Article citation information:
Wieczorek, S., Pałka, K., Grabowska-Bujna, B. A model of strategic safety management in railway transport based on Jastrzebska Railway Company Ltd. Scientific Journal of Silesian University of Technology. Series Transport. 2018, 98, 201-210. ISSN: 0209-3324. DOI: https://doi.org/10.20858/sjsutst.2018.98.19.
Sonia
WIECZOREK[1], Katarzyna PAŁKA[2], Beata GRABOWSKA-BUJNA[3]
A
MODEL OF STRATEGIC SAFETY MANAGEMENT IN RAILWAY TRANSPORT BASED ON JASTRZEBSKA
RAILWAY COMPANY LTD.
Summary. The article deals with the issue of railway transport
safety from a strategic aspect. In turn, the concept of developing railway
transport safety and the possibility of transferring model solutions to the
economic field are presented. The article also focuses on highlighting the most
significant criteria in terms of the development of railway safety. All stages
in the realization of a relevant strategy are characterized, with a particular
emphasis on the conditions for their efficient implementation.
Keywords: strategy,
railway transport safety
1. INTRODUCTION
Railway transport plays an important
role in the national economy. The basic scope of activity in this sector,
involving the carriage of goods and passengers, at the macroeconomic level,
enhances the development of other areas of the economy, while, on a
microeconomic level, it meets the transport needs of clients. In order to
effectively implement its functions regarding other sectors, railway transport
has to meet a number of requirements. One of them is to guarantee a good level
of quality across the provided services. The quality of transportation services
belongs to a group of phenomena with an interdisciplinary character; thus,
there are many terms used to describe quality. For the purpose of this article,
a definition has been adopted, according to which quality refers to a set of
characteristics determining the ability of the given service to meet the needs
of customers [1, 7].
These features are concretized as
quality demands, which in railway transport are related to time (frequency,
regularity, rhythmicity and punctuality), spatial availability, safety, cargo,
providing comfortable travel, reliability and price [2]. It should be
emphasized that the relevant parameters evolve and change over time.
Furthermore, a specific character of transport services concerns the importance
of individual attributes, whose assessment differs according to whether quality
is considered in the context of passenger transport or freight.
An important quality feature of
transport services, regardless of the transport type, is railway safety. The
definition most fully reflecting the nature of this issue involves safety as a
condition in which the risk of damage to people or property is minimized and
maintained at an acceptable level or below this level, thanks to the continuous
process of risk identification and safety management [3].
The significance of railway safety
is proven by the fact that, as one of the few quality parameters, it is subject
to legal regulations. The legislative bodies of the EU and Poland have
successively implemented EU and national law rules concerning safety management
in railway transport. The existing mechanisms mean that the implemented
solutions are concretized and obligatory.
The regulations apply to the
subjects of both real and regulatory spheres. One of the most significant parts
of the safe functioning of railways at the level of companies is the obligatory
implementation of safety management systems (SMSs) by transport companies and
infrastructure managers, as well as the implementation of maintenance
management systems by the subjects responsible for maintenance. At the country
level, however, a number of tasks for controlling railway safety and market
monitoring in this area has been defined.
All of the actions mentioned above
relate to basic requirements concerning the shaping of railway safety. The list
is much longer and more specific. It is important to mention that, in railway
transport, most of the projects aimed at improving safety are short-term
initiatives. However, the railway sector is a specific branch of transport, in
which safety depends on many variables that demand long-term outlay. Among the
basic elements are the technical conditions of the infrastructure and rolling
stock, the extent of implementing new technological solutions, traffic and
railway transport organization, and staff competences. These constituents form
an integral part of the railway system, which requires infrastructure
expenditure, as well as implementing appropriate legal and organizational
solutions in order to safely serve a purpose. The context implies the need to
design and implement coherent concepts by taking into account issues connected
with railway safety in the long term. The tool for the implementation of this
approach concerns the strategic management of the company.
Taking the above into consideration,
the purpose of the article has been set, which is to provide a strategic
approach to the issue of railway safety using the example of the Jastrzebska
Railway Company Ltd. (JSK Ltd).
2. BASIC ELEMENTS OF STRATEGIC MANAGEMENT IN
JASTRZEBSKA RAILWAY COMPANY LTD.
Strategic management is understood
as a continued and dynamic process within a company, which involves resources
monitoring as well as forming and implementing effective strategy aimed at
developing and increasing the competitiveness of the company in the long term
[4, 8]. In short, it is an effective tool, which supports the running of every
business and company. Adopting a strategic management model is particularly
important in the case of sectors such as railway transport.
Railway transport, similar to other
branches of transport, is characterized by particular features and functions.
The basic function carried out by railway transport is enabling passengers and
freight to travel long distances. In turn, the smooth and safe performance of
the transport process depends on the railway infrastructure, which must comply
with specific technical parameters
In Poland, railway access services
are provided by ‘infrastructure managers’, which are also responsible for
ensuring the good condition of the railway infrastructure. One of these
infrastructure managers is JSK Ltd., which was established on 1 April 1998 as
subsidiary of the Capital Group of JSK Ltd. (JSW S.A.). As an authorized
infrastructure manager and, in accordance with statutory requirements, it is
engaged in building and maintaining railway infrastructure, providing traffic
management to railway lines, keeping the railway infrastructure in a condition
fit for safe operation, providing access to railway lines for the passage of
trains and associated services, and managing properties that form part of the
railway infrastructure.
The tasks carried out on the railway
lines, where coal from JSW S.A.’s mines is transported, are very specific.
Taking into account the total length of the infrastructure (167 km), the
company occupies the fifth place within the structure of the market [5]. Apart
from infrastructure management, JSK Ltd. carries out tasks as rail siding user.
As stated above, strategic
management is necessary for the systematic development of companies. Such a
process is focused on formulating and implementing strategies at various
levels. JSK Ltd.’s strategic management is defined in two dimensions, which are
informed by the strategic structure of the company (Figure 1). The first
dimension refers to the general level and concerns the company’s main strategy,
which defines the basic directions of its development. The second level focuses
on the formulation and implementation of functional strategies, which specify
and expand assumptions indicated in the basic strategy.
Fig. 1. The general structure of
strategic management in JSK Ltd.
The diagram above depicts
strategic management within JSK Ltd., which has proceeded according to a
certain pattern. The determinant of the development of the company’s basic
strategy has been the strategy of the JSW S.A. Capital Group. On the basis of
directions indicated within this strategy, the vision and mission of the
company have been determined. The analysis, including an assessment of the
environment and the potential of the company, has been conducted. The next step
has been to define strategic and operational objectives and formulate a basic
strategy. The functional strategies have been developed, taking into
consideration the character of the company and adopted objectives in the main
strategy. These include: financial, information security, transport and HR
strategy, as well as strategy related to SMS improvements. The latter is the
subject of this article. The developed strategies and the operational
programmes have been implemented as planned. The permanent feature of the
company’s strategic management is monitoring the implementation of all
strategies.
The strategic management of the company is a
very complex undertaking. This is confirmed by research, which shows that only
a marginal part of the strategies is successfully implemented[4].
Therefore, when developing and implementing strategic plans, the most common
barriers should be taken into consideration.
In the relevant Polish literature, it is
difficult to find references to research in the field of practical aspects of
strategic management, including its effectiveness. However, interesting
observations in this area have been made by the American researchers Michael C.
Mankins and Richard Steele, who indicated that, in practice, companies have to
deal with a so-called strategy-to-performance gap. According to the
above-mentioned authors, the source of failure in strategic implementation can
be mostly associated with:
- Inadequate or inaccessible resources
- Wrong formulation of the strategic objectives
- Poor communication of the strategies (encryption)
- Inadequate strategy monitoring
- Inadequate incentive system
- Lack of a correction system within the
strategic assumptions
- Weak leadership [6]
This proves that strategic management requires
concentration on all stages of the process. Each element, from the moment of
strategy development up to its implementation and monitoring, is essential.
Particular attention should be paid to aspects that are the causes of strategic
project failure. The observations indicate that such barriers are usually
internal. This means that the effectiveness of the strategy largely depends on
the methods and tools used by the company in the area of strategic management.
The basic strategy
of the company is formulated at the high level of generality. In order to meet
the objectives, they have to be detailed within the functional strategies or
operational programmes. An improvement strategy for a railway SMS is an example
of a strategic approach to railway safety development by JSK Ltd.
3. IMPROVEMENT STRATEGY FOR A RAILWAY SAFETY
MANAGEMENT SYSTEM
In accordance with the applicable
law and regulations, the company has implemented an SMS, whose aim is to
provide an adequate level of security. As already mentioned, creating an
optimum level of safety in railway transport requires tools of a strategic
nature. Therefore, the company has decided to create and implement a strategy
for improving the SMS for railway transport in JSK Ltd., which will be
implemented over the period 2016-2025. The strategy is an example of strategic
management in the area of a railway safety.
As shown by numerous examples,
translating strategic concepts into economic practice can be quite difficult.
Taking into consideration barriers that may occur during the implementation of
the project, the company has prepared for the whole process. The key element
has been to develop a model of strategic safety management in the JSK Ltd.,
which is a reference point for further work. This approach has allowed for the
systematization of activities and procedural preparations at each stage of the
functional strategy.
The described model has been created
on the basis of theoretical concepts and adapted to the needs of JSK Ltd.
Therefore, not every element has been recognized. In order to increase its
usability, it has been constructed in a way that enables its extension and
adaptation to the needs of other companies.
The model of safety management in
rail transport in JSK Ltd. has been divided into four areas. The first area
includes the division of the safety management process into three stages. The
next identifies basic input variables. The third area defines actions that
should be implemented within a given stage. The last area provides example
tools for supporting strategic safety management in railway transport.
The model distinguishes three
stages: I) preparation, II) strategic safety management in the railway area,
III) summary (Figure 2).
Stage I (preparation) was scheduled
for 2015. This stage focused mostly on activities connected with the selection of
project members for the safety strategy team. This was very important, as the
team members had to possess the necessary competences and experience in the
field of strategic management. The input variable at this stage concerned the
analysis and assessment of professional competence. Particular attention was
paid to the experience, knowledge and skills of employees in the area connected
with formulating and implementing strategies. The next step was to identify
competence gaps, on the basis of which training needs were defined. In the case
of JSK Ltd., the outcome of the analysis was organizing workshops on the
methods of strategic management. The last step in this stage was to formally
establish a safety management team.
The preparatory stage, while not usually
included in theoretical models and not directly related to the process of
strategic management, forms an important part in the process, as it brings
together the personnel needed for the entire project. As a result, the risk of
incorrectly implementing the strategy is minimized.
Stage II refers to the main part of
the process, that is, strategic safety management in the railway area. Its
implementation period is 2016-2025. This stage has been divided into two
phases: the first is connected with strategy formulation and the second is the so-called implementation phase.
|
|
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|
AREA I: STAGES
|
AREA II: INPUT VARIABLES |
AREA III: ACTIONS
|
AREA IV: SUPPORTING TOOLS |
||||||||||||||||||||||||||||||||||||
|
STAGE I: 2015 PREPARATION |
Analysis of competences Employee assessment |
|
|
||||||||||||||||||||||||||||||||||||
|
Basic strategy SMS Safety
analysis Organizational
rules |
PHASE I:
FORMULATION OF THE STRATEGY Regular
reports |
|
||||||||||||||||||||||||||||||||||||
STAGE III: 2026 SUMMARY |
Regular reports |
Analysis of the strategy’s effectiveness Analysis of the organizational culture |
|
||||||||||||||||||||||||||||||||||||
Fig. 2. Model of the strategic
railway safety management in JSK Ltd.
* The structure of the strategic objectives is
presented in Table 1.
As shown in Figure 2, the starting
point of the first phase of the second stage concerned assumptions included in
the basic strategy of the company. The inclusion of the programmes and
projects, which were already implemented in the area of safety, has been
equally important. Therefore, the solutions applied to the SMS have been
followed. The organizational structure of JSK Ltd. has also verified the
company’s ability to implement the strategy. The aforementioned variables have
formed the basis for defining the activities listed in the second stage. As a
result, it should be possible to maintain the consistency of the designed and
implemented projects. According to the adopted model, the next step is to
examine the internal resources and deficiencies of the company, as well as the
external environment in the context of railway safety. In the case of JSK Ltd.,
a SWOT analysis was conducted, which helped to systematize data and identify
the company’s strengths and weaknesses in the area of railway safety. The
analysis highlighted three areas that needed improvement: social capital,
organization and infrastructure. Strategic goals have in turn been assigned to
each area.
The work involved defining five
strategic objectives aimed at improving rail safety in JSK Ltd. The goals have
specified and translated into operational objectives (Table 1).
Tab. 1
The structure of the
strategic objectives in JSK Ltd.
|
Field |
Strategic objectives |
Operational
objectives |
||
|
Social capital |
OJECTIVE I Building awareness
of safety in railway transport |
1.1.Inclusion of employee competence in the
annual assessment: “knowledge and compliance with the SMS” 1.2.Organization of a “safe railway” competition 1.3.Increased amount and effectiveness of training on the SMS 1.4.Development of an SMS guide for technical services 1.5.Joining the “Safe Passage” project 1.6.Development of the internal and external communication system in the
area of safety 1.7.Organization of competitions connected with railway safety for
schools and kindergartens 1.8.Cooperation with public institutions, police and fire brigades in the
field of railway safety |
||
|
Organization |
OBJECTIVE 2 Control over
railway transport safety |
2.2. Additional audits (process of traffic management, infrastructure
management audits) conducted by an external and independent body 2.3. Mapping the monitoring indicators 2.4. Expansion of the monitoring system 2.5. The use of drones for monitoring rail infrastructure in areas
prone to theft |
||
|
Organization |
OBJECTIVE 3 Improvement in the
safety and efficiency of the implemented processes |
3.1. Optimizing the processes of
operational standardization 3.2. Establishment of a research and development
unit 3.3.
Including sidings into SMS 3.4. Publishing accident bulletins 3.5. Cooperation with scientific research and/or consulting units in
the area of safety improvement |
||
|
Social capital |
OBJECTIVE 4 Recruiting,
maintaining and developing qualified staff |
4.1. Cooperation with universities
in the field of apprenticeships and traineeships 4.2. Organization
of practical activities for secondary school students 4.3. Developing a
model of competences and programmes to support professional development 4.4.
Cooperation with universities in the delivery of lectures by the company’s
employees 4.5. Participation
in conferences and trade fairs dedicated to the rail transport |
||
|
Infrastructure |
OBJECTIVE 5 Improvement in the
quality of railway infrastructure |
5.1. Implementation of the project
for CCS system computer equipment 5.2.
Automation of railway crossings 5.3.
Organization of research sites 5.4.
Modernization of the railway infrastructure
|
||
In order to realize goals and
assumptions, it is necessary to develop comprehensive plans, which should
define the way of implementing a functional strategy. In light of the above,
the next step was to operationalize objectives for specific tasks. The schedule
was set by specifying the execution time and the sequence of each operation. A
very important aspect, which in practice is very often underestimated, was to
provide resources for the implementation of initiatives. Therefore, technical,
financial and human resources were assigned to each task. It should be
emphasized that the resources had to adequately meet the needs, while those
personnel responsible for achieving the goals had to be competent. The
monitoring of the level of strategic implementation was equally important. In
relation to this, the monitoring indicators were developed for each task along
with the clarification of their initial and target values.
The closure of the strategy
formulation phase allowed for the transition to Phase II, i.e., implementation.
This has involved the implementation of previously defined tasks and regular
assessments of the level of strategic implementation. Such assessments are
carried out as part of the monitoring process, which enables an analysis of the
possible causes behind the failure of scheduled tasks. In JSK Ltd., the
monitoring process is based on systematic information and data gathering (both
quantitative and qualitative), data verification, indicator calculations, and
data analysis, as well as an assessment of the implemented actions and
objectives. On the basis of the analysis and assessments, appropriate
recommendations will be formulated, which may result in updates to the
strategy. The managers of the organizational units responsible for monitoring
the effectiveness and efficiency of the strategy are required to submit
quarterly reports. The unit responsible for the organization and supervision of
the entire monitoring process, including the submission of regular
reports, is the section that deals with safety.
Stage III (summary) is scheduled for
2026. At this stage, an assessment of the actual effects of the strategy will
be carried out. The effectiveness of the JSK Ltd. strategy will be verified by
checking the extent to which the strategic goals will be implemented. For this
purpose, the monitoring reports and the results of the organizational culture
analysis, which will be conducted before and after the strategy’s
implementation, will be used.
What is very often
decisive in terms of the effectiveness of a strategy is a company’s ability to
use appropriate tools to support strategic management (Area IV). The range of
solutions can be broad and varied. In the case of JSK Ltd., the basic methods
assigned to the area related to supporting tools for the development and
implementation of the strategy, in order to improve the railway SMS, are:
competence management, communication management, management by objectives,
project management, risk management and supervision at every stage of the
process. The range of used management instruments will be adapted to the
implementation needs of the strategy.
The presented model is an example of
the use of the strategic management concept in the field of railway safety. As
already mentioned, this model is an attempt to explain the complex process of
strategic management. A characteristic feature of this idea is the inclusion of
two additional steps: preparation and summary.
3. SUMMARY
From the perspective of rail market needs, a
crucial part of the development of this branch of transport is to ensure a safe
transport process.
An SMS, which is an obligatory form
of management instrumentation, is an important tool for facilitating security
in the rail sector. It allows for improved processes and quick responses to
emerging threats. However, most of the actions undertaken within the adopted
systems by the railway companies in Poland are planned and implemented in the
short term. Given current conditions, purely operational programmes are
insufficient. In order to reinforce rail safety, it is crucial to carry out
coherent actions on a systematic basis within strategy projects. The strategy
should include issues connected with rail safety and dovetail with the main
strategy, as well as complement previously implemented ideas in this area.
The literature more often states
that the implementation stage determines, to the greatest extent, the
effectiveness of a strategy. In the opinion of the authors of this article,
every stage of strategic management has a significant impact on strategic
effectiveness. The preparation and summary stages, as presented in the
constructed model of strategic railway safety management, are of equal
importance.
The assumption of this article was to identify
the most important strategic contexts, which should be taken into consideration
in the development of conditions for improved rail safety. That said, this
article has only considered an outline of this complex issue. At this stage, it
seems necessary to initiate research in order to verify the presented scheme of
strategic management in the area of railway safety. In particular, checking the
efficiency of the implemented solutions is paramount.
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Received 10.10.2017; accepted in revised form 05.01.2018
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Silesian University of Technology. Series Transport is licensed under
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