Change Management and Lean Training Generated over $50M Savings in 3 Years for North American Railroad

Client Context

A Class 1 Railroad with geographically dispersed operations was struggling to transform its legacy culture and integrate acquired business components. Despite previous change management efforts, results were limited due to:

• A highly unionized workforce resistant to change.
• A complex network of procedures, policies, and performance metrics.
• Inability to meet investor expectations for key metrics such as transit time, asset utilization, and mechanical reliability.

The company needed a structured and scalable approach to change management that would align leadership, engage employees, and drive performance improvements.

Key Challenges

• Cultural resistance to change across acquired and legacy operations.
• Union skepticism toward operational transformation.
• Lack of standardized skills and performance expectations across the workforce.
• Ineffective past change management efforts with no long-term sustainability.

Approach & Key Success Factors

1. Defining a Clear Vision and Roadmap

• Worked with top management to create a compelling vision and strategic roadmap for cultural transformation.
• Defined performance expectations to align leadership and frontline teams with operational goals.

2. Identifying Skill and Performance Gaps

• Conducted organizational skill assessments to pinpoint gaps in leadership, operations, and frontline execution.
• Developed targeted training programs to address knowledge and capability deficiencies.

3. Tailored Lean Training Across All Levels

• Delivered customized training programs from senior executives to frontline employees.
• Designed and implemented a Train-the-Trainer approach, ensuring internal capability for continuous learning and sustainment.

4. Pilot Change Projects & Large-Scale Rollout

• Launched 20 pilot projects across key operational areas to test and refine change initiatives.
• Simultaneously rolled out Lean transformation in eight top yards, impacting 3,000 employees and 200 work areas.
• Engaged unions proactively, gaining buy-in through collaborative problem-solving and shared ownership of improvements.

5. Implementing a Performance Management System

• Installed a structured performance management system to sustain progress and drive accountability.
• Established key performance indicators (KPIs) to track, measure, and reinforce continuous improvement.

Results

Over $50M

In savings within the first three years of implementation.

50+

Trained internal change agents now leading and expanding Lean initiatives.

Sustained

Operational Improvements across yards and business units.

Positive

Union participation and workforce engagement in Lean initiatives.

By integrating change management with Lean principles, EFESO helped the client achieve significant cost savings, enhance workforce engagement, and build internal capability to sustain operational excellence for the long term.