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there will be a heightened awareness of the need to get maximum value and

impact from available resources.

1.10 The aim of this mission statement is to clarify the goals that should be "front and. centre" in the minds of the RTHKC Board and management. RTHK today can produce quality programmes and work within its overall budget. The new mission simply calls for an even deeper and more consistent commitment to quality TV production, effective radio channel management, and sound cost management and commercialisation. It also provides a basis for restructuring RTHK's organisation, as described in the following section.

2 – DIVISIONAL, STREAMLINED ORGANISATIONAL STRUCTURE

2.1 Over the years, RTHK has evolved piecemeal, ir.to an overly complex organisational structure, with matrix-like arrangements for TV and radio that diffuse responsibility and accountability for performance and impede clear leadership and direction (Exhibit 2). Moreover, as a Government department, RTHK has not had to develop the administrative, financial, and marketing capabilities that it will need to function effectively as a stand-alone corporatised entity. In sum, maintaining the existing structure would make it difficult to achieve the strategic mission set out above.

2.2 For example, the current structure of RTHK's television activities has some shortcomings:

a. The separation of Public Affairs Television (PATV) and Educational Television

(ETV) inhibits the cross-fertilisation of ideas and cultivation of key programming skills, and also leads to overbidding for production resources.

b. The 15 small programming units within PATV and ETV, which often produce

similar programmes and are positioned several levels down in the organisation, lack the scale and capabilities appropriate in such creative units.

c. The separation of Production Services from the two TV divisions creates an

artificial boundary between the "creative" producers and "technical" staff (e.g., camera crews and film editors), when in fact closer interaction between the two

McKinsey & Com

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