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


S U M M A R Y


DIARY: March 31, 1999 07:47 AM Wednesday; Rod Welch

Sent letter to Dave about Common Administration of projects.

1...Summary/Objective
2...Common Administration Needs Industry Support for Intelligence
3...Intelligence can Help Executives Working Longer and Harder
4...Dutra Discovered Intelligence Improves Management
5...Industry Leaders Must Rally Support for Intelligence
6...Clear, Concise Communication Helps Owners and Contractors


..............
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CONTACTS 
0201 - Thelen, Reid & Priest LLP            415 392 6320
020101 - Mr. David Buoncristiani, Esq.

SUBJECTS
Thelin, Priest.
Navy Sewer Line, RR Slope Stability
Common Administration
Meetings Require Shared Meaning and Follow Up
Clear Concise Complete Notes Linked to

1107 -    ..
1108 - Summary/Objective
1109 -
110901 - Follow up ref SDS 33 0000, ref SDS 26 0000.
110902 -
110903 - Developed analysis to use Communication Metrics for a system of
110904 - "Common Administration" that adds intelligence to management so
110905 - mistakes and conflicts are reduced.  Supplements current practice to
110906 - work longer and harder because of information overload. ref SDS 0 0306
110907 -
110908 - Need input from Dutra based on Oakland Harbor project. ref SDS 0 0294
110909 -
110910 - Submitted ref DIT 1 linked to this record and to the work on 990328
110911 - developing "Common Administration." ref SDS 33 9641  Sent copies to
110912 - various people who have been considering Com Metrics, including Ross
110913 - at Caltrans, Morris and Dave at Intel, Bill DeHart, and so on.
110914 -
110915 -     [On 990406 Called Ross at Caltrans. ref SDS 34]
110916 -
110917 -     [On 990413 Dave did not get the original submission due to a virus
110918 -     scare, so submitted again. ref SDS 36]
110919 -
110920 -     [On 990419 discussed letter with Dave. ref SDS 37 2601]
110921 -
110922 -
110923 -  ..
1110 -
1111 -
1112 - Progress
1113 -
111301 -  ..
111302 - Common Administration Needs Industry Support for Intelligence
111303 -
111304 - On 990328 proposed Communication Metrics for Common Administration of
111305 - contracts to improve management and dispute resolution. ref SDS 33
111306 - 9641  This initiative requires support from contractors, owners and
111307 - advocates. Dave might be willing to consider this method based on our
111308 - discussion on 911212. ref SDS 3 9605  It was orignally formulated on
111309 - 971021. ref SDS 16 1212
111310 -
111311 - On 990302 Dave advised that the SDS record was not a recognized factor
111312 - in settling the Dutra claim against USACE. ref SDS 26 2128  So we
111313 - cannot get support for the value of "intelligence" on this part of the
111314 - project, to supplement USACE's report on 981027. ref SDS 22 7315
111315 - ..
111316 - We need endorsements because executives do not have time to make
111317 - reasoned judgements. ref SDS 14 3479  They ask for the "bottom line"
111318 - in 25 words or 30 seconds because they are hurrying to the next
111319 - meeting.  They follow what others are doing, what experts say, and
111320 - their experience.  However, experts don't talk about intelligence, and
111321 - executives do not have time to gain experience with new theory and
111322 - practice.  So, they fear and deny "intelligence" is needed because
111323 - there is not absolute proof of cost savings.  Andy Grove, Chairman of
111324 - Intel, points out that managers advocate "change" for others, but
111325 - loath change that impacts them. ref SDS 17 3740
111326 -
111327 - An example is the telecon on 990325 with Jason Yuen who heads up the
111328 - building program at SFO. ref SDS 30 5600  Things are hectic, so there
111329 - is not enough time to think about getting help. ref SDS 32 9482
111330 -    ..
111331 - An endorsement from a nominal adversary, like Dutra, might help,
111332 - and there seems to be grounds in a narrow sense (see ref SDS 0 0294)
111333 -
111334 - The objective of Communication Metrics is to get work done correctly
111335 - and on time, by adding intelligence to management so that costs are
111336 - reduced, and claims and lawsuits are avoided, discussed with USACE on
111337 - 960920. ref SDS 8 2565
111338 -
111339 - If claims do arise, then the record supports equitable settlement, as
111340 - reported by Tudor on 890324. ref SDS 1 6894
111341 -
111342 - This message, however, is offensive to executives, who correctly feel
111343 - they are intelligent, and are good communicators.  They believe that
111344 - if people tell the "truth," ref SDS 5 3920, and work hard, ref SDS 20
111345 - 3379, then everything will be okay without adding intelligence to
111346 - management.  We need a way to help without causing hurt feelings, fear
111347 - and denial. ref SDS 15 6930 and ref SDS 15 2849
111348 -
111349 - Common Administration may be one way to do this.
111350 -
111351 -
111352 -  ..
111353 - Intelligence can Help Executives Working Longer and Harder
111354 -
111355 - On 931130 Peter Drucker urges managers to work "smarter" rather than
111356 - harder. ref SDS 4 1199  Yet, managers believe their intelligence and
111357 - communication skills cannot be appreciably improved, (see POIMS for
111358 - "intelligence" ref OF 1 0582), and so rely on working longer and
111359 - harder to solve information overload.  See, for example, report on
111360 - 980808, ref SDS 19 3379, and discussion on 990325 with Jason Yuen who
111361 - heads up the SFIA building program. ref SDS 32 9482
111362 -
111363 - Evidence of people working longer and harder is reviewed on 990311.
111364 - ref SDS 29 6000
111365 -
111366 - The belief that management cannot be helped by tools is like telling
111367 - the guys to work longer and harder to dig the ditch, instead of using
111368 - a backhoe. ref SDS 6 4096  Of course, applying this analogy to
111369 - management meets resistance, despite Drucker's urging, because
111370 - "intelligence" cannot be observed in the way that people can see a
111371 - backhoe perform excavation, reviewed on 990303. ref SDS 27 2016
111372 -
111373 - The only way to penetrate this mindset is to force or trick people
111374 - against their will to be helped long enough for "intelligence" to
111375 - improve the work, and for them to recognize it is helping, and is not
111376 - a threat, under analysis on 980405. ref SDS 19 5065
111377 -
111378 -
111379 -  ..
111380 - Dutra Discovered Intelligence Improves Management
111381 - Industry Leaders Must Rally Support for Intelligence
111382 -
111383 - An example is Bob Johnston, President of Dutra, who initially viewed
111384 - Communication Metrics only as a threat. see 961119, ref SDS 10 4822
111385 -
111386 - On 970107, 3 months later, Bob noted that the SDS record was helpful
111387 - to him personally in remembering important information he needed to do
111388 - his work. ref SDS 11 4953  Similarly, on 970110 the USACE staff
111389 - recognized the SDS record contained the information needed to do the
111390 - work. ref SDS 12 2487
111391 -
111392 - What accounts for this change in perspective by a top executive?
111393 -
111394 - I believe it was being forced by contract to use "intelligence" for a
111395 - sufficient time that the benefits became self-evident.  If he had not
111396 - been forced, he would not have discovered the secret of intelligence.
111397 -
111398 - One example was work on the Navy Sewer line.
111399 -
111400 - Dutra needed a permit to construct a complex system beneath the UPRR
111401 - railroad switching area.  The railroad returned Dutra's check for the
111402 - permit, rejecting months of investigation and design effort, largely
111403 - managed by Bob. ref SDS 9 5583
111404 -
111405 - USACE reported on 970328 that Communication Metrics helped solve this
111406 - problem. ref DRP 4 8455
111407 -
111408 -     [On 990422 Leonard SooHoo, RE for USACE said this effort was
111409 -     successful. ref SDS 38 8582]
111410 -
111411 - But, senior USACE people in HQ, who had not worked with this method,
111412 - disputed that it helped.  On 971017 a Deputy Chief of Engineering and
111413 - Construction in HQUSACE said in effect, that if he had been managing
111414 - the Oakland job, then Communication Metrics would not have been
111415 - needed, because he would not have gotten mixed up by the complexity of
111416 - information, and caused misunderstandings that are identified by
111417 - Communication Metrics and fixed before mistakes occur. ref SDS 15 2849
111418 -
111419 - On 990224 the Deputy District Engineer made a similar point........
111420 - ref SDS 25 4018
111421 -
111422 - Who is right?  Bob, who opposed SDS and then was forced to work with
111423 - it for months, or people who were not forced to work with it and so
111424 - speculate, like Bob did in the beginning, that adding "intelligence"
111425 - to management is not helpful?
111426 -
111427 - What people cannot understand, until they are forced, as Bob was, is
111428 - that using "intelligence" is different from reading and talking about
111429 - it, because understanding drawn from reading and talking is different
111430 - from having actual experience with a new methodology, as reviewed on
111431 - 900303. ref SDS 2 7739
111432 -
111433 - On 990105 Jim Lovo, HQUSACE, questioned that Communication Metrics on
111434 - the Internet can support a "paperless office" work environment, based
111435 - on experience that USACE "paperless contracting" did not seem to
111436 - accomplish the goal. ref SDS 24 1235  He then recalled that his direct
111437 - experience with Communication Metrics did not require him to use any
111438 - paper. ref SDS 24 5880  Subsequently, on 990304 Jim recommended wider
111439 - use of Communciation Metrics to provide daily business intelligence.
111440 - ref SDS 28 1070
111441 - ..
111442 - It takes time for new and novel capabilities to sink into the
111443 - mindset of a culture.  Andy Grove points out that "management" culture
111444 - is particularly resistant to change. ref SDS 18 1660  So we have to
111445 - work hard for a long time, and maybe get a lucky break in order to
111446 - help managers do a better job.  This makes saving money by improving
111447 - management a "miracle" as reported on 981027. ref SDS 22 7315
111448 -
111449 -      [On 990404 Jeff Ghilardi reported he solved a problem at Enron
111450 -      using the record from 1993. ref SDS 35 3072]
111451 -
111452 -      [On 990426 manager at JPS admired Communication Metrics solved a
111453 -      business problem. ref SDS 39 9400]
111454 -
111455 - Managers and executives, however, generally cannot be forced, like
111456 - small children sent to school, to learn a new way for the alphabet to
111457 - create a more powerful form of knowledge space.  We cannot afford to
111458 - provide women and liquor or funny cartoons to trick people into
111459 - overcoming ignorance, fear and denial long enough to learn that
111460 - "intelligence" can help them.  The record on 990323 shows that helping
111461 - managers is very hard, ref SDS 31 4689, indeed a miracle, as shown on
111462 - 981027. ref SDS 22 7315  We have to find ways to help people long
111463 - enough for a "light" to go off in their head, a realization, i.e.,
111464 - enlightenment.  When that occurs, as may have occurred briefly with
111465 - Bob, we have to try to capture the evidence in order to encourage
111466 - others to accept help; otherwise, no one else can benefit, because
111467 - people are blinded by one of the human species most powerful assetts:
111468 - common sense. see NWO paper. ref OF 2 4235
111469 -
111470 -
111471 -  ..
111472 - Clear, Concise Communication Helps Owners and Contractors
111473 -
111474 - Follow up ref SDS 21 8708, ref SDS 23 5583.
111475 -
111476 - Dave may be willing to look at Common Administration, ref SDS 0 5208,
111477 - based on ideas for effective communication.
111478 -
111479 - Communication Metrics enables...
111480 -
111481 -                 Clear, concise, complete communications
111482 -
111483 -    ...developed for the Asilomar Conference on 960620. ref SDS 7 1643
111484 -    and in POIMS. ref OF 1 1218
111485 -
111486 - On 981107 I asked Dave to comment on how well Communication Metrics
111487 - helps management. ref SDS 23 5583  Now, review of projects over the
111488 - past 10 years, ref SDS 31 9769, indicates this capability might be
111489 - applied as a common resource for contracting parties, if we can get
111490 - people to recognize it, as Bob did on 970107. ref SDS 11 4953
111491 -
111492 -      [On 990419 Dave advises links can be overwhelming, developed
111493 -      Judicious Review procedures. ref SDS 37 2601]
111494 -
111495 - Effective "communication" is not an easy job, but SDS helps by
111496 - providing alignment and summary linked to detail, so that clear and
111497 - concise explanations get focused attention, and complete details are
111498 - available when, as and if needed. This is a useful definition of
111499 - "intelligence." ref OF 1 0582
111500 -
111501 - The Internet makes it possible to deliver...
111502 -
111503 -                   intelligence anytime, anywhere
111504 -
111505 -      ...as a common resource that is much more powerful than current
111506 -      industry efforts to deliver "information anytime, anywhere."
111507 -
111508 - Bob Johnston may have begun to "get it" when we talked on 970107 about
111509 - the Oakland Harbor project. ref SDS 11 4953
111510 -
111511 - As seen from the chronology on 971017, ref SDS 15 6430, Bob may recall
111512 - resisting for weeks and weeks and weeks using the record, then finally
111513 - seemed to realize that following the record brings success, because we
111514 - create the record in order to figure out what needs to be done,
111515 - similar to a legal brief, and he found that this works better than
111516 - relying solely on dialog and mentalese.
111517 -
111518 - The record on the Navy Sewer line shows that a lot of daily alignment
111519 - is needed to maintain course.  Generally, when a project is over,
111520 - people do not recall these efforts.  They are busy with new tasks, and
111521 - the mind filters everything but summary impressions.  However, this
111522 - record is useful to illustrate the complexity of communications, the
111523 - risk it imposes on everyone, and the benefit of a system of "metrics"
111524 - that maintains alignment rather than rely on conversation, which
111525 - devolves into management by "guess and gossip" reviewed on 970707...
111526 - ref SDS 13 0108
111527 -
111528 - Possibly Bob Johnston, and/or Dutra would be willing to credit SDS
111529 - with supporting their efforts as seen from the chronology on 971017.
111530 - ref SDS 15 6430
111531 -
111532 - It would be a big help to get an endorsement from an executive in the
111533 - private sector, as well as from a lawyer like Dave who knows the
111534 - value of the record.
111535 -
111536 -    [On 990419 Dave will contact Dutra about this. ref SDS 37 9532]
111537 -
111538 -
111539 -
Distribution. . . . See "CONTACTS"