TNAG-0364-FCO40-410-McKinsey-Report-on-strengthening-the-machinery-of-government-1973 — Page 53

UNCLASSIFIED

Mr Wilford

HKK 5/4

THE MCKINSEY REPORT ON HONG KONG

1. You may wish to see Mr Clinton's letter to me of

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20 February and to glance at the first two volumes of the

Report.

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2. I suggest that only the introduction and the table of

contents of Volume 1 are worth reading at this stage.

separate summary paper which has been submitted separately

for Mr Royle's talk with Dr Copisarow is a more digestible

account of the scope of the investigation. I have sent a

separate copy of Appendix B in Volume 1 on the Personnel

Management of the Hong Kong Police to the Overseas Police

Adviser for his information.

3. As Mr Clinton makes clear in his letter, the rather

meagre recommendations in Chapter 1 of Volume 1 are already

being implemented. The difficulties begin in Chapter 2

"Introducing New Machinery". This introduces the whole

Mr Clinton and his

concept of "Management by Objectives".

staff have been to this country to examine how these ideas

have been applied to a number of Government, Local Government

and commercial organisations. We have also given them what

help we can through contacts with the Civil Service Department

and our own Administration.

4.

Personalities intrude into the implementation of

Chapter 3 on Establishments. The recommendations boil down

to two fundamentals, longer term management planning, and

efficient management with a human face; the implication is

that neither of these fundamental requirements are present

at the moment.

15.