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Case Study 6 CSX: appreciating the cost–benefit trade-off for employee change
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Over the last two decades or so, the railways industry roadmap has witnessed considerable change. Successful railway managers have been changing what Peter Drucker calls ‘the business theory’. Driving this change is not technology, because it remains essentially the same – diesels still pull cars on four-wheel trucks, using air brakes and knuckle couplers. What has changed is attitude. Those companies that could change did, and evolved into companies that we see on the map today. Those who did not perished. One of the success stories in managing this transition is the American railtrack company, CSX. The big question is how does a railway company like CSX change its

business theory? CSX’s success can be attributed partly with coming up with a new paradigm and partly with being able to firmly implant it within the company. In the management of this transition, internal marketing was a crucial step in the process of change. Otherwise, railway staff who felt threatened by a change in the status quo would have resisted change tooth and nail. The only way to market change internally was to make it non-threatening and to show employees how it meets their needs for increased productivity, more job satisfaction, or even perhaps more tangible rewards.