TURNAROUND-A PAIN OR GAIN
TURNAROUND OF INDIAN RAILWAYS
PRESENTED BY:
Akash Jindal
Turnaround
•“The implementation of a set of actions required to save an organization from business failure and return it to operational normality and financial solvency.”
•Turnaround management usually requires strong leadership and can include corporate restructuring and redundancies, an investigation of the root causes of failure, and long-term programs to revitalize the organization.
Turnaround- A Gain
•Brings everything from new starting
•All the loopholes are eliminated
•Preventions from insolvency can be made
•New sources and processes are introduced
•Weaker workforce can be eliminated
•Competitive advantage can be gained
Turnaround – A Pain
•Difficulties in introducing and managing new resources•New resources may also have some loopholes •Difficulties in implementing new processes•May require huge financial investments and things can go in wrong direction•Some experienced and worthy workforces can be lost•May not lead to overall success
Conclusion
Pain Gain
Indian Railways The world’s third largest railway, carries 13 million
passengers each day and it has
Introduction to IR
Why turnaround???
How it revolved?
Conceptual Framework
Retrenchment
Strategy Effect
1 ) Reviewing value adding business (Catering, parcel service )
Cost saving > Rs 1,000 crores /annum
2) Reduction of wagon turnaround time
14 % time saved
3) Outsourcing Improved efficiency
Repositioning
Strategy Effect
1 ) Developing new products (Double stack containers)
Saving: 7% on capital cost , 25% operational expenses
2) Product differentiation E-ticketing, new passenger coaches
3) Focus on revenue growth(like enhancement in loading capacity, cash incentive to free up wagons)
Freight revenue jumped from 233 m(2001) to 417 m(2007).
Re- Organization
Strategy Effect
1) Changes in planning system Improved efficiency
2) Extent of decentralization ( like Zones raised from (2003) to 16 (2005))
Improved vendor satisfaction
The Turnaround Effect
WOW LALOO BHAI!!!NOW MAMTA BEHAN …
What`s next now???
Cut down the Accident rate Hi tech systems Better infrastructure Proper recruitment and
training of employees Disaster management Less political interference Increased security
assurance
As per our thinking…
THANK YOU!!!
ANY QUERIES ????
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