THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
rodwelch@pacbell.net


S U M M A R Y


DIARY: July 28, 2005 07:51 AM Thursday; Rod Welch

GE letter follows up on refrigerator issues for Millie.

1...Summary/Objective
2...Accurate Record Precision Access Aid Resolution of Case
3...New Refrigerator Has Less Space Than Origal Purchase
4...GE Knew of Latent Defect and Failed to Notify Customers
5...Service Scheduled to Fix Ice Maker and Freezer Door
6...GE Spends Money Fixing Poor Refrigerator Misrepresented by GE
7...GE Offers to Fix Manufacturing Defects by Customer Buying New Unit
8...Misrepresentation Failure to Disclose GE Says Customer Buy a New Frig
9...Customer Retention Requires Timely, Equitable Resolution of Defects
10...People Giving Up on Accurate Communications Fear Accountability
11...Agreement Concluded on Fixing GE's Refrigerator Problems


..............
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CONTACTS 
0201 - General Electric                                                                                                                                                   O-00000846 0411
020101 - Ms. Susan Gregory; Assistant to the Chairman
020103 - Executive Office                                                                                                                                                 O-00000846 0411

SUBJECTS
GE Lost Letter Dated 050718 Show Something Logged into System on 050
GE Solution Repair Replacement Refrigerator Pay Customer Cost of Rep

0704 -
0704 -    ..
0705 - Summary/Objective
0706 -
070601 - Follow up ref SDS 26 0000. ref SDS 25 0000.
070602 -
070603 -
070604 -
070605 -
070606 -
070608 -  ..
0707 -
0708 -
0709 - Progress
0710 -
071001 - Received ref DRT 1 0001 from Susan responding to the letter yesterday,
071002 - ref DIP 3 0001 which transmitted Millie's letter dated 050718 to Ray
071003 - Graft on recovering damages from transaction to replace the
071004 - refrigerator, based on background in the record on 050718.
071006 -  ..
071007 - Susan says...
071008 -
071009 -        Thank you for the e-mail [dated 050727, ref DIP 3 0001, and
071010 -        transmitting Millie's letter dated 050718, ref DIP 2 0001, I
071011 -        will be calling you later this morning to discuss.  I am sorry
071012 -        to read of all your inconveniences.  I will speak with you
071013 -        soon.
071015 -  ..
071016 - Susan's letter this morning solves the initial problem yesterday when
071017 - GE could not find the letter, ref SDS 26 6T93, which Millie sent to
071018 - Ray on 050718, ref DIP 2 0001, citing case #4944578 and requesting
071019 - resolution of pending issues, ref SDS 24 YE9N, based on the chronology
071020 - of case history in the record on 050712. ref SDS 21 0W8L
071022 -  ..
071023 - Millie wants a receipt for payment on the refrigerator.
071024 -
071025 -      [...see below, GE does not provide receipts on replacement
071026 -      transactions. ref SDS 0 AO8H
071027 -
071029 -  ..
0711 -
0712 -
0713 - 1009
0714 -
071401 - Susan called.
071402 -
071403 - She said her recommendation is GE's last effort for resolving this
071404 - matter.  Susan seemed to indicate that Ray received Millie's letter,
071405 - and asked Susan to handle it fairly, but without "giving away the
071406 - store."
071407 -
071408 -
071409 -
071410 -
0715 -

SUBJECTS
Accurate Record SDS Precision Access Telecon Expedite Dispute Resolu
ASB Planning Collaboration Standard SDS Enables Accurate Understandi
Accuracy Precision Access Requirements Situational Awareness Organiz
Accuracy Care About Medical Record for Effective Management Wish I H
Writing Communication Metric Reveals Lack of Understanding Difficult
Accurate Record SDS Precision Access Telecon Expedite Dispute Resolu

2808 -
280901 -  ..
280902 - Accurate Record Precision Access Aid Resolution of Case
280903 -
280904 - Susan had made a thorough review of GE's internal records, and she
280905 - read through the customer's report on case history cited in Millie's
280906 - letter, ref DIP 2 0001, submitted to GE on 050718. ref SDS 24 YE9N
280908 -  ..
280909 - She found that GE's records align with customer's records on case
280910 - history listed on 050712. ref SDS 21 0W8L  Nothing indicated error,
280911 - mis-communication, or conflicts in reporting on this transaction.
280912 - The parties agree on the facts.
280914 -  ..
280915 - Susan commented favorably on getting a detailed chronology with
280916 - precision access online, as listed in the record on 050712,
280917 - ref SDS 21 0W8L, and cited in the letter to Ray on 050718. ref DIP 2
280918 - 6U7X  During the call this morning, Susan applied SDS explicit links
280919 - to navigate through the record to instantly find relevant facts in the
280920 - case, as called out in the outline for intelligence support in NWO.
280921 - ref OF 10 PX6J  Susan's experience supports Todd's comments at
280922 - Stanford Medical Center on 041019 saying that instant online access is
280923 - more efficient and accurate than working with printed documents.
280924 - ref SDS 8 LT4M  Susan's ability to learn precision access methods in
280925 - time to support review of the case, aligns with Stuart's report on
280926 - 020905 at the Defense Contract Management Agency (DCMA), when he
280927 - learned to use SDS explicit links for working intelligently in about 2
280928 - minutes. ref SDS 7 DAPW
280929 -
280930 -
280932 -  ..
280933 - New Refrigerator Has Less Space Than Origal Purchase
280934 - GE Knew of Latent Defect and Failed to Notify Customers
280935 -
280936 - Susan found in talking to GE engineering that...
280937 -
280938 -    1.  The prior discontinued refrigerator model GTS201CNAWW had
280939 -        manufacturing problems which occassionally caused some units to
280940 -        leak, as occurred in this case, reported on 041026. ref SDS 9
280941 -        PQ3P
280943 -         ..
280944 -        This was a rare event, i.e., 1 in 100, or 1 in 1000, but it was
280945 -        commonly known to GE customer service, which accounts for
280946 -        Carrie's comments on 041026. ref SDS 9 544M  Evidently, the
280947 -        engineers did not feel the frequency of this problem required
280948 -        notice
280950 -         ..
280951 -    2.  The engineers changed the design to increase insulation in the
280952 -        walls of this refrigerator, which explains why there is less
280953 -        space for food storage, but the outside dimensions are slightly
280954 -        larger, as noted in Millie's letter. ref DIP 2 J45J
280955 -
280956 -
280957 -
280958 -
2810 -

SUBJECTS
Default Null Subject Account for Blank Record

2903 -
290401 -  ..
290402 - Service Scheduled to Fix Ice Maker and Freezer Door
290403 - GE Spends Money Fixing Poor Refrigerator Misrepresented by GE
290404 -
290405 - Susan can schedule a service representative here next Tuesday, 050802
290406 - to fix the freezer, and to investigate the freezer door.
290408 -  ..
290409 - Susan forwarded ideas to Phillips on improving delivery service for
290410 - new refrigerators.
290412 -  ..
290413 - Corrected the report in the letter on 050718 saying the delivery rep
290414 - failed to turn on the water line to the ice maker, since after the
290415 - letter went out, futher investigation to correct failure of the ice
290416 - maker by pulling the refrigerator out from the wall and checking
290417 - again, found that the water line was off. ref SDS 24 EK6F  This means
290418 - that the valve was originally in the "on" position, and efforts to
290419 - correct ice maker operations resulted in turning it off.  Susan will
290420 - notify Phillips of this error and apologize for imapcting the
290421 - employee.
290422 -
290423 -
290424 -
2905 -

SUBJECTS
Default Null Subject Account for Blank Record

3003 -
300401 -  ..
300402 - GE Offers to Fix Manufacturing Defects by Customer Buying New Unit
300403 - Misrepresentation Failure to Disclose GE Says Customer Buy a New Frig
300404 -
300405 - Susan initially offered to compensate Millie for repair costs on the
300406 - original unit in the amount of $250, as set out in Millie's letter,
300407 - ref DIP 2 1J5L, on 050718. ref SDS 24 YE9N
300409 -  ..
300410 - Susan feels the customer should bear the cost of mistrepresentation
300411 - that required replacing a defective unit in the amount of $508.  She
300412 - noted that design life these days for appliances, like refrigerators,
300413 - is about 10 years.  This supports Millie's analysis on entitlement for
300414 - recovery. ref DIP 2 1J6W
300416 -  ..
300417 - Susan's solution sends a warning for customers to double the listed
300418 - cost of GE products quoted at the store, because when GE errrs in
300419 - design and manufacture, GE holds the customer to pay for corrections.
300420 - This makes future purchases easier by eliminating GE as a prospective
300421 - acquisition.
300423 -  ..
300424 - Upon further discussion, Susan offered to give Millie a check for $300
300425 - or to provide a gift certificate for $300, which can be redeemed at
300426 - any store for GE products.
300428 -  ..
300429 - This still leaves Millie paying about $1100 for a $600 refrigerator,
300430 - plus time, expense, and agravation working with GE on solving the
300431 - orginal problem.
300433 -  ..
300434 - Susan's solution will cause GE to incur additional expense of multiple
300435 - service calls, possibly replacing a defective ice maker, and replacing
300436 - a dented door.  This could cost another $200 to $300, based on the
300437 - cost of labor.
300438 -
300439 -
300441 -  ..
300442 - Customer Retention Requires Timely, Equitable Resolution of Defects
300443 -
300444 - The best solution for GE is to take reasonable steps to build customer
300445 - loyalty by ensuring customer value.  Mil paid $600 for a refrigerator
300446 - that was not servicable.  What would it take to give the customer a
300447 - servicable refrigerator (a) without defects, and (b) without
300448 - inconvenience of reduced space discovered in the replacement, and (c)
300449 - without the customer incurring additional expense.  This solution
300450 - drives future purchases, and spreads the word GE stands behind its
300451 - products.
300453 -  ..
300454 - Susan's reliance on GE's records showing the customer was told to
300455 - check out the replacement before agreeing to the transaction, as shown
300456 - in the record on 050711, ref SDS 20 J96L, is balanced by the
300457 - customer's good faith effort, and that while GE tried hard, GE's good
300458 - intentions were not accomplished. ref SDS 20 OY4H  GE was better
300459 - positioned to know this prospectively than the customer, because, as
300460 - Susan notes today, at all times GE knew the replacement was smaller,
300461 - ref SDS 0 AN8O, and that its website presented a false impression that
300462 - food storage would be at least comparable, and did not disclose to the
300463 - customer that the space was much smaller, as noted in Millie's letter
300464 - to GE on 050718. ref DIP 2 QH38  Therefore failure to realize the
300465 - intent of the replacement transaction should be for GE to resolve,
300466 - not the customer.
300467 -
300468 -     [On 050808 GE service representative asks customer to rely on GE
300469 -     assurance of accepting customer inspection practices, which seems
300470 -     conflicting with Susan's anlaysis today indicating the GE is
300471 -     prepared to excuse responsiblity for defective products on grounds
300472 -     that the customer made inadequate inspection. ref SDS 27 KH7X
300474 -  ..
300475 - Discussion this morning left unclear why GE marketing would want to
300476 - saddle a long-standing customer with an applicance that reminds with
300477 - each use, i.e., 10 - 20 times a day, not to buy GE products.  GE
300478 - should pay Millie's claim, as supported by the record, noted by Susan
300479 - this morning, ref SDS 0 4K7M, and let Millie decide whether to apply
300480 - this amount toward purchasing another GE product that meets
300481 - requirements, as set out in Millie's letter. ref DIP 2 QH38  Making
300482 - the customer whole, albeit absent the customer's $5K for labor, by
300483 - paying the customer's direct extra cost, builds good will, and
300484 - encourages another purchase to get a servicable refrigerator.
300486 -  ..
300487 - GE's solution telling the customer..."Hey, too bad!  You should have
300488 - "looked harder before you leaped" at our offer," saves a few hundred
300489 - dollars, but "shoots GE in the foot."  The customer is now encouraged
300490 - to buy a servicable appliance from someone else, to avoid GE products,
300491 - and to spread the word that GE doesn't stand behind the reliability of
300492 - GE products.
300494 -  ..
300495 - Susan seems to feel GE policies and practices prevent equitable
300496 - resolution for everyone, and indicated that GE is willing to incur
300497 - additional expense to fix a refrigerator, which has proven inadequate,
300498 - but not to fix relations with a previously loyal customer.
300499 -
300500 -     [On 050808 GE made repairs and disclosed the extra expense is
300501 -     $547.79 or $89 more than GE owes to resolve the original
300502 -     transaction. ref SDS 27 KA4F
300503 -
300504 -
300505 -
300506 -
300507 -
300508 -
3006 -

SUBJECTS
Default Null Subject Account for Blank Record

3103 -
310401 -  ..
310402 - People Giving Up on Accurate Communications Fear Accountability
310403 -
310404 - Follow ref SDS 17 PK53, ref SDS 12 YR8F.
310405 -
310406 - Susan indicated that her management does not support submitting a
310407 - letter confirming GE's transaction today.
310409 -  ..
310410 - Susan confirmed Mrs Turner's explanation on 070628 that GE's legal
310411 - department does not permit accurate communications by confirming
310412 - understandings in writing. ref SDS 17 PK53  This fits Drucker's point
310413 - on 931130 that people have given up on communications. ref SDS 2 3851
310415 -  ..
310416 - Susan seemed to indicate that GE will not respond to Millie's letter
310417 - to Ray.  She indicated that GE sends out form letters approved by the
310418 - legal department and telling customers to call GE Customer Relations,
310419 - so there is nothing in writing.  This report aligns with analysis on
310420 - 991108 showing that literacy degrades as people move along through a
310421 - career. ref SDS 6 TU8S  Earlier on 980405 review showed a powerful
310422 - knowledge management dilemma where fear of accountability drives
310423 - resistance to accuracy, which increases mistakes for which people
310424 - strive to avoid accountability. ref SDS 4 5065  Susan's explanation of
310425 - GE's management follows practice in medical care, reported at Kaiser
310426 - on 041130. ref SDS 12 YR8F
310427 -
310428 -
310429 -
3105 -
3106 -
310601 -
3107 -

SUBJECTS
Default Null Subject Account for Blank Record

3203 -
3204 - 1037
320501 -  ..
320502 - Agreement Concluded on Fixing GE's Refrigerator Problems
320503 -
320504 - Called Millie.
320505 -
320506 - Reviewed GE's ideas for resolving the case. ref SDS 0 AN46
320507 -
320508 -
320509 -
320510 -
320512 -  ..
3206 -
3207 -
3208 - 1226
3209 -
320901 - Called Susan and accepted GE's offer, per Millie.
320902 -
320903 -     [On 050808 followed up. ref SDS 27 YE9N
320905 -  ..
320906 - Susan confirmed that a service agent is scheduled to visit next
320907 - Tuesday on 050802.
320908 -
320909 -
320911 -  ..
320912 - GE will issue a check to Millie for $300; will take about 10 days.
320913 -
320914 -        This payment covers....
320915 -                                           Owed         Offer  Diff
320916 -
320917 -               1.  Repair costs........... $250......... $250     0
320918 -               2.  Replacement costs....... 508.........   50   458
320919 -
320920 -                   Totals..................$758......... $300   $458
320922 -  ..
320923 - Extra cost out of pocket $458 to Millie is the cost of learning to buy
320924 - another brand, per analysis above. ref SDS 0 AN51
320925 -
320926 -            [On 050808 GE made repairs and disclosed the extra expense
320927 -            is $547.79 or $89 more than GE owes to resolve the original
320928 -            transaction. ref SDS 27 KA4F
320930 -  ..
320931 - Asked Susan for a receipt on the transaction, per Millie's request,
320932 - ref SDS 0 C78M, where GE required payment in order to correct
320933 - defective refrigerator on 050712. ref SDS 21 9C43
320935 -  ..
320936 - This concludes Millie's request on 050712. ref SDS 21 CW5I
320937 -
320938 -
320939 -
320940 -
320941 -
320942 -
320943 -
320944 -
320945 -
320946 -
320947 -
3210 -
Distribution. . . . See "CONTACTS"