On-time train performance improves 87%.
Shareholder values gain $56 million.


Strategic Intent

Enhance market share through increased service levels by improving internal processes and creating cultural unity in wake of recent large merger


Situation

  • $9 billion North American rail carrier
  • Operates 34,000 route miles and employs 44,000 people
  • Merger between two large established railroads with 150-year-old histories and cultures
  • Post-merger structure yet to be implemented
  • Deeply ingrained sub-cultures hinder efforts to improve operating efficiencies
  • Economy-fueled demand increases capacity needs

Issues and Barriers

  • Poor management and employee goal alignment
  • Systemic core processes missing or used inconsistently
  • Current systems lead to much non-value-added work
  • Unclear supervisory roles and responsibilities
  • Corporate goals poorly linked to performance goals
  • Inconsistent capacity planning and measurement standards

Key Implementations

  • Translate clear goals to fully align the organization
  • Realign and streamline organizational structure
  • Improve train crew personnel utilization
  • Eliminate redundant non-value-added activities
  • Install automated reporting procedures and systems
  • Implement consistent measurement standards
  • Create a sustainable improvement process from senior management to front-line supervisors

Results

T_W-CS4

Initiatives empowered the organization to become more focused and improve market share, and increased span of influence within the industry. Shareholder values are enhanced by $56 million, fueled by reduction in costs and new profit contributions. Client subsequently engages Brooks for more than three dozen new assignments, producing cumulative new profit contributions in excess of $157 million.

  • On-time train performance improves by 87%
  • Operational plan attainment improves by 19%
  • Overall crew staffing reduced by 25%

Client Perspective

I learned so much from you guys about people, performance and behaviors that I’ll be able to use it the rest of my career. We are fortunate that Brooks came on the property when you did, because what you taught us was exactly what we needed at the time and now we’re in a position to use these concepts and techniques to continually improve the performance of this company.
—Vice President, Operations


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