Organisational Options Before Indian Railways : Reform And Restructuring-

N.Vittal, Retd. CVC

 

There is a Kikuyu proverb which says, 'do not destroy anything unless you can replace it with something of value'. We should bear this ancient African wisdom in mind before we think of the organizational options before Indian Railways which has built an excellent track record over a period of a century and a half. It is perhaps one of the largest railway systems in the world. Inspite of human error, not to speak of the gyrations of political uncertainty, Indian Railways is an organization about which every Indian can be proud. Therefore, the first point I would make is that we must keep this fact in mind and we should not think of anything or consider any option which by way of reform or restructuring which ultimately may prove to be a case of the remedy being worse than the disease.

There is another point also I would like to make before we examine the issue of reform and restructuring. This is the issue of ownership. Indian Railways today is a government organization. Especially after 1991 and the current wave of globalisation, it is fashionable to think that the private sector is somehow a panacea for inefficiency and privatization by itself can bring better results. In fact, the experience world over shows that ownership ultimately does not matter. There are only two types of organizations. (i) Efficient, productive and competently run organizations and (ii) inefficient, wasteful and loss making organizations. Our objective should be to ensure that Railways become more efficient, more productive and more profitable without going in to the question of ownership. The issue of ownership is particularly highlighted by the experience of Britain in their effort of privatization of Railways. The universal consensus about the UK experience is that the situation has become worse after the British Railways were privatized. I was recently in England. The London Tube about which I was so happy in the past has today become a by word for inefficiency and poor service. All these, thanks to the privatization done in an unimaginative and incompetent way.

With these two points clear in our mind therefore, we can look at the issue of reforms and restructuring of Indian Railways. Mao Tse-Tung said that a banquet can be eaten only by mouthful by mouthful. In a large and more than a century old organization like Indian Railways therefore, instead of trying to do something dramatic and drastic, it is better to follow Mao Tse-Tung's gorilla tactics of a step by step approach which can bring a change in the long run and at every step of the way the benefits which flow are automatically realized. In fact, there have been many commissions, committees and experts who have gone into the question of restructuring of railways. The reason why nothing has happened on the ground is because apart from our Indian tendency for only talking and not doing anything in action (or our policy of announcement and talking and articulation is equal to achievement.) The stakes involved are so high that a root and branch overnight change may prove to be more disastrous and given one more example for the truth and validity of the Kikuyu proverb I mentioned above.

I would therefore, suggest that instead of thinking of a grand strategy of restructuring and reforms of the Railways, our efforts must be to begin with the Japanese idea of Kaizen or continuous improvement. Let us not look at the Railways as a big organization and try to reform it as a whole. We are likely to be in the position of the well minded generous lady who came to Bop Hope with the question, 'I want to do something clean and big'. Bop Hope's reply was, 'go and wash an elephant'.

I would suggest that we must begin by examining each activity and see what improvement is possible. Improvement in productivity and quality of service must become the taraka mantra for railways. I would, therefore, suggest that we should look at every aspect of railways and this can provide an opportunity to release a million minds into the improvement of Railways.

After all, Railways employ nearly 1.5 million people. As I see, it is possible for every person in Railways to see how he can improve his particular area of work. The question arises about to improve the system. In fact, having served more than four decades in government service, I have come across many who say, �what improvement can I make, because I am not in a position of policy making or in a position with authority?� It is not necessary that a person has to be in a position of authority or command to get reforms going. In fact, it is possible for every individual who has imagination and a pragmatic sense to bring about improvement.

Speaking from my own experience in life, both in private life and official life, l would suggest that the first requirement for improvement of Railways is that everybody in Railways must adopt what I would call the 'Vittal philosophy of action.' My philosophy has three elements which I have found to be very useful in life. The first is a positive attitude. The second is a creative attitude and the third is a sense of sound commonsense. If each one of us in the Railways apply the Vittal's philosophy to the situation he is facing, it is possible to bring about a dramatic improvement in every arena. The advantage of the strategy I am suggesting is that this does not require appointment of any new commission or a committee. This does not require for any dramatic change in the rules of business. It does not above all call for any additional allocation of financial resources. All that is required is that every railway employee should be encouraged to think of how improvements can be brought about.

Does it mean that we are going to release chaos? Certainly not. What is required is the systematic attempt at which people will feel free to experiment in their own area. For instance, any thing that does not involve any additional expenditure can be automatically permitted, so that way there is no risk of financial crisis. Any action that would be taken without calling for a redelegation of power or reforms can be avoided. This is possible.

Then we come to changes that may have a bearing on other wings of the organization. Here one should realize that any change we make is bound to have some impact on other parts of the system. And therefore, whenever any change is brought about, it should be possible to bring about the changes after consultation with the parties concerned.

I would therefore, suggest a very unusual method of how to get started in this reform process. I would suggest that every wing of the railways and railway officers must be asked to point out what is wrong with all other departments of the Indian Railways except his own. As we are very good at finding the fault of others rather than our own, then within a couple of months if this exercise can go on, we will have created a matrix and a database of all that is perceived to be wrong with the Railways. This database can be further supplemented by asking the public who are interacting with any railway office to give within a couple of months what they feel is wrong with the system.

Once we know the criticisms, we can start the process of improvement. Here we can learn from what the Japanese Auto major Toyota did. Long ago I read that every complaint is treated by Toyota as a suggestion for improvement. The same principle can be adopted in the railways. Thereafter, we can go to the next stage of how to develop options to tackle the problems. Here the standard industrial engineering concept of method study and work study should help us. We must ask the following five questions and see whether the system can be improved. These five questions are :

(i)Can the process or the practice be eliminated?(ii)Can the process be modified?

(iii)Can the process be re-sequenced?

(iv)Can the process be substituted with somethingelse?

(v)Can the process be combined with some other process so that the time and money are saved?

Applying this five point formula, it will be possible to generate thousands of ideas right across the spectrum of the Indian Railways which will provide a very good source for the next stage of implementation and realizing benefits.

In the process, once success is achieved in one area, there will be a tremendous improvement in the morale right across the organization and then we will be able to tackle more difficult problems.

Another starting point for our exercise must be to look at the umpteen reports on Railway reforms which are gathering dust in the archives of railways and see whether there are ideas which can be implemented. This is for the people at the top of the railways to undertake this exercise and see what can be done.

In other words, instead of thinking of improving the railways by reforms and restructuring, we should make Indian Railways continue to perform and function and serve the people of the country, improving its performance continuously by internal regeneration of enthusiasm and rededication to work. In this effort, of course, any number of ideas can be tried. Information technology is a very good source. Railways perhaps are probably the best example in the world today for applying IT for the benefit of largest number of people in any government organization. I am referring to the success we have had with the computerisation of the passenger reservation system. Another remarkable success of the railways is the initiative of the Catering Services Corporation to provide facilities of booking tickets anywhere in India for any train. Perhaps, the most imaginative use of internet today.

In fact, when we talk of issue of reforms and restructuring of organization of Indian Railways, we must realize we are starting on a very sound basis. We have with us a very healthy, reputed organization which has survived the vicissitudes of political, administrative and social changes over a century and a half. We can therefore, look with confidence for the future. Nevertheless, in all our efforts we must remember the age old advice of the Traitiya Upanishad

Sahana bhavatu
Sahanau bhunaktu
Saha Viryam kara va vahai
Tejas vina maditha vastu
Ma vidh visha vahai
Om Shanti! Shanti! Shanti!


(Let us come together.
Let us enjoy together.
Let our strengths come together.
Let us move from darkness to light.
Let us avoid the twin dangers of misunderstanding or hatred.
That way lies progress)



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