Monday, January 29, 2007

Lalu's Railway : An IIM Case Study

A genuine image makeover attempt for the Railways Minister Lalu Prasad Yadav for the much advertised achievement of Indian Railways, which was heading towards bankruptcy(*Annul Report states otherwise) three years ago when he took over, now has a surplus revenue of Rs 11,000 crore.

And with success has come recognition. IIM-A and premier international business schools like Harvard and HEC Management School, France, have shown interest it into case studies for aspiring business graduates.

Lalu claims to have achieved this by taking simple steps like competitive passenger fares and reducing the wagons' turnaround time and also raised the carrying capacity of goods trains , which led to higher freight earnings.

Prasad's management mantra for the Railways has been:
"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."

"If you do not milk the cow fully, it falls sick," which he is practicing while running the Railways.

But thinking out of the box, one should really wonder if the largest railroad was indeed in debts???? The Annual Reports of Indian Railways stated a revenue surplus in all the years of its operation(only exception 1970-'71 & 1980-'81).

Finally are we looking at a verbal press reporting cum-advertisement of the managent guru against his political rival ex-rail minister???? a million dollar question...

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