Thursday, January 27, 2005

Crisis Management

We always report on how crisis and risk management are important to business and governance. Authorities and private companies that goof up on managing their mistakes always find their way to the gutter.
The largest media network in Japan, or even Asia, has shown their incompetence in crisis managing. NHK the country's only public nationwide network's way of managing was far below average. It was disclosed by others that the boss that had just resigned, had taken the advisor's post in the gigantic media organization. The resignation was after all the turmoil that led to hundreds of thousands of households declaring they will stop paying their television receiving fee contracts. A receiving fee contract is a Japanese unique way of supporting the "public" media. It's a simple contract. If you have a gadget that can receive the television wave, you have to pay a little over 1000 yen per month by law, The Broadcast Law. (For details click http://www.nhk.or.jp/eigyo/index_e.html ) There is no punishment if you don't pay, and a lot of people are starting to take advantage of this. This number will probably rise with this "advisor" issue. NHK is even accused of being under the influence of politicians of the reigning party with Asahi Shimbun, one of the top selling newspapers, bringing a special report on this issue as its top story two week ago. (The two media are exchanging blows which might lead to a legal fight...)
In the world there are many government-owned media but "public" networks are not so rare. There are television networks like BBC with punishments if fees are not paid. There's KBS in Korea which also takes in revenues from advertisement. (It is said the ratio of receiving fees and the income from ads is around 4 to 6) ARD and ZDF of Germany have just decided to raise the receiving fees.
A public one or not. It may be time to talk about what the Japanese people really want. To break it up into a private organization? Make it a "national" media using taxes for the budget? Or just destroy!?
I have no idea on where to start, but something has to change. It not a matter of crisis management any more...

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