Krcb

Executive Summary

Revisiting and revising an organization's strategy is one of the backbones of the strategic planning process; it involves senior management considering all issues, both internal and external, which affect how the organization does business now and in the future, and making necessary changes to mitigate threats or build on strengths. A strategic mission needs to reflect current trends and future predictions for the industry; KRCB must incorporate the following into their mission to ensure continued existence and community involvement: improved financial performance, improved programming, increased and improved staffing levels, new technology, and increased geographic areas.

Senior management must make a commitment to be forward thinking in their vision, and to craft objectives that will align with that vision. The following are what I see to be the most pressing objectives for KRCB to consider immediately, but these objectives must be re-evaluated at points in the future as situations change.

Recommended Strategies

1. Stabilize financial situation.

I see this as one of the most important issues to address. Because this is a non-profit organization, competitive advantage over rivals may not come from a financial standpoint. However, ensuring that the organization maintains financial security allows KRCB to continue to provide services to the public, to enhance their product and their market share, and to continue to be an engaged and involved member of this community.

Management must look at the external environment and consider the local and regional economy when creating the yearly budget, in order to determine sources of funds and how to use them properly. For instance, you can see in Exhibit 1 that while underwriting for cash varied from the budget by -41%, underwriting for trade varied by 39%. While revenues from cash underwriting may be used to pay expenses, trade underwriting would be inappropriate for this use. However, trade underwriting may be acquired in the form of professional services, which would substantially reduce expenses. As you can see from Exhibit 1, professional services were over budget by approximately $40,000. Assuming that Professional Services - L&A refers to legal services, and considering that there are two attorneys on the board of directors, I would strongly urge the management team to use the social network of the board to acquire services from local businesses in order to reduce expenses.

Further, I highly suggest that financial objectives be implemented to help KRCB reduce expenses within operations. I noted that expenses for TV broadcasting were 105% of the revenues earned for that side of the business, while radio broadcasting expenses were 114% (see Exhibit 2). In order to improve the use of the revenue that KRCB now receives, I suggest much tighter control of the budget, with frequent reassessments to ensure that realistic budget expectations are put in place, and that financial goals will be met. I see this as the tipping point to bringing KRCB into a more competitive position within this industry; stable finances provide the security needed to improve programming, geographic coverage, staff training, technological advancement, and fundraising activities.

2. Increase local programming.

With improvements in financial performance, KRCB-TV has the opportunity to improve programming offerings as a way to differentiate themselves from the various other TV broadcasters in the area. While educational program offerings (specifically, GED courses) will continue to serve the current market, increased offerings of quality local programming will set KRCB-TV apart from other broadcasters in a positive way, and will work to attract new viewers and members. If the appeal of the local programming is strong enough, KRCB-TV may be able to develop a resource strength that is difficult for competitors to follow.

3. Improve radio programming.

As a way to relate KRCB-FM offerings to KRCB-TV educational offerings, station management should look into providing educational programming about classical music. This will allow KRCB-FM to differentiate themselves from KCSM-FM and KQED-FM, and will provide a service to interested local listeners. In addition, an increase in local information shows and programming will allow KRCB-FM to become known as the area's information station, further differentiating them from the competition.

4. Strengthen human resources competencies.

The first issue that needs to be dealt with in this regard is the replacement of key staff members who have left, or are leaving, the organization. The position of development director must be filled; an experienced and socially connected director will be able to increase revenues and donations by promoting the station and by guiding managers in developing activities to increase underwriting, personal giving, and memberships. While it is commendable that the CEO wishes to save costs by assuming this position on a part time basis, the lack of focus on this integral area will ultimately result in decreased revenues. In addition, KRCB needs to find a replacement immediately for Vanessa Bergamo, the volunteer manager. If this does not occur, this year's fundraising activities will not be as effective as they might otherwise be.

Despite the use of old equipment and less than pristine offices, KRCB seems to have created an enjoyable atmosphere in which to work, judging from the small but dedicated volunteer force. This indicates a strength which must be leveraged in order to continue KRCB's contribution to the community. An enthusiastic volunteer manager, in conjunction with an experienced development director, will be able to increase community awareness, and convince citizens of the importance of volunteering to give back to the community, especially during times of global strife.

Furthermore, training must be given to both full time and volunteer staff in order to ensure that necessary skills are available to use new technology. This is an important consideration in strategic planning, as it is one of the cornerstones of following a strategic direction. Given that a good portion of the new equipment has been installed, it is highly advisable that staff be trained quickly and thoroughly, so that KRCB can take advantage of the potential for new revenue streams offered by licensing unused bandwidth. In addition to technical training, KRCB may indeed be able to leverage the board's social network to provide further training and development opportunities to the many members of this organization,