TNAG-2278-FCO40-3278-Future-of-Hong-Kong-Radio-Television-Hong-Kong-Board-of-Gove-1991 — Page 73

CONFIDENTIAL

b. Build effective working relationships with Government and broadcasting

regulatory authorities. The precise nature of interaction between RTHKC and these bodies on policy matters, planning and budget-setting, and general information-sharing-will need to be carefully shaped

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c. Similarly, develop broad relationships with commercial TV broadcasters and

RTHKC sponsors, and instill a "client-responsive" culture within the TV and

Radio divisions.

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d. Give priority to team- and people-building. For example, the Board and senior

managers might hold off-site meetings to discuss key issues; an executive committee comprising the Executive Director and the top four executives should meet regularly; and each management level should have explicit responsibility for coaching staff directly reporting to them, giving particular attention to reorienting ex-RTHK staff to the new modus operandi.

e. Establish a culture of resource and cost awareness, by ensuring that new

management systems are put in place, asking tough questions about the costs and value of activities, and reflecting these factors in decisions about programme priorities and compensation levels.

DEMANDING

FINANCIAL TARGETS

4.6 In 1990/91, Government funding of RTHK totalled HK$380 million, including the HK$270 million in RTHK's line-item budget as well as HK$110 million in Government staff "on-costs" (e.g., housing, leave, medical benefits), Government-provided services, and capital expenditures. The new RTHKC, operating in a more cost-effective and accountable fashion, should require reduced Government subvention (Exhibit 11). Initial analysis by the team suggests that total Government funding, including "on-costs", can be cut by 26 percent over the next two years, to HK$280 million in constant 1990 dollars. For this target to be reached, RTHKC management will have to ensure that the consolidated organisational structure, decreased staff levels, newly recruited staff, and improved work standards are all in place by November 30, 1991, and that increased revenue from commercial activities is achieved thereafter. Continued improvements in productivity and

AT AGHA

McKinsey & Company, Inv.

CONTHERMAL