What makes Hunter Harrison so valuable? In the enchanted world of finance, there are of course no limits to what someone gets paid as long as it is a fraction of what the payer will gain. Still, one would think that a hedge fund manager looking for someone capable of turning around a poorly performing U.S. company would have an abundance of candidates to choose from. After all, the operating tricks that Harrison has come up with to make railroads more efficient have been described in minute detail in books he’s written. Dozens of seasoned railroad executives have worked with him and for him over the years. They must have learned quite a bit about Harrison’s recipe.

The answer to the $118-million question appears to reside in the fact that the successful transformation of these railroads (CN and CP) was the result, yes, of operational improvements, but more so of a fundamental cultural change. Harrison is a formidable change agent, a transformational leader in the truest meaning of that tired expression.

He claims to have invented a principle called “precision railroading,” which he implemented at three major railroads: Illinois Central, CN, and CP, the last with spectacular results, bringing the operating ratio (operating costs as a percentage of revenue, with a lower ratio being better) to 58.6 per cent for fiscal year 2016, down from 81.3 per cent in 2011, the last full year before Harrison’s took over.

Precision railroading, if it was easily learned from a book and replicated, would have been applied with success long ago at every North American railroad. Yet Harrison still seems to bring something that can make a difference over and above the techniques he developed and implemented. That something seems to be his skill at changing the culture of the railroad, a most difficult skill to imitate.

As a lifetime railroader himself, his decisions and actions display a deep understanding of the daily reality of the operators. He spends time meeting with the workers on the field and communicates profusely about the importance of asset optimization and the control of costs. At CP, he took many symbolic actions to instill in the whole organization the need to think and act like a railroader. For example, he relocated the corporate glass-towered headquarters to a rail yard, a move that was meant partly to cut costs but mostly to keep the employees’ focus on freight operations, and remind them daily of what the business is all about.

The Memphis, Tenn. native, whose career began over five decades ago as an 18-year-old carman-oiler, may be driven by the determination to prove that the theory he has developed is replicable, no matter where. And determined to push his legacy to a new level — that of a railroad industry legend.