Guiding a broadcasting organisation in financial crisis towards a new future

Problem: a broadcasting organisation at the subregional level has developed a structural debt position that runs an annual deficit of at least €100,000. The revenues (subsidy and market performance) cannot possibly offset this. A complex set of causes is at issue, and acute bankruptcy for the broadcasting organisation threatens. How do we keep the transmitters on the air?

Solution:  Edgar Hennis assumed the management as chairman of the board. He formed a new board and looked into the situation. That led to the appointment of an expert interim manager tasked to overhaul thoroughly the organisational and financial course of business, together with the board, but at the same time to offer the sizeable group of of volunteers at the broadcasters decidedly comfort for the future. A package of legal, organisational and financial measures was developed. This led to new confidence from the subsidy provider, who was prepared to cover the deficit. That is being carried out gradually, on condition that the new policy deployed (disposal of a number of tasks, rationalisation of agreements with suppliers, go through the organisation with a toothcomb and a direct reduction of interest charges) is part of the new course charted for the broadcasting organisation.   At the same time, a number of new initiatives has been taken to root the broadcaster more firmly in society.  In 11 months, the situation has been financially turned around and the seemingly unsolvable problems that plagued the organisation have been eliminated.

Result: the subsidy provider’s confidence in the subsidy recipient (the broadcasting organisation) has been restored, the organisation has been put on a new course and is thus ready for the future. Relatively serious shortcomings have been eliminated; updated perspective through new initiatives and slimmer workforce.