CONTACTS 
0201 - Corps of Engineers, SFD                                                                                                                                            O-00000632 0202
020101 - Mr. Thompson F. Keesling, Architect; Assistant Chief
020102 - Construction Operations Division

SUBJECTS
COE Evaluation Communication Metrics
Summary Analysis
Corps of Engineers
Case Study Cost Savings Oakland Harbor Project, USACE
Rework Oakland Harbor Project Cost Savings, USACE

2407 -
2407 -    ..
2408 - Summary/Objective
2409 -
240901 - Follow up ref SDS 40 8401, ref SDS 39 2001.
240902 -
240903 - Received a report from the San Francisco District Corps of Engineers
240904 - to the Headquarters office in Washington, D.C., showing significant
240905 - cost savings, ref SDS 0 2710, from using Communication Metrics, as a
240906 - result of reducing rework, by increasing management span of attention.
240907 - ref SDS 0 1273
240908 -
240909 -    [See analysis showing span of management control is increased by
240910 -    increasing span of attention, ref SDS 43 4003.]
240912 -     ..
240913 -    [On 971017 discussed report with Jim Jones. ref SDS 44 0000]
240915 -     ..
240916 -    [On 980406 considered giving Tom's report to Merry in USACE CESPN
240917 -    Legal. ref SDS 53 1154]
240919 -     ..
240920 -    [On 980803 report was submitted to Merry. ref SDS 60 2798]
240922 -     ..
240923 -    [On 981027 received Merry's report. ref SDS 63 7315]
240924 -
240925 -
240927 -  ..
2410 -
2411 -
2412 - Progress
2413 -
241301 - Communication Metrics Cost Effective
241302 -
241303 - Received ref DRT 1 0001 showing cost savings calculated by USACE from
241304 - using Communication Metrics.  It supports the earlier report.
241305 - ref DRP 2 6172, received on 970418. ref SDS 25 3368.
241306 -
241307 - This, also, supports work at Intel on 960326, ref SDS 18 4545, and
241308 - discussions on improving Intel management a year later on 970603, by
241309 - Dave Vannier. ref SDS 27 5803
241310 -
241311 -     [On 981223 Tom submitted another letter to HQ endorsing SDS and
241312 -     Com Metrics based on additional information that documents cost
241313 -     savings. ref SDS 64 3600
241315 -  ..
241316 - Calculating cost savings reflects report on 950205 about managers
241317 - wasting 70% of day in meetings. ref SDS 17 8436  More fundamentally it
241318 - adds weight to Jeromy Campbell's comment in his book on AI explaining
241319 - that people pay a price for having a powerful mind that uses induction
241320 - to expand information, explained on 900303. ref SDS 4 4456
241322 -  ..
241323 - On 890809 executive says communication skill of "listening" is key
241324 - factor of productivity and earnings by avoiding mistakes that cause
241325 - "rework." ref SDS 3 SL6J  Morris Jones made a similar point on 921127
241326 - complaining that inconsequential matters later cause major problems.
241327 - ref SDS 6 0674
241329 -  ..
241330 - It reflects the report on 950110 of improved management at PG&E using
241331 - the SDS program. ref SDS 12 0000  Examples on 941004, ref SDS 9 8899,
241332 - on 941209, ref SDS 10 7777, on and 941211. ref SDS 11 0000
241333 -
241334 -     [On 980307 Andy Grove's book "Only the Paranoid Survive" reports
241335 -     that the methods supported by Communication Metrics helped him
241336 -     achieve high earnings at Intel. ref SDS 52 3668, ref SDS 52 3101]
241338 -      ..
241339 -     [On 990303 scientific paper explains human cognition uses chunks
241340 -     of human memory that is supported by SDS. ref SDS 65 3458]
241342 -  ..
241343 - Earlier, received via email ref DRT 2 0001 Tom's submittal of the cost
241344 - savings report to Jim Jones. ref DRT 1 0129  This accomplishes Jim's
241345 - request in our telecon on 970926, ref SDS 33 0552, and Jim's letter to
241346 - Tom on 970904, ref DRP 4 3110, received on 970926, ref SDS 33 4166.
241348 -  ..
241349 - Tom's submission follows up my letter on 970929, ref DIP 1 8933,
241350 - indicating CESPN would submit a cost savings report to Jim within a
241351 - week.  We are half-a-week behind, because Tom was out of the office
241352 - for most of the prior week.
241353 -
241354 -     [On 971017 discussed report with Jim Jones. ref SDS 44 0000]
241356 -      ..
241357 -     [See distribution to Hank Hatch, ref SDS 42 5445.]
241359 -      ..
241360 -     [See distribution to Dave Vannier at Intel. ref SDS 45 4855]
241362 -      ..
241363 -     [On 981027 received Merry's report. ref SDS 63 7315]
241364 -
241365 -
241366 -
241367 -
2414 -

SUBJECTS
Communication Metrics Expenses, ROI
Cost Avoidance, Cost Reduction
Money, Improving Earnings, ROI
Summary Analysis, Operations
Construction Management
Cost Benefit Calculations Communication
Good Management Pays for Itself Like Advertising
SDS Pays for Itself Savings Rework Litigation Good Management Front-e
Good Management SDS Pays for Itself Like Advertising
Reengineer Communication SDS Improves Management Adds Metrics Alignme
Cost Savings Reengineer Reduce Staff or Expand Mission Empowers Colla
10 Times Faster SDS, than Other Management Methods

4414 -
441501 -  ..
441502 - Communication Metrics Saves Time and Money Reduces Rework Mistakes
441503 -
441504 - Direct cost savings is $317K and contributed to cost avoidance of
441505 - $3,4M over 3 months at cost of $50K, ref DRT 1 8555.  Communication
441506 - Metrics used for 2 year construction period of Oakland Harbor project
441507 - could reduce Construction Management expense an additional $2M.
441508 - ref DRT 1 7400
441510 -  ..
441511 - Cost savings reflects report on 950205 about managers wasting 70% of
441512 - day in meetings. ref SDS 17 8436
441513 -
441514 -       [On 980613 articles in "Today's Engineer" identify "information
441515 -       overload" as a major management problem. ref SDS 57 3499]
441516 -
441517 -       [On 980630 articles in Project Management Journal on cost
441518 -       benefit calculations for knowledge-based tools. ref SDS 58 0606]
441520 -        ..
441521 -       [On 981027 received Merry's report. ref SDS 63 7315]
441523 -        ..
441524 -       [On 990912 article on high cost of medical mistakes supports
441525 -       need for Com Metrics. ref SDS 67 0001]
441527 -        ..
441528 -       [On 990924 submitted letter to author explaining communication
441529 -       mistakes cause rework. ref SDS 68 4026]
441531 -        ..
441532 -       [On 020533 cost savings of $40K/day calculated using SDS for
441533 -       engineering management in software development. ref SDS 71 EY3L
441535 -  ..
441536 - Savings has two components:
441537 -
441538 -     Cost Avoidance
441539 -
441540 -         Savings of $3M are substantial and speculative based on
441541 -         incomplete litigation, ref DRT 1 7117, ref DRT 1 7113, as
441542 -         developed in the record on 971001. ref SDS 34 3623
441544 -          ..
441545 -         The contractor has filed claims over $60M. ref SDS 29 7377
441546 -
441547 -           [On 981027 District paid $30M on claims, which may reflect
441548 -           Communication Metrics contributed to substantial savings.
441549 -           ref SDS 63 9152]
441551 -          ..
441552 -         On 970202 review indicated extra payment is owed for dredging
441553 -         additional 2M - 3M CY. ref SDS 23 8477.  This adds $10 - $15M
441554 -         depending on final pay quantities, and applicable unit prices,
441555 -         e.g., pay item 3 bid $5.20 and pay item 12 bid $3.90, shown on
441556 -         970921. ref SDS 22 3315  If $3.90 is justified, then less than
441557 -         $10M may be owed, if $5.20, or for some reason a higher unit
441558 -         price is justified, then $15M may be owed for the additional
441559 -         material.
441561 -          ..
441562 -         To assess cost effectiveness of Communication Metrics, this
441563 -         analysis assumes a conservative amount of $10M will be added
441564 -         to contractor's original contract price. ref DRT 1 5033 If the
441565 -         contractor is awarded a larger amount, it will increase cost
441566 -         effectiveness of Communication Metrics by reducing its
441567 -         percentage of final contract price.
441569 -          ..
441570 -         Cost Avoidance also reflects potential to reduce costs by
441571 -         discovering opportunities throughout the project life-cycle by
441572 -         using consistent application of "intelligence."  Opportunity
441573 -         savings reflect improved earnings from better management.
441575 -          ..
441576 -         Cost Avoidance savings are detailed in para 4a of Attachment 1
441577 -         at ref DRT 1 7128.
441578 -
441579 -             [On 980520 Max Blodgett reported that District Counsel
441580 -             attributed substantial savings to Communication Metrics.
441581 -             ref SDS 56 2405]
441583 -              ..
441584 -             [On 981027 received Merry's report. ref SDS 63 7315]
441586 -      ..
441587 -     Cost Reduction
441588 -
441589 -         Reduces level of effort by District Operations staff that was
441590 -         forced to increase contribution on Oakland due to high value
441591 -         at risk, ref DRT 1 7116, ref DRT 1 7114.
441593 -  ..
441594 - ROI is 10:1 showing substantial added value of Communication Metrics,
441595 - discussed in the report at ref DRT 1 7401, ref DRT 1 5512.
441596 -
441597 -         [On 981027 received Merry's report. ref SDS 63 7315]
441598 -
441599 - Cost savings reflects report on 950205 about managers wasting 70% of
441600 - day in meetings. ref SDS 17 8436
441602 -  ..
441603 - Cost savings estimate for District Operations is 6%, as shown in the
441604 - report at ref DRT 1 2778, ref DRT 1 8500.  Detailed estimate is shown
441605 - at ref DRT 1 8501.
441606 -
441607 - Examples of cost savings from PG&E are below. ref SDS 0 2979
441608 -
441609 -     On 970523 cited losses due to misunderstandings. ref SDS 26 7592
441611 -      ..
441612 -     [On 980307 Andy Grove's book "Only the Paranoid Survive" reports
441613 -     using methods supported by Communication Metrics to achieve record
441614 -     earnings at Intel. ref SDS 52 3668, ref SDS 52 3101]
441615 -
441617 -  ..
441618 - Cost savings permit District to Reduce Staff or Expand Mission
441619 -
441620 - The report explains that savings from better management will support
441621 - either reducing the staff or expanding CESPN mission without
441622 - increasing the staff. ref DRT 1 2778
441623 -
441624 - An example is the expanded staff hired to assemble and evaluate the
441625 - record of claims on Oakland.  This staff would have been unnecessary
441626 - if Communication Metrics had been used, as see from report issued to
441627 - Merry Goodenough on 970417. ref SDS 24 0000  See discussion with DE on
441628 - 970624. ref SDS 28 2165
441629 -
441630 -     [On 971121 Mike Grebinski reported on extra cost CESPN incurred to
441631 -     perform claims analysis. ref SDS 48 4692]
441633 -      ..
441634 -     [On 980630 article on cost savings from better management permits
441635 -     reducing staff or expanding the work load. ref SDS 59 0779]
441636 -
441637 -
4417 -

SUBJECTS
Rework, 10 Agenda Items Typical
Changed Business Enironment Information
Productivity of Management
Span of Attention Enhanced by SDS
Action Items, Visibility
Feel Good Management - Social Constraints
Complex Communication Causes Mistakes,
Good Management Front-end Investment Paid by Savings from Rework Liti
Good Management SDS Savings from Rework Litigation SDS Pays for Itsel

8111 -
811201 -  ..
811202 - Rework Avoided by Using Intelligence
811203 - Communication Metrics Expands Span of Attention, Prevents Mistakes
811204 -
811205 - Report found that Communication Metrics use "intelligence" to expand
811206 - span of attention in order to handle the full range of subjects that
811207 - impact the work, costs and schedule, as related in analysis on 960322.
811208 - ref SDS 20 7749 and previously on 890523. ref SDS 1 P13O  Adding
811209 - "intelligence" reduces mistakes that cause "rework" and so results in
811210 - substantial cost savings. ref DRT 1 4172 and ref DRT 1 4680 and also
811211 - ref DRT 1 4510.
811213 -        ..
811214 -       [On 990303 research by Professor George Miller published in
811215 -       1950s quantifies limits on span of attention to about 7
811216 -       subjects. ref SDS 65 5328
811218 -        ..
811219 -       [On 011129 military project relied on research showing air plane
811220 -       pilots can accurately manage about 11 guages. ref SDS 70 FE64
811222 -        ..
811223 -       [On 050517 PhD paper on cognitive overhead can review theory on
811224 -       rework for Communciation Metrics. ref SDS 72 WJ60
811226 -  ..
811227 - On 890809 industry executive feels communication critical factor of
811228 - productivity and earnings by avoiding mistakes that cause "rework."
811229 - ref SDS 3 SL6J
811231 -  ..
811232 - On 931130 Drucker argues quality of management biggest factor in
811233 - productivity by reducing mistakes. ref SDS 7 3416
811235 -  ..
811236 - On 960324 Landauer explains complexity of "subjects," ref SDS 21 8566,
811237 - increases errors from intelligence process of "guessing," ref SDS 21
811238 - 0083, which is improved by SDS organic subject structures explained on
811239 - 910221, ref SDS 5 U44K, citing Campbell's work on human intelligence
811240 - that catagorizes to manage complexity. ref SDS 4 5555
811242 -  ..
811243 - On 970713 Max Wideman discussed "rework," ref SDS 31 1817 and on
811244 - 971007 reviewed calculation methodology. ref SDS 38 3889
811245 -
811246 -    [On 990303 scientific paper supports limited span of attention can
811247 -    only handle about 7 subjects. ref SDS 65 6120
811248 -
811249 -    [On 990527 example of "rework" at Intel. ref SDS 66 3276]
811251 -     ..
811252 -    [On 990912 report on high cost of mistakes. ref SDS 67 0001]
811254 -     ..
811255 -    [On 010224 example of rework in business development. ref SDS 69
811256 -    AX6G
811258 -  ..
811259 - Intelligence is defined in the POIMS paper. ref OF 4 0582
811261 -  ..
811262 - Cost savings reflects report on 950205 about managers wasting 70% of
811263 - day in unproductive meetings. ref SDS 17 8436
811265 -  ..
811266 - The report reflects analysis of "rework" on 971001, ref SDS 34 4472,
811267 - citing work on 910221. ref SDS 5 FM5I
811269 -  ..
811270 - Examples of cost savings from reducing rework caused by limited span
811271 - of attention at...
811272 -
811273 -           PG&E on 941004, ref SDS 9 8899
811274 -                   941209, ref SDS 10 7777
811275 -                   941211. ref SDS 11 0000
811277 -            ..
811278 -           S&C Ford on 951031. ref SDS 15 0896
811280 -  ..
811281 - Examples across industries are listed on 950327. ref SDS 13 0200
811283 -  ..
811284 - Rework is another name for "problem handling" which is the major
811285 - activity of management, and therefore a big opportunity to improve
811286 - earnings, from analysis of article on 951212. ref SDS 16 8473
811287 -
811288 -    [Edits concerning span of management at ref SDS 43 1221.]
811289 -
811290 -    [On 971021 article says Internet reduces rework. ref SDS 47 3483]
811292 -     ..
811293 -    [See example from discussion with Frank at Golden Gate University
811294 -    on 971201. ref SDS 49 1164 and at ref SDS 49 2077,]
811296 -     ..
811297 -    [See example PG&E on 980304. ref SDS 50 3106.]
811299 -     ..
811300 -    [On 980307 Andy Grove's book "Only the Paranoid Survive" reports
811301 -    using methods supported by Communication Metrics to achieve record
811302 -    earnings at Intel. ref SDS 52 3668, ref SDS 52 3101]
811304 -     ..
811305 -    [On 980412 CBS News 60 Minutes broadcast a program segment on
811306 -    information overoload causing reduced productivity due to errors.
811307 -    ref SDS 54 0000]
811309 -     ..
811310 -    [On 980511 report that U.S. business productivity declined and unit
811311 -    labor costs rose dramatically for the 1st quarter of 1998. Analysis
811312 -    indicates "rework" may be a contributing factor. ref SDS 55 0000.]
811314 -     ..
811315 -    [On 980808 example managers spend most of their time on "problem
811316 -    handling" ref SDS 61 1125]
811318 -     ..
811319 -    [On 981027 government reports Communication Metrics saved $190K on
811320 -    one matter. ref SDS 62 7315]
811322 -     ..
811323 -    [On 990303 scientific paper explains human cognition uses chunks of
811324 -    human memory that is supported by SDS. ref SDS 65 3458]
811326 -  ..
811327 - Correlation of rework to information overload and limited span of
811328 - attention that cause extra cost due to entropy in the information
811329 - base, discussed at ref SDS 30 0108, is at ref DRT 1 7116, ref DRT 1
811330 - 4680, and ref DRT 1 3883.
811331 -
811332 -       [On 970613 articles in "Today's Engineer" identify "information
811333 -       overload" as a major management problem. ref SDS 57 3499]
811334 -
811336 -  ..
811337 - Slippery Slope of Expediting Causes Rework, Loss, Delay, Crisis
811338 -
811339 - Rework is failure to obtain closure under a continual process of
811340 - "correcting corrections" through trial and error due to a limited span
811341 - of attention, ref DRT 1 3883, that results from the slippery slope of
811342 - cursory treatment, more commonly called...
811343 -
811345 -                             ..
811346 -                            Expediting
811347 -
811348 -
811349 - ...because there is not enough time for research and preparation, that
811350 - results in management by guess and gossip, ref DRT 1 7492, as cited in
811351 - the New World Order paper, ref OF 6 7490.
811353 -  ..
811354 - Preparation to improve meetings is discussed at ref DRT 1 9337, which
811355 - supports analysis on 950327. ref SDS 13 8822, and later on 960317. see
811356 - ref SDS 19 6870
811357 -
811359 -  ..
811360 - The general rule "haste makes waste" is cited in the original report,
811361 - ref DRP 2 3649.
811363 -  ..
811364 - Rework is the metric of reality, per ref DRT 1 2282.
811365 -
811367 -  ..
811368 - Visibility is discussed at ref DRT 1 2321.
811369 -
811371 -  ..
811372 - Action Items are discussed at ref DRT 1 1184, ref DRT 1 2321.
811374 -  ..
811375 - Feel Good management is discussed in the Distric't report at...
811376 - ref DRT 1 7444; it was orginally developed for the New World Order...
811377 - paper, ref OF 6 7490, ref OF 6 0637, in the record on 950812. see at
811378 - ref SDS 14 0660
811379 -
811380 -     Explanation of avoiding acriomony is at ref DRT 1 4830.
811381 -
811382 -
811383 -
811384 -
811385 -
8114 -

SUBJECTS
Not Enough Time to Think

8503 -
850401 -  ..
850402 - Communication Metrics Makes Thinking Time More Effective
850403 -
850404 - The "time to think" problem, including overlooked subjects due to
850405 - limited span of attention issue, is discussed at ref DRT 1 7445, which
850406 - was cited previously in the record at PMI dinner meeting, ref SDS 32
850407 - 2139.
850409 -  ..
850410 - Benefit of Communication Metrics being able to expand span of
850411 - attention so manager's can "think" about more subjects is at ref DRT 1
850412 - 5442, ref DRT 1 5443.
850413 -
850414 -    [On 980307 Andy Grove's book "Only the Paranoid Survive" reports
850415 -    using methods supported by Communication Metrics to achieve record
850416 -    earnings at Intel. ref SDS 52 3668, ref SDS 52 3101]
850417 -
850418 -
850419 -
850420 -
8505 -

SUBJECTS
Cost Compared to Hiring More Managers
Congestion SDS Cost Effective Rather than
Congestion More Managers Cause Noise

8805 -
880601 -  ..
880602 - More Cost Effective than More Managers
880603 - Communication Metrics Avoids Congestion of More Managers
880604 -
880605 - The high ROI reflected by the increased number of subjects, links and
880606 - action items Communication Metrics can manage, makes it more cost
880607 - effective than hiring more managers, ref DRT 1 5512.
880608 -
880609 - This reflects discussion with Bill Benkavitch at ref SDS 38 9933.
880610 -
880611 -    [On 980307 Andy Grove's book "Only the Paranoid Survive" reports
880612 -    using methods supported by Communication Metrics to achieve record
880613 -    earnings at Intel. ref SDS 52 3668, ref SDS 52 3101]
880614 -
880615 -
880616 -
8807 -

SUBJECTS
Planning Needs Accurate Record Linking
Preparation Time Saved, Time Management
Meeting Notes, Formal Events Omit Analysis
Meeting Notes Guide and Encourage
Planning

A307 -
A30801 -  ..
A30802 - Preparation, Planning Improved by Communication Metrics
A30803 -
A30804 - Better preparation and saving time for preparation is explained in the
A30805 - report at ref DRT 1 9337.
A30806 -
A30807 - Follow up and preparation are forms of "planning."
A30808 -
A30809 - The SDS program facilitates planning by providing a comprehensive
A30810 - record of cause and effect that can be accessed using the subject
A30811 - index.
A30813 -  ..
A30815 -  ..
A30816 - Time saved from reduced staffing for meetings is explained in the
A30817 - report at ref DRT 1 0302.
A30818 -
A30819 -    [On 980307 Andy Grove's book "Only the Paranoid Survive" reports
A30820 -    using methods supported by Communication Metrics to achieve record
A30821 -    earnings at Intel. ref SDS 52 3668, ref SDS 52 3101]
A30822 -
A30823 -
A30824 -
A30825 -
A309 -

SUBJECTS
Partnering Needs Communication Metrics to
TQM Partnering for Contracting Parties

A804 -
A80501 -  ..
A80502 - Partnering Saves Money When Supported by Communication Metrics
A80503 -
A80504 - Savings from using Communication Metrics to support partnering is
A80505 - explained in the report at ref DRT 1 8455, ref DRT 1 8622, and also at
A80506 - ref DRT 1 6938.
A80507 -
A80508 - These results support the original report of significant advantages
A80509 - using Communication Metrics to support partnering, ref DRP 2 2814.
A80510 -
A80511 -
A80512 -
A80513 -
A806 -

SUBJECTS
Com Manager Role New Work Role
Com Manager Support Knowledge Worker
Com Manager Role Makes Knowledge Management Effective Using SDS
Com Manager Introduces Change Slowly So People Can Absorb
Role Com Manager Role in Organization Culture Communication Departmen
Role Com Metrics in Organization Communication Department/Office

AM08 -
AM0901 -  ..
AM0902 - Communication Manager Role Organizational Planning
AM0903 -
AM0904 - USACE report says in para 9 more experience with Communication Metrics
AM0905 - can determine the best fit with organizational culture.  It could be
AM0906 - part of a composite "Communications Office" that has both Public
AM0907 - Affairs and Communication Metrics.  This would support Commanders and
AM0908 - operational Divisions, as needed.  Alternatively, Communication
AM0909 - Metrics might be a stand-alone unit.  Or, if this is too bold a
AM0910 - change, it could be incorporated into Project Management, and for the
AM0911 - time being used for District Operations on an ad hoc basis.
AM0912 - ref DRT 1 4173
AM0913 -
AM0914 -      This aligns with USACE's initial report received on 970418,
AM0915 -      ref SDS 25 2644, on the role of the Com Manager, ref DRP 2 8449,
AM0916 -      and providing a scope of services. ref DRP 2 4929
AM0917 -
AM0919 -         ..
AM0920 -        [On 971021 developed concept of Common Administration for Com
AM0921 -        Manager to provide joint support on a project involving
AM0922 -        contracting parties. ref SDS 46 0621
AM0923 -
AM0924 -
AM0925 -
AM0926 -
AM0927 -
AM0928 -
AM0929 -
AM0930 -
AM0931 -
AM0932 -
AM0933 -
AM10 -
AM11 -