Mangham, I.
Power and Politics:TVN
pp. 71-76
Clegg, C, Kemp, N, & Legge, K., (1989) Case studies in organizational behaviour, London: Paul Chapman
Publishing Ltd
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Course of Study: IB700 - Organisational Behaviour
Title: Case studies in organizational behaviour
Name of Author: Clegg, C, Kemp, N, & Legge, K.
Name of Publisher: Paul Chapman Publishing Ltd
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CASE 8
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Power and Politics: TVN
lain M angham
Organizational Setting and Background to the Problem
TVN is an independent television company holding the franchise for broadcasting to
a large section ofthe population in the north of England. It was awarded its franchise
in 1981, after the previous holders had been deemed by the Independent Broad­
casting Authority not to have supplied an adequate service. In particular the
previous franchise holder - Instant Appeal Entertainment Corporation - had failed
to provide the required number of programmes with local interest and had, with the
exception of the period immediately prior to the award of the franchise, resolutely
filled the screens at both local and national level with chat shows and entertainment
spectaculars. Under the terms of the franchise TVN were mandated to rectify these
failings; they were required to create programmes of local interest and supply to the
network a balanced diet for viewers. Their franchise comes up for renewal in five
years' time.
The senior management group - with whom we shall be particularly concerned
in this case study - consists of a number of people from the old franchise holder,
Instant Appeal, and a number brought in from other companies (including one from
the BBC). The new managing director, Neville Cottingham, a thrusting executive in
his mid thirties, has no experience in television, having been recruited by the
chairman of TVN to 'give the company some commercial flair'. The chairman als()
has little experience in television. Cottingham has brought with him as confidant and
industrial relations director one of his colleagues, Tom Beverley, from his days at
Snowdon Double Glazing. They have been in position for a couple of years, the
previous managing director having left to rejoin Instant Appeal in its film division.
The sales director, Tom Skidby, in his late fifties, man and boy with Instant Appeal,
was one of the original bidders for the franchise and is on the board ofTVN, as is Eric
Walkington, a man of similar age, again an original signatory for the franchise and
currently finance director. Walkington is also an Instant Appeal man, as is the
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Section J: Organizational Behaviour
72
director of programmes, Tony Dancer, who was acting managing director for a
period immediately prior to the advent of Neville Cottingham. Dancer is a tall, spare
individual with over 20 years' experience as a maker of distinctive television films
and a considerable reputation as a scheduler and commissioner of productions. He
too has a seat on the board and, as director of programmes, a considerable number of
links both formal and informal with the watchdog of the industry - the Independent
Broadcasting Authority.
The Problem
The Basic Situation
TVN under its previous managment which, of course, included Dancer, had a
reputation for producing international packages - blockbusting megastar pro­
grammes full of glitter and showbusiness bazzaz, costing scores of thousands of
pounds and selling around the world. Its turnover, although large by industry
standards, was but a small part of the business of Instant Appeal and its profits,
which were proportionately large, accrued to the parent company. Little of it was
returned to TVN in the form of investment, but, on the other hand, little was
demanded of TVN in terms of cost control or efficient management. The new
company stands alone and both the chairman and Neville Cottingham are deter­
mined to render it efficient and effective. To them this means controlling costs and
ensuring that TVN enjoys a 'good reputation' with its audiences, with its adver­
tisers, with its employees, with the City and not least with the IBA . This year it is on
line to make substantial profits, partly as a result of Dancer's shrewd selection of
programmes (which brings in the advertising) and partly as a result of the efforts of
the chairman and the managing director to control costs.
The industry as a whole, and particularly the independent sector of it, has a
reputation for high spending. Since the government takes a slice of the profits by way
of levy, many employees have come to regard money spent on programmes (and
upon their own contributions to them) as in some sense not real - money which
otherwise would go to the Exchequer. TVN's association with Instant Appeal- the
glamorous world of showbusiness - has reinforced this tendency to treat funds with
relatively little concern. Throughout TVN, at all levels, the culture of Instant
Appeal still prevails. This is particularly true of the Programme Department
(controlled by Tony Dancer) which spends millions of pounds annually. Produc­
tions regularly run over budget - sometimes by as much as 200 or 300% - and there is
a suspicion that very little control is exercised over any programme maker by Dancer
or any of his staff, although the overall budget is more often met than not. The
culture of the department is such that any attempt at control would be labelled
'interference with creative freedom' and much resented. Dancer himself epitomizes
this approach and resolutely refuses to discuss the affairs of what he takes to be his
area of responsibility with Cottingham or with anyone else. He bases his refusal on
the nature of his appointment (ratified by the IBA and requiring the incumbent of
such a posirion to be a suitable person and not subject to direction by others) and
Power and Politics
73
upon the fact that Neville Cottingham, having little experience of television, is not in
a position to say what should or should not be done.
Cottingham regards the cavalier approach to expenditure as little short of
'immoral'. In areas that he can control -largely those of direct operations such as
engineering or publicity - he has succeeded in reducing costs and in streamlining the
operations of the company. Together with his industrial relations director, Tom
Beverley, he has confronted the unions over the question of manning and special
payments and, after a strike which closed the studios for some weeks (and caused
considerable annoyance to the programme makers), he succeeded in imposing some
industrial relations discipline on the floor. He has also instituted regular com­
munication meetings with staff at all levels and is, with the notable exceptions of the
unions and the programme makers, regarded as 'good news' by a considerable
number of those employed at TVN. It is, however, clear to many that his dictat does
not extend to the programme department. It is equally clear that he and Dancer are
personally antagonistic.
Detailed Information on Problems
I
The head of engineering, Frank Selby, recruited from another independent TV
company and sympathetic towards Cottingham's aims, is not alone in seeing the
complexity of issues facing the managing director: 'He is faced with the problem of
getting things right fast. Very fast. And he doesn't know the industry well. Lots of
neat management techniques, but essentially he is a stranger to what goes on. A
breath offresh air, highly energetic but, no doubt about it, on a collision course with
Dancer and those of his men who indulge their fantasies at the company's expense.
Trouble is, they have bloody good fantasies. They turn out good programmes, but at
a cost. Tony Dancer is a smart operator. I've a very healthy regard for him. He's
probably the most able programme director I've worked with, and when I say able I
mean in all sorts of ways. He's got a very good head on him. He is able to negotiate on
behalf of the company on all sorts of complex matters to do with networking and so
on and he's got tons of courage, and if he feels he must do something, he'll pursue it
and pursue it and pursue it. Very much his own man, though, and when you put him
alongside Neville, a chap with a hell of a track record elsewhere, tremendous rate of
achievement, then there is going to be argument, conflict at a level which is higher
than the healthy one which ought to exist. Because they both want to do their own
bloody thing. A trial of strength.'
Tom Beverley, the industrial relations director, sees things in a similar fashion:
'We've got a number of characters around here who really do have their own
individual styles, classically Tony Dancer, very powerful personality, like Neville
Cottingham in many senses, got a tremendous ego, very selfish, power conscious,
but a completely different way of operating from Neville which he freely acknow­
ledges - boasts about it. He likes to accumulate as much information as he can
possibly get and give away as little as he possibly can. Information is power to him.
He'll tell people what they need to know and then tell them what to do. That's
";'ony's style. The creative bit, based on instinct and feel- if it's right, do it and pick
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Section 1: Organizational Behaviour
up the pieces afterwards or ignore them. Neville would be mortified to hear it and
would deny it, but he and Tony are similar in some characteristics, both driven by an
urge to have their ideas accepted, but Tony's way of operating is anathema to Neville
who is much more open. There are continual clashes between the pair of them and
will continue to be and I fear for the result of that because sooner or later there's
bound to be a parting of the ways. Who goes and where and when is another matter.
The tragedy is that we need both of them to stay.'
Dancer recognizes the issue and reacts to it characteristically: 'It's not up to me to
hold people's hands. Neville's a big boy now. If he does not like what I am doing it's
up to him to do something about it, not down to me to be running in and out of his
office telling him every little thing that's going on. If I am employed as the bloody
programme controller, that's what I will do - control the bloody programmes. I'm
given an overall budget, I'm told I have to get it right by the company and if they
don't think I've got it right they can get rid of me. Don't play games. Either they
want me to do the bloody job or they want Neville to do it for me. Can't both do it,
particularly when one of us knows less than bugger all about it.'
Matters are brought to a head during a meeting of the Programme Committee.
This group has been brought together at the instigation of Neville to bring about
better coordination between the programme makers and those who supply the
services. It has met on two previous occasions and has a reputation for being the
arena in which Tony and Neville offer mock combat to each other. Neville, as
perceived by Tony, seeking to 'pry' into programme matters and Tony, as perceived
by Neville, determined to exclude all from contact with what he takes to be 'his
patch'. The company is offering to the network a new late night programme which is
reputed to be 'adult', 'frank' or 'downright offensive' according to one's sensitivities.
No one other than the lawyers and the programme makers have seen any of the
recorded episodes, but rumour is rife and has been picked up by the newspapers.
Neville quotes from one of them:
'I gather from this that, quote "Slammmakes the News of the World and the Sun
look tame", unquote; that it quote "is taking on everyone, the Queen, the Royal
Family, the Prime Minister, the Opposition, the Judges, the Churches, the Unions
... ", unquote.'
Tony twirling his pencil and lying back in his chair smiles and then begins to
laugh quietly.
'I don't know what it is that you find amusing in all of this, Tony. 1 was asked
about Slamm the other day by the Chairman and I had to tell him I knew nothing
about it other than it was over budget.'
It's not down to him to know about it. Nor you for that matter.'
'Oh, so I have to learn about what TVN is doing from reading the newspaper, do
I? Do I? How the hell am 1 expected to cope with questions when I don't know the
first thing about what is going on? It sounds as though we are in for a rough ride on
this one if the leaks are anything to go on: "It is understood that the IBA has censored
material which it took to be antisemitic." ,
'Untrue. Nothing antisemitic about it.'
Power and Politics
75
'No censorship then?'
'Didn't say that. They took it to be antisemitic. It wasn't. Just a joke about pencil
sharpeners: They insisted it come out.'
'What else had to come out, Tony?'
'Look, where is this leading us, Neville? It's my job to deal with the IBA and I'm
doing it. Why don't we discuss something important like why it is when 1 hire
freelance producers they can't find a bloody desk to sit down at? Why it is that
getting a typewriter around here is like extracting a bloody tooth?'
'1 want to talk about programmes, Tony. As managing director 1 am responsible
for this company ... '
'And 1 am responsible for its programmes. If you want to talk about them, how
about talking about the awards we picked up last month? Two, better than any other
independent. Or the ratings, let's talk about the ratings. Three in the top seven last
month, that brings in the advertisers, doesn't it? Let's talk about that ... '
'What about Slamm, Tony, will that get an award? Will that be in the ratings?'
'Don't know. Like all programmes it's a risk and I'm paid to take them.'
'And I'm paid to know about them.'
'All you need to know you can get from The Sunday Times.'
Case Study Tasks
Imagine that you are the managing director, Neville Cottingham. How would you
define the situation with which you are confronted? What action(s) would you take
and in what sequence? It is as well to remember that the position of TVN on the
Stock Market is, as with all such companies, a matter of confidence in those
responsible for its direction and that the programme director is a key person to the
maintenance of this confidence. Locate your definition and your action(s) within an
appropriate theoretical framework. The questions and references below will help
you in locating a framework, defining the problem and resolving the issue. Ques­
tions 1-3 are appropriate to teaching sessions of one or two hours. Question 4
requires a longer period of study, reading and discussion.
2
3
4
What kinds of question does Neville have to ask himself in order to define the
situation carefully?
Who else should he address his questions to? Why? And what kind of questions
should he be asking?
What are the options open to Neville after this meeting and what are the likely
consequences of each?
Assuming something can be done about the Neville-Tony issue, what steps can
be taken to ensure that similar issues do not recur?
Essential Reading
Bacharach S B Lawler E J (1980) Power and Politics in Organizations, Jossey Bass
Korda M (1975) Power, Ballantine Books
Pfeffer J (1981) Power in Organizations, Pitman
7111
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Section 1: Organizational Behaviour
Additional Reading
Bailey F G (1977) Morality and Expediency, Blackwell
Mangham I L (1985) Power and Performance in Organizations, Blackwell
Mintzberg H (1983) Power in and around Organizations, Prentice-Hall
Salancik G R Pfeffer J (1977) Who gets the power - and how they hold on to it: a
strategic-contingency model of power, Organizational Dynamics 5: 3-21
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