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Laloo School of Common Sense Management

Laloo School of Common Sense Management. "Hum bhi dariya hai, apnaa hunar hame maloom hai, jis taraph bhi chal padenge, rastaa ban jayega."

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Laloo School of Common Sense Management

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  1. Laloo School of Common Sense Management

  2. "Hum bhi dariya hai, apnaa hunar hame maloom hai, jis taraph bhi chal padenge, rastaa ban jayega." • Suceeded with the The Common Sense Management Principles (TCSMP)Look at the result of TCSMP.Indian Railways from a loss-making operation to a public sector unit that stunned everyone by earning a profit of Rs 15,000 crore (Rs 150 billion) in 2005-06 • -IR was considered to be heading towards bankruptcy, as per the report of Expert Group on Indian Railways The fund balance at the end of 1999-00 had reached a low of Rs 149 crores, improving to Rs 5228 crores by 2003-04 and over Rs 12,000 crores by the end of 2005-06

  3. Principle no-1 Catch the bull by the horn • My mother always told me not to handle a buffalo by its tail, but always catch it by its horns. And I have used that lesson in everything in my life, including the Railways." –Lalu Prasad Yadav • When some Board members expressed apprehensions in increasing wagon loads, a decision which alone generated Rs 7,200 crore (Rs 72 billion), Prasad said: "Wagon is the bread-earning horse of the Railways. Load it adequately. Make it run and don't stable it." • Direct Action: To build alignment for execution, the MR(Ministry of Railway) communicated to the GMs, setting and reinforcing priorities. For example, on March 27, 2006, a letter urged a freight loading target of 800 mt and internal generation (fund balance) of Rs 20,000 crore. • A letter was sent to the GMs which included sharp actionable statements in the areas of freight, passenger, and parcel and catering.

  4. Principle no. 2 Sweat the Assets • "If you do not milk the cow fully, it falls sick," which he is practicing while running the Railways. He is achieving his targets not by increasing fares or downsizing, but by increasing traffic • open up container train wagons to private players • air-conditioned 'Garib Raths' with low fares retaining his pro-poor image. • -running 24-coach trains • -deploying additional coaches in well-patronised trains and even additional trains.

  5. Principle no. 2 Sweat the Assets-2 • "If you do not milk the cow fully, it falls sick," which he is practicing while running the Railways. • freezing freight rate increases • rationalising the commodity classification to benefit the high value goods and charge more from the low rated commodities. • The tatkal scheme, targeted at the 'last minute' passenger was extended one day to three days and then five days. This offered a window of opportunity to increase earnings through differential pricing, based on time of booking

  6. Principle no-3-Employee Welfare Kaamgaaro ki lagan se, hai tarakki sabki, hausla inka badhao, ki yeh kuchh aur baddhe • Given the financial performance of the IR, the unions wanted a doubling of the contribution to the staff welfare fund. Mr Laloo Prasad offered them nine times from Rs 26/- per employee to 222 per employee. more. • When he saw that gangmen who had to walk on the stone ballast were not provided footwear, he ensured the same. • Whenever concerns were raised about downsizing , he maintained: "Downsizing may make IR thinner, but not necessarily healthier • Only Laloo Prasad can think of constructing 100 community halls for non gazetted employees for occassions like marriages and other family functions.

  7. Principle no-4- Delegation and Non interferencePrinciple no-4- Delegation and Non interference • Mr Laloo Prasad is a non-interfering, yet aware, He sets the goals and expects results The current Board Members function as a cohesive entity, due to the force of expectation on legitimate initiatives • Mr Laloo Prasad is a non-interfering, yet aware, He sets the goals and expects results The current Board Members function as a cohesive entity, due to the force of expectation on legitimate initiatives

  8. Principle no.5-Customer Service mun me bhav seva ka, hotho par muskan, Behtar seva wazib daam, rail ki hogi yeh pehchan." • Some of the best customer service came from the Railways • -ETickets-avoiding the long quue for reservation • -Auto upgradation- reducing the corruption and the malpractices of the TT. • -Launching of airconditioned –garib rath • -The improvement of the railway stations • -Simplification of the Railway reservation form

  9. Principle no.5-Image Building: Media • Given his penchant for wit and one liners, Mr Lalu Prasad was sought after by the media. Whenever there was an opportunity to highlight an initiative or an achievement, advertisements were released. • “In recognition of his initiatives, Mr Lalu Prasad has also been ranked as the second best minister in the current cabinet [India Today, May 29, 2006]. • (This ppt has drawn material from Mr. Laloo Prasad's railway budget speech and the study done by IIM-A Prof G Raghuram on Indian Railways turnaround)

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