"We have met the enemy and he is us." Pogo Possum "We have met the anemone... and he is Russ." Bucky Katt "Prediction is very difficult, especially if it's about the future." Niels Bohr, Nobel laureate in physics
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
QUOTE: Originally posted by Junctionfan Speaking as an "outsider" of course, to me the CEO should be able to tell if operations aren't working and do some investigation during the excutive meetings. I would ask the COO for some charts and the CFO for charts of revenue based on operation. I would take to two charts and compare to make sure revenue was up. If the operations were lowering and the revenue lowered too, I would wan't to know why. I would once in a while call up my customers and ask if they were satisfied with my services because if they weren't, potential profit loss could arise and if the quarterly can't be reached, the board will grill you for it. I personally would be more interested in a traveling office so I can multi-task. I can oversee what the track is like if my personal coach rode in front of a geometry train for example, while this is going, I can have a meeting with the officers or with potential clients. To me it's like being a general who surveys everything from the battlefield to the troops training. Making profit in this age is like a war to be won and so everything has to be "perfect" or you will suffer bitter defeat.
QUOTE: Originally posted by Junctionfan Why can't they do some administration?
QUOTE: Originally posted by Junctionfan This is for me something I would really like some people like Limitedclear who has been in a management position to answer. I have been watching and listening to some of the business shows and the all business network and have even listened to some of those boring business lectures at a University. It all comes down to thease questions that I come back to. 1/ Does the senior management really know what goes on in the companies? I ask this concerning the issue of CN, CSX and UP in particular who are operating in ways that would get me fired at a job. 2/ Should the senior management physically visit a site and look over plans before making any business decision? I ask this concerning CN's bottlenecking at Fort Erie. I'm not convinced that Harrison even knows about Fort Erie let alone its physical limits. 3/ Do thease executives have an overall plan and specific operation strategies that will improve the railroads profit and revenues or are they just making stuff up as they go along via outsourcing of operation I ask this concerning CSX and the guy that they recently hired plus also the lack of commitment CSX has had with certain aspects of the business including CN's roadrailer. 4/ Does management have any strategy in dealing diplomatically with the unions or do they really care one way or another if there are strikes and other legal actions? Do they know how to attract flies with honey or do they use vinegar? 5/ Does management make too many unrealistic economic forecasts with the board of directors and the shareholders or are they givin their orders by the board et al? 6/ What do the senior management see as opportunity for profit? 7/ What do they want to achieve as a railroad and do they know? 8/ Is there anything that needs to be done in order for them to reach their goals or are they up to the job in the first place? 9/ If others are not satisfied with current management, who should take their place and why? What would thease people have that the current management doesn't bring to the table? I am really exited what I may learn here so please don't be shy as it might shine some light on whether we the forum know how hard it is to run things or if we haven't a clue. I am not sure what the senior management have in their minds as I am not a shareholder and don't attend the meeting associated with shareholder rights. Thankyou for any help in allowing me the opportunity to learn the basics of management and leadership roles within the railroad.[:)]
QUOTE: Originally posted by slotracer Too busy and my head hurts too much to get too deep into thsi right now. The Senior execs do know how to run a railroad, but 2 major issues come into play. Railroads are very inwardly focused they are slow to inovate. The thing that most puts them at odds with the general shiiping industries, is almost all indiustry is in an extremely competitve environment railroads for the most part are not. Theyhave done minimal amounts to position for future growth, they focus on cost cuttinf to the point they cut into theri own muscle. If you got the kind of service, attitude and response tehy provide at say Walmart, you'd soon be heading for Kmart. They serve teh way they do and charge and increase like tehy do becasue they can get away with it. They like to talk growth when teh economy is slow, but don't expand resources toa ccomodate it. When they have more volume than they can use they raise rates sky high. This is followed by the cycle of chasing all the business they lost from customers they spit on the year before and the cycle continues. It looks teribly inept but that is a result of being totally inwardly focused. Wall Street. Railroads are an old line industry, in order to compete for investment intersest they have to forecast impressive numbers. Those projections are never nearly close to the reality of rate increases, new business and volume increaes tehy can obtain. This generates an insane cascade of decisons in management and marketing and insane budget cuts. The operating budget cuts typically come in the third quarter, right when all your intermodal, lumber, coal and grain is running at record levels. So to me the 2 main factors is an old world thinking/inward focus problem, and poor priorities and drivers that parent endless strings of bad plans and decisions on those poor priorities.
Our community is FREE to join. To participate you must either login or register for an account.