Supplement | HBS Case Collection | 2001

GE's Early Dispute Resolution Initiative (B)

by Michael A. Wheeler and Gillian Morris

Abstract

Early Dispute Resolution (EDR) has proved successful at GE. Yet, when Michael McIlwrath, new counsel at an Italian subsidiary, attempted to translate it to his company, problems arose. He had to gain internal acceptance, and explain the concept of early mediation to a European culture not accustomed to the practice. This case examines the successes and challenges of translating an American dispute resolution program to an overseas context and explores four studies of litigation cases facing McIlwrath.

Keywords: Business Subsidiaries; Globalization; Lawsuits and Litigation; Organizational Culture; Performance Effectiveness; Problems and Challenges; Conflict of Interests; Complexity; Italy; New York (state, US);

Format: Print

8 pages

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Citation:

Wheeler, Michael A., and Gillian Morris. "GE's Early Dispute Resolution Initiative (B)." Harvard Business School Supplement 801-453, 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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