Guest speaker: Dale Lewis and CSX

Here are the lessons about CSX delivered by our guest speaker Dale Lewis.

A Well-Run Transportation Company
D. B. Lewis – 15 August 2005

1. Creates a set of strategies that enable long-term success.
2. Anticipates the range of changes and challenges it may face.
3. Has a clear understanding of risks and actively accepts or mitigates them.
4. Has a clear strategy for asset ownership and flexibility.
5. Develops the ability to sense changes and challenges.
6. Develops a set of behaviors that enables quick, useful responses to change.
7. Has a clear definition of success on every major issue.
8. Has excellent lines of communication with its customers and suppliers, in both
personal communications and in the electronic sharing of data.
9. Works to understand its customers and their challenges.
10. Knows its core strengths and how they add customer value.
11. Avoids contracts that are one-sided and outside of the market, generating bad
vendor, customer or employee behaviors.
12. Prices to capture value and to ensure corporate viability (Cash, ROIC)
13. Is aware of its environment and influences it where possible.
14. Develops clear, measurable goals that support the long-range plan.
15. Clearly communicates goals within the organization.
16. Structures its data and measurement systems so that customer- focused
measures can be produced and then drilled to enhance operational
improvement.
17. Works to simplify its processes and increase reliability.
18. Creates a culture of disciplined execution, focused on its core strengths.
19. Delivers the agreed-upon level of service performance.
20. Understands the value of its scarce resources and uses them well.
21. Ensures resource availability with good planning, communication and
economics.
22. Rewards employees and suppliers for excellence.
23. Delivers positive financial results to its owners.
24. Encourages continuous learning at all levels.
25. Uses its lessons-learned to ensure that it chooses well in the future.