Print this page

NEWS AND SPEECHES

*

*

Key Performance Indicators For All

Andrew Cavenett Head Performance Measurement, ABC

The unique nature of Public Broadcasting operations and objectives creates problems in being able to effectively and critically assess performance using reliable and relevant benchmarks. This is further compounded by in most cases Public Broadcasters not having other public broadcasting operations within their country to benchmark against and difficulties in accessing and using comparative benchmarking data from Commercial Broadcasters.

There continues to be a strong desire and support across Public Broadcasters around the world to access comparable Public Broadcasting Benchmarking data.

Benchmarking for Public Broadcasters is not new, however success and benefits to date may have been limited due in part to:

Lack of comparability of data; Fears of appearing less efficient than others in the industry;

The Distance between some industry members.

The current environment that Public Broadcasters operate within is dynamic with all Broadcasters confronted with similar issues re funding sufficiency, recent and expanding technologies (i.e. digital, online and merging of platforms), legislative requirements and increasing competition.

These issues along with others have continued to place pressure on Public Broadcasters in respect of meeting stakeholders demands and expectations for quality performance and accountability.

Questions continue to be asked about Public Broadcasters ongoing relevance and sustainability today and more importantly whether there is a future for them in broadcasting.

Public Broadcasters are continually pressured by stakeholders to demonstrate their ongoing “Value for Money”.

Comparative benchmarking allows Public Broadcasters to source objective data against which they can demonstrate performance and better meet their accountability requirements to stakeholders.

The use of comparative benchmarks should go beyond just accountability as their use can strengthen strategic planning and assist in identifying performance improvement opportunities. However, to be truly useful, benchmarks need to be applied consistently over a sufficient period of time.

The following diagram presents conceptually the relationship of Benchmarks within a Public Broadcaster.

Current Status of work undertaken in developing International Public Broadcasting Benchmarks

A significant step forward in benchmarking, was achieved when an International Benchmarking Workshop for a number of International Public Broadcasters was hosted by the ABC in Sydney in March’2001.

Participants representing the ABC, BBC, CBC (Canada), RNZ (Radio New Zealand), DR (Denmark) and NRK (Norway) met with the aim of working collaboratively together in ensuring data comparability between public broadcasters.

The primary focus of the Sydney workshop was to work through a diverse range of issues and reach agreement on a consistent set of KPI’s and measures, including the underlying business rules and definitions, so as to normalise information for public broadcasters that would facilitate creation of meaningful and effective benchmarking of the various participating Public Broadcasters.

The group also assessed and agreed on guidelines on the accessibility and use of information and data both within the group and externally.

The group discussed the building of a dedicated database that the ABC is hosting. Based on agreed business rules, each broadcaster will input information directly via an internet link into the database using a standard agreed template.

This information will be collated within the database allowing each participating Public Broadcaster to access industry average benchmarks and compare their own performance against the average for the group.

To further assist comparison, all expenditure is expressed in $US dollars at the relevant currency cross rates for the comparative years data.

The workshop initially looked at in conjunction with each broadcaster:

The workshop considered a large number of possible KPI’s and measures. It was agreed that in selecting KPI’s they would need to be:

comparable across each broadcaster;

measurable and reliable with data available for each broadcaster;

relevant to each broadcasters activities.

The group selected the following 4 categories of benchmarks to collate data for TV and Radio activities:

The group has agreed to assess suitable benchmarks for New Media and other platforms (i.e. Online etc) in the near future.

The International Benchmarking workshop was an extremely valuable exercise in providing a solid base to work on the development of KPIs and performance measures.

More importantly however, in highlighting the similarity of functions and structures of the participants and notwithstanding the different environments and geographic location of each broadcaster, the establishment of such a forum has allowed for better understanding of the challenges and issues facing public broadcasters as a whole.

Work progressed further in 2002 with the development of the database, collation of data and reporting of Public Broadcaster International Benchmarking data for the first years data submitted.

During May 2002, the ABC chaired a 2 day workshop of the International Benchmarking group hosted by the NRK in Norway where:

a commitment to progress the work of the group was affirmed by all;

each broadcaster provided an update on the status of their work on Performance Measurement since March ‘2001 workshop (Sydney);

agreed benchmarking definitions and underlying business rules were reviewed and confirmed;

the initial first years' data submitted by each broadcaster was reviewed against the agreed guidelines and definitions.

confirmation of ORF (Austria) and RTE (Ireland) joining the group – this sees 8 current members including the ABC, BBC, CBC, DR(Denmark), NRK (Norway) and RNZ;

Following the workshop in May, each Broadcaster reviewed their data and resubmitted where corrections/amended were required.

The first years' data has been locked-off in the database with the first comparative reports for each Broadcasters data against the groups average provided.

Work is well underway at present on the collation and reporting of the next 2 years benchmarking data currently due from all broadcasters, that once finished will see comparative data covering a 3 year period available in the database.

The ABC completed the incorporation of the database into a website that has been released to all member Broadcasters allowing them direct access via an Internet Link to view data and run comparative reports.

The current group of Broadcasters believes increasing the number of participating Broadcasters will strengthen the benchmarking initiative and allow for greater access to a diverse array of reliable benchmarking information.

The following tables show the current agreed benchmarks that data is being collated and reported against.

Current agreed KPI’s and benchmarks – at this stage only for mediums of TV and Radio Category KPI Description/details Universality Reach - viewers/listeners for each medium as % of total population Efficiency Cost per production hour % of overheads against total expenditure Cost per broadcast hour Cost per viewer/listener Utilisation of Production Resources Output per employee (FTE) - 1st run produced hours by genre for each medium - original/1st run broadcast hours per medium - for each medium - Labour (Staff) - Facilities (Studios and Outside Broadcasts) - unique/1st run broadcast hours by each medium Quality % of National Content - all broadcast hours content not sourced from other countries by medium Distinctiveness % of Output hours (broadcast) by genre - against total broadcast hours for each medium agreed genres are: - News - Children's - Drama - Sport - Entertainment - Music & Arts - Factual Example of the use by the ABC of Comparative Benchmarks

The following series of graphs provide an example of how the Benchmarking results can be used. The results are based on data provided from each broadcaster for their financial year 2000 or 2000/2001.

The comparative analysis of ABC results with the group’s average shows the ABC is performing well in key areas in relation to efficiency.

The first two following graphs show separately the costs incurred for Television and Radio averaged across total Broadcast hours for the respective medium.

The next graph compares with the groups' average the ratio of ABC overheads expenditure against total ABC expenditure. Conclusions As the current International Benchmarking initiative matures, the group will explore the assessment of new benchmarks and strengthening the forum for exchange of information between Public Broadcasters.

This will see an enhancement of the strong informal working relationship established between each broadcaster to further formalise and leverage off the sharing of information outside of the benchmarks for key operational areas (ie Systems and processes, methodologies, distribution, funding etc).

This will enable the establishment of a network of key contacts within broadcasters for sharing of information to assist each broadcaster to assess their current operational and strategic activities (this can be achieved by comparison with other broadcasters of similar issues and how they deal with them).

The current work being undertaken by the International Benchmarking group represents a significant initiative that will be of enormous benefit to Public Broadcasting.

By benchmarking performance against an international best practice rather than individual broadcasters, credibility in reporting of performance is enhanced with this project strongly positioned to succeed.

With the high level of enthusiasm shown by all participants of the International Benchmarking Group, it is expected that all will benefit greatly from access to information on the performance of other Public Broadcasters.

Further analysis will involve exploring and understanding the differences in benchmarking results, and how various international organisational practices contribute to overall results. Best practice models will be promulgated.

The need to access relevant and comparable Public Broadcasting benchmarking data is a common objective of Public Broadcasters that has seen strong commitment and dedication of resources given in support of this initiative. Of course the success of this initiative for all involved will be dependant on the continuation and strengthening of all participants' commitment and desire to succeed.

Please visit the ABC’s online site~ abc.net.au~ where you can view corporate documents and publications including the Corporate Plan and Annual Reports, both of which incorporate an array of relevant performance measures.

For further information regarding Performance Measurement at the ABC and the work of the International Benchmarking Group, please contact:

Andrew Cavenett Email: cavenett.andrew@abc.net.au Head Performance Measurement Telephone: 61 2 83335207 Australian Broadcasting Corporation Fax: 61 2 83331861 ABC Ultimo Centre Sydney, Australia