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Non-Tech : Union Pacific -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan D. Fears who wrote (15)	8/31/1998 2:06:00 PM
From: Jonathan D. Fears	Read Replies (1) \| Respond to of 45

NEWS: Union Pacific Announces Next Step in Transformation: New Strategic Organization August 31, 1998 01:55 PM OMAHA, Neb., Aug. 31 /PRNewswire/ -- Union Pacific Railroad UNP today announced creation of a new Network Design and Integration (NDI) organization to ensure the company consistently delivers reliable service to its customers. The new organization is the second step in Chairman Dick Davidson's plan to strategically transform the railroad. As part of the latest changes, the Board of Directors approved the appointments of Brad King to head NDI and Dennis Duffy to lead the Operating Department, effective September 1. "Regionalization of field operations, the first step in our plan, is well under way," said Davidson. "Putting NDI in place will mean a major change in the way we do business. We have assumed too often that the product was there when capacity, whether measured as people, equipment, track or facilities, was not. Best intentions aside, we failed our customers. Now NDI will design the process to assure that commitments match delivery capacity and that our transportation network is effective and efficient." The new NDI organization will stand separate from -- but equal to -- both the Operating and Marketing Departments. "King and Duffy will work together with Jim Shattuck and his Marketing team to assure that our railroad provides the single most important aspect of service in the eyes of our customers -- reliability," said Davidson. NDI will bring together into a single organization the responsibility for decisions relating to railroad services, the development of transportation plans to deliver those services and the allocation of capital and human resources to support execution of the plans. "Think of it this way: NDI will develop the game plan, Marketing will win the business and Operating will execute the plan," said Davidson. "It will be a well-balanced team effort, which should assure customers, employees and shareholders that we are extremely serious about a strategic transformation of Union Pacific." In changing jobs, Duffy and King will bring a diverse perspective to their new roles. "Dennis headed the strategic initiative team which conceived the flatter, decentralized Operating Department, so he will run what he created," said Davidson. Duffy, 47, has held positions in Operating, Marketing, Finance and Customer Service Planning & Delivery. He also led UP's Quality Program, which was selected as a finalist for the Baldrige National Quality Award. King, 50, has extensive operating experience and was responsible for the successful launch of the railroad's Harriman Dispatching Center and Risk Management organization. Said Davidson: "Brad's recent leadership of Operating gives him an in-depth understanding of our capabilities and how they can be applied to assure excellent service for our customers." Within NDI, development of two-year "rolling" business plans will be organized into three product groups. Heading these groups and reporting to King will be: Drew Collier, Vice President, Manifest Products -- Formerly head of Agricultural Marketing. Paul Conley, Vice President, Premium Products -- AVP Law Department, Trailer Train board member. Joe O'Connor, Vice President, Bulk Products -- Formerly Corporate Controller. "NDI will have a diverse and non-traditional group of leaders to work with King," said Shattuck, Executive Vice President Marketing. "Individually, they are decisive, thoughtful and highly professional. Together, they will assure that commitments made to our customers are promises kept." The NDI team will immediately begin to organize the new work groups and finalize an implementation plan. NDI will be formed principally from the existing Customer Service Planning & Delivery Department (CSP&D). Most current CSP&D functions will be phased into NDI over the next few months. Exceptions will be the National Customer Service Center, which will report to Shattuck, and Crew Management, which will continue to report to Duffy in Operating. SOURCE Union Pacific Corporation