Optimising Media Production: A Case Study

Key Results

• Reduction of 612 taping days achieved through enhanced planning. 

• Cost reduction in excess of $2.2 million realised across operations. 

• News team overtime decreased by 40%, indicating improved resource management. 

Background

The client is one of the largest broadcast networks in the Philippines, delivering news and entertainment content via four originating television stations, one affiliate, and 40 relay affiliate television stations, alongside thirty-four radio stations nationwide. Boasting an audience reach of over 12 million households, the client had grown to become the leading broadcasting company in the Philippines. Following a period of uncertainty, the current management team successfully reshaped the company’s image and operations, driving a phase of significant growth. 

The Challenge

Recognising a potential decline in profitability due to an anticipated downturn in advertising revenues during 2006, and with a pending Initial Public Offering (IPO), the client aimed to intensify its focus on managing operational expenses. An initial assessment of the client’s operations by Renoir Consulting identified several key areas requiring attention.  

These included a low emphasis on production cost controls and underutilised capacity within their in-house facilities. Furthermore, the existing television program budgeting process was deemed to be in need of significant updates and improvements to enhance efficiency and cost-effectiveness. 

What We Did

To address these challenges, the media production company and Renoir Consulting collaboratively initiated the CST project, with the primary objective of optimising excess capacity, lowering costs, and boosting production efficiency. A dedicated six-member project taskforce was formed, drawing personnel from crucial areas such as Production (Entertainment, News & Public Affairs), Engineering, and Post Production, to spearhead this initiative. Guided by Renoir, a structured three-stage methodology was adopted: 

Stage 1: Focus Process™: This initial stage concentrated on developing comprehensive strategies, clear objectives, and robust controls to directly address the identified problem areas within the client’s operations. 

Stage 2: Implementation: The second stage involved the practical application of methodologies and controls designed to achieve the targeted levels of improvement in efficiency and cost reduction. 

Stage 3: Sustaining the Change: The final stage focused on embedding the improvements within the client’s culture through the implementation of Zero Based Program Budgeting and consistent Production Bible compliance auditing. 

Throughout the project, the implementation of five key working practices proved instrumental in driving change through enhanced discipline and early issue detection: 

• Strengthened pre-production linkages with in-house facility groups. 

• Implementation of consistently manageable pre-production daily planning. 

• Establishment of ground-level daily production reporting to increase awareness of issues as they arose. 

The Results

The project’s overarching objective was to cultivate a performance-oriented culture aimed at increasing efficiency, productivity, and ultimately, profitability. The implementation of the Renoir-led program yielded substantial positive impacts across various aspects of the client’s operations. By week 20 of the project, production performance had already shown a 20% improvement compared to the base period. A similar level of progress was observed in the optimisation of internal facilities and equipment usage. Notably, outside post-production costs were reduced by 25% and were on track for complete elimination. 

The enhanced planning capabilities directly led to the removal of 612 taping days. Furthermore, the client successfully accommodated four additional programs within their existing post-production facilities without incurring any extra rental costs. The focus on efficiency also resulted in a reduction of 102 talent positions and a significant 40% decrease in overall overtime expenditure.  

“Many of the concepts and ideas implemented during the program were not new to our management team, but what the Renoir team added was a well-structured tool to drive through the changes in a very short time.” – President & CEO 

The project contributed to a substantial increase in story utilisation from 70% to 92%, indicating better content management and resource allocation for the media production company. The overall financial impact was a cost reduction in excess of $2.2 million, demonstrating the significant return on investment achieved through the collaboration. As noted by the client’s President & Chief Executive Officer, while many of the concepts were familiar to their management team, “what the Renoir team added was a well-structured tool to drive through the changes in a very short time”.