Logistics as a cross-border- businessSecure Site  · Culture as prerequisite for success Cross-functional teams as first step to agile organization Agile Transformation • Cross

Rail Cargo Group

Logistics as a cross-border-businessHow to establish a common culture & operational excellence in Austria, CEE and beyond?

Dr. Clemens Först, RCG

Rail Cargo Group

Rail Cargo Group Cross-border rail logistics services beyond Austria and CEE

03.04.2017Verfasser | Thema 2

Sicily

Italy

Rome

Austria

Vienna

Czech Republic

Prague

Berlin

Germany

Luxembourg

BrusselsBelgium

AmsterdamNetherlands Warsaw

Poland

BratislavaSlovakia

Budapest

Hungary

Sarajevo

SloveniaMaribor

CroatiaZagrebBosnia and

Herzegovina

Athens

Greece

Belgrade

Serbia

Ankara

SofiaBulgaria

Turkey

Bucharest

Romania

Moscow

Russia

Rail Cargo Group� 18 countries spanning from the North Sea to

the Black Sea and Mediterranean starting from our markets in Austria and Hungary

Rail Cargo Group

Rail Cargo Group 5 interactive business models – inherently cross-functional business model

03.04.2017Verfasser | Thema 3

� Focus on core competence: railway logistics

� Five businesses, each with its own model and markets (internal, external)

� Bringing togetherskills, resources and responsibilities

Rail forwarding with specialist sector competence

Carrier for in-house traction provision

Wagon rental

Rolling stock maintenance

Operator for high-frequency long-distance routes

� ÖBB-Technische Services GmbHTechnical Services Hungaria Kft.

� Technical Services Slovakia, s.r.o.� TS-MÁV Gépészet Kft.

2

1

3

4

5

ÖBB-Produktion GmbH

Rail Cargo Group

Rail Cargo Group at a glance 2nd biggest rail logistics provider in Europe

03.04.2017Verfasser | Thema 4

� Turnover € 2.1 billions, € 76.6 millions EBIT

� Goods carried 109.2 million tonnes

� Tonne kilometres 29.1 billion tonnes-km

� Staff 8,260

� Locomotives 485 line haul locomotives

171 shunting locomotives

� Wagons ~ 26,000 (~21,000 in ownership)

� 5 rail business units 15 Rail forwarding units 4 Operator companies

10 Railway Undertaking1 Wagon lessor4 Rolling stock maintenance companies

Rail Cargo Group

Example Shuttle Duisburg – TekirdagCross-border and cross-functional challenges – especially compared to trucking

03.04.2017 5

distancekm

loco changes

12640735887372729 633 149

railway

Track construction works

Maintenance and revision of loco and wagons

Customsprocedures

Narrow terminal windows In Duisburg and Tekirdag

Proactive customer communication

Challenging lead time requirements – low buffers

Germany Hungary Romania Bulgaria Turkey

staff changes

Austria

Rail Cargo Group

Additional challengesthrough dynamic market environment

03.04.2017Verfasser | Thema 6

Increasingly challenging

customer demands

IntramodalcompetitionDeindustrialization of

Europe

Intermodal competition

New business models start ups

Rail Cargo Group

Culture as prerequisite for successRCG needs to have 2 cultures – focus today on high capability

03.04.2017Verfasser | Thema 7

Example Characteristics

� Expertise through team members, broad skill-set and flexibility required

� Facilitative management

� Key challenges: key staff retention, cross-border/-functional interaction

High capability

Planning, disposition, sales, customer communication

High consistency

� Expertise embedded in process, team members need very specific skills

� Directive management

� Key challenges: motivation and process adherence

Train drivers, maintenance operations

Rail Cargo Group 816.02.2017

Culture as prerequisite for successCross-functional teams as first step to agile organization

Agile Transformation

• Cross functional Team• Organizational hierarchy

(inner circle = Executive Board, outer circle = Customer)

Phase 1Self organised Testing

Phase 2Expanded Experiment

Phase 3Agile Organisation

Rail Cargo Group

Culture as prerequisite for successNew leadership paradigm trainer/team

03.04.2017Verfasser | Thema 9

� Selects the best team� Defines the strategy� Coaches the team� Provides boundary conditions for success

� Play the game (mostly alone)� Interact with each other and with trainer as

Trainer

Team

Rail Cargo Group

Wrap-up

03.04.2017Verfasser | Thema 10

� Highly international, cross-functional business with significant market pressure

� Agility key success factor for high capability part of organization

� Cross-functional teams proven to be successful after first tests

� Leadership paradigm needs to change to trainer/team setup

Rail Cargo Group 03.04.2017Verfasser | Thema 11