south african broadcasting corporation presentation to the

SOUTH AFRICAN BROADCASTING CORPORATION

PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON

COMMUNICATIONS

16 MARCH 2007

CONTENTS

•Introduction•Legislative framework• Corporate Goals•Corporate Strategy•Vision•Mission•Values• Key Performance Areas & Indicators

BOARD/MANAGEMENT CO-OPERATION

• The Board approved both the new corporate strategy and the new corporate structure in 2006

• The Board is particularly supportive of the cluster approach in so far as it breaks away from the silo mentality and promotes a “One SABC” model.

• The Board’s active support is clearly demonstrated by the repackaged Corporate Goals which are inline with the cluster philosophy

INTRODUCTION

“From Mandate to Corporate Goals to Corporate Strategy”

SABC’s mandate:

Public service broadcaster contributing to evolving democracy

Contributing to socio-political and economic reconstruction

To translate public service mandate into reality Board formulated Corporate Goals

To translate Corporate Goals into service delivery model Executive Management developed a Corporate Strategy

THE ROLE OF THE CORPORATE GOALS

The Corporate Goals are:

• Raw material for Corporate Strategy

• A foundation for key performance areas (KPAs) and key performance indicators (KPIs)

• Benchmarks and broad principles to guide Executive Management

• Instruments and tools for Board’s oversight and monitoring and evaluation of Executive Management’s performance

MANAGEMENT’S RESPONSE TO CORPORATE GOALS

Analysis of Business Model

Interrogation of Business Processes

Review of Organisational Structure

Review and Alignment of Strategy with Corporate Goals

EXTERNAL FACTORS BEHIND STRATEGIC REALIGNMENT

RAPIDLY CHANGING MEDIA LANDSCAPE

•Internationally free-to-air model increasingly coming under threat

•Content delivered more on one-to-one basis instead of one- to-many

•Digitization threatens traditional TV or radio broadcast

•Increased competition – broadcasting market opened

•SABC’s role in nation building and deepening democracy

•Human capacity development required to face new challenges

INTERNAL ASSESSMENT BEHIND STRATEGIC REALIGNMENT

Relatively new management team and organizational structure

Need to integrate and break down silos

Clustering important – Teams, not individuals

Need to explore new revenue streams

BEE/SMME bias in the procurement of goods/services

Need to inculcate new SABC culture - with clear messages

Important to re-align business nationally – Regions to be strategic delivery

centres

V I S I O N

BROADCASTING FOR TOTAL CITIZEN EMPOWERMENT

SABC STRATEGY FRAMEWORK

A. Corporate Goals:

•Content – democracy non-racism, nation building

•Stakeholders – support and respect of shareholder and audiences

•Financial – sustainability and empowerment

•People – preferred employer

•Technology – innovative

•Governance – compliance – legislative framework

•Performance Monitoring – Corporate Goals and SABC policies

B. Organisational Values• Conversations & Partnerships• Restoration of Human Dignity• Building a Common Future

C. Strategic Pillars•People•Operations•Funding•Technology•Governance

3 Strategy Building Blocks

Informs the Vision : Broadcasting for Total Citizen Empowerment

informs new performance management framework/group score card

Legislative Frame work

PLATFORMS & CONTENT

CONSTITUTION

TOTAL CITIZEN EMPOWERMENT

Corporate Goals

People Funding Technology

Regulatory Frame work

Operations Governance

KEY PERFORMANCE INDICATORS

KEY PERFORMANCE AREAS

KEY PERFORMANCE OBJECTIVES

PEOPLE Information sharing; Gender transformation;

Equity, including for people with disabilities;

Training and development

OPERATIONS Engagement with independent producers;

Implementation of industry development strategy;

Maintain leadership in TV, radio and overall

branding

TECHNOLOGY Implementation of Technology Strategy projects as

per the Recapitalisation Plan funded by

government

KEY PERFORMANCE INDICATORS (Cont.)

KEY PERFORMANCE AREAS

KEY PERFORMANCE OBJECTIVES

FUNDING Achieve Revenue Growth; Maintain expense

growth; Secure Government financial support;

Secure Increases in TV licence fees

GOVERNANCE Ensure adherence to legislative framework; Monitor

compliance to policy procedures; Information

sharing with DoC, ICASA and provincial

governments

PERFORMANCE THUS FAR IN RESPECT OF KPIs

KPA KPO PERFORMANCE

PEOPLE Promote nation building;

Support economic

empowerment;

Investments made in nation-

building content covering;

Progress registered in

language, gender and

disability equity; Increase in

black companies

economically empowered


KPA KPO PERFORMANCE

PEOPLE Information sharing with

public;

Implement refocused HR

strategy; Review and

implement Performance

Management System

Public feedback sessions

held; Performance

contracts for Top &

Senior Management 95%

complete


KPA KPO PERFORMANCE

PEOPLE Employee development

Employment parity

Employer of choice

Progress registered in

employee development and

parity implementation

completed; Succession

management framework

Developed; Staff Wellness

Programme implemented


KPA KPO PERFORMANCEOPERATIONS New procurement policies and

Procedures

Engagement with independent

Producers

Industry development strategy

Formulation

Launch of 24 Hours News Channel

Complete

Ongoing

Projects launched

Testing begins early 2007, full launch in 2008


KPA KPO PERFORMANCETECHNOLOGY Implementation of Technology

Strategy

Prioritise public service

broadcasting

Provide innovative and cost

effective solutions to produce

and deliver broadcast content

Maintain reliable working

systems for old technologies

Successful delivery of

approximately 40% of projects

Increased investment in drama, current affairs and news bulletins in African languages

Deployed portable satellite internet protocol solutions

Operational faults reduced


KPA KPO PERFORMANCE

FUNDING Achieve Revenue Growth;

Maintain expense growth;

Secure Government financial

support

Growth achieved; Expense growth maintained; Government support continuing;


KPA KPO PERFORMANCE

GOVERNANCEEnsure adherence to legislative

framework; Monitor

compliance to policy

procedures; Information

sharing with DoC, ICASA and

provincial governments

General achievement all round

ORGANISATIONAL MODEL

Model based on Clusters rather than traditional Departments

Clusters combine departments according to functions

Clusters undermine the silo mentality

Clusters exploit functional relationships

Clusters encourage synergies

ORGANISATIONAL CLUSTERS

CLUSTER CONSTITUENT PARTS PURPOSE

GROUP

CEO

Regions

Group Strategy

Procurement

Group Communications

Risk Management

Leadership and direction

Alignment between the organization and the empowerment needs of the public

Information of citizens

FUNDING Financial Control

Group Services

Business Analysis (Strategy)

Audience Services

Commercial Enterprises

Create a financially sound corporation

Provide commercial and financial insight and direction

Exploit commercial and business opportunities



GOVERNANCE Internal Audit

Company Secretarial Services

Legal Services

Policy and Regulatory Affairs

Independent, objective assurance, investigating and consulting service

General Board Governance Support

Legal, regulatory and compliance advice

Compliance with license conditions and editorial policies

Universal access


CLUSTER CONSTITUENT PARTS

PURPOSE

PEOPLE Corporate Affairs

Human Capital

Services

International and domestic stakeholder management

Enhance international profile of the SABC

Inform and educate citizens in outside the SABC

Corporate image management

TECHNO-LOGY

Air Time; TV and Radio Broadcast Facilities; Logistical and Engineering Services; Broadcast IT

Broadcast and non-broadcast technology solutions, services and infrastructure



NEWS AND

CURRENT

AFFAIRS

Radio News

Television News

SABC Africa News

Provide content and produce all news and current affairs programmes

OPERATIONS PBS

PCS

Content Enterprises

Market Intelligence

Creation, procurement, distribution and delivery of quality content

SABC AND THE 2010 WORLD CUP

• Even though the SABC has no direct obligations for the World Cup, consideration has been given to the role we can play by virtue of being public broadcaster

• In addition, there are opportunities for the SABC to leverage, such as expansion into Africa and exploitation of production capability. There are negotiations underway involving FIFA and African broadcaster organisations in this regard.

• Not surprisingly, there are challenges linked to these opportunities, such as:– Upgrading of facilities and technology– Skills development of staff involved– Funding implications– Multiple language delivery– Selecting the right partners– Challenges due to Africa’s differentiated development

SABC AND THE 2010 WORLD CUP

• Initial assessment has been made, particularly with regards technology readiness for 2010, and several scenarios are being explored, including partnering with external experts to deliver on expectations successfully

• A lot has been done thus far by way of interaction with FIFA and the LOC, among others, with specific focus at broadcasting and related issues. Feedback has been positive and SABC is well aware of the high expectations by virtue of been host broadcaster

• Plans are afoot and finances allocated towards putting the SABC, especially its technological and technical capability, at an international level

CLOSING REMARKS

The new vision and strategic direction of the SABC raises key strategic issues which must be addressed:

• Funding model

• Licence fee levels

• Advertising on Children’s programmes and News programming

• Continental and international obligations

• Citizen participation

• Focus on the disempowered (Voice of the voiceless)

• Quality of programmes

CLOSING REMARKS

• The past few months have seen the SABC review its mandate and streamline its work

• There has also been an injection of new blood into the SABC

• Emerging out of these, the public broadcaster is poised to execute its mandate with added vigour

• The public deserves the best – it can expect only the best from the SABC

south african broadcasting corporation presentation to the

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