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groups could enhance quality and impart a better sense of the cost and resource implications of programme decisions.
2.3 In radio, RTHK's programmes are generally well regarded, but the success of individual programmes may not translate into a distinctive RTHKC-Radio overall. The current multilayer structure, along with specialised production units (e.g., for drama, education, and culture) that are separate from the individual channels, diffuses responsibility and accountability for channel mix, identity, and performance. As in television, the separation of production services from programming means that insufficient attention is paid to the cost impact of programming demands on production resources.
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2.4 To help RTHKC manage resources effectively, finance and administrative functions (currently supported by other Government departments) will need to be strengthened, as will planning and control systems. In addition, tighter Government funding will make marketing and fund-raising skills which are understandably lacking today increasingly important. ETV's small marketing unit has had limited success so far, and although some marketing expertise exists on the radio side, these skills have not been institutionalised. A much stronger marketing unit will be required to systematically identify funding
opportunities, approach clients, negotiate deals, and service accounts.
2.5
Thus, fundamental changes in organisational structure are needed to sharpen accountability and build the skills RTHKC requires (Exhibit 3). These changes include an integrated Television Division organised internally to build superior programming skills and make efficient use of production services; a Radio Division focused on channel management, stronger financial, administrative, and marketing support; and an active, supportive Board of Governors. Under the new structure, each manager has distinct responsibilities for which he or she can be held accountable. Specifically, we recommend the following structural changes.
2.6.1 Adopt a divisionalised structure for TV and radio; A single TV Division will promote the cultivation of excellent programming skills and the pooling of innovative ideas and techniques. Including production services within the TV Division should facilitate a more collaborative relationship between producers and production staff, leading to higher programme quality. At the same time, consolidating TV activities in one division should result in more cost-effective programme production, by eliminating the wasteful rivalry between PATV and ETV and enabling better utilisation of people and facilities.
McKinsey & Company, Inc.
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