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for the position of CEO of Ukrainian Railways, JSC Ing. Daniel Kurucz, MBA

Ing. Daniel Kurucz, MBA, one-slide information……….………..3

Strategic goals………………………………………………………..……4

Key steps ahead………………………………………………….……5-20

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Managing large companies

Working experience in large international companies (worked for Swedish, Austrian,

(13 years, since 2003)

American, Indian, Chinese, Japanese and Czech companies; public, private and JSC types)

Experience with      

Strategy creation and implementation (Czech Railways, Sandvik Oil&Gas division) Project management (Sandvik China and Chomutov new factories, Sandvik India) Change management (Sandvik India: transformation from state owned to private co.) Business restructuring (Agrofert/Synthesia changed business model, PT Tongling transformation, FujiFilm – new

subsidiaries in SE Europe) M&A processes (Carborundum Electrite, M&A by American Investment funds, PT Tongling) Business systems & Corporate Governance in Large International companies (Sandvik, Agrofert Holding..)

Core qualifications and values      

Strategic approach Organizational Leadership Change management Managerial Effectiveness Diplomatic wisdom Legal awareness and complete personal Integrity The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


To dispose of large railway infrastructure in high quality shape, mostly electrified

To be a leader in both, Ukrainian freight and passenger transport

Financially stable enterprise

Role model of Governance system, company who cares about their employees

To be a connecting line between EU and CIS The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Appropriate legal base is done: Creation of JSC “UKRZALIZNYTSIA”

Future steps (areas) for the new CEO

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(as I can see it at the moment):

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Set up a Ukrzaliznytsia Holding organizational structure

Create an organizational structures by key business sections (infrastructure, passenger transportation, freight transportation, industrial/railway entities, other railway activities = ownership interests)

Create a matrix structure of leadership within regional centers and key business sections

Create (hire) an appropriate, experienced management team for holding structures, and also for management of regional centers, who would be loyal to Holding management/Ministry of infrastructure. This is critical for overall success of the process.

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


First will be needed to identify the key positions, set up an organizational structure of the UKRZ Holding and then hire appropriate managers.

Basic understanding is, that Holding would take care about overall leadership and management of UKRZ, represented by leaders of key business sections and of key staff divisions as finance/founding/investment, legal dept, sourcing/purchasing, controlling, ITmanagement, technical services, quality, HR, Environment, high-level sales and marketing, internal audit, safety dept., strategy & project office, quality dept., communication dept., etc. There will be needed to make an internal analysis before final organizational chart creation.

Regional centers would take care mainly about railway operation management itself, repairs and maintenance of the railway track and rolling stock, and about regional sales. Regional heads should be a part of Leadership team, which I am intended to set up as well.

By strong leadership structures and Governance model is going to be possible to take over a lead of UKRZ, surely, in close cooperation with Ministry of Infrastructure and Ukrainian Government. The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA




As per first learning, internally will be key to create such effective structure, which will manage to create basic funding for OPEX and CAPEX in minimum of reproduction (depreciation) level.

Ministry of Infrastructure

Another internal source should appear after internal deep assets analyses of rolling stock and infrastructure, buildings and other assets. There should be also a space for free cash available. As per experience, by new governance model and sourcing structure, implementing new procurement system, we will manage to decrease costs of material and services and eliminate/decrease of leakages in the system

Very deep detailed planning of CAPEX and OPEX for all business sections will provide an assurance, that investments will be done in appropriate manner will be focused only for those areas, where are really needed.

Implementing by automated IT controlling system OPEX costs will decrease and Management structure will be able to control cash-flow in real time.

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to assure subsidizing of passenger transportation in certain percentage of costs Implementing fee for railway track usage in appropriate level (collected by UKRZ) Implementing “station charge” for using the railway station (collected by UKRZ)

Domestic banks and funds

International/foreign banks and institutions

European Union / Eurobonds

Rating of the UKRZ can improve interest of international organizations to support UKRZ

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Creation of Governance model with matrix structure, describing authorities and legal aspects for management

Creation of Code of Conduct valid for all employees connected with evaluation system / variable salaries system

Procurement model based on the structure of managerial levels to prove appropriate “activity” (e.g. purchase) with minimum “four-eyes model in each managerial level

Set up clear evaluation system for each managerial level

Create a “continuous improvement” system

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Analyze current customers and their future requirements and adjust according to that (either infrastructure, freight or passenger services)

Analyze reasons of potential customers, who are currently using another way of transportation or other “competitive” transport companies

Create an evaluation system of customer’s satisfaction

Set up a sales structures (horizontal and vertical) to be as closest to the customer as possible, on daily base

Enable customers to reach their European destinations by our improved rolling stock and cooperation with foreign railway companies

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


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System of sourcing and later purchasing based on new organization structure and procurement model Transparent and clear description of financial level and type of purchase which can be done by each managerial level in purchasing process Sourcing based on ”competitive tendering” described by EU law in accordance with valid Ukrainian law. Independent committees created by managers from deferent departments to purchase material and services above certain financial level or importance.

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


New managers and employees hiring system Outplacement and rules of dismissing process Rules for internal fluctuation and position changes Remuneration & reward system Retirement process Health & safety management system Continuous development of hard and soft skills Tests and examination system Medical support and examination Collective agreement with trade unions, close cooperation in personnel development  Cooperation with Universities, specialized high-schools, and primary schools          

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Set up appropriate communication structure is always important, but it is absolutely key in the moment of CHANGES & TRANSFORMATIONS.

Clear and simple information about changes made and reasons for that change to the public will make the change process easier and transparent.

Set up external channels for communication to target all public which is needed.

Create internal communication structure, to be able to inform internal customers = employees properly and especially on time

Internal communication structure has to enable both directions vertical communication and also horizontal structure on-time information flow (e.g. cross business section information flow)

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


For the moment, I would not list strategic projects as they should resulted from internal evaluation by new UKRZ Holding management team and should be approved by Ministry of Infrastructure.

Before that, new organizational structure should be set up.

Each business section would bring their proposal for strategic projects

There will be a “Strategic projects dept.” under CEO in UKRZ Holding to evaluate and list proposals to UKRZ management evaluation.

After evaluation those project has to be discussed and approved by upper authorities, as Ministry of Infrastructure and/or Ukrainian Government.

Ministry of Infrastructure has defined already their strategic projects, mainly in infrastructure (as electrification of railway tracks) and renegotiation of UKRZ funding.

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


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IT is understood as the key support for controlling and for running business in an effective way Improve automation in IT processes and system to speed-up data processing and avoid human mistake during processing Implement IT systems into daily operational processes and levels as train-drivers and conductors shifting, maintenance system and purchasing system Implement detailed controlling system to control costs in all levels in actual time. Collect financial results of appropriate period as quick as possible after book closing, to be able to manage the company based on actual financial results

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Create a planning process for whole UKRZ, based on        

Long term (2030) strategy of Ukrainian Government and Ministry of Infrastructure Mid-term (5 yrs) strategy of Ukrainian Ministry of Infrastructure and UKRAZALIZNYTSIA Holding Cross section Projects plans of UKRZ Holding Annual plans of UKRZ Holding and UKRZ Business sections Target realization map for UKRZ Holding and UKRZ Business sections Projects plans of separate UKRZ Business sections Tactical implementation plans of UKRZ Business sections Action plans of UKRZ Business sections

Time – plans       

Long term = over 5 years Mid-term = up to 5 years Large Cross section Projects = over 1 year Annual = 1 year Project plans of Business section = annual Quarterly tactical plans Monthly action plans

Each department has to have their own plan. Plan has to be always negotiated with and approved by upper management level.

Especially plans and projects of large railway track construction, renovation and electrification has to be approved by Ministry of Infrastructure in their Long term strategy.

The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Analyze        

current rolling stock and technical requirements current internal maintenance facilities and their technical equipment Current external (out of UKRZ) maintenance facilities and their technical equipment spare parts stock and availability in the market Analyze human resource qualification and readiness Set up exact scopes for a particular type of repair and time-standards for maintenance Safety procedures Purchasing processes related to maintenance and repairs

Based on above mentioned analyses 

Set up an effective maintenance system for: ▪ ▪ ▪ ▪

Small daily maintenance and housekeeping Small repairs Mid-size repairs Large repairs and renovations

Location of maintenance centers within Regional centers and then inside biggest railway hubs to keep rolling stock available. The Competition Proposal of CEO UZ

Ing. Daniel Kurucz, MBA


Quality management system of internal processes: QS = QA + QC (Quality system based on Quality assurance and quality control models)

Measurement of External understanding of quality of UKRZ by external survey models

Set up regular and irregular system of Internal audits and Risk management process

Create Fire and Health & Safety & Environment management system

Security department to ensure employees and assets security connected with state police and other parts of integrated security system

I am sure there is deep functional “CRISIS MANAGEMENT SYSTEM” to switch on in any case of emergency.

The Competition Proposal of CEO UZ - Ing. Daniel Kurucz, MBA


Cooperation with above mentioned stakeholders is crucial for successful future of UKRZALIZNYTSIA.

Only by support of:        

Ministry of Infrastructure as owner Ukrainian Government and other Ministries as rulers Public as customers for passenger transport and creators of public opinion Large enterprises as customers for freight business section Trade unions as speaking partner in relation with our employees Foreign railway companies as partners for international transportation Banks and other financial institutions as financial fund providers And surely experienced and hard working management team and motivated employees

will bring UKRZALIZNYTSIA for bright future.

The Competition Proposal of CEO UZ - Ing. Daniel Kurucz, MBA


The presentation is not public and is not for public release

The presentation is intended for the committee during hiring process of new CEO of UKRZALIZNYTSIA as a brief presentation of a candidate, Mr. Daniel Kurucz

The presentation is brief and does not have an ambition to cover all complex issues of UKRZALIZNYTSIA is facing to in current period of time.

The presentation is touching (in brief) some of the key parts, as the candidate can understand based on official publicly available information and UZ Investor presentation.

I hope the presentation shows my experience and professional understanding of management and a leadership style.

Thank you Dan Kurucz The Competition Proposal of CEO UZ - Ing. Daniel Kurucz, MBA


Daniel kurucz  

Daniel kurucz