TNAG-2278-FCO40-3278-Future-of-Hong-Kong-Radio-Television-Hong-Kong-Board-of-Gove-1991 — Page 126

system are in place today, a much more rigorous approach is needed to justify programme concepts, allocate resources among programmes, and monitor costs in a realistic and timely way. In particular, the current costing system - which draws on information provided by the Treasury - measures only 12 percent of total programme costs, breaks costs down by series rather than by episodes, and generates reports too infrequently and often too late to

allow for management intervention. Furthermore, because resource standards (e.g.,

number of film crew days per programme episode) are insufficiently enforced during budgeting, individual producers tend to assert their resource requirements, sometimes without sufficient management scrutiny.

3.4

To remedy these shortcomings, we recommend a system that includes the following

elements:

a. Each year, a programme plan should be developed for every proposed or

continuing programme, outlining objectives, concepts, rationale, target audience, key messages, and approximate resource requirements and timing.

This process will assist management in evaluating and ranking programme

proposals based on their relevance, quality, potential impact, and

innovativeness.

b. For each approved programme, a total budget - including cash and non-cash

items - should be prepared. To facilitate budgeting, RTHKC will need to establish resource standards, such as producer days and film crew days, by programme type, and unit costs for each type of resource.

c. On a regular basis, programme progress and cost reports should be produced to

measure actual performance against schedule and budget (Exhibit 8). These reports should capture total costs, break down information by episode, and be generated often enough to enable management to prevent cost overruns and delays.

d. A comparative summary of the progress and costs of all programmes should be prepared for review and action by senior management. This summary will help management assess the efficiency of the various programming strands and producers.

McKinsey & Company, Inc.