CONTACTS 
0201 - Dan Palanza and NSF                  508 548 7421
020101 - Mr. Dan Palanza

SUBJECTS
Risk Communication Main Factor of Management Success
Palanza, Dan Com Metrics Helps Engineering Management
Context Linking Analysis Intelligence Adds Value
Accounting Best Management System, Drucker
Pattern Language, 990802
Enterprise Management and Workflow
Accounting, Bookkeeping Double Entry Feedback Loops
Bookkeeping Network Accounting for Distributed Ownership and Payment
Palanza, Dan Pattern Language System Network Bookkeeping for Accounti
Binary Pattern Language System Network Bookkeeping for Accounting Sup

3412 -    ..
3413 - Summary/Objective
3414 -
341401 - Follow up ref SDS 47 0000, ref SDS 45 0000.
341402 -
341403 - Dan presents an overview of network bookkeeping that applies universal
341404 - pattern language. ref SDS 0 3294  SDS may support this method,
341405 - ref SDS 0 4148  Applying accounting principles to communication is
341406 - complex, requiring attention and skill, ref SDS 0 6336, which leads to
341407 - the science of Communication Metrics, explained in POIMS.
341408 -
341409 - Network bookkeeping permits fair credit in complex environments, based
341410 - on contributed value. ref SDS 0 0306  Communication Metrics improves
341411 - performance of work that increases the ability to add value and earn
341412 - credit. ref SDS 0 4828  Synergy of fair allocation and increased
341413 - capacity to earn "credit," fits the binary unit model that enhances
341414 - quality and acceptance of accountability. ref SDS 0 7944  Education
341415 - and experience help people overcome biological fear of accountability.
341416 - ref SDS 0 1144
341417 -
341418 -    [On 990806 submitted response. ref SDS 48 0001]
341419 -
341420 -
341421 -
341422 -  ..
3415 -
3416 -
3417 - Progress
3418 -
341801 - SDS Architecture Integrates Hierarchical and Relational Data Base
341802 - Universal Patterns from Network Bookkeeping Can Support Com Metrics
341803 - Context Controlled by Subject, Function, Time, Organizations, People
341804 -
341805 - Follow up ref SDS 47 7328, ref SDS 45 2226.
341806 -
341807 - Received ref DRT 1 from Dan responding to my letter, ref DIP 5
341808 - submitted on 990803, ref SDS 47 0001, discussing Dan's NSF project
341809 - applying pattern language to develop an advanced bookkeeping system.
341810 -
341811 -      [On 001008 pattern language submitted for consideration to
341812 -      advance work on Knowledge Management project at SRI being led by
341813 -      Doug Engelbart. ref SDS 49 3294
341814 -    ..
341815 - Dan comments...
341816 -
341817 -     ...the bookkeeping pattern would work in [Communication Metrics,
341818 -     per Dan's comments on 990710, ref SDS 38 0846]
341819 -
341820 -     Bookkeeping is about artifacts and their ownership.
341821 -
341822 -     Artifact and ownership have a binary relation.
341823 -
341824 -     A binary relation means that when the artifact changes ownership
341825 -     changes.  In an unbiased accounting if I improve your artifact,
341826 -     the system will credit me with a share of that artifact's
341827 -     ownership.  If you pay me for my contribution to your artifact,
341828 -     the system gives the credit for ownership back to you.
341829 -     ref DRT 1 2646
341830 -     ..
341831 -     Binary Unit... In the company, or contract, the artifact is
341832 -     *subject matter* and ownership is an *object image*. Subject
341833 -     matter is tracked in a system of *debits* while the object image
341834 -     is tracked in a simultaneous system of *credit*. ref DRT 1 5622
341835 -     ..
341836 -     Subject matter is *resources* coming into the artifact and
341837 -     *production* going out of the artifact.  So, again, we have The
341838 -     Binary Unit of Artifact made up of Resource/Production.
341839 -     ref DRT 1 0975
341840 -     ..
341841 -     Object image is *history* composed of ownership assignments
341842 -     and *policy* by which those assignments are made.  So again we
341843 -     have The Binary Unit of Ownership made up of History/Policy.
341844 -     Policy rules get a lot more attention today because the computer
341845 -     allows for policy to be much more specific than it ever was in the
341846 -     past. ref DRT 1 1976
341847 -     ..
341848 -     We get a diagram that looks like this:, ref DRT 1 0154
341849 -
341850 -                                          Policy
341851 -                                       /
341852 -                   Object Ownership..
341853 -                 /                     \
341854 -                                          History
341855 -               /
341856 -     Commerce
341857 -               \
341858 -                                          Production
341859 -                 \                     /
341860 -                   Subject Artifact..
341861 -                                       \
341862 -                                          Resource
341863 - ..
341864 - I draw from Dan's diagram and the prior record that...
341865 -
341866 - Network bookkeeping tracks credits for contribution of value, expended
341867 - as resources, and, also, allocation of rewards (debits), with greater
341868 - precision, i.e., detail, than can be accomplished by conventional
341869 - bookkeeping.
341870 -
341871 -
341872 -  ..
341873 -
341874 - Enterprise Management Supported by "Network" Bookkeeping
341875 -
341876 - Application on a "network" supports goals of enterprise management,
341877 - and beyond, in that accounting tracks contributions of value to
341878 - products and services by people outside the enterprise, as set out in
341879 - the record on 990716 reviewing Dan's Phase I Final report to NSF....
341880 - ref SDS 39 3416
341881 -
341882 - First impression is that network bookkeeping presents a 3 level
341883 - structure, which can be tracked in SDS.
341884 -
341885 - I need experience working with Dan's ideas, perhaps a scenario or two
341886 - that illustrates the process, in order to fully "get it."
341887 -     ..
341888 -     One example of how SDS approaches contextual management by
341889 -     accounts is the record of car service 990507, ref SDS 33 0001, and
341890 -     earlier on 890523. ref SDS 1 SQ5L
341891 -
341892 -          Suppose serveral different vendors work on the car.  How is
341893 -          the more complex business transaction managed by NB?
341894 -
341895 -     Another example is a study to revise the organization under a
341896 -     reengineering goal on 970522. ref SDS 23 3772
341897 -
341898 -     A 3rd example is software design on 990530. ref SDS 36
341899 - ..
341900 - Network Bookkeeping (NB) seems to need hierarchical order and
341901 - associative relation of elements designed into the SDS program:
341902 - people, organizations, subjects, functions, see 940901, ref SDS 6
341903 - 2929, including a schematic, ref OF 3 3385, cited on 990802.
341904 - ref SDS 45 3696
341905 -
341906 - SDS supports cost control with significant granularity, as reported on
341907 - 990803, ref SDS 47 0600, and so may help accomplish Dan's objective
341908 - to associate financial control with contextual narrative.
341909 -
341910 - On 910810 SDS was described as achieving a "breakthrough" software
341911 - design by integrating hierarchical and relational data base
341912 - capability. ref SDS 3 7793
341913 -
341914 - Applying this capability effectively to Network Bookkeeping might
341915 - therefore be possible.
341916 -
341917 -    ..
341918 - Dan continues...
341919 -
341920 -     In an information system, artifact is the message and ownership is
341921 -     the speaker.  In the bookkeeping pattern this would not be enough
341922 -     to create a positive accounting.
341923 -
341924 -     One must also track the context in which the words are spoken.  In
341925 -     bookkeeping this would be in analogy to which contract -- read
341926 -     artifact -- work has been applied. The more detailed and fair the
341927 -     accounting the better it will be accepted and used. ref DRT 1 3456
341928 -
341929 -  ..
341930 -
341931 -     ...applied to communication. Context within Context
341932 -
341933 -     The "subject artifact" is what was said in the message.
341934 -     "Resources" are the words, "Production" is the context; the
341935 -     contract of which the words are a part.  The product may be a
341936 -     combination of one or more resource messages. ref DRT 1 6933
341937 -
341938 -     The "object ownership" is who said what.  "History" is an image
341939 -     composition -- database with linked interface -- able to report a
341940 -     system of context within context (this is just what a balance
341941 -     sheet in a network architecture must do in reporting the balances
341942 -     of just an artifact, just a contract, or just a particular
341943 -     company).  "Policy" is the rules by which ownership data can be
341944 -     accessed. ref DRT 1 0744
341945 - ..
341946 - SDS associates narrative, i.e., context, with accounts of any
341947 - type and purpose, including financial, WBS, schedule, knowledge, etc.,
341948 - and so may support network bookkeeping objectives and requirements.
341949 -
341950 - Communication Metrics is a management science for applying this
341951 - capability, reviewed on 960322. ref SDS 14 0736
341952 -
341953 - Nested context ("context within context") presents complexity which
341954 - mirrors the real world environment that is largely filtered out of the
341955 - conscious span of attention.  When people encounter this complexity
341956 - they initially withdraw, feeling overwhelmed to be confronted with
341957 - details that are normally processed by the subconscious, by what is
341958 - commonly called a "gut feeling."  Judicious Review procedures seek to
341959 - assuage this issue, discussed below. ref SDS 0 7833
341960 - ..
341961 - Policy and rules are complex, comprising an array of culture,
341962 - common practice, tradition, industry, professional and craft
341963 - standards, regulation, codes, laws, precedents, and so on.  They all
341964 - have separate accounts with hierarchies that overlap.
341965 -
341966 - Experience shows that implementing an integrated system of accounting
341967 - is a lot of work.  Account structures for narrative "context," also,
341968 - called "subjects" and "knowledge," unlike financial accounting, grow
341969 - almost daily.  Managing this environment requires special skills and
341970 - time. This produces "intelligence" that improves the "credits" Dan's
341971 - system tracks, as explained on 960322. ref SDS 14 7749
341972 -
341973 - Accounts below level 3 need to be established and boundaries defined.
341974 - Has Dan done any of this?
341975 -
341976 -
341977 -
341978 -
341979 -
3420 -

SUBJECTS
Accountability Avoided
TQM Made Practical with SDS Metrics
Accountable Results Not Following Rules Reengineer Needs Authority, S
Quality Control, similar to TQM
Quality Management Competitive Advantage

4408 -
440801 -  ..
440802 - Communication Predicate to Action, Universal Business Metric
440803 - People Welcome Proper Accountability - Synergy of Binary Unit
440804 - Quality Supported by Fair Allocation of Credits; and by Intelligence
440805 -
440806 - Follow up ref SDS 47 0306.
440807 -
440808 - Dan's letter, ref DRT 1 8330, cites the reference in my letter sent
440809 - yesterday, ref SDS 47 4599, to the record on 980405 that reviews fear
440810 - of accountability, ref SDS 26 5065, and how adding "intelligence" to
440811 - management enables people to get credit for doing a good job, so they
440812 - are less worried about reprisals for mistakes. ref SDS 26 2839
440813 -    ..
440814 - Dan comments...
440815 -
440816 -       Quality grows [out] of work people take personally.  People take
440817 -       their work personally when a payment system credits their
440818 -       account for their action.  The credit can be monetary, or
440819 -       applause, but that credit has to appear. ref DRT 1 3276
440820 -
440821 -       Accountability is embraced when the system of assignment is
440822 -       positive and fair.  People reject accountability when biased,
440823 -       inferior reporting is held against the accountable person.  Few
440824 -       things in life are more disheartening than actions taken out of
440825 -       context and then held against the actor. ref DRT 1 5044
440826 -
440827 - I concur with these views.  See POIMS. ref OF 2 1109  On 980405 Com
440828 - Metrics enables people to get credit for doing a good shown by
440829 - alignment between work performed and objectives, requirements and
440830 - commitments. ref SDS 26 1491
440831 - ..
440832 - On 951103 Chips and other firms were hiring psychologists to
440833 - keep people from "killing" each other because feelings get hurt about
440834 - fairness, which is largely caused by miscommunication. ref SDS 11 4355
440835 - and ref SDS 11 8853
440836 -
440837 - New world order of information overload causes mistakes through
440838 - miscommunication, leading to frustration, anger, hurt feelings, tragic
440839 - loss, conflict, crisis and calamity. ref SDS 11 0924
440840 - ..
440841 - Dan's network bookkeeping supports detailed accounting that
440842 - enables "fairness" in allocating accountability for mistakes.
440843 -
440844 - Communication Metrics helps avoid mistakes so that people get credit
440845 - for success, rather than worry about allocating blame fairly.
440846 - ref SDS 11 5503
440847 -
440848 -
440849 -  ..
440850 - Quality Aligns Work with Requirements, Objectives, Commitments
440851 -
440852 - As information increases, this becomes harder to accomplish in a
440853 - manual world.  Lack of alignment engenders fear of accountability.
440854 -
440855 - Alignment is a summary way of describing traceability to original
440856 - sources, also, called an "audit trail" showing compliance.  Quality is
440857 - further aided by the ability to organize, summarize, analyse and
440858 - obtain feedback as a double check to ensure accuracy of
440859 - understandings.
440860 - ..
440861 - These prescriptions for "quality"...
440862 -
440863 -
440864 -                   •  organization
440865 -                   •  alignment
440866 -                   •  analysis
440867 -                   •  summary connected to detail
440868 -                   •  feedback
440869 -
440870 - ..
440871 - Quality, then, is summarized by the idea of...
440872 -
440873 -
440874 -                 adding "intelligence" to management
440875 -
440876 -
440877 - ...explained in POIMS, ref OF 2 0582
440878 - ..
440879 - "Intelligence" is is achieved by automated integration of the
440880 - management cycle...
440881 -
440882 -
440883 -                    Plan      Perform     Report
440884 -
440885 -
440886 - ..., also, explained in POIMS. ref OF 2 6649  This streamlines
440887 - Deming's plan, do, study, act process for achieving quality under TQM
440888 - criteria. ref OF 2 1109
440889 -
440890 - On 971007 US Army Corps of Engineers reported that Communication
440891 - Metrics avoids mistakes that cause rework and delay.  This enables
440892 - people and organizations to earn more credit. ref DRP 2 4172
440893 - ..
440894 - Accountability has a biological dimension of tolerance which no
440895 - single solution can resolve.  It is evident from differences in
440896 - personality that enable some people to handle stress well, and hate
440897 - boredom. Others hate stress, and like a less hectic pace, one that
440898 - seems boring to some.
440899 -
440900 - As well, scrutiny is psychologically burdensome, and tolerance ranges
440901 - from accepting accountability as a challenge, some are indifferent,
440902 - others retreat.
440903 -
440904 -
440905 -  ..
440906 - Bookkeeping and Intelligence: Effective Biary Unit for Credit
440907 -
440908 - Dan's network bookkeeping method to ensure fairness in accounting for
440909 - earned credits, ref SDS 0 4539, is clearly welcomed by those who are
440910 - competent in earning credits. Others may feel stress by a "fair"
440911 - accounting, if it falls short of needs and expectations.
440912 -
440913 - Communication Metrics enables people to earn more credit and avoid
440914 - liability for mistakes, by doing "quality" work using "intelligence,"
440915 - as set out on 980405. ref SDS 26 3307
440916 -
440917 - This suggests that network bookkeeping and Communication Metrics may
440918 - comprise an effective Binary Unit, cited in Dan's letter today.....
440919 - ref DRT 1 5622, under analysis on 990716. ref SDS 39 4940
440920 - ..
440921 - Methods and tools can help people, but they do not change human
440922 - biology which is wired to be alert to bad news, what Jeremy Campbell
440923 - calls "Baker Street" reasoning (reviewed on 900303, ref SDS 2 5443).
440924 - Fear of accountability must therefore be recognized in marketing
440925 - efforts by education, credibility and enabling people to experience
440926 - the application, as developed on 990726. ref SDS 42 9766
440927 -
440928 -
440929 -
440930 -
440931 -
440932 -
4410 -

SUBJECTS
Judicious Review Guide to Avoid being Overwhelmed
Clear Concise Complete Notes, Needs Special Skills and Tools
Clear, Concise Complete Improves Email
Sel -evident Benefits

4807 -
480701 -  ..
480702 - Judicious Review Needs Comment from Dan
480703 - Clear, Concise, Complete Communication Improves Email
480704 -
480705 - Follow up ref SDS 47 9773.
480706 -
480707 - On 990803 I sent conventional email to Dan, and ask in the last para
480708 - for comment to compare correspondence on the web that seeks to achieve
480709 - communication that is...
480710 -
480711 -                    Clear, Concise, Complete
480712 -
480713 - ..., with the utility of conventional email. ref DIP 5 7994
480714 -
480715 - Work on 990419 was cited on developing judicious review procedures to
480716 - support this objective, linked to comments by Dave Buonchristiani, at
480717 - Thelin, Priest and Reid, which identify the problem we want to solve.
480718 - ref SDS 29 2601
480719 -    ..
480720 - Dan comments...
480721 -
480722 -       Dave's complaint is valid.
480723 -
480724 -       But by using the binary unit pattern above, Dave could access
480725 -       only the messages in that part of the composition of links
480726 -       associated with a particular contract context.  And he could
480727 -       only do so if policy so allowed. ref DRT 1 7271
480728 -
480729 - SDS supports this goal.  The links Dave discusses were to relevant
480730 - context, and were permitted by policy.
480731 -
480732 - The issue Judicious Review procedures address is that language has
480733 - multiple traces to original sources under the accounting model of an
480734 - "audit trail" so people can understand relevant background and perform
480735 - the work correctly, i.e., aligned with requirements, objectives and
480736 - policy.  This helps earn the credits that are tracked by networking
480737 - bookkeeping, discussed above. ref SDS 0 4539
480738 - ..
480739 - People working on specific problems report SDS helps do a better
480740 - job, as reported on 970107. ref SDS 20 4953
480741 -
480742 - Can Dan comment on Judicious Review shown on 990419? ref SDS 29 2320
480743 -
480744 -
480745 - Dan continues...
480746 -
480747 -       When this level of accountability and control is in place, your
480748 -       communication product would be extremely valuable in a number of
480749 -       context I can think of, most particularly software development.
480750 -
480751 -       But notice too how naturally the pattern applies to the law,
480752 -       where contracts are cases. ref DRT 1 6933
480753 - ..
480754 - SDS supports accountability and control beyond any other known
480755 - system, as reported on 990803. ref SDS 47 0600
480756 - ..
480757 - SDS support for development of POIMS technology and
480758 - Communication Metrics may illustrate the application to the software
480759 - industry Dan has in mind. See for example the record on...
480760 -
480761 -          •  990505. ref SDS 32
480762 -
480763 -          •  990530. ref SDS 36 0001
480764 -
480765 - On 990524 software support was proposed. ref SDS 34 0876
480766 -
480767 - On 990525 resistance to support for software industry was explained.
480768 - ref SDS 35 0966
480769 - ..
480770 - The NSF proposal sets technical objectives to refine
480771 - implementation on the Internet. ref OF 6 6678
480772 -
480773 - Dan's experience with network bookkeeping can help advance the effort.
480774 -
480775 - People who appreciate the power of accounting practices have a lot to
480776 - contribute toward developing organic structures for managing context,
480777 - as explained on 890523, ref SDS 1 SQ5L, which significantly improves
480778 - ability to deliver intelligence anytime, anywhere on the Internet.
480779 -
480780 -     [On 010907 experience over the ensuing 2 year period, showed
480781 -     progress on using the Internet to deliver useful content.
480782 -     ref SDS 50 KX3L
480783 -
480784 -
480785 -
480786 -
480787 -
480788 -
480789 -
480790 -
480791 -
480792 -
480793 -
480794 -
480795 -
480796 -
480797 -