Direct management system building

In 2013 the development strategy for the Russian Railways Group was approved for the period up to 2030. This also defined the long-term objectives and tasks of Russian Railways in the field of organisational development.

The Group’s target organisational model consists of the following elements:

• The Board of Directors of Russian Railways and its committees;
• The administration of Russian Railways headed by the president of Russian Railways;
• Consultative bodies;
• Corporate centre;
• Railways (RCCG);
• Business blocks, including their governance bodies;
• Business units.

The Board of Directors carries out general management of the Group activity within its competence, and facilitates the implementation of policy aimed at rapid development and improved stability and profitability.

The Russian Railways administration, consisting of Russian Railways management acting in the interests of the Russian Federation and considering the SAF shareholders’ position, provides offer elaboration within the meaning of the Group business priorities and prospective plans for its development, determines the single corporate policies, regulations, rules and standards developed by the corporate centre, monitors its compliance and meets the strategic objectives of the business units.

Consultative bodies consisting of Russian Railways management and the main SAF, provide offer elaboration in the main business lines of the Group for presentation to the Russian Railways administration.

The corporate centre studies strategic decisions and develops consolidated corporate policy, rules, regulations and standards on the basis of strategic decisions being made and in the interests of achieving them; provides control and analysis of the execution of strategic decisions and meeting objectives, organises the current distribution of the most important and scarce resources, provides cooperation of branches and SAF with each other and with “the environment” at all management levels and monitoring system capacity as well. The corporate centre also organises corporative management and subsidiaries’ and affiliated companies’ control.

The Russian Railways branches are included in the corporate centre and implement part of its functions at the regional level.

Due to the commonality of tasks, technologies and additional synergies of coordinated activity, business blocks are combined into 5 business units — Traffic and Logistics, Passenger Traffic and Services, Infrastructure, International Engineering and Transport Construction, and Social.

Advantages of the Group’s new organisation model

• Separation of authority and responsibility for the Group’s general results and for the results of specific activities and business, with an opportunity to evaluate the activity of management on key indicators related to strategic aims and operational objectives;
• Management level optimisation, with the location of territorial regulatory bodies of created business units;
• Improvement of the quality of strategic decision-making thanks to corporate centre guidance on problem-solving;
• Improvement of the efficiency of current decision-making by means of the delegating responsibility and authority to the heads of business units.

Direct management system buildup