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assign clear accountability for programme costs. However, in the case of news and current affairs a high-cost operation requiring specialised skills a central unit is appropriate.

2.8.2 A radio production services unit, providing maintenance, transmission, and outside broadcasting services, should form part of the new Radio Division. Studio operations can he folded into the individual channels.

2.9.1 Establish a high-level marketing organisation: As RTHKC faces a tougher competitive environment and tighter Government funding, marketing will be of strategic importance. A small, capable marketing unit, reporting directly to the Executive Director, should be created to ensure that RTHKC gives appropriate emphasis to this important activity. This centralised marketing unit will provide RTHKC with a single, efficient contact point with sponsors, advertising agencies, and public relations firms.

2.9.2 As noted earlier, RTHKC will be able to explore a range of marketing opportunities, with sponsorships appearing to offer the greatest revenue-generating potential - close to HK$50 million in additional revenues by 1996/97. (This projection assumes that Government will ease regulations on the benefits offered to programme sponsors; if the existing rules remain in place, no more than half that amount can be realistically expected.) With this level of potential revenue generation, a skilled marketing unit should be able to add value well in excess of its cost.

2.10 Upgrade central finance and administration to meet corporatisation requirements: RTHKC's central finance and administration should be significantly strengthened to meet the challenges of operating as an independent corporation (Exhibit 6). Financial and accounting functions, in particular, must become more self-sufficient. Development of management systems for planning, budgeting, and control has lagged at RTHK, and will need to receive more attention. Finally, to realise the benefits of greater staffing flexibility provided by corporatisation, RTHKC must become more dynamic in the area of human resource administration and development.

2.11.1 Form an active and multi-skilled board: Broadly defined, the role of the Board of Governors will be to set RTHKC programming policy and priorities, review and approve the overall budget, assess performance, and support management in key initiatives (for example, by participating in external relations). Given the new management approaches and organisational arrangements that need to be put in place in RTHKC, it is appropriate

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