Vadim Shmal "Railway transport business processes modeling. Textbook"

Vadim Shmal Ph. D. Associate ProfessorRUSSIAN UNIVERSITY OF TRANSPORT (MIIT)Olga Madyar Ph. D. Associate ProfessorRUSSIAN UNIVERSITY OF TRANSPORT (MIIT)Pavel Minakov Ph. D. Associate ProfessorRUSSIAN UNIVERSITY OF TRANSPORT (MIIT)

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update Дата обновления : 14.06.2023

ToВ fulfill these goals, the new department focused on the following main areas ofВ activity:

1) development ofВ corporate policy ofВ internal and external customer orientation ofВ the Russian Railways Holding;

2) organization ofВ the development ofВ new transport products and the formation ofВ an optimal portfolio ofВ services provided byВ the Russian Railways holding toВ external customers, taking into account the exclusion ofВ intra-holding competition;

3) coordination ofВ the interaction ofВ business units inВ order toВ ensure the balance ofВ their activities aimed at business development and customer orientation;

4) development ofВ tools for researching the needs ofВ internal and external customers and assessing their satisfaction with the quality ofВ services;

5) development ofВ industry standards and creation ofВ aВ unified catalog ofВ internal and external services ofВ the Russian Railways holding.

The Department ofВ Business Development and Customer Orientation was abolished inВ 2015В and now the model ofВ aВ customer-oriented company is formed byВ the corporate system ofВ internal and external customer orientation ofВ Russian Railways.

2.3В Corporate system for the development ofВ customer orientation formation ofВ the Russian Railways Holding

In 2010, the concept of «Customer orientation» was fixed in the Model of corporate competencies of JSC «Russian Railways» «5K+L» as one of the main values of the Company’s brand. The world does not stand still: technologies are rapidly developing, the level of digitalization of transport is growing, customer needs are changing, which means that the strategic objectives of the company are also changing. In order to develop and improve the customer-oriented approach in JSC «Russian Railways», extensive analytical work was carried out with the participation of a large number of managers, including top managers of the company, and in 2019 an updated model of corporate competencies of JSC «Russian Railways» was approved, which consists of 8 blocks: innovativeness; customer orientation; responsibility for the result; organization of work process; teamwork and mutual assistance; development and care of employees; integrated thinking; effective communication.

Each ofВ the 8В corporate competencies has aВ different interpretation ofВ concepts for each level ofВ employees and is divided into two types: professional and corporate.

There are four management levels ofВ the Russian Railways holding company. The first three levels include managers, the degree ofВ importance begins with the first level ofВ managers, which is evaluated at the Corporate University ofВ JSC В«Russian RailwaysВ», the second and third levels include positions from the deputy head ofВ the linear enterprise toВ the deputy head ofВ the service. The fourth level includes workers and specialists ofВ the holding.

Personnel evaluation is one ofВ the main tasks for aВ systematic unified personnel reserve, since inВ the process ofВ this procedure, the qualification knowledge ofВ employees and the assessment ofВ the effectiveness ofВ performing due duties are determined.

There is aВ single stage inВ the development ofВ customer orientation inВ large Russian and foreign holdings.

Stage 1. Understanding customer orientation.

Stage 2. Education ofВ customer orientation.

Stage 3. Customer orientation training.

Stage 4. Reward ofВ customer orientation.

For the successful implementation ofВ the principles ofВ customer orientation, 5В key components are identified, which are fundamental for obtaining aВ productive result (Figure 2.2)В [5].

For fruitful and methodical work aimed at the development ofВ customer orientation, it is necessary toВ determine due attention toВ the study ofВ the principles ofВ customer orientation and the basics ofВ organizing work with internal and external clients ofВ the Russian Railways holding.

2.4В Internal and external customer orientation ofВ the Russian Railways Holding. Customer orientation principles

The concept ofВ В«clientВ» is interpreted not only inВ relation toВ the consumer ofВ the service or the buyer, but can also be used toВ identify the interests and internal customers. The achievement ofВ strategic goals byВ the company is impossible without meeting the requirements for the entire transportation process and its participants. Therefore, the concept ofВ customer orientation is considered toВ be complex, which includes an external and internal component (Figure 2.3).

External customer orientation is responsible for the strength and long-term relationship with customers, as well as their level ofВ satisfaction and loyalty.

Internal customer orientation is characterized byВ the quality ofВ interaction between the structural divisions ofВ JSC В«Russian RailwaysВ», considers the effectiveness ofВ the organization ofВ end-to-end cross-functional processes inВ the process ofВ value creation from the moment ofВ their planning until the completion ofВ the provision ofВ services toВ an external client.

In accordance with the order of JSC «Russian Railways» dated July 26, 2016 No. 1489r, the development of the Holding’s external customer orientation provides [6]:

– building a system of segmentation and differentiation of customers in each type of activity, identification and implementation of needs for each segment and client;

– offering customers modern services in all types of business;

– ensuring accessibility and simplification of procedures for concluding contracts for the provision of services;

– development of inter- and multi-modal transportation;

– expansion of the portfolio of end-to-end complex services based on the development of logistics technologies: door-to-door delivery, just-in-time, last mile, etc.;

– development and implementation of loyalty programs in all types of activities;

– building customer feedback mechanisms;

– development and application of tools for assessing the level of customer satisfaction and loyalty;

– development and implementation of an Integrated information management system in the field of customer relations (CRM systems);

– unification of requirements for quality and consumer characteristics of services, implementation of service quality standards;

– development of the institute of customer service managers and unified customer service centers at the landfills of the railway network;

– development of marketing functions and active promotion of services in regional and linear divisions of the Corporate Transport Service Center – a branch of JSC «Russian Railways»;

– improvement of the regulatory environment and legal framework in the field of freight transportation;

– increasing the level of corporate culture in terms of the development of customer orientation and the focus of business units on a single result;

– providing quality services in all types of business.

The development ofВ internal customer orientation provides:

– implementation of development concepts and functional strategies by type of activity;

– coordination of interaction between structural divisions, branches of JSC «Russian Railways» and business units of the holding «Russian Railways», aimed at forming an optimal portfolio of services based on the requirements of the transport market and the accepted parameters of strategic development;

– development of cross-functional end-to-end processes aimed at creating additional value for customers;

– improvement of the internal turnover of services based on the application of the system of work orders and quality parameters;

– improvement and expansion of the use of technological audit tools for the creation and implementation of services and services;

– fulfillment of the Company’s obligations under the Collective Agreement of JSC «Russian Railways»;

– ensuring social stability in labor collectives;

– implementation of internal corporate training and staff development programs;

– implementation of projects «Construction of technological housing» to secure highly qualified personnel.

The principles ofВ customer orientation are crucial for aВ large holding ofВ JSC В«Russian RailwaysВ». The fulfillment ofВ the conditions ofВ the principles will allow the company toВ attract an additional flow ofВ customers and profit, thanks toВ the understanding, quality approach and satisfaction ofВ the needs ofВ each ofВ them.

The key principles of JSC «Russian Railways» are:

1) the company should have only one idea about customer orientation;

2) the rules ofВ interaction with the client should be clearly regulated;

3) how customer-oriented the company is should be decided byВ the customer himself;

4) customers should be differentiated;

5) the company’s orientation should be aimed at key customers;

6) customer orientation should have the effect ofВ increasing the profitability ofВ the company;

7) there will be no customer orientation without profit from investing inВ the service;

8) the concept ofВ В«customerВ» should not be limited toВ the concept ofВ consumers ofВ goods and services;

9) the company is obliged toВ take into account the interests ofВ internal customers.

2.5В Unified Customer Orientation Policy ofВ the Russian Railways Holding

The unified policy ofВ customer orientation ofВ the Russian Railways Holding was developed inВ accordance with the instructions ofВ the final meeting ofВ the Management Board ofВ JSC Russian Railways for 2015В and approved byВ the Order ofВ JSC Russian Railways No. 1489r dated July 26, 2016. The main guidelines for the development ofВ this policy were the implementation ofВ strategies for the development ofВ the railway industry and the Russian Railways holding, as well as long-term development programs ofВ the holding, creating aВ basis for meeting the needs and expectations ofВ internal and external customers.

The policy complies with the current legislative norms and takes into account the provisions ofВ internal, regulatory legal acts ofВ the Russian Railways Holding.

It defines the basic principles ofВ the formation and functioning ofВ the corporate customer orientation system inВ the Russian Railways holding, including structural divisions, branches ofВ JSC Russian Railways, subsidiaries and affiliates ofВ the Russian Railways holding at all levels ofВ management (Figure 2.4), will fix the unity ofВ norms, principles, methods and approaches inВ the holding, including all structural divisions, subsidiaries and dependent companies at all levels ofВ management.

The policy takes into account world experience, which indicates that aВ full-scale transition toВ the principles ofВ customer orientation is one ofВ the main competitive advantages that ensure inВ the medium and long term the growth ofВ revenue from existing and new customers.

This Policy contains the basic values, criteria and rules shared byВ managers and employees and serves as the basis for the activities ofВ all structural divisions, branches ofВ JSC В«Russian RailwaysВ», subsidiaries and affiliates ofВ the holding В«Russian RailwaysВ» inВ the field ofВ freight transportation, including regional and linear levels ofВ management.

The customer orientation policy is aimed at implementing aВ clear understanding that the quality ofВ services and products directly depends on the quality ofВ production processes, which can be achieved through coordinated activities ofВ all divisions, business units and business units ofВ the holding.

The concept ofВ the organization ofВ aВ Single Policy defines the organizational structure ofВ the management ofВ the implementation ofВ aВ Single Policy, tools and methods ofВ implementation, as well as methods for evaluating performance and performance indicators (Figure 2.5).

The purpose ofВ creating aВ Unified customer-oriented policy was the creation and implementation ofВ corporate principles for managing the processes ofВ forming aВ complex ofВ new services provided and supporting old ones, as well as improving the quality ofВ relationships with customers ofВ JSC В«Russian RailwaysВ», aimed at solving the following tasks:

– increasing profitability, competitiveness and efficiency of activities;

– increasing the volume of sales of services and entering new market segments;

– elimination of losses in the holding’s production chain;

– optimization of business processes;

– improving the quality of services provided and, as a result, reducing the overall losses of the company;

– expansion of the offered goods and services;

– increasing the period of interaction of the Holding with the client;

– formation of a knowledge base based on the study, accumulation and systematization of the experience of large Russian and foreign holdings;

– training and completion of professional development courses by personnel, comprehensive development of human resources, etc.

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