A locomotive that makes cents. 

Don’t get derailed by my bad joke and close the screen! I promise I’ll keep you on track with this article. 

First, raise your hand if your business is unlike anyone else’s. 

Now raise your other hand if you’ve ever thought that comparing notes about processes with someone from a completely different industry would be useless. 

Read on. 

Different industries. Same problems. 

For most of my career, I’ve worked in financial services. From starting at a registered investment advisor (RIA), to working on a bond trading desk, building bond portfolios, managing bank projects, and running operations at a private equity fund, you might assume financial services would be my obvious niche. 

When I started my company, everyone asked what industry I focused on. The answer seemed obvious. But I had a hard time committing to one sector. 
In my mind, the acronyms and terminology are different, but the underlying business challenges are often the same.
 
And just when I decided I was going to focus exclusively on financial companies, a railroad hired me. 

What do I know about railroads?

More than you might think. 

For starters, heavily regulated environments aren’t as intimidating when you’ve worked for financial institutions who answer to regulators like the Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency (OCC), or the Consumer Financial Protection Bureau (CFPB). Meanwhile, railroads deal with the Federal Railroad Administration (FRA) and the Surface Transportation Board (STB). 

Then there are the workflows. 

How does work move from one department to another? How do teams communicate across functions? Where do things get stuck? Who owns the next step? 

I don’t need to know every technical detail to recognize when something isn’t working.

If a team struggles to explain the intricacies of a process or can’t map the steps on a whiteboard, it’s probably time to dig into what’s causing the problem. 
And don’t forget mergers, acquisitions, and other transitions. Whether you’re combining banks or transitioning railroad operations, you’re dealing with: 
*  Coordinating teams that don’t know each other and have different processes. 
*  Mapping roles, data, systems, and responsibilities. 
*  Managing different cultures and expectations. 
*  Keeping regulatory obligations and deadlines from falling through the cracks.

I’ll be honest, catching onto the vernacular DID take a little time. Like when I realized in a meeting the correct term is “maintenance of way” (MOW) not “maintenance away”. 

But when someone mentioned document retention compliance, I perked right up and said, “Show me the requirements.” 

Then someone said “audit” and I jumped in with, “Are there any outstanding findings to worry about?” 

Different acronyms. Same questions.

How Do You Cash In On This?
 
You might be surprised by what one industry could learn from the other. 

First, I’ll flex my muscle and explain what railroads can learn from financial institutions: 

Stronger exception monitoring. Financial institutions routinely monitor transactions, reconciliations, and unusual activity. Railroads could apply similar thinking to operational data: flagging unexpected delays, cost variances, and missed service commitments before they become bigger problems. 

Segregation of duties. Financial institutions use controls to ensure that one person doesn’t have unchecked authority over an entire transaction. Railroads can apply similar principles to procurement, vendor contracts, and other financial processes. 

Audit trails and accountability. Financial institutions have learned evidence is needed including who did the work, when they did it, and what happened. Railroads can use that same discipline to strengthen maintenance records, operational approvals, and corrective-action tracking. 

What I have learned from railroads that I can take back to financial institutions: 

Centralized coordination. Railroads use dispatchers and centralized traffic control to coordinate train movements across an interconnected network. Financial institutions could borrow that concept when managing major cross-functional initiatives. They have become increasingly siloed.  They could benefit from someone having visibility into the entire operation, competing demands, and potential bottlenecks. 

Maintenance before failure. Railroads have routine inspections for tracks, equipment, and infrastructure to identify problems before they cause a major disruption. Financial institutions could apply that same mindset to operational processes. Apply routine pressure tests to catch gaps that cause failed payments, a missed deadline, or an audit finding. 

Standardized operating procedures. Railroad employees rely on defined operating rules and procedures, particularly when safety is involved. Financial institutions are process and procedure heavy, but they also tend to have a lot of workarounds because of exceptions. Railroads could provide a different way of looking at operating rules so financial institutions can reduce their manual work.  
Neither industry needs to reinvent the wheel. Or the railroad, for that matter. 

Next Stop
 
You are probably more like another industry than you think. You may even be itching to chat with and bounce ideas off an registered investment advisor or railroad if you made it this far in the newsletter. 

So the next time someone from a completely different industry starts explaining how they do something, resist the urge to say: 

“Well, when I worked in banking…” 

Not everyone is ready for your brilliance. 

Instead, ask a few questions. You might discover their solution also solves a problem you’ve been struggling with in your own world. 

Check out all of my previous newsletters here…

Keep turning that chaos into progress, 
 
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