(Following is an interview with CN CEO Hunter Harrison, published Dec. 29 by the Toronto Globe & Mail. Harrison retires Dec. 31, at age 65.
Are you going to put your feet up?
For a little while. The worst thing some people do is try to plan retirement too much. You need a little time to reflect on what you want to do. My family is in the horse business, so Im going to get more involved in that. And I might write a book or two on leadership. I might consult or sit on a board, but Im not going to be a professional director. After Sarbanes-Oxley and some of the other legislation, I get worried that boards are more concerned with optics than the bottom line. That takes the fun out of it.
What would be the big idea in your book?
First, demand that people produce what they can. All of us have a tendency to hold back. We dont want to stretch. We want to set some easily achievable target. You need people to say, If youre willing to go with me, were all in this together, and were willing to take some risks. Those people willing to be pushed and led will do well for you.
Is it fair to say youre tough and hard-nosed?
Those descriptions arent out of line. I think there are other things that would balance them. Im a pretty compassionate person, a pretty sensitive individual. You dont hear many of those stories. If a manager doesnt do the right thing and you have to let him go, or demote him, thats sometimes considered hard, tough or bad managing. But I think its worse not to do anything, because you do a disservice to the whole organization.
What will be your legacy?
If I could say one thing Ive done, or contributed to, its to change the industry, to create a more practical approach. CN was shackled with tougher regulations as a Crown corporation, and not many Crown corps were real successful. Ive got to credit the visionaries who decided to take CN private. Our grandchildren will read about this, but, to some degree, you have to be a railroader to appreciate the full value of it.
What was your darkest moment at CN?
Theres a couple I cant talk about. Then there was the work stoppage with the United Transportation Union in 2007. I still havent been able to convince them that a change in the collective agreement thats been in effect for 100 years-plus would be the right thing for us and them. It would mean going from mileage to hourly compensation, and changing work rules. But sometimes you need to get slapped upside your face to learn youre not as great a miracle worker as you think. I thought I could convince everybody, with my charm and charisma, that this is absolutely the right thing to do, trust me. It didnt happen.
Do you ever go back to Memphis?
Yes, I still have family there. But I remember the old Memphis. When I was growing up, we lived about two or three miles south of Graceland. My parents would give me $2 when I was 10 and let me take my five-year-old sister on the bus downtown. Wed go to a movie and to the Krystal restaurant for a hamburger, French fries and a Coke. Today, you couldnt even walk on the sidewalk.
What happened?
Its the flight from downtown. Its something we in the South havent dealt with very well since the Civil Rights Act. Its still going on, but maybe one day. You dont pass a law and change peoples viewpoints and attitudes. To some degree, its a scar on me internally. I was there when Martin Luther King was killed, and that was terrible. It wasnt only the fear, but the mental scars on people. Its shocking, as you grow up, to be taught one thing about certain leadership, then somebody says we had this thing all wrong for 100 years. So Memphis has a love-hate kind of deal with me. I started out in East Memphis and finished on the other side of town. After 46 years in the business, the company named the [Memphis] rail yard after me. Thats kind of a miracle.
