Case Study

Largest North American Class I Freight Railroad Transforms Its Post-Merger Organization and Operating Processes, Improving Service and Market Share While Generating $157M+ in Cumulative Profit Improvement

$157M+

Cumulative Profit Improvement

Strategic Imperative

To increase shareholder value by $56M through service improvements that enhance market share, internal process optimization, and elimination of post-merger subcultures

Client Background

  • Rail network spans more than 32,500 route miles across 28 states and three Canadian provinces, supported by approximately 35,000 employees
  • Post-merger operating scope spanned organizational structure, train crew utilization, service reliability, and core rail processes across the network
  • Network performance depended on coordinated train plans, crew deployment, asset utilization, measurement standards, and front-line supervision
  • Economic growth increased freight capacity demand, intensifying pressure to improve service reliability and network efficiency
  • Improved service reliability and market share were critical to increasing shareholder value across the newly combined railroad
  • The merger combined two historic railroads with 150-year-old cultures, but the post-merger structure remained unimplemented 

Key Issues & Barriers

  • Management and employee goals were poorly aligned, weakening accountability for service, market share, and operating efficiency
  • Core rail processes were missing, only partially utilized, or inconsistent across legacy operations
  • Existing work methods created non-value-added activity and underutilized train crews and network assets
  • Measurement standards were inadequate, limiting visibility into service, plan attainment, staffing, and operating performance
  • Deeply ingrained legacy subcultures impeded integration and consistent execution across the newly combined railroad
  • Supervisory roles and responsibilities were unclear, limiting front-line ownership and performance control 

Key Implementation Components

  • Established clear goals to align management and employees around service, market share, and operating-efficiency priorities
  • Realigned and streamlined the organizational structure to clarify roles, accountability, and post-merger operating ownership
  • Improved train crew personnel utilization to increase productive capacity and reduce underutilized network assets
  • Eliminated non-value-added activities and standardized core operating processes across the newly combined organization
  • Implemented automated reporting and standardized measurement practices for on-time performance, plan attainment, staffing, and asset utilization
  • Created a continuous improvement process extending from senior management through front-line supervisors 

Benefits & Results

$157M+

Cumulative Profit Improvement

87%

On-Time Performance Improvement

19%

Plan Attainment Improvement (Right Train, Right Day)

25%

Staffing Reduction

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