Friday, May 11, 2012

Amtrak reorganizes Operations management

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Amtrak Friday unveiled its long-anticipated reorganization of its Operations management structure, saying it has created "four business lines to establish clear accountability for the financial performance of individual trains and to improve customer service delivery." The Operations reorganization plan will be rolled out in phases during the next 16 months, with full transition to the new structure in October 2013.

The railroads first step will be to hire general managers to run each of four business lines being established within Operations: Northeast Corridor Services, Long-Distance Services, State Supported Services, and Commuter Services. The four general managers will report to the vice president of operations, and will be accountable for the profit or loss of their respective train services.

Field operations will report up to the general managers through a new integrated management structure so that each one has the ability to control costs. Also, general managers will have an effective relationship with the groups responsible for delivering revenue so they have an ability to manage the overall financial performance of their routes, Amrak said.

"Two of the most important strategies set in the strategic plan are to establish business lines and reorganize the Transportation, Mechanical, and Engineering departments in order to create a single, integrated operating unit which will help us achieve our goals in safety and security, financial excellence and customer focus," said President and CEO Joe Boardman.

"Operations is not about moving trains; it's about moving customers who pay for our services and that must always be what drives our actions," stated Vice President of Operations DJ Stadtler. Stadtler added that when the reorganization is complete, fewer layers of management will help increase the speed of decision-making. The plan does not include any service reductions, he noted.

Each major terminal will have a single manager responsible for all train and station services and who is accountable for ensuring customers arrive at clean stations with excellent ticketing and boarding services, trains depart on-time with superior customer service, and equipment is clean, comfortable and reliable.

"We are creating ownership of our services within Amtrak and moving decision-making closer to the front-line, while keeping support functions centralized. This approach gives us the ability to better serve customers while maintaining efficiencies that will allow us to achieve our financial goals," said Stadtler.