Posts Tagged ‘railroad strategy’
About 20 years ago there was a cartoon in The New Yorker, a monthly periodical best known, arguably, by non- New York City residents for its cartoons. This cartoon showed two wealthy gentlemen (in the style of the Monopoly game millionaire) lounging in the bar car of a passenger train with their martinis. (I think of them as Reginald and Wilfred). Reginald states: “This is a lousy martini. (pause) This is a Hell of a way to run a railroad”.
Being a martini enthusiast (only gin of course), I can appreciate the nuance of making such an evaluation.
Back then, this now-shallow perspective was in actuality one credible way to evaluate passenger and freight rail operations in that it was “take or leave it” from the railroads’ perspective of running their railroads. That is, railroads provided the service that they wanted to provide given their monopolistic position as to transport. However, beginning with the availability of the interstate roads during the Eisenhower administration, followed by the passing of the Staggers Act in 1980 that deregulated the freight railroads as to the price that they could charge for services, there was a gradual, but sustained shift to the customer’s perspective. That is, with these two major game changes of the interstate road infrastructure and the Staggers Act, entered competition not only between rail and truck transport, but also competition between railroads.
In the last several decades, both passenger but primarily freight railroads have taken on a different perspective; a perspective on what technologies can deliver to make a railroad’s operation both more safe and efficient. I must state first of all, that US railroads, both passenger and freight, are extraordinarily safe, especially when compared to operations across the globe. (See previous posting “ What Price Safety” for some additional insight on this point. But, I need to go back to the martini point.)
There are martinis, and there are martinis. James Bond’s infamous standard of “Shaken, not stirred” makes the point. But first, I should note that based upon an independent analysis of literature regarding James Bond’s life style, it has been determined that he was quite a drinker with his consumption of an average of 45 martinis within a given week. OK, so that is 6 +martinis a night which makes him somewhat suspect as to his objective credibility as quoted by Dorothy Parker of Algonquin Round Table fame: “ I like to have a martini, Two at the very most, After Three I’m under the table, after four I’m under the host.” So! 6+ martinis in an evening is clearly past the line.
The point of shaken, not stirred, can be applied to railroad operations, me thinks. The difference between the two versions of martini preparations is that if a martin is shaken, then the ice can “bruise” the gin, where as stirred is like “Whatever, don’t mess with my gin.” Therefore, the parallel to railroads, you may ask, is that railroads have only been stirring their operational processes for the last several decades, at least, by simply upgrading their primary core technologies, i.e. communications, positioning, and IT, most noticeably with the shift from analog to digital, and the integration of distributed decision making platforms with the back-office infrastructure. But, railroads have not truly shaken up their business processes, a.k.a. process reengineering (dynamic work order is a good example), to take advantage of how the operation can change with advancements in technologies. Arguably, the most critical example is that of the management of train movements as to the underlying means of functional vitality (how movement authorities are generated) and the efficiency that an be achieved with more timely and accurate positioning of trains to advance from crisis-based fixed block operation to that of proactive, flexible block.
In this light, the passing of the Rail Safety Improvement Act of 2008 that mandates PTC deployment across most of the freight and transit rail operations in the U.S. has been both a blessing and a curse. That is, the PTC mandate is forcing the railroads to deploy an industry-based wireless data platform with mobile IT platforms on locomotives. That’s super. But, the over-engineering of PTC and the lack of technology strategy across the industry, has dampened the progressive advancement of business processes that can use these technologies. Simply state, there is no business strategy in sync with a technology strategy, a.k.a. Strategic Railroading, in most of the railroads, yet alone with an industry perspective for freight operations.
So! Do you want to shake things up in your railroad – or your client railroads if you are a supplier? Or do you just want to stir the same old stuff, the same old processes, albeit with upgraded technologies? If you want to shake things up, then consider what can be done with virtual positioning and wireless data technologies. For one example, click on the VCTC category on the right side on the home page of this blog and review the postings.
Finally, permit me to add my personal notes on gin. With my 46 years of legally enjoying gin across the globe, I offer my following evaluation of several:
- Bombay Sapphire: a classic, a standard, not insulting to anyone.
- Hendricks: Just too much rose – only good for 1 a month
- Blue Coat: made in the U.S and excellent, but then again keep it down to several week if you drink your martinis dry.
- Gibson: my favorite when in France – can’t find it in the U.S.
In the spirit of full disclosure, I should note that I wrote this posting while drinking wine only. Wine is for thinking and writing … and Martinis are for neither.