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Monday, June 13, 2016

Outsourcing Plans at the MBTA

Wishful Thinking at the MBTA

For over 15 years, the MBTA has subcontracted its Commuter Raile Service to private companies. It is generally viewed that the Commuter rail has not been well run.

Now, the T -- relying on hope over experience -- plans to outsource its maintenance activities to the private sector. This is madness. Managing a contrattor is at least as difficult as managin in-house employees. In house, you have diorect influence over employees' behavior. With contractors you don't. All you can do in the face of poor performace is abrogate the contract and then suffer the disruption of trying to find a replacement.

It is an embarrassment that in a city with half a dozen world class business schools full of Operations Managemnt faculty memebers that the T cannot manage its maintenance operations effectively. This is not rocket science; this is a well undertood process. 

The T should not outsource this problem. It should work hard to get its house in order and improve its operations.


Sent to Boston Globe