turmoil within the Amtrak organization

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NE933

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I am reading reports from Trains.com and other internet discussion sites for rail, that the 160 buyouts in progress was, in my words, poorly focused, in that it lacked rhyme or reason. Key members with strong institutional knowledge are going, while those with much lesser abilities stay? And supposedly CEO Joe Boardman doesn't have a grip on what's going on, causing tensions to spiral out of control and communication to halt.

I'm worried about what impact this will have as Amtrak once again stuggles with a lean budget and tries to keep together the present national network.

Or, at least that's what I hope Amtrak management is doing. Anyone who can fill in the blanks?
 
I read the same thing. The thing that concerned me most was that apparently people inside Amtrak say the buyouts are compromising safety and operations (denied by the spokesperson, of course). It's interesting to see the accusations against Boardman, from most everything else I'd read, he was the best CEO thay'd had since Gunn retired.
 
Gee, what a surprise.

Offering a blanket voluntary separation incentive package (VSIP) to all non-agreement people in a poorly managed company with low employee morale is a prescription for disaster. Besides the shear numbers who rush for the door, the people leaving are often the best and most experienced people with lots of outside opportunities. The people staying are often (not always) the people who figure they're lucky to be working anywhere, even if that is Amtrak. Almost every company learned that lesson the hard way about 15 years ago when wide open VSIP's were the all the rage.

Today, VSIP's are focused to specific areas and limited in numbers. That prevents the organization from being gutted. I guess Amtrak did not get the memo.
 
It was my understanding that the VSIP application still has to be approved per individual and that it can be denied if it's in the companies best interests to retain the person and/or position.
 
It was my understanding that the VSIP application still has to be approved per individual and that it can be denied if it's in the companies best interests to retain the person and/or position.
That is easier said than done. We had the same thing in a package about 15 years ago. One fellow, a top performer, put in his paperwork. His request was denied due to business need. He was told he had to stay. He told them that if he was made to stay, they would have to fire him because he wants out and he will make life miserable if not released. Whatever value he had to the organization would be gone. He was allowed to leave.

Telling someone who has been a good performer they can't have the package and they have to stay while giving a lucrative package to an under-performer at the next desk does not work. VSIP's always had wording like that, but in practice if someone wants to leave, they are going to leave.
 
Yup! Usually the only way to actually retain someone eligible for VSIP is to give some additional incentive to keep them. In their eyes that incentive needs to be of greater value than the separation plan. Otherwise they will leave this way or that anyway. I know I would.
 
Supposedly CEO Joe Boardman doesn't have a grip on what's going on, causing tensions to spiral out of control and communication to halt. I'm worried about what impact this will have as Amtrak once again stuggles with a lean budget and tries to keep together the present national network. Or, at least that's what I hope Amtrak management is doing. Anyone who can fill in the blanks?
&
It's interesting to see the accusations against Boardman, from most everything else I'd read, he was the best CEO thay'd had since Gunn retired.
What exactly has Boardman himself specifically done to make Amtrak fans like him so much?
 
I read the same thing. The thing that concerned me most was that apparently people inside Amtrak say the buyouts are compromising safety and operations (denied by the spokesperson, of course). It's interesting to see the accusations against Boardman, from most everything else I'd read, he was the best CEO thay'd had since Gunn retired.
Actually having lived through two across the board Voluntary Separation cycles, all of the moaning and groaning and positives and negatives as observed so far are par for the course. No matter which way separations are done they never are perfect and nor do they have exemplary positive effect on morale. What is important is to do it and get it out of the way ASAP and then get along with life building the organization post-separation to function as intended. By its very nature the Chief Executive or the Board never has as much control as they or anyone else would like them to have, once you let the general separation cat out of the bag. The thing to see is how is the aftermath handled and managed, mor than what transpires in course of the separation.

As for CEOs, every CEO of Amtrak has has his cheering section and detractors and all have had their pluses and minuses. Boardman does not appear to be too far from the norm in any direction IMHO
 
Supposedly CEO Joe Boardman doesn't have a grip on what's going on, causing tensions to spiral out of control and communication to halt. I'm worried about what impact this will have as Amtrak once again stuggles with a lean budget and tries to keep together the present national network. Or, at least that's what I hope Amtrak management is doing. Anyone who can fill in the blanks?
&
It's interesting to see the accusations against Boardman, from most everything else I'd read, he was the best CEO thay'd had since Gunn retired.
What exactly has Boardman himself specifically done to make Amtrak fans like him so much?

I don't know exactly; if I had to take a guess, it's just happening to occupy the head office while the first order for new equipment in a decade was placed. Just dumb luck, really, and it's not something he did specifically, but I suppose it's human nature to credit a leader with accomplishments his subordinates carried out.
 
I don't know exactly; if I had to take a guess, it's just happening to occupy the head office while the first order for new equipment in a decade was placed. Just dumb luck, really, and it's not something he did specifically, but I suppose it's human nature to credit a leader with accomplishments his subordinates carried out.
Hmm. I don't really have anything against him, but neither do I know of anything that makes the man stand out in any significant way. Boardman's Wikipedia entry reads like a thinly veiled curriculum vitae without bothering to identify any specific projects or initiatives he's actually undertaken to make Amtrak substantially stronger or faster or safer or more dependable. I guess we can still be thankful that Amtrak didn't get stuck with Michael "Heckuva Job" Brownie.
 
I don't know exactly; if I had to take a guess, it's just happening to occupy the head office while the first order for new equipment in a decade was placed. Just dumb luck, really, and it's not something he did specifically, but I suppose it's human nature to credit a leader with accomplishments his subordinates carried out.
I'll disagree with this.

The fleet plan was really Boardman's idea, and was a priority of his since taking over.

The subordinates certainly did all of the legwork, but without Boardman's direction, the plan likely would not have been developed (or, if it had, not much would have come of it).

130 Viewliners don't order themselves, and Amtrak certainly isn't the kind of company where subordinates are going to work together to initiate a $300 million purchase without some kind of direction from the top.
 
I'll disagree with this. The fleet plan was really Boardman's idea, and was a priority of his since taking over. The subordinates certainly did all of the legwork, but without Boardman's direction, the plan likely would not have been developed (or, if it had, not much would have come of it). 130 Viewliners don't order themselves, and Amtrak certainly isn't the kind of company where subordinates are going to work together to initiate a $300 million purchase without some kind of direction from the top.
So Boardman spent his political capital pushing hard for more Viewliners. OK. Duly noted. Is there anything else?
 
hell, the employees should be thrilled they are being offerd a package at all, in the private secter they just tell you to pack your stuff and escort you to the door.
 
I'll disagree with this. The fleet plan was really Boardman's idea, and was a priority of his since taking over. The subordinates certainly did all of the legwork, but without Boardman's direction, the plan likely would not have been developed (or, if it had, not much would have come of it). 130 Viewliners don't order themselves, and Amtrak certainly isn't the kind of company where subordinates are going to work together to initiate a $300 million purchase without some kind of direction from the top.
So Boardman spent his political capital pushing hard for more Viewliners. OK. Duly noted. Is there anything else?

Well, if Boardman was the one pushing for the Viewliners, one would presume he was the one pushing for the new electric locomotives.
 
Well, if Boardman was the one pushing for the Viewliners, one would presume he was the one pushing for the new electric locomotives.
The reported order number several years ago for the electric locomotives was 20, just enough to replace the AEM-7 DC units. That become 70 ACS-64s when the contract was announced, enough to replace all the current units and expand the fleet capacity. The decision reflects the Fleet Strategy Plan with a goal of reducing maintenance costs with a more uniform fleet. A combined larger order will save money in the long run on maintenance, training, and unit purchase cost while a more cautious approach hedge your bets approach would have been to order only 20-30 new electric locomotives. And end up with 3 types to maintain.

The Fleet Strategy Plan and recently published Strategic Plan documents show that Amtrak does have a thought out road map. Did Amtrak have a actual viable plan to address their aging fleet needs 4-5 years ago?

Next up should be the announcement in the next few months of an order for 40 Acela coach cars. To be followed by the state orders for the 120 bi-level cars. I also expect that we will see a order for Viewliner II coach and café/diner-light cars in calender year 2012 as the debt burden from the Warrington era leases is paid off and reduced. The equipment and capacity needs are being addressed, if not as quickly as many would like.
 
To my untrained eye Amtrak's orders appear to be locking-in decades of refreshed but otherwise conventional technology with similar speeds, comforts, and reach as what we've already had for over a decade now. Although I'm happy that Amtrak is able to order anything at all it's still rather humbling to see how far the world's biggest economy has fallen behind and to know that our service levels are likely to remain stagnant for several decades to come.
 
If Boardman is entering a mental breakdown from the weight on his shoulders, he needs to step down tomorrow. My prayers are wish him, and with Amtrak. Every account of this latest crisis sounds graver than before. I don't know of who will fill his place, although the guy who ran the California network (Gene S.) Would be great.

Boardman did get a difficult order procurement of Viewliners and electric locomotives passed thru. But he also wasted time battling Keolis for VRE's love and affection, he waited too long to do the orders, and he messed up bigtime with the whole Al: the hi speed guy thing, when he could have organized crews to speed up the pace of fixing NEC's broken concrete ties, bumpy turnouts, and an electrical systems that fails twice a week. He earned the ire of many for not commenting one way or the other on Sunset Ltd east of NOL and for having a moribund and lethargic outlook on expanding trains with Superliner IIIs. He also collapses under the gun when faced with tough questions. W. Graham Claytor remains the high point that all Amtrak CEO's will be measured against, for good reason. We need a man or woman with military experience, yet the touch of an angel, and a love of trains, knowledge solid of railroading, human psychology, and politicaaly savvy. If you're out there please fly to Wash DC right away.
 
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If Boardman is entering a mental breakdown from the weight on his shoulders, he needs to step down tomorrow. My prayers are wish him, and with Amtrak. Every account of this latest crisis sounds graver than before.
And you're basing this on...what?

I don't know of who will fill his place, although the guy who ran the California network (Gene S.) Would be great.
Gene Skoropowski ran the Capitol Corridor, not the whole California network. The Capitol Corridor is a completely different type of operation than most of the rest of the system. Capitol Corridor-style operation wouldn't even necessarily work on the Pacific Surfliners, let alone the rest of the Amtrak network. Not saying Gene would be a bad leader, but just that successfully leading one doesn't mean you'd automatically be good at leading something else. Plus, I'm sure Gene's doing just fine with his consulting work and probably makes more doing that than he would as Amtrak president anyway.

Boardman did get a difficult order procurement of Viewliners and electric locomotives passed thru. But he also wasted time battling Keolis for VRE's love and affection,
Part of Amtrak's is business is to operate other passenger services under contract. Doing so, if done correctly and profitably, brings in money that reduces the total financial loss of the network.

he waited too long to do the orders,
Because the specifications for new equipment write themselves with a magic wand, the funding for such is automatically there, and dozens of suppliers were lined up ready to press the "ON" switch on their production lines as soon as Boardman said go.

and he messed up bigtime with the whole Al: the hi speed guy thing,
Everybody has their faults, but please explain what your issue is with the "hi speed guy thing."

when he could have organized crews to speed up the pace of fixing NEC's broken concrete ties, bumpy turnouts, and an electrical systems that fails twice a week.
Amtrak's crews are working as much as they can to fix all of the above, pending funding availability. I guess you're one of those who thinks that waving a magic wand (once it's done writing equipment specs, that is) automatically creates dozens of trained M of W crews and millions of dollars worth of M of W equipment so they can fix everything over the course of a weekend, to hell with the actual supply chain that needs to produce the new ties and track equipment, to hell with the billions of dollars needed to actually buy said equipment and materials, to heck with the fact that pacing yourself gives you a better value over the long run than doing it all at once, etc.

He earned the ire of many for not commenting one way or the other on Sunset Ltd east of NOL
This one is a valid complaint against Amtrak. Amtrak really ought to stop sticking its finger in its ears over this one.

and for having a moribund and lethargic outlook on expanding trains with Superliner IIIs.
You're person #1,532,452,895 that apparently has not read Amtrak's fleet plan. Again, these cars don't build themselves, the specs don't write themselves, and let me give you a cliff notes version of the fleet plan: Place the order for equipment most desperately needed first (replacing the heritage cars, life-expired electric locomotives, and expanding the miniscule eastern sleeper fleet), the pace the equipment orders in order to maintain a consistent supply chain. The thing you don't want to do is order a whole bunch at once, spending twice as much (or more) in production set-up costs, only to stop production after the initial large batch and do nothing for 30 years again, letting the supply chain go away, and then facing a bunch of cars that are life-expired all at once again.

Meanwhile, they have designed the specification on which a Superliner III order could be based, and the supply chain will start up in a couple of years once the states place their orders for new corridor cars.

You simply don't place orders for your entire fleet at once. Doing so is a big mistake.

He also collapses under the gun when faced with tough questions.
Examples?

W. Graham Claytor remains the high point that all Amtrak CEO's will be measured against, for good reason. We need a man or woman with military experience, yet the touch of an angel, and a love of trains, knowledge solid of railroading, human psychology, and politicaaly savvy. If you're out there please fly to Wash DC right away.
Yeah, Santa Claus, we need you.
 
To my untrained eye Amtrak's orders appear to be locking-in decades of refreshed but otherwise conventional technology with similar speeds, comforts, and reach as what we've already had for over a decade now.
And your point is what exactly? Wouldn't you say the same thing even if TGV's were ordered. You order what you need and can use effectively at any given time.
 
If Boardman is entering a mental breakdown from the weight on his shoulders, he needs to step down tomorrow. My prayers are wish him, and with Amtrak. Every account of this latest crisis sounds graver than before. I don't know of who will fill his place, although the guy who ran the California network (Gene S.) Would be great.
Drinking too much of the rumor mill Koolaid lately? ;)
 
In my opinion, the cost-cutting goal here is not meeting budget in 2012. Despite the belief to the contrary, Amtrak will receive more operating assistance in 2012 than they used in 2011. The problem is more fundamental. The central issue was touched upon in the reply above: the loss of the VRE operating contract (and later the loss of the Caltrain operating contract in the San Francisco Bay Area). Amtrak, for the first time, is facing competition – real competition. The loss of these contracts has opened their eyes to the fact that they are not competitive with other operators.

The big prize, and the big risk for Amtrak, is the operation of the intercity trains in California. There is nothing that prevents Caltrans from bidding out the operation of the Capitol Corridor, San Joaquin, or the Surfliner routes to a private vender. After the political and PR debacle with VRE, Amtrak threw everything they had into winning the Caltrain contract. They still lost badly. Caltrans already has a working relationship with the Union Pacific (arguably a better one than Amtrak), and there is no reason to think they could not do the same with BNSF. Large portions of the Surfliner route uses public lines. It is a genuine fear at Amtrak HQ that Caltrans will put operation of one or more of the California routes up for bid. If that were to happen today, Amtrak knows their cost structure is too high, their overheads are crushing, and they would lose. The California lines represent nearly 20% of all Amtrak ridership. The stakes are high.

Turning Amtrak from a bloated government entity into a nimble, competitive organization will not be easy. I think starting down that road is a primary goal with this round of cost cutting. From Amtrak’s perspective, the barbarians are at the gate, and they have to do something or they will eventually be relegated to being the operator of last resort for lines not attractive to anyone else.
 
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:hi: Excellent synopsis, thanks for posting! This could describe EVERY Department, Agency, Office in WAS if they all had to operate like Amtrak with the Blind (Congress) leading the Blind! (60 Mass) Hope they get their Act together BEFORE California does what the others have done and BEFORE Congress meddles anymore in the Operations of Amtrak! :help: Joe Boardman's gonna need every Political skill he has to manuever through this one, otherwise well be seeing a new CEO next year or so!!(Hes off to a good start after a couple of years of treading water!Not any easy job for sure! :excl: :excl: )
 
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Turning Amtrak from a bloated government entity into a nimble, competitive organization will not be easy. I think starting down that road is a primary goal with this round of cost cutting. From Amtrak’s perspective, the barbarians are at the gate, and they have to do something or they will eventually be relegated to being the operator of last resort for lines not attractive to anyone else.
Very good points Bill. Actually it is quite conceivable that a branch of Amtrak essentially becomes something like the provider of common timetabling and ticketing facility for a myriad of TOCs operating different services across the country. Amtrak might itself remain the TOC for some areas too. This will start looking partly like the British Rail Passenger Regulatory Authority looks like today, which operates the GNER franchise itself while supervising the contracts for many other franchises. The difference will be that individual states will continue to be able to run their own systems or contract them to whoever.

I dearly wish that a common fare instrument regime would be maintained, but am dubious about it. look at the incredible mess that the New York Tri-State region is. There are very few major cities in the first wold that are as screwed up as New York in terms of confusing and incompatible fare instruments and fare structures used by the various tax payer funded agencies vying with each other instead of cooperating. The airlines seem to be able to manage interlining way better than railroads do in the US.
 
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Thank you, PRR60, for adding your thoughts. This does make sense, really Amtrak isn't getting hammered with reduced funding as much as it is trying to improve it's competitiveness. Given we don't really know what is going to happen with the next election, it's better to prudently reduce costs now and hold on to as much of your own business as you can in advance.

To the point raised by several posters about Boardman's management style. I think the guy is strong willed, does not like long distance trains, does not want to expand long distance trains, but wants to make the LD trains he has run well. I do think he missed an opportunity when Obama first was elected to get more money from stimulus funding to upgrade NEC track, purchase locomotives quicker, etc... with Biden as VP, Amtrak had a window of opportunity they did not avail themselves of. Agree that it takes time to do designs and specifications, but that's as true of track work as it is road work. It did seem like the election and political environment caught Amtrak flat footed, and it's a bit of a miracle in my mind that they funding for rehabbing wrecked cars took place, as if it was more pushed in from outside than thought up inside Amtrak.

But with that, I agree with Jim above, being President of Amtrak is not an easy gig for anyone. Like hell, but without the special lighting and heating effects. He's done a decent job, has a good group of experienced young talent coming up the ranks, and if the restructure works out well, it could create more room for creativity and new ideas in the future.
 
In my opinion, the cost-cutting goal here is not meeting budget in 2012. Despite the belief to the contrary, Amtrak will receive more operating assistance in 2012 than they used in 2011. The problem is more fundamental. The central issue was touched upon in the reply above: the loss of the VRE operating contract (and later the loss of the Caltrain operating contract in the San Francisco Bay Area). Amtrak, for the first time, is facing competition – real competition. The loss of these contracts has opened their eyes to the fact that they are not competitive with other operators.

The big prize, and the big risk for Amtrak, is the operation of the intercity trains in California. There is nothing that prevents Caltrans from bidding out the operation of the Capitol Corridor, San Joaquin, or the Surfliner routes to a private vender. After the political and PR debacle with VRE, Amtrak threw everything they had into winning the Caltrain contract. They still lost badly. Caltrans already has a working relationship with the Union Pacific (arguably a better one than Amtrak), and there is no reason to think they could not do the same with BNSF. Large portions of the Surfliner route uses public lines. It is a genuine fear at Amtrak HQ that Caltrans will put operation of one or more of the California routes up for bid. If that were to happen today, Amtrak knows their cost structure is too high, their overheads are crushing, and they would lose. The California lines represent nearly 20% of all Amtrak ridership. The stakes are high.

Turning Amtrak from a bloated government entity into a nimble, competitive organization will not be easy. I think starting down that road is a primary goal with this round of cost cutting. From Amtrak’s perspective, the barbarians are at the gate, and they have to do something or they will eventually be relegated to being the operator of last resort for lines not attractive to anyone else.
Information! I dig it.
 
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