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If I were the head of Amtrak what would you do
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<p>The first thing that I would do as the president of Amtrak is order to top to bottom review of the organization. I would assess the capabilities and commitments of the management team. Anyone who is not a good fit would be fired. Then I would look at the layers of management and assess how each one contributed to the achievement of the organization's goals. Experience tells me that I would find plenty of opportunities to flatten the organization by eliminating redundant layers of management. Lastly, I would go far and wide to find the best persons to make up my executive and management team. </p><p>Once my executive team was in place, we would define the core purpose of the business. A variety of resources, e.g. consultants, employees, customers, etc. would be tapped to help achieve this objective. When the purpose is defined, it would be communicated to all the stakeholders. Next, we would assess each business process to be sure it was aligned with the core purpose. If it did not make any sense, we would eliminate it. We would also make sure that the organization had the right mix of managers and key personnel to achieve its objectives. All existing personnel would be required to reapply for their job. Most would probably be successful; some would not make the cut.</p><p>In conjunction with the review of the organization's business processes, the management team would assess whether any of them should be out sourced. Everything outside of the core business processes (operations, marketing, public relations, strategic planning, financial management, internal audit, and governmental affairs) would be on the table. Several processes that come to mind for outsourcing (contracting) include maintenance, Information Technology, back office operations (HR, Accounting, Finance, etc.), inventory management, etc. Outsourcing, if it is done correctly, can produce synergies that generate improved results and significant savings for the business. </p><p>I would direct my legislative affairs team to lobby the federal and state governments to support a balanced transportation policy. Hopefully, such a policy would recognize that air travel is the best option for long distance travel; rapid rail can be advantageous in short to medium high density corridors; rail, rapid bus technology, and HOV lanes for multiple occupancy personal vehicles work best for commuting in metropolitan areas; intercity buses and personal vehicles are the best option for rural areas. </p><p>I would urge the federal and state governments to support rapid rail corridors where they make sense. Ultimately the states through which the corridor runs should pay most of the required subsidies, although hopefully all subsidies, as per the next paragraph, could be eliminated in time. </p><p>In conjunction with the rapid rail initiative, I would urge the federal and state governments to stop subsidizing all modes of transport, thereby requiring the users to pay directly the cost of their mode of choice. For example, in addition to the normal costs embedded in the price of gasoline, it would bear the proportional costs of keeping the Middle East oil sea lanes open, repairing the environmental damage done by fossil fuel vehicles; and treating those with heath problems generated by said vehicles. It would also include the cost of all roads, including county roads and city streets, which for the most part are paid for with bond funds or property taxes. This would probably drive the price of gasoline north of $5.00 a gallon, which would enable trains in high density corridors to compete. </p><p>I would recommend the discontinuance of Amtrak's long distance trains. They generate 23.2 per cent of Amtrak's ticket revenues, but they account for 142 per cent of the operating expenses before interest and depreciation or 47 per cent of the federal subsidy to Amtrak. The long distance passenger train is used by a tiny percentage of the traveling public. It does not meet a vital social and economic need. No rational business person would continue to offer a product line or service that generates these kinds of numbers. The savings, which would add up to billions of dollars over several decades, could be used to enhance existing corridors and establish new ones.</p><p>I would recommend that the states or private operators be permitted to operate long distance trains if they pay for them. If California, Arizona, New Mexico, Texas, and Louisiana want to run a train from Los Angles to New Orleans, they should be permitted to do so. If a private operator wants to run a scenic train from Denver to Salt Lake City, it should be able to do so. If the states or a private operator want to run the train every day or one day a week, it would be their call. I would allow them to use Amtrak's reservation system to manage bookings. And I would sell them the long distance equipment if they wanted it.</p><p>Assuming the Congress, as well as other interest groups supported my initiatives; I would recommend that Amtrak begin a program of equipment renewal. The emphasis would be on bi-directional equipment based on a standard design. Most trains would consist of coach, business class, and food service cars. One or two models based on a standard design would reduce operating, maintenance, inventory and training costs. This concept is followed by Southwest Airlines, which only flies Boeing 737s, thereby helping it be one of the most successful air carriers in the world.</p><p>My business plan would spark a chorus of objections. Leading the parade would be NARP and a variety of rail enthusiasts. I would listen to them, but at the end of the day they would know that they are not accountable for the outcomes. They are like fans at a sporting event. Most of them cheer or boo loudly but have little idea what it is like to play the game. </p><p>The traveling public holds the trump card. If they are willing to pay for the service, it should be offered. If they are not willing to pay for it, it should be scrapped. </p>
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