11/14/2016
Rail News: Passenger Rail
— By
• CN's sizeable fixed cost-reduction effort in the early phases of restructuring;
• the company's successful privatization;
• completing five value-creating acquisitions to expand our footprint across North America;
• achieving much higher asset utilization levels with our precision railroad model; and
• executing our bold customer-centric agenda to become a true supply-chain enabler and to fully play our role as a backbone of the economy.I believe a culture of solid teamwork combined with a bold and clear vision, a passion to drive change in a positive way and highly disciplined execution were the key drivers of CN's success. I worked hard to embed those values in the culture at CN and in everything I did as the company's leader.Q: What does innovation mean to you, particularly in an industry that isn't often characterized as being a hotbed of innovation?A: I truly believe the railroad industry innovates more than people realize, and certainly more than the industry gets credit for today. For too many people, the railroad may look locked in the same old ways of doing the same old things; but take a closer look at CN, and it is easy to see innovation driving success in all facets of railway operations and at every touchpoint with its customers and stakeholders. CN has transformed itself through innovation and continues to lead the way by striving to find new ways to deploy resources more efficiently and reliably. Adding value for our customers by improving our services, and using technology to do so in a safer and more sustainable way, are the underpinnings of innovation in a mature industry like ours. We've used innovation to lower our carbon footprint, improve efficiency in the supply chain and drive improvements in safety, just to highlight a few. There is still a lot more to do along those lines, but the rail industry is on the right path.Q: What do you think railroads need to do to better serve customers?A: The railroad industry today operates on a solid footing, recovering these last 30 years after decades of decline in the second half of the 20th century. That industry-wide turnaround can be credited to government deregulation, strong investments in infrastructure and equipment, a more consolidated operating structure and sound business innovation. To sustain the recent success, I also believe the industry has to broaden its core efficiency focus to advance a more customer-centric agenda. That means embracing a true supply chain mindset.Our customers need reliable end-to-end transportation services to succeed. Very few goods are delivered in isolation by only one railroad or by one mode. In many instances, more than one railroad with a range of supply chain partners, such as steamships or trucking companies, are involved in safely delivering goods to end markets.I continue to see significant potential for meaningful improvements in service quality through the pursuit of an even more seamless supply chain. That means more supply chain integration, both from an information and execution stand-point. In the last six years, CN has embraced this new mindset to deliver significant benefits, notably through increased customer satisfaction and profitable growth.More industry players need to adopt this mindset and embark on this journey in order to accelerate the potential for positive change throughout key supply chains. It can be done by:
• breaking down silos between supply chain segments;
• leveraging technology to address customer touch points in a more holistic fashion;
• adopting the right service performance mindset; and
• continuing to invest ahead of the curve despite the current uncertain economic environment.I believe these elements are all critical to future success for the railroad industry, its customers and all their supply chain partners.Q: What do you hope your legacy at CN will be?A: I think I'll leave defining a "legacy" to others, but I do know what I hope for CN's future. I know CN will carry forward with the end-to-end supply-chain partnership approach I championed during these last six years leading the company. I also know CN will relentlessly continue to find new ways to innovate and add value for its customers.More than half of our current employees have joined CN during my tenure as CEO, an obvious workforce renewal challenge but one I continue to see as a rare opportunity. I'm confident that with the right customer-centric agenda firmly in place, this new generation of railroaders and leaders will be able to bring a fresh perspective and keep CN positively leading the way in the rail industry for many years to come.Email comments or questions to
Keywords Browse articles on Claude Mongeau Mongeau Railroad Innovator Award RailTrends CN Canadian National Class I railroads CN leadership CN executives rail leadership innovation rail innovation Luc Jobin Contact Progressive Railroading editorial staff.