Organizational Transformation at the BBC

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Case Details:

Case Code : BSTR231
Case Length : 25 Pages
Period : 1992-2006
Organization : BBC
Pub Date : 2006
Teaching Note : Available
Countries : Britain
Industry : Media and Broadcasting

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Need For Restructuring

Until 1982, there were only four television channels in the UK - BBC1, BBC2, ITV, and Channel 4 - all of which used the terrestrial television broadcasting method to air their programs.

The early 1980s saw the rise of satellite television in the UK. Launched in 1982, Satellite Television was the first of such channels. It was purchased by News Corporation in 1984 and re-launched as Sky Channel, a pan European network.

In February 1989, Sky Channel was again launched as a four-channel network for the UK -Sky Channel (later Sky One), Sky News, Sky Movies, and Eurosport. After a lot of delay, the British Satellite Broadcasting (BSB) was launched in March 1990, to compete with Sky Channel. Both companies lost huge amounts and in December 1990, they merged to form BSkyB. BSkyB slowly rose to become a major competitor of BBC...

Greg Dyke Becomes Director General

In January 2000, Birt was replaced by Dyke, CEO of Pearson Television. Dyke, who took over as Director General on February 01, 2000, found the BBC's organizational structure extremely complex. There were far too many layers and the organization was much too bureaucratic. He immediately announced the creation of the 'One BBC' program where various departments and their employees would cooperate with each other and work toward achieving common goals...

Thompson Takes Charge

The committee submitted its report on June 23, 2004, a day after Thompson took charge as the Director General of the BBC. The Neil Report called for a vast improvement in the training process of the journalists. It suggested establishment of a college of journalism and a greater role for editors and lawyers in the BBC's editorial process. The committee wanted the BBC to continue to broadcast reports based on a single source but only after proper examination. It emphasized that only the most accurate information should be given to the public...

Excerpts Contd... >>

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