concept of savings by reducing "rework, ref OF 1
242109 - 4444, identifed yesterday at ref SDS 39 4472.
242110 -
242111 -      Did more editing on "rework" in the Attachment memo.
242112 -
242113 -       ..
242114 -      Feel Good Management Causes Rework Acrimony
242115 -      Trial and Error Causes Painful Discovery of Controlling Factors
242116 -
242117 -      Refined ideas developed for "rework" on 971001 at ref SDS 39
242118 -      4472.
242119 -
242120 -          Concept of "correcting corrections" was discussed with Pat
242121 -          Welch in 1990. ref SDS 2 2903 and ref SDS 2 2435.
242122 -
242123 -          [On 971008 received government's report. ref SDS 43 1273]
242124 -
242125 -          [On 980318 example of rework caused by lack of notice. ref
242126 -          SDS 43 1840]
242127 -
242128 -      Defined "Feel Good" management.  Explained how it causes rework
242129 -      that causes cost and schedule growth due to misunderstanding, all
242130 -      of which cause acrimony and hurt feelings.  The aim of "Feel
242131 -      Good" management is not achieved, ref OF 1 line 496, which was
242132 -      originally identified in a discussion with Morris at ref SDS 3
242133 -      1331, and more recently with Dave at Intel on 970603, ref SDS 16
242134 -      5803.
242135 -
242136 -      Rework is caused by information entropy that results from limited
242137 -      span of attention, ref SDS 26 4476 and Jeromy Campbell's book,
242138 -      ref SDS 1 4456, in combination with and then causing excessive
242139 -      reliance on conversation, i.e., management by "guess and gossip,"
242140 -      also, hunch and hope, ref SDS 18 0108.
242141 -
242142 -          [On 980316, lack of notice causes rework. ref SDS 44 1840]
242143 -
242144 -
242145 -      Make More Money by Reducing Rework, Trial and Error
242146 -
242147 -      The ideas of "lessons learned," "trial and error," "discovery"
242148 -      and history seem to be related to rework, "feel good" management
242149 -      and making more money, based on this report showing ROI 10:1, see
242150 -      ref OF 1 line 44, per original analysis at ref SDS 39 4472.
242151 -
242152 -      An article in PM Network explains the high cost of rework, but
242153 -      does not recognize it is caused by miscommunication. ref SDS 5
242154 -      4633
242155 -
242156 -           [On 980316, lack of notice causes rework. ref SDS 44 1840]
242157 -
242158 -           [On 980630 article on calculating cost savings from
242159 -           investing in knowledge tools like SDS. ref SDS 45 0606]
242160 -
242161 -           Cost benefit of feel good management was analysed at Cal
242162 -           Tech seminar on 921021, ref SDS 4 line 211.
242163 -
242164 -           Concurrent Discovery was explained in the paper for Dave
242165 -           Bouncristiani to present at Asilomar, ref SDS 8 line 180.
242166 -           It proactively discovers subjects, links and needed actions
242167 -           that are outside the span of attention.
242168 -
242169 -           Rework is not strongly felt because of near term perspective
242170 -           that overlooks the impact of deferred cost and pain.  Costs
242171 -           mount, but they are not associated with reliance on
242172 -           conversation, because the conversation is always aimed at
242173 -           relieving immediate problems.  The fact that it is the cause
242174 -           of current problems and will lead to future problems is
242175 -           hidden by the rush to expedite an immediate solution by
242176 -           using dialog and listening skills, i.e., gusss and gossip.
242177 -
242178 -
242179 -           What's a Metric
242180 -
242181 -           Rework is avoided in construction by the procedure of
242182 -           measure twice, cut once.  In accounting "double-entry"
242183 -           bookkeeping discovers errors so they can be fixed before
242184 -           action is taken that conflicts with reality. Communication
242185 -           Metrics writes things down to remember correctly, aligns
242186 -           what is written with what has been entered previously in the
242187 -           record, and obtains feedback to verify understandings.
242188 -
242189 -      Explained how alignment is improved from the initial language,
242190 -      ref SDS 39 line 506, by using SDS to leverage human acuity that
242191 -      is limited by the span of attention inherent to human biology,
242192 -      ref OF 1 line 515.
242193 -
242194 -      Added reference to "proactive" alignment to explain the advantage
242195 -      of recognizing correlations in advance of encountering them
242196 -      through mistakes because "reality is the ultimate metric." ref OF
242197 -      1 line 510.
242198 -
242199 -
242200 -      Alignment from Subjects and Links Produces Intelligence
242201 -
242202 -      Added explanation of "alignment" by identifying subject indexing
242203 -      and links to original sources, that provide organization and
242204 -      support analysis which produce business intelligence, ref OF 1
242205 -      line 524, as defined in the original report on Communication
242206 -      Metrics, ref DRP 2 line 113.
242207 -
242208 -
242209 -      Re-work Estimate Conservative
242210 -
242211 -      Added note explaining why the re-work estimate is conservative
242212 -      mainly because it only calculates re-work caused from major
242213 -      meetings, and so ignores ordinary meetings, calls and documents,
242214 -      including email, ref OF 1 line 639.
242215 -
242216 -      We have the figures to make this calculation.
242217 -
242218 -      This reflects the power of the microcosm.
242219 -
242220 - Added correlation to cost savings from Project Management and RMS, ref
242221 - OF 1 line 28, as Tom Keesling's memo suggests, ref DRP 6 line 31,
242222 - received at ref SDS 39 line 148.
242223 -
242224 - Had to add calculation of cost savings on operational budgets for the
242225 - Todd/Schnitzer Wing, ref OF 1 line 400.
242226 -
242227 - Tried to improve para 6 that explains the basis for Communication
242228 - Metrics saving on operational budgets when the budgets were not
242229 - actually changed, ref OF 1 line 59.  One thing I still not identified
242230 - is the impact of dealing with the Port as a co-sponsor of the project.
242231 - The basic idea is that District HQ staff were forced to spend more
242232 - time on Oakland.  Communication Metrics makes it possible to avoid
242233 - that cost, identified at ref OF 1 line 569.  Cite the $65M in
242234 - contractor claims as the measure of value at risk that warranted
242235 - increased attention by District staff.  The ideas is that by virtue of
242236 - having put more District resources on Oakland, though the contractor
242237 - has $65M in claims, the amount actual payment will be greatly reduced.
242238 -
242239 -
242240 -
242241 -
242242 -
2423 -
2424 -