Case | HBS Case Collection | 2001

GE's Early Dispute Resolution Initiative (A)

by Michael A. Wheeler and Gillian Morris

Abstract

GE's chief litigation counsel sought to rationalize litigation flow by viewing it as a manufacturing process. By applying the principles of Six Sigma, P.D. Villareal created an Early Dispute Resolution (EDR) system that enabled both lawyers and managers to work together to address potential disputes early and efficiently. Though the savings in time and energy were tremendous and obvious, evaluating the financial savings proved trickier. Also on the horizon was the challenge of spreading the program throughout the enormous GE global organization.

Keywords: Corporate Governance; Governing Rules, Regulations, and Reforms; Lawsuits and Litigation; Six Sigma; Organizational Change and Adaptation; Problems and Challenges; Conflict and Resolution; Energy Industry; Technology Industry; United States;

Format: Print

9 pages

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Citation:

Wheeler, Michael A., and Gillian Morris. "GE's Early Dispute Resolution Initiative (A)." Harvard Business School Case 801-395, June 2001.

On the surface, warfare and negotiation may seem to be polar opposites. The objective in war is to defeat the enemy. In negotiation, the goal is to find a solution that satisfies all the parties. Not surprisingly, little cross-learning and exchange has occurred across the two domains. In spite of important differences, however, the dynamics of war and negotiation have much in common. Specifically, both involve the interaction of motivated agents with distinct interests, perceptions, and values (especially in high-stakes contexts). As a result, robust strategy, creativity, and nimble tactics are essential both on the battlefield and at the bargaining table. Just as negotiation theory could be enriched by principles of maneuver warfare, military doctrine offers officers and soldiers a potentially useful foundation to better understand and manage the negotiation process, especially in complex, cross-cultural contexts.

Six different business disputes, all in the shadow of pending litigation, are described. Students are asked to recommend the appropriate method of dispute resolution (mediation, arbitration, mini-trial, etc.) for each one, depending on the circumstances, especially to assess likely barriers to unassisted negotiation.

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