USE OF STRATEGIC PLANNING BY A RAILROAD

This presentation reviews some of the Strategic Planning processes that Conrail has successfully used. Importantly, the Northeast Rail Services Act (NERSA) modified the external environment in several ways so that management could focus on controlling internal and free market factors and events. The goal was clear. Earn a profit in 1982 and 1983 to establish a track record as a viable railroad. In striving to attain that goal, clear objectives were set up, including: minimum profit levels over an initial two year period; no more federal infusion of funding (except for pass-through of specific labor entitlements stated in the NERSA Act to be federal government responsibility, yet managed by Conrail); wage and salary restrictions for both management and agreement people; physical plant restructuring and reduction; continued capital investment program to increase productivity, efficiency and service; changes in services and rates allowed by the Staggers Act; and overall responsiveness to market and economic conditions.

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Filing Info

  • Accession Number: 00451423
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Aug 27 2004 9:58PM