Network Rail is the organization entrusted with managing the rail network of England, Wales, and Scotland, focusing on three primary pillars: maintaining tracks, ensuring route safety, and driving innovation and digitalization in train operations.
Upon Marc Carne’s appointment as CEO of Network Rail, he identified issues such as projects exceeding budgets or missing deadlines. Previous attempts to address these challenges with large consulting firms had proven unsuccessful.
We conducted an analysis of the conflicting interests between short-term goals (ensuring timely train services) and long-term objectives (track maintenance and renewal) at the highest level of the Board of Directors. This led to the alignment of management strategies to balance these interests effectively.
Furthermore, we provided guidance and support for Network Rail’s two most challenging projects, resulting in their successful completion. Valuable insights were drawn from these experiences, informing the organization’s approach to project management across the board.
These initiatives marked a significant shift in project management practices, resulting in notable performance improvements across Network Rail.
How do you unite seemingly opposing interests?
Upon assuming the role of CEO at Network Rail, Marc Carne confronted a daunting challenge. Network Rail, responsible for managing the entire rail network of the United Kingdom, operates with a substantial annual budget of £42 billion. Their responsibilities encompass maintaining and electrifying routes, particularly where diesel is still utilized, alongside fostering digital innovation. The overarching goal is to uphold network safety and ensure punctuality across all train services.
In contrast to the Netherlands, where rail contracts with users specify terms, the UK operates within an environment of intense competition. Here, companies purchase concessions to operate on designated sections of the rail network, with a limited timeframe to recoup their investment. Consequently, there is less direct incentive for ongoing maintenance, as the primary emphasis lies in maintaining punctuality and adhering to schedules.
Upon his appointment, Marc Carne inherited an organization where projects frequently exceeded timelines and budgets. Despite previous engagements with major consulting firms, solutions proposed often comprised extensive documents that did not align with Network Rail’s hands-on operational nature, particularly outside its London headquarters.
To address these challenges, Marc Carne sought a more practical approach and reached out to fellow CEOs for recommendations. Bolster emerged as a potential partner, known for their hands-on approach to addressing complex challenges. Subsequently, we engaged with Marc Carne and Steve Featherstone, Network Rail’s performance manager. When we heard the issue, we summarized it as: how do you unite seemingly opposing interests? How do you ensure that trains run on time while maintenance and renewal continue?
The performance of two projects was doubled.
We proposed to provide guidance for two of the most challenging projects within the rail network. The first project involved the electrification of a line running from London to the west coast. The second project centered on the renewal of ballast beneath the rail, managed by a business unit within Network Rail.
The rail network utilizes concrete beams supported by stones beneath, which provide structural integrity and facilitate water drainage. However, due to the vibrations generated by passing trains, these stones gradually deteriorate, necessitating periodic replacement. To achieve this, Network Rail operates a specialized train, over a kilometer in length, known as the high-output system. This train lifts the entire rail, replaces the worn stones, and reinstates new ones. Both the electrification and high-output projects were scheduled exclusively during nighttime hours when trains were not in operation according to the established schedule.
Working closely with the various stakeholders and subcontractors involved, we developed a new approach to expedite the setup and breakdown of nightly maintenance or renewal programs. This innovative strategy led to a significant increase in the performance of both projects, effectively doubling their output.
At the organizational level, we examined the departments responsible for ensuring punctual train services and maintenance, along with the associated key performance indicators (KPIs). We then facilitated alignment between management levels, ensuring cohesion from the Board of Directors down to project execution. The insights gleaned from the two projects were subsequently integrated into Network Rail’s broader project management framework.
This collaborative effort fostered a cohesive connection throughout the organization, linking strategic decision-making at the highest levels with operational practices on the ground. By aligning management approaches and project methodologies, Network Rail optimized its capabilities to deliver on its core objectives effectively.
