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You are the CEO of CN Rail

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You are the CEO of CN Rail
Posted by Junctionfan on Wednesday, August 18, 2004 2:10 PM
Here is an interesting hypothetical thread. Hunter Harrison has been canned and the board of directors makes you the CEO of the railroad. What would you do to make the company glad they hired you. What would you do to gain the respect of your employees.
Andrew
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Posted by Anonymous on Wednesday, August 18, 2004 2:36 PM
First off, not lay -off any workers,keep ALL the locomotives as active as possible,only retire them when the unit cant be repaired,or it exceeds the budget set for repairing the unit. Next invite people to open houses at various cities,that are on the CN system.Have a policy that can have railfans come to the property,and take pictures,as well as get a tour of the area.(You'd be surprised what you get to see when you ask for permission to be on railroad property). Visit with the employees at various shops and see what they would like to have improved,or bring into the work place to make their job a little bit easier,and comfortable. Have the best benefits,401k, insurance,and everything else for the employees to enjoy. Have rail excursions for the employees and families as well as railfans. But most important making sure that safety is first and that certain situations,gripes,concerns,and suggestions can be voiced, heard,and recommended.
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Posted by BentnoseWillie on Wednesday, August 18, 2004 2:59 PM
The one that pops to my mind is to either increase the budget for longer sidings on the old Champlain district, (especially between Riviere du Loup and Moncton); or add one daily train in each direction so that the train lengths match the siding lengths.
B-Dubya -------------------------------------------------------------------------------- Inside every GE is an Alco trying to get out...apparently, through the exhaust stack!
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Posted by Anonymous on Wednesday, August 18, 2004 5:19 PM
Buy back company stock, announce massive budget cuts, manipulate stock value for personal gain, and then deploy my golden parachute, and live happily ever after....
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Posted by Anonymous on Wednesday, August 18, 2004 5:21 PM
One hint: My corporate "growth" strategy rhymes with "village"...[dinner]
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Posted by Junctionfan on Wednesday, August 18, 2004 6:37 PM
1/ get rid of thease gas guzzling units that break down alot and replace them with better more fuel efficient modern engine. Target engines to by are more SD75I, C44-9W and now to start buying SD70Ace, AC4400CW and SD90MAC.

2/ start to replace alot of the 50 foot boxcars with 60 foot highcubes so the trains don't have to be so long due to alot of shipment from one factory to just one factory

3/ replace management who don't do their job properly and are confrontational with customers and employees

4/ rehire track gangs for maintainance for every subdivision. replace wooden ties with steel, concrete or plastic where tie erosion is a problem and dig out area of the track that are prone to mud. NO WEEDS. Convert old steam engines into weed killers that spray out steam instead of chemicals. Water is cheaper and environmentally friendly.

5/ lines that don't operate enough traffic need more. Target industries along the line to increase the line's profitability. Do not operate small trains with heavy power.

6/ Operate the roadrailer between Canada and the U.S and not just between Toronto and Montreal. Triple Crown shouldn't be the only roadrailer service available.

7/ Hire more crews for trains, yards and workshops. Some of the workshops closed should be reopened.

8/ Do more advertising and market yourself better. Target Financial and Business oriented television stations as well as newspapers. Ofter 2 for 1 deals or do not pay until 2005 deals to attract more customers.

9/ No more mergers. Cultivate what you have and worry about merging when all other business opertunities have been exploited and exhausted.

10/ Keep an accurate and detailed outlook on the industry and tell them what the company needs to do and how you plan on doing it. Don't make unrealistic expectations for quarterly that can't be reached; you'll screw up the companies investment integrity and you could get fired

11/ I would most definately replace the all mainline rail so it is at least 136 pound rail.

12/ Industries such as coal that dwindle because of the mine closing, find other customers so it won't take away the over all profit. If the line is useless and no other industry wants it than rip it up and use it for other customers.

13/ Use panel track for industries so if the industry goes than you can remove it but it can be replaced again quickly if another takes its place.

14/ Add extra track to subdivisions that need it. Single track mainlines are not great if your traffic volume is high. Sidings is a lazy way of double tracking areas unless it can't be helped like through the Rockies.

There is more to come
Andrew
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Posted by CliqueofOne on Wednesday, August 18, 2004 6:56 PM
One hint: My corporate "growth" strategy rhymes with "village"...

You have hit the nail squarely on the head TheAntiGates. It's good to see rail-fans not being blinded by the false glow of HH and rest of his supporters. [V] I can add another word. It rhymes with tape. [sigh] Signal Mechanic. Signal Department. Canadian National Railways.
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Posted by Junctionfan on Wednesday, August 18, 2004 7:15 PM
QUOTE: Originally posted by CliqueofOne

One hint: My corporate "growth" strategy rhymes with "village"...

You have hit the nail squarely on the head TheAntiGates. It's good to see rail-fans not being blinded by the false glow of HH and rest of his supporters. [V] I can add another word. It rhymes with tape. [sigh] Signal Mechanic. Signal Department. Canadian National Railways.


I would likely promote someone like you to a management position because you have first hand information of what needs to be done ( I have read your messages) and you can relate to the workers. piouslion is another one I would promote likely. I don't believe in hiring thease pencil pushing M.I.T from Yale weenies who are only good and keeping my butt moist and not getting the work done. I want folk who have done the work, have the respect of the workers and not afraid to confront me if I am doing something wrong. That is how you run a business.
Andrew
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Posted by Junctionfan on Wednesday, August 18, 2004 9:24 PM
QUOTE: Originally posted by M.W. Hemphill

The presence or not of a college degree is irrelevant. I know plenty of PhDs who are brilliant and the degree greatly advanced their wisdom and knowledge. I know PhDs from Harvard who are fools, too. I don't judge people by labels.


Neither do I; having said that the type I was describing seems to be a popular choice in business because the stereotype wouldn't exist if there wasn't some truth to it.

To respond to your earlier message; there is nothing wrong with accumulating things and CN is doing it but how well are they doing it is another thing. I am an opportunist and seize on worth-while potential through vision and logic. Thease qualities enable extra long-term profit without sacrifing quality. A fairly good example is Bill Gates and Windows. He wouldn't have been where he is today if he wasn't an opportunist and a visionary. Great capitalists think about sustainability centuries from now like Gates, Rockafeller, Disney, Firestone, Ford, Edison....look at their business now. It booms and is as profitable now as it was than. Hunter Harrison is not a great capitalist. He at best is a great budget balancer but not a great capitalist in the railroad industry. CN needs somebody with vision like William Cornelius VanHorne.
Andrew
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Posted by CliqueofOne on Wednesday, August 18, 2004 10:10 PM
The Greedy [:D] will always justify greed. I wi***hey were required to spend at least a month on my gang. Most of them wouldn't last the term. If they could see, feel and hear what we on CN do every working and non working minute of the day they just might come to see and understand the big picture. And this photograph won't be one taken by Harrison's [}:)] [D)] camera. He's very adapt at manipulating photos just as he is at manipulating the media, shareholders, government, employees, etc. Signal Mechanic. Signal Department. Canadian National Railways.[:(!]
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Posted by Anonymous on Wednesday, August 18, 2004 10:22 PM
If such a thing could happen perhaps some of my off the wall impossible things that nobody in the railroad industry would dream of or even contemplate be put into effect, I kind of doubt it but here goes :[:)] Numero uno (1). -tangeable- Take inventory (materials, machinery, long and short term contracts, recevables, payment methodology and practice, tax records, properties and right of ways, real estate deeds,contracts, leases and trusts, customer service availabity, sales activity, strategic planning estimates and directions, Maintinace contracts,Track, locomotives, freight cars and service cars and anything else of value), We need to kno[tup]w what we got. Have a full post annum audit of the books and take your time and make it right casuse if your lieing to me,you will be skinned.) 2. Folks, I'm comming to see you with my officers. Theirs and my orders are to sit down to eat breakfast, luncheon and Dinner with you untill everyone on the railroad has met me and them personally (we tell the truth with each other and to each other) and we talk about what is important to get this to be the best road in the world. 3. Safety overall with cost savings, all we can get useing machinery, modernization, computerization, automation, and remote control where practiable 4. Productivity gains will be through standard attrition. 5. I might be tight but I ain't cheap I' ll make sure that what we work with is good quality 6. We work together and we play together 7. Sales people we want biz and more biz there is never to much. 8. Be at work on time, clean and sobber, go where your sent and do as you'er expected as a part of your duties and we don't talk, think or worry about the competition 9. A good days work gets a good days pay 10.We grow together or we die together; everybody earns stock in the company from the end of their first year. 11. Benefits, a professional career deserves professional benefits in retirement plans, disability supplements, bonuses for performance to agreed upon mutual goals, no married person will be expected to work on Christmas Day unless it is a matter of mercy or necessity (read; life, limb or property) 12. It would be a singular honor for me to lead you great folks to being the best company in North America. [:O][tup][tup][tup][tup][bow][bow][bow][tup][tup][tup][tup][;)] and of course, that is just a dream of a **** eyed optimist or is it?
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Posted by Randy Stahl on Wednesday, August 18, 2004 11:30 PM
I have to agree that the CN results thus far are indeed impressive, the stockholders should be very pleased. I think the CN is likely a good long term investment, I think your investment is quite safe, after all CN owns alot of REAL assets. It's too bad the CN management doesn't consider the employees as assets. There are bad feelings between the employees and the management, CN is cultivating the anamosity with threats to the employees almost daily. An example: A locomotive just released from FRA inspection at Chicago was caught by the FRA with federal defects, the CN response was to send a memo to all the shops saying that this will not be tolerated and will result in termination. The Chicago shop has serious problems... they should concentrate on correcting that shop instead of browbeating all the shops, don't you think? The problem in Chicago is not much different than elsewere... nobody gives a damn!
Ed Burkhardt said that if the employees feel they need a union then there is a problem with the managers. See ,back in the WC days ,we had a friend in the front office. Ed had an open door policy whereas Hunter has bodyguards because he fears for his life. I think THAT says it all !!!!
I'm sure that Hunter is not to blame for all the CN problems, I'll bet that there are alot of eager execs that aren't being exactly truthful and honest with Hunter, I'm sure alot of things are kicked under the rug and Hunter never knows.
Sure , the numbers don't lie. The CN is successful... just think how successful they would be if the employees were truely passionate about the CN.
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Posted by Anonymous on Thursday, August 19, 2004 12:15 AM
Wow, how fun! I will give you all the basics of my objectives here sans many details account I don't want to write a novel!

For starters, I would immediately cut my salary to the basic level as that in the labor crafts. Then immediately do the same for all of the vice presidents and assistant vice presidents. I would have a Zero Tolerance policy set for egotistical and arrogant employees and only recruit and retain those with positive can do attitudes.

My first two long term projects would be decreasing liabilities, increasing train speeds and drastically cutting terminal dwell times in yards.

Decreasing the liabilities: I would have all the scrap/old rail/ties and other previously used derbis etc. hauled off of the railroad and then clear the entire railroad property lines of brush and vegetation. As this was progressing I would spend millions on new overpasses and underpasses of highway-rail grade crossings with total elimination being the ultimate goal. I would invest in heavy duty fencing along potential and previous trespassing areas. I would hire a huge force of railroad police officers along iwth starting a "RailWatch" program to encourage railfans to report suspicious activities along with initiating a ride-along program so those interested could experience railroading up close and personal. With the additional cleared right-of-way I would construct coal slurry pipelines along principal coal corridors to eliminate some of the standard coal traffic over the railroad as coal traffic beats the heck out of the physical plant. In addition I would also fund further study of magnetic levitation trains and dedicate right-of-way along adjacent rail lines between applicable city pairs.

As the liabilities began to decrease I would bring in the engineering folks and add route capacity to the maximum extent possible as in lengthening sidings and massive amounts of double or multiple track territory. This would also include adding more yards along the system - specifically hump yards. For mountainous terrain of western Canada I would spend billions to tunnel under the Rockies in a similiar manner done in the Swiss Alps.

I would then fund and challege rail industry designers to come up with a heavy-duty strength durable high speed freight truck that could sustain 90mph running. I would also fund development of a coal powered locomotive capable of high horsepower output with the latest tier emissions standards encompassed.

With sealed corridors with no highway-rail grade crossings, increased trackage, cars retrofitted with high speed trucks, new generation coal burning locomotives and moving coal in a pipeline it would make for a very fast railroad that would not compete with trucks - it would simply outrun them and ultimately spend less doing so over time.

Yeah, certainly a tremendous long shot for any fruits of labor like those listed above, but nonetheless it never hurts to dream!

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Posted by Junctionfan on Thursday, August 19, 2004 7:38 AM
QUOTE: Originally posted by M.W. Hemphill

Junctionfan:

Part 1. Please tell me you are not defending, justifying, or rationalizing the use of stereotypes. Please tell me that even though others use them that it's wrong. Please tell me that you never use stereotypes to judge others. Or, deny all that. I don't care. I'm just curious where you're coming from.

Part 2. Why it's important to you to be the watchdog for the CN stockholder is beyond me. I figure "Hey, they're rich. They can look out for their own money. They don't need my help, unless they want to pay me for it." Or, who is it whose interests you want to defend if it's not the stockholder? If you tell me it's the shipper, or the Canadian citizen, or the great commonwealth, or something like that, I wonder if you are completely comfortable living in a system that promotes the interest of the stockholder above all others. Because the stockholders interests may not be -- and probably will never be -- 100% aligned with the shipper, employee, citizen, or country. I know when I buy a stock I am not buying on the basis of how nice they are to their employees. I'm buying on the basis of how much return on investment I get. But maybe you're different. You tell me. I'm curious to see how you have your cake and eat it too.


I have been in an office before. I know first hand of thease types I'm refering to first hand so to say thease people don't exist is obsurd. In fairness to myself, I don't judge others until I get to know them for a long period of time. If they continue to exhibit qualities like being a butt-head than it is only logical that after awhile people will refer to that person as a butt-head right?

This is a hypothetical thread; if I am to play the role of CEO, I need to be an Opportunist visionary of a capitalist don't you think. In my position I would likely be a shareholer so I would be looking out for myself as well.

Have you read my other messages from other thread about CN? I believe you twist my words for some reason. Can you honestly say that I have lead you to believe I would be "comfortable living in a system that promotes the interest of the shareholder above others"?

I respect your opinion but I am concern as to why you feel you need to attempt to make me look foolish because my opinion differs from yours. This is a hypothetical thread as I stated earlier. In fairness, this is not off-the-wall opinions, I base my opinions from experiences from listening to others including reliable news and newspaper reports and I go and look for myself to see if I am being duped or not like when I heard the tracks in my area were as bad as it was and didn't believe it until I went and saw them first hand. I would also state that if one person says something, the percentage of truth is often low however if many people say the same thing that the percentage of truth is much higher.
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Posted by wcfan4ever on Thursday, August 19, 2004 7:52 AM
I would start off by instead of abandoning lines, selling them to shortlines close to the area. I would try to gain as many customers as possible insteard of not listen to them. I would also keep what power is there and not get rid of it until it breaks down, enough to send it to the grave. I overall don't know what I would do with CN. With a little more time and thinking I'm sure I could come up with a bunch of stuff...some good stuff.

Dave Howarth Jr. Livin' On Former CNW Spur From Manitowoc To Appleton In Reedsville, WI

- Formerly From The Home of Wisconsin Central's 5,000,000th Carload

- Manitowoc Cranes, Manitowoc Ice Machines, Burger Boat

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Posted by gabe on Thursday, August 19, 2004 8:48 AM
I think wcfan4ever said it best. Essentially make CN more like the WC. Shareholders probably wont be immediately inamered by this plan, as it would probably reduce your operating ratio and probably profits. But I think it leads to better long term prosperity and profitability. I think there are some railroads that still have this philosophy too.

I am really with you on cultivating short line spinoffs.
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Posted by croteaudd on Thursday, August 19, 2004 10:02 AM
This is a wonderful topic!

Someone once said: A girl can eat out of the palms of your hands. Employees likewise will go to extreme measures to be helpful if they are convinced a CEO has their best interest at heart.

Specifically, I would (1) unify management and labor by proving that everyone must be on the same side of the fence and work together against a common enemy, and (2) show everyone within the railroad company HOW it could beet adverse destiny through time miracles.

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