CONTACTS 
0201 - Corps of Engineers, SFD            415 977 8501 fax 8483
020101 - Mr. Thompson F. Keesling, Architect; Assistant Chief =415 977 8473
020102 - Construction Operations Division =415 977 8480

SUBJECTS
COE Evaluation Communication Metrics
Intranets, Web, CESP Review
Intelligence Business, Similar to Military
Metrics for Business Processes
Contract Communication Metrics
Business Intelligence
Litigation Support Found Effective
Cost Avoidance on Claims
Internet Supports Virtual Office
Computers Have Not Improved Productivity
90% Managers Time Communication
Sel -evident Cost Savings Intelligence on
USACE Cost Savings Using SDS
Money Saved Paperless Office Virtual Office

2716 -    ..
2717 - Summary/Objective
2718 -
271801 - Follow up ref SDS 31 0000, ref SDS 29 0000.
271802 -
271803 - District Counsel requested a meeting to discuss cost savings from
271804 - Communication Metrics.  Newly published articles indicate that CESPN's
271805 - report on cost savings reflects industry standards.  A second article
271806 - is a case study on using a Web site to implement a system of support,
271807 - like the Corps' Resident Management System (RMS), ref SDS 0 0633  This
271808 - authority provides confidence that investing in Communication Metrics
271809 - will result in significant cost savings.
271810 -
271811 - Recent experience with Internet Service Providers (ISP) shows a need
271812 - for a Communication Manager to ensure that cost savings from better
271813 - management using the Internet are realized.
271814 -
271815 -    [On 980701 submitted this record to Max and Tom. ref SDS 32 0000]
271816 -
271817 -
271818 -
271819 -  ..
2719 -
2720 -
2721 - Discussion
2722 -
272201 -  ..
272202 - Support for Cost Savings Report on Communication Metrics
272203 -
272204 - Follow up ref SDS 27 2405.
272205 -
272206 - Tom received an email or call from Merry Goodenough, who requested a
272207 - meeting on cost savings from Communication Metrics, which Max cited on
272208 - 980520. ref SDS 27 2405
272209 -
272210 - We discussed the transfer of the Communication Metrics Web site to a
272211 - more reliable server, and that as a result of difficulties encountered
272212 - by the Internet Service Provider (ISP), the site has to be established
272213 - again.  Tom was planning to show Merry the additional capability of
272214 - Communication Metrics to deliver "intelligence," during the meeting
272215 - she requested.
272216 - ..
272217 - I advised the Web site will be back on-line tomorrow.
272218 -
272219 - Tom will schedule the meeting with Merry for that period.
272220 -
272221 -     [On 980803 submitted email to Merry requesting evaluation of
272222 -     CESPN's cost savings report dated 971007. ref SDS 33 2798]
272223 -
272224 -
272225 -  ..
272226 - Cost Benefit Calculations for Management are Complex
272227 -
272228 - Managers ask how can we save money by investing in Communication
272229 - Metrics?  To some, it seems to defy common sense that paying out money
272230 - to improve management, actually saves money.
272231 -
272232 - At the request of Jim Jones, CEMP-E, CESPN submitted a calculation
272233 - showing Communication Metrics saved substantial sums above its cost,
272234 - ref DRP 4 0129, see 971007. ref SDS 16 0000
272235 - ..
272236 - The June 1998 issue of "Project Management Journal," has an
272237 - article on page 8, that supports CESPN's report.
272238 -
272239 - The article...
272240 -
272241 -
272242 -           Cost Benefit ...for Knowledge-Based Estimation Tools
272243 -
272244 -
272245 -    ...says "Supporting technology investments with a rational return
272246 -    on investment (ROI) calculation is both unusual and difficult to
272247 -    accomplish..."
272248 -
272249 -    ...decisions are based on gut feelings... ref OF 9 2157
272250 -       ..
272251 -       Jim Jones, CEMP-E, noted on 970828 the difficulty of
272252 -       calculating cost savings for management improvement methods like
272253 -       accounting, CPM, partnering and Communication Metrics.  He
272254 -       confirmed this understanding in a letter to Tom on 970904,
272255 -       received into the record on 970926. ref SDS 14 2698  Calculating
272256 -       cost savings was discussed in detail on 970926, ref SDS 14 8562,
272257 -       and on 971017. ref SDS 18 4814
272258 -
272259 -       Jim indicated on 971017 that USACE did not calculate cost
272260 -       savings for Project Management, Partnering and RMS which were
272261 -       intended to improve management, as stated in the PMJ article.
272262 -       see ref SDS 18 3897
272263 -
272264 -       Management texts support trying methods to improve management
272265 -       without a cost savings calculation, as cited in the PMJ article
272266 -       and applied by USACE. see review on 970829. ref SDS 13 4470
272267 -
272268 -  ..
272269 -    The article cites three factors for calculating cost savings...
272270 -
272271 -        •  Reduced planning time.............. ref OF 9 88>
272272 -        •  Improved planning results.......... ref OF 9 71>
272273 -        •  Efficiency gains................... ref OF 9 74>
272274 -
272275 -
272276 -     ..
272277 -    Cost Savings from Better Management are "Irrefutable"
272278 -
272279 -    Cost Savings (ROI) permit reducing staff, or doing more work with
272280 -    existing staff to accommodate expanding missions. ref OF 9 5961
272281 -
272282 -        CESPN's cost report made a similar point. ref SDS 16 1301
272283 -
272284 -    The author says "Even though these benefits are not easily
272285 -    quantified their existence is irrefutable and can only serve to
272286 -    support the overall cost benefit analysis." ref OF 9 8845
272287 -
272288 -        Tom's letter to Jim Jones, CEMP-E, on 970904 made similar
272289 -        points. ref SDS 14 1781
272290 -
272291 -        [On 980803 Max Blodgett advised that benefit of Communication
272292 -        Metrics on the Internet is self-evident. ref SDS 33 5141]
272293 -
272294 -        [On 981104 letter from CESPN-CSB says Communication Metrics on
272295 -        the Internet is pretty neat, and so emobies the idea of
272296 -        self-evident and irrefutable benefits. ref SDS 34 4320]
272297 -
272298 -        [On 981119 Jim Lovo at HQ USACE said savings from Communication
272299 -        Metrics on Internet are self-evident. ref SDS 35 2272]
272300 -
272301 -        [On 981121 asked Morris about this idea, ref SDS 36 0000]
272302 -    ..
272303 -    The article concludes "Efficiency gains achieved through
272304 -    improved planning practices seem to provide the most fertile ground
272305 -    for developing ROI calculations.  Most organizations can easily
272306 -    imagine improving productivity within the 2% to 7% range.  At this
272307 -    level, defensible cost benefit analysis ... are quite
272308 -    compelling..." see, ref OF 9 6335,
272309 -
272310 -        CESPN's report on 971007 estimated ROI for Communication
272311 -        Metrics of 6% for overhead operations. ref SDS 16 5775  This
272312 -        was adjusted down from the 10% ROI calculated on the Oakland
272313 -        Harbor project. ref DRP 4 8501
272314 -
272315 -        Communication Metrics uses SDS technology to improve "planning"
272316 -        and overall management "efficiency" by adding metrics to daily
272317 -        communication.  This has a much greater impact on reducing
272318 -        costs than does mere planning, alone, as covered in PMJ
272319 -        article, because "communication" touches a wider spectrum of
272320 -        daily activity. ref SDS 13 6666
272321 -        ..
272322 -        Therefore, Communication Metrics should yield more
272323 -        savings.
272324 -
272325 -        CESPN District Counsel has indicated that Communication Metrics
272326 -        contributed to settlement of a lawsuit that is favorable to the
272327 -        government.  This reflects the value of good intelligence to
272328 -        manage day-to-day, and to avoid liability when a lawsuit is
272329 -        filed. ref SDS 27 2405  It supports the PMJ article that better
272330 -        management saves money, which is the goal of Communication
272331 -        Metrics, as discussed with Max and Tom in the meeting on
272332 -        960920. ref SDS 4 8854
272333 -
272334 -
272335 -  ..
272336 - Case Study using Internet for "Project Office" and Lessons Learned
272337 -
272338 - A second article in the same issue is a case study on Atlantic Bell
272339 - using an Internet Web site as a "data repository" for a Project
272340 - Office. ref OF 8 0000 and ref OF 8 8555   The explanation in the
272341 - article sounds similar to USACE's RMS program, reviewed on 971214.
272342 -
272343 - Max Wideman researched this type of system on 970820. ref SDS 9 0000
272344 -
272345 - The article does not mention "Virtual Office," but "data repository"
272346 - ref OF 8 5527, is a common way of discussing the goal of a Virtual
272347 - Office, aka Paperless Office. ref SDS 28 5260
272348 -
272349 -      HQUSACE has a Web site that seems intended to accomplish some of
272350 -      these objectives. ref SDS 17 8547  USACE's work on a...
272351 -
272352 -                          "Virtual District"
272353 -
272354 -      ...reflect a goal to applying technology to improve management.
272355 -      see record for 970502. ref SDS 7 1233, as discussed with HQUSACE
272356 -      in the meeting on 971202, ref SDS 20 0861, more recently reviewed
272357 -      with Tom on 980520. ref SDS 27 0000
272358 -      ..
272359 -      Atlantic Bell's explanation of "Process Overview" indicates
272360 -      their Web site provides standard templates and forms, ref OF 8
272361 -      1886, similar to USACE's Resident Management System (RMS).  There
272362 -      is no discussion in the article of problems CESPN encountered to
272363 -      implement RMS. see for example meeting on 970328. ref SDS 5 0000
272364 -
272365 -      The article does not discuss limitations on access to upload or
272366 -      obtain timely "intelligence," discussed below. ref SDS 0 2012
272367 -
272368 -      Web sites have difficulty being kept current. ref SDS 17 8492,
272369 -      also article concerning the "Virtual Office" reviewed on 980613.
272370 -      ref SDS 28 2394
272371 -
272372 -      On 971021 reviewed article on using Internet for daily
272373 -      management, ref SDS 19 0000, which led to Communication Metrics
272374 -      Web site that accomplishes that objective. ref SDS 19 3636
272375 -
272376 -
272377 -  ..
272378 - Center of Excellence
272379 -
272380 - Atlantic Bell calls their Project Office a "Projecet Management Center
272381 - of Excellence," similar to terminology other organizations have
272382 - adopted, as reported in PM Network reviewed on 970822. see the record
272383 - at ref SDS 10 0000 and ref SDS 10 2309,
272384 -
272385 -      The assumption that standardized methods and a dedicated "office"
272386 -      for project management will yield better results, did not work
272387 -      well at PG&E nor at Stanford University who abandoned their
272388 -      Project Office on 971003. ref SDS 15 0000
272389 -
272390 -      Since management is mostly "communication," that is the "process"
272391 -      which must be improved to get better results. ref SDS 13 6666
272392 - ..
272393 - Atlantic Bell needs good management to reduce operating costs in
272394 - order for major business expansions, e.g., mergers, to be successfull,
272395 - that were undertaken based on estimated cost savings from economies of
272396 - scale. ref OF 8 2463  This reflects hopes of economists for technology
272397 - to improve management productivity, as reported by Reuter's News
272398 - Service on 980511, ref SDS 25 6215
272399 -
272400 -      This article does not indicate how Atlantic Bell solved any of
272401 -      the problems and limitations on using a Web site, that are cited
272402 -      in the article reviewed on 971021. ref SDS 19 0978
272403 -
272404 -      The article does not explain how Atlantic Bell uses technology
272405 -      differently from others whose results show no improvement in
272406 -      management productivity, as set out in the article reviewed on
272407 -      980613. ref SDS 28 2473
272408 - ..
272409 - Atlantic Bell is using an Internet Web site to communicate good
272410 - management practices, based on ISO and PMI standards. ref OF 8 8563
272411 -
272412 -      CESPN's report dated 970328 is a "case study" showing
272413 -      Communication Metrics improves management. ref DRP 1 6172   The
272414 -      report issued on 971007 calculates cost savings. ref DRP 4 0129
272415 -      Atlantic Bell does not include calculations or estimates of
272416 -      cost/benefits, ROI or savings.  The article says automated PM
272417 -      support was adopted because Atlantic Bell needed better
272418 -      management. ref OF 8 6847
272419 -
272420 -      The value of "case studies" to improve daily management was
272421 -      reviewed on 950830. ref SDS 1 0000
272422 -
272423 -      The SDS program builds "case studies" that support a "lessons
272424 -      learning" process, as noted in CESPN's report. ref DRP 1 3156
272425 -      The PMJ article says the Internet is effective in distributing
272426 -      "lessons learned" uniformly. ref OF 8 1945  Therefore, using SDS
272427 -      with the Internet to deliver daily business intelligence, should
272428 -      further increase the benefit of "lessons learned" reported by
272429 -      CESPN and the PMJ article.
272430 -          ..
272431 -          Communication Manager ensures intelligence is provided
272432 -          even when the Internet fails, see below. ref SDS 0 2012
272433 -      ..
272434 -      Project Office is similar to USACE's Project Management
272435 -      division. It is supposed to provide a "repository of experience"
272436 -      as well as expertise (see review on 980613 of an article about
272437 -      the Virtual Office. ref SDS 28 2498)  Bell Atlantic reports in
272438 -      PMJ that the Internet enhances organization-wide "best
272439 -      practices," using a geographic template, similar to ideas
272440 -      considered for CESPN reported on 970501, ref SDS 6 8852, and on
272441 -      970521 in proposal to change the organization of CESPN. ref SDS 8
272442 -      5098,
272443 -
272444 -      A predicate to these efforts is good communications.
272445 -
272446 -
272447 -
272448 -
2725 -

SUBJECTS
80% Time in Meetings, Article
80% Time in Meetings, Morris Jones

2905 -
290501 -       ..
290502 -
290503 -      Communication is 70% to 90% of a manager's time, according to
290504 -      author, ref OF 8 1608, but cites no authority.  On 960405 review
290505 -      of article in PM Network (Apr 1996 p. 26) cited the PMBOK and
290506 -      other unnamed sources that communication is 90% of a manager's
290507 -      time. ref SDS 3 6677
290508 -
290509 -      The PMBOK does not say how much time a manager "communicates,"
290510 -      but it clearly is the dominate activity. ref SDS 13 6666
290511 -      Typically this means speaking and listening. ref SDS 11 6526  The
290512 -      AP Wire Service reported on 960214 that managers waste 70% of
290513 -      their day due to unproductive meetings. ref SDS 2 5902
290514 -
290515 -      The author says Atlantic Bell project managers use email to
290516 -      expand "span of control," ref OF 8 2101, but does not say how
290517 -      "information overload" from receiving 70+ email a day is solved.
290518 -      The PM Network article on the "Virtual Office" described a
290519 -      "tsuanami of information," ref SDS 28 3499, that is drowning
290520 -      managers in a sea of details.  The author does not explain how
290521 -      Atlantic Bell's Internet application, its Project Office, or any
290522 -      other Atlantic Bell system or method, helps managers organize,
290523 -      check, align, analys and follow up the increased flow of
290524 -      information that results from using the Internet, fax, cellular
290525 -      phones and now video conferencing.
290526 -      ..
290527 -      Andy Grove, Chairman of Intel and generally viewed as a
290528 -      good manager in a top organization, says that effective
290529 -      communication requires taking copious notes, asking questions and
290530 -      checking to verify understandings in order to avoid ambiguity
290531 -      from reliance on personal "memory maps." ref SDS 22 3668  The
290532 -      Atlantic Bell article does not say how these critical
290533 -      "intelligence" tasks are accomplished by the Internet.
290534 -
290535 -      This presents a large exposure for failure and correspondingly an
290536 -      opportunity for improving management, that supports CESPN's
290537 -      calculation of cost savings using Communication Metrics to
290538 -      provide the "intelligence" that is missing from traditional
290539 -      methods.
290540 -
290541 -
290542 -
290543 -
2906 -

SUBJECTS
Mentoring Communication Manager Helps People Learn SDS on the Job
Avoid Learn New Way Working Change Life-sytle Avoided by Using Com Ma
Existing Staff Collaboration with Com Manager
Technology Useful to Others Com Manager SDS Professional Role Like Pi
Intelligence Anytime Anywhere Organizational Memory Common Story Anal

3408 -
340801 -  ..
340802 - Skilled Management Needed to Realize Savings from Internet
340803 -
340804 - I mentioned the conflict that surfaced last Thursday, between
340805 - maintaining a data base and using it for daily business intelligence,
340806 - which led to Welch changing the Internet server, as reported on
340807 - 980625. ref SDS 30 1183
340808 -
340809 - This conflict requires an investment of time and expertise to focus
340810 - management on ensuring that Internet vendors provide reliable service,
340811 - and when there is a failure, that the quality of management does not
340812 - suffer, in order to make the goals of a "Virtual Office" a practical
340813 - reality, supplementing analysis on 980613, ref SDS 28 0000, discussed
340814 - with Tom and Max on 980625. ref SDS 31 0000, and previously on 980520,
340815 - see ref SDS 27 7470
340816 - ..
340817 - The Communication Manager role provides this management skill,
340818 - to ensure that line managers have timely "intelligence."
340819 -
340820 -
340821 -
340822 -
340823 -
340824 -
340825 -
340826 -
340827 -
340828 -
340829 -
340830 -
340831 -
340832 -
340833 -
340834 -
3409 -