BNSF Staffing and Reorganization

Transcription

1 BNSF Staffing and Reorganization Allen M. Stegman General Director, Environmental and Hazardous Materials NAEM Benchmarking January 17, 2013

2 Agenda About BNSF and Rail s Environmental Benefits Organizational Challenges and Issues to Resolve Process Final State October 17,

3 BNSF is a Leading U.S. Railroad A Berkshire Hathaway company 32,000 route miles in 28 states and two Canadian provinces Annual Revenue ~ $20B Over 40,000 employees Over 6,000 locomotives 13,100 bridges and 87 tunnels Moves one-fourth of the nation s rail freight Operates over 1,400 freight trains per day Serves over 40 ports Unlike other forms of transportation, BNSF trains operate on an infrastructure financed almost entirely by the railroad October 17,

4 Key Benefits of Rail Transportation Fuel Efficiency On average, trains are four times more fuel efficient than trucks (~500 miles/gallon per ton of freight) Highway Gridlock Reduction A typical freight train takes the equivalent of 280 or more trucks off our highways Cost Efficiency In general, shippers pay less for shipping via rail than for other forms of surface transportation Environmental Friendliness Freight railroads transport over 43% of the nation s freight volume, but account for just 2.1% of all transportation-related greenhouse gas emissions October 17,

5 Organizational Challenges and Issues to Resolve Corporation Facilities and Network (and other property and equipment holdings) Matrixed corporate structure with operations, transportation, and engineering with regions, etc. o Environmental, Safety, and Health all separate groups reporting to separate VP s Environmental (Prior State) - new functional VP Regions based on responsibility (i.e. environmental operations and remediation) and HQ based programs (environmental engineering/program development, audit and ER/HazMat) Lean staff (~45), no bench strength and retirements (300+ years of RR experience lost in last 3-4 years) Limited opportunities for advancement based on structure Responsibility overlap (i.e. sustainability, reporting, metrics, etc.) Environmental legal support from BNSF legal department October 17,

6 Evaluation and Design Process Benchmarking (primarily other Class I RR s) Evaluate roles, structure and staffing Normalize Establish/Review current and future goals, objectives, KPI s and roles and responsibility evaluation Executive review and input/feedback Goal/plan design for the future and provide better task and functional alignment Evaluate risks and emerging issues Work/life balance issues Development issues Identify strengths October 17,

7 Final State 2 phased hiring plan approved by Executives (with checkpoint after phase I) Overall staff increase of ~30% Additional distinct functional areas established with Directors/Leaders Engineering (Capital, WWTP s, etc.) Property and Project Controls (Leases, Acquisitions/Divestitures, Metrics, Financial Controls, etc.) Permitting, Planning and Sustainability (New Projects, Emissions, Permitting, External Reporting, etc.) Compliance (Operations and Facility Compliance) October 17,

8 Final State Added new senior and junior level positions (to provide opportunities and bench strength) Focus on emerging issues Focus on activity/risk intense issues and regions Legal staff brought into group and they now manage audit program More formalized mentoring and on-boarding process Improved succession planning Number of direct reports optimized October 17,

9 Key Takeaways Benchmarking is critical (when placed into context of culture and needs of your organization) Map current and desired future states with risk and emerging issues in mind Re-evaluate existing talent in terms of desired future state (what do people do best) Design for flexibility/adaptability/change October 17,

10 October 17,