CONTACTS 
0201 - Kwan Henmi Arch & Planng           415 777 4770 fax 5102
020101 - Mr. Denis Henmi; Executive Vice President

SUBJECTS
ALRS Project, KH, Welch Scope with KH
Kwan Henmi, General

0704 -    ..
0705 - Summary/Objective
0706 -
070601 - Followed up work at ref SDS 25 line 58, ref SDS 23 line 90.
070602 -
070603 - Millie and I visited Denis.  He told us about recent travels to Egypt
070604 - and to Hong Kong on business and pleasure.
070605 -
070606 -
070607 -
070608 -
070609 -
0707 -
0708 -
0709 - Progress
0710 -   ..
071001 - We had lunch and talked about his recent trip to Egypt. One of
071002 - Denis' employees has family in Egypt who want to build a hotel on the
071003 - Medeterranian Sea.  Denis was shown the pyramids and other sights,
071004 - while visiting the project location.  He stopped in Amsterdam, Holland
071005 - on the flight back and had a 6 hour layover.  A former KH employee is
071006 - now living in Amsterdam, and so showed Denis the city for 4 hours
071007 - during the layover.
071008 -
071009 -      [On 960911 visited Denis on the results of his trips. ref SDS 30
071010 -      0000]
071011 -
071012 -
071013 -
071014 - Communication Metrics Improves Earnings and Helps Defend Litigation
071015 -
071016 - He has read my letter ref DIP 4 line 33 issued on 960425. ref SDS 27
071017 - 0000
071018 -
071019 - Denis seemed to associate Communication Metrics with avoiding
071020 - litigation.
071021 -
071022 - He said KH has only been sued twice over the years the firm has
071023 - operated.  He feels this experience shows that KH documentation
071024 - procedures are adequate and therefore KH does not need Communication
071025 - Metrics.
071026 -
071027 - We did not review today the difference between Communication Metrics
071028 - and "documentation."  Denis seemed to understand this point when we
071029 - spoke a few weeks ago at ref SDS 26 line 160.  I noted, however, that
071030 - most mistakes an organization makes that cost it lost earnings and
071031 - opportunities, do not result in law suits. Generally mistakes are
071032 - bought off through reduced earnings, changing the organization,
071033 - reengineering, downsizing, or failure of the business.
071034 - ..
071035 - I offered to do some pro bono meetings to introduce
071036 - Communication Metrics at KH, so they can begin to get used to the
071037 - terms, ideas and methods.
071038 -
071039 -     [On 980507 follow up. ref SDS 32 0000]
071040 -
071041 -  ..
071042 - Success Creates Impression that Improving Management is Not Needed
071043 -
071044 - Denis seems to agree with the analysis that KH is not ready for
071045 - Communication Metrics, ref SDS 26 8556.  The firm's recent success on
071046 - the SFO projects, and attention on obtaining new work in Singapore,
071047 - Egypt, present an aura of adequate performance.  Vulnerabilities from
071048 - being stretched too thin are not evident to those doing the work.
071049 -
071050 - Sounds like Robert NacNamera's report on the Kennedy Administration in
071051 - his book "In Retrospect." ref SDS 4 5872   The only thing that saves
071052 - people from repeating mistakes of the past is religion, ref SDS 1
071053 - 8493, but religion is not in favor.
071054 -
071055 -      [On 970829 book on management accountability describes limited
071056 -      span of attention as major cause of difficulties.
071057 -
071058 -
071059 -
071060 -  ..
071061 - Meeting to be Schedeled to Investigate Communication Metrics
071062 -
071063 - Denis advised that before leaving for Egypt, he spoke to the SFIA
071064 - program manager about a meeting on Communication Metrics.  They agreed
071065 - to a meeting when Denis returned.
071066 -
071067 - Denis will call and schedule this per our understandings at ref SDS 26
071068 - line 90.
071069 -
071070 -     [On 960514 submitted letter confirming these understandings, per
071071 -     ref SDS 29 0000]
071072 -
071073 -     [On 960911 Denis was developing a relationship with new SFIA
071074 -     management in advance of scheduling a meeting on Communication
071075 -     Metrics. ref SDS 30 9446]
071076 -
071077 -     [On 970904 asked about setting up meeting. ref SDS 31 5075]
071078 -
071079 -
071080 -
071081 -
0711 -