In his inimitable way, Jack Welch would often shoot directives
at his executives designed to drive down the costs of doing business. One
such directive was so dichotomous that it kept senior GE executives awake
at night: In an effort to reduce the costs of raw materials, Welch instructed
his Global Sourcing to substantially increase its purchases of raw materials
from developing countries. The challenge to the executives was to
do this without compromising GE's brutal focus on quality and speed. With
difficulties in communication and standards of quality and efficiency, Global
Sourcing found that the price-saving was not justifying the indirect costs
of doing business with developing countries. They called in SBE.
GE's Global Sourcing acquired SBE's proprietary methodology to build trust
and improve communication across global cultures. SBE conducted workshops
at the Head Office and at a conference with GE Global Sourcing business leaders
from around the Pacific Rim. The executives learned new ways of negotiating,
contracting, communicating, and setting standards and objectives across global
cultural boundaries. Areas of fractured trust between the operations in various
countries were identified and repaired. The result was considerable
cost-saving and efficiency gains in GE's Global Sourcing.