SABC Board Four years in Review

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(No Transcript)
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SABC Board Four years in Review
Sonwabo Eddie Funde 6 November 2007
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Outline

• Board Goals An overview
• Also highlight what committees exist
• Highlights of Actions against each board goal
• Overall Challenges facing the SABC.

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Corporate Goals Summary

• Early in its tenure, the Board discussed a way of
  focusing the organisation on its mandate
• This resulted in a discussion which led to the
  adoption of the Corporate Goals of the SABC
• These goals are derived from the broadcasting act
  and editorial policies of the SABC

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Corporate Goals Summary continued

• They have been used to guide the Board and
  Management in decision making and operations
• Foundation for Corporate Strategy A foundation
  for key performance areas and Indicators
• They have been incorporated into performance
  management across the SABC

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Content Goals

• Ensure the SABC promotes democracy, non-racism,
  nation building, and empowerment through news,
  current affairs and innovative programming, in
  all official languages, which is informative,
  educational and entertaining.
• Ensure the SABC produces compelling, professional
  and authoritative news, current affairs and other
  programming that tells the South African and
  African story accurately, fairly and in a
  balanced way to all South Africans in line with
  its Editorial policies and regulations of ICASA.

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Content Goals continued

• Ensure that the SABC reflects the World, in
  particular Africa, in line with its editorial
  policies and corporate goals, and plays a
  meaningful role in supporting the African
  Renaissance and NEPAD.

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Content Goals Structure

• Content is mainly divided into two main areas,
  and thus,
• divisions
• These are
• News and current affairs, which is in turn
  divided into the following platforms
• Domestic, i.e.. channels 1, 2 and 3, and the 19
  radio stations and
• International i.e. SABC Africa, SABC News
  International and Channel Africa Radio.
• Public and Commercial programming

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Content Goals News and Current Affairs
Interventions (1)

• Insisted of a paradigm shift on coverage of news.
  Emphasis to be laid on developmental news agenda
  with a clear shift from coverage of events and
  sensational stories.
• Clear strategy to improve skills of journalists,
  in co-operation with academic institutions. E.g.
  Collaboration with Wits University on a Media in
  Society intervention.

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Content Goals News and Current Affairs
Interventions (1)

• Encouraged better quality of delivery of news by
  ensuring each programme is researched and has a
  producer and a separate presenter.
• Extension of news gathering network locally and
  internationally

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Content Goals News and Current Affairs
Interventions (2)

• Domestically, on television, news is now
  broadcast in the eleven official languages and on
  Radio in 13 languages, including Xu! And Khwe
• Increase a number of news bulletins to address
  language challenges
• Increased current affairs in African languages
  e.g. Asikhulume,

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Content Goals News and Current Affairs
Interventions (3)

• SABC News International will also be packaged by
  the Commercial Enterprises for revenue
  exploitation globally
• SABC News International launched with an
  intention to tell the African from an African
  perspective
• Initiated the establishment of News Bureaus in 4
  regions of Africa and a further 6 international
  onesone each in the Carribean, Brazil and China
  and Washington, New York and Brussels
• Launched a local bureau in George and the
  extension of operations in Bisho and Mthatha

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Content Goals Programming interventions (1)

• Board through the goals drove content
  transformation to reduce reliance on
  international content
• In 2004 65 international vs. 35 local
• In 2005 30 international vs. 70 local
• In 2006 18 international vs. 82 local

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Content Goals Programming Interventions (2)

• Insisted on the improvement of cultural diversity
  in content
• Insisted on compliance in the use of more African
  and all 11 official languages across all
  programmes ( e.g. soapies)
• Increase diversity of audiences via subtitles to
  encourage cultural exchange
• Increased procurement of content from companies
  owned by black people and women and drastically
  reduce the recycling of same production
  companies and therefore same actors etc.

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Content Goals Programming Interventions (3)

• SABC 2 and 3 exceeded their ICASA targets. SABC 1
  making significant progress
• All channels reinventing themselves to look at
  audience satisfaction
• Initiated and maintained dynamic relations with
  Content producers and the Unions of Actors to
  ensure that they are reliable partners, produce
  quality, relevant, informative, educational and
  entertaining programming consistently

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Content Goals Programming Interventions (4)

• Significant growth universal access through
  increasing in SABC footprint in last four to five
  years
• Ikwekwezi from 30 to 81
• Ligwalagwala from 34 to 68
• Ukhozi FM from 68 to 87
• SABC1 from 82 to 89
• SABC2 from 85 to 91
• SABC3 from 71 to 77

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Content Goals Programming (5)Improved Facts
and Figures
Total number of Sithengi Briefs (RFPs) for 2004-5 84
Total number of Proposals commissioned to date 114
Total number of BBBEE commissioned companies 77
Commissioned Black owned companies to date 62
Commissioned Black women owned companies 41
Commissioned Black Empowered companies to date 15
Commissioned White only owned companies to date 37
Total number of newly commissioned companies 59
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2. People Goal

• Make the SABC a place of preferred employment by
• attracting, retaining and nurturing talent in the
  Corporation
• and the country, while ensuring appropriate
  compliance
• with Employment Equity

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People Goal Interventions (1)

• Transformation of middle management in terms of
  Race and Gender.
• Tackled challenges of attracting skills in
  Finance and Technology.
• Approached the challenges not as only about
  numbers but about culture as well.

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People Goal Interventions (2)

• Implemented remuneration parity across all
  sections of the SABC
• Appointment of managements team 1st parastatal
  to meet 50 women at top management level
• Benchmarked remuneration especially in news to
  make it market related in order to achieve higher
  levels of staff retention.
• Crated and implementing a comprehensive
  Remuneration and performance management system
• All senior managers will be on performance
  contracts by the end of 2007.

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People Goal Improved Figures to ponder
Category 2004 Level 2007 Level Remarks
Top Management Black Staff 62 77.3 Dramatic Increase
Top Management Female Staff 31 32,99 Slow Growth
Middle Management Black Staff 41,5 59.8 Dramatic Transformation
Middle Management Female Staff 31 35 Steady increase
News Black Managers 55 65 Steady Increase
News Female Managers 30 34 Steady Increase
Total Black Staff 79.86 85.7 Steady Increase
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3. Financial Goals

• Create a financially sound Corporation built on a
  sustainable business model, and ensure that its
  assets are used in an effective and efficient way
  in line with the requirements of key legislation
  to which the SABC is subject.
• Establish a procurement policy that complies with
  the ICT Black Empowerment Charter, and promotes
  ownership and the participation of youth, women
  and persons with disabilities in the broadcasting
  industry.

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Financial Goals Intervention (1)

• Sound financial system established
• Massive investment of profits in local content
• Investment in Technology to improve transmission,
  
• Introduced new systems of interacting
  broadcasting including sms and websites.
  Introduce marketing for all stations.
• Revenue increased to R4-billion
• After-tax profit up to R382-million in 2006

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4. Stakeholders Goal

• Create an SABC that enjoys the support and
  respect of its viewers, listeners, shareholder as
  well as other stakeholders

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Stakeholders Goal Intervention (1)

• Improved relations with the Shareholder
• Improved and regular reporting to the Portfolio
  Committee
• Annual Public Broadcasting Service Colloquium
• Board Regional outreach to all provinces
• Meeting with political parties

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Stakeholders GoalIntervention (2)

• Empowerment and consultation across the value
  chain
• Conferences and regular meetings are held with
  industry to discuss business operations as well
  as editorial matters. These include
• Durban International Film
• West Film festival
• Provincial road shows
• Encounters Film festival

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5. Technology Goal

• Put in place an innovative technology platform
  and infrastructure that will enable the SABC to
  deliver on its mandate.

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Technology Goal Intervention (1)

• Investment of R1.2 billion in the first year of
  office to improve broadcasting technology I the
  organisation for news processing, ERP, and
  document management system, archiving and
  digitisation
• Introduced new media for dissemination of news
  and other information 082152, SMS etc
• Getting ready for digital migration
• Developing new technology strategy to prepare for
  services convergence and competition

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6. Governance Goal

• Ensure full compliance by the SABC with the
  Broadcasting Act, the Charter, the Corporations
  editorial policies and other legislation
  applicable to the SABC and put in place systems,
  policies and procedures to ensure improved
  business processes, achieve efficiencies and
  ensure good governance within the Corporation

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Governance Goal Intervention (1)

• 3 years of unqualified audit
• Complied with separation of public and commercial
  accounting
• Comprehensive Board Charter approved
• Comprehensive Delegation of Authority document
  and staff training concluded
• Process of comprehensive policies started
• Procurement policy and office in place

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Governance Goal Intervention (2)

• Materiality framework approved by shareholder
• Shareholder compact approved and
• Quarterly reporting complied with
• Initiated all breaches of rules and control
  systems investigated and appropriate action taken
  
• Risk management policy and office is in place

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Governance GoalsIntervention (3)

• Introduction of new procurement policies to
  broaden access to SABC contracts- from 5 to over
  400 companies.
• The SABC is now a competitive, effective and
  powerful media player in the industry
• Assisted and created an awareness of a culture of
  good corporate governance and managements
  responsibility in terms of the PFMA, through
  advise provided during the course of the 4 years

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Governance Goals Intervention (4)

• Reduced fraud risk by exposing fraudulent
  activities and other irregularities through the
  performance of forensic investigators where
  required
• Through the Internal Audit department identified
  control deficiencies and ensuring that
  appropriate internal controls be put place
• Manage the relationships between the stakeholders
  on the Audit Committee, i.e. Internal audit,
  external audit and management

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7. Performance Monitoring

• Monitor, evaluate and reward performance in
  implementing
• these Corporate Goals and the SABCs Editorial
  policies

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Performance Monitoring Interventions

• New performance systems approved by the Board and
  in place
• Strict alignment of strategy and operation with
  Corporate Goals
• Regular summits held with management to ensure
  alignment of content production in line with the
  statutes, regulation and Corporate Goals. board
  goals

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Challenges going forward

• Funding model
• Preparation for 2010 World Cup
• Greater citizen participation
• Dynamic Internal Communication
• Consensus building
• Lack of understanding of the role of the public
  broadcaster

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THANK YOU
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Presentation by the Group CEO of the SABC

• Advocate Dali Mpofu

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SABC STRATEGY FRAMEWORK
3 Strategy Building Blocks

• 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

Informs the Vision Broadcasting for Total
Citizen Empowerment informs new performance
management framework/group score card
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Through listening you allow others to unfold,
develop and expand

• SABC is an organisation on the move.
• An organisation characterised by progress in
  performance.
• An organisation whose performance exemplifies its
  mandate, its mission and its goal.

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Our vision Broadcasting for Total Citizen
Empowerment translated in-

• Shared vision unifying the organisation into
  clusters.
• Viewing our audiences as citizens not consumers.
• Empowering citizens with information education
  and entertainment.
• Empowering Internal Citizens through reviewed
  corporate policies

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SABC Highlights
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Investment Year

• Universal Access
• Increased footprint of transmitters minimum of
  2 677331 citizens have been provided with SABC
  programming
• SABC3 at Bethlehem and Nelspruit potential
  increase of 737 758 viewers
• SABC 1 2 transmitters with potential viewer
  gains of 41 599 (SABC1) and 37 983 (SABC2)
• SABC 1 2 Elandsheights gross potential gain of
  1046848

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Investment year continued

• Umhlobo Wenene and Lesedi in Kimberley listeners
  increase by 13414 and 6204 respectively
• Ukhozi FM transmitter at Louwsburg with an
  increase of 93549 potential listeners
• Lotus FM transmitter in PE resulted in an
  increase of 10861
• Lesedi transmitter in Durban resulted in an
  increase of 17883 listeners
• Umhlobo Wenene FM in the Eastern Cape
  additional 671 232 listeners

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Investment year continued

• Capacity Building
• The year of organisational Renewal for Total
  Citizen Empowerment
• Investment in PBS Radio drama productions studios
• Local content (both Radio TV)
• Big investment into
• News gathering and News programming
• Building Human Resources capacity
• Marketing PBS radio brands
• Quality of programming (educational/entertainment/
  FIFA 2010 2014 rights)

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Cluster Highlights
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People the cornerstone of SABC

• More than R1b invested in people and people
  related areas
• Empowerment through learning and development
• Development of a totally new skills profile for
  SABC and country
• Partnership with tertiary institutions (i.e.
  NEMISA)
• Employee wellness central to people centered
  plan
• Voted most gender empowered organisation
• Voted the employer of first choice by South
  African graduates

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People the cornerstone of SABC continued

• Developed strategic partnerships with organised
  labour
• SABC academy in the pipeline
• Revitalisation of recruitment retention
  strategy (hot skills)
• Climate survey completed recommendations being
  implemented

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People- give life to the mandate of SABC

• Had extensive conversations with all levels of
  stakeholders
• Implemented multi-pronged communication strategy
  process internally and externally
• Championed the birth of AUB - strategically
  positioned to meet new sector demands
• Led Continental drive for broadcasting legacy for
  2010

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Operations

• Investment in Content R543m
• Our content which inculcates social consciousness
  
• and multi-voice delivered the following-
• SABC1 and SABC 2 took first and second positions
  respectively in the Sunday Times/Markinor viewer
  ship survey. SABC 3 came 4th.
• Investment in sign language and sub-titling to
  expand access to all South Africans including the
  deaf
• Investment in the world class production of the
  2006 Soccer World Cup (Germany)

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Operations continued

• A total of 17 million listeners daily remain
  loyal to PBS radio stations
• 6 PBS stations remain part of the national top
  ten stations (i.e.. audience figures and Sunday
  Times Markinor)
• 5fm is the most integrated contemporary station
  unifying the SA youth
• Metro Fm undertook a trip to 13 African countries
  (I am an African Tour)
• PBS and PCS exceeded mandate delivery as per
  ICASA quotas

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Operations continued

• Content Enterprises
• Investment in quality content in a multi-media
  and multi-platform environment
• Rollout of the Warner bros content deal
• Secured rights for Tsotsi (Academy Award Winner)
• Strategic deals concluded with NBC/Universal and
  MGM
• 2010 and 2014 Gatekeeper Broadcast Rights FIFA
  World Cup
• Acquisition of the IOC rights (2008/2012/2016)

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Local vs Foreign Content
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News and Current Affairs

• Massive investment in increased news and current
  affairs programmes and news infrastructure
• 24 million or 80 South Africans adults choose
  SABC as primary source of News
• SABC News offering enjoyed 93 credibility rating
  and 94 freshness ratings
• Launch of bureaus on the continent in line with
  corporate goal supporting NEPAD (have Kinshasa,
  DRC and UN and Brussels)

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News and Current Affairs continued

• Launch 24 hour news channel on Vivid an
  overnight news feed on SABC3
• News on new media platforms
• Big stories covered DRC elections, 50 years of
  Independence of Ghana

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Technology

• Investment in technology was a third of our
  operating cost (R500m)
• Mordernising organisation by installing the best
  technology e.g. HD
• Vans, ERP
• Innovative programming delivery methods.
• Ensuring that all internal citizens have access
  to technology.
• Considered strategic options on how technology
  can help the SABC to deliver the mandate and
  increase revenue generation for the
• organisation.
• Improvement in Management Information Systems.

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Governance

• Consolidated KPI for all areas of business
• Internal Audit part of Governance Cluster
• Solid Risk plan developed with emphasis on
  prevention, detection and reporting of risks
• Employed new executives responsible for Strategy
  and Risk, and Procurement
• Investment in capacitating regions continuing

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Other success stories and accolades

• People Cluster Wellness project and salary
  negotiations, performance management and the
  successful launch of the sexual harassment
  policy.
• Stakeholder management and international affairs
  improved relations with stakeholders locally
  and globally especially on the African continent
• Concluded MOUs with different International
  Broadcasters
• SABC consistently led an International debate on
  role of public service broadcasting (e.g. CBA
  Conference in the Bahamas Theme Empowering the
  Citizen)
• SABC hosting Input 2008

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AwardsSABC Programmes won numerous awards

• In the year under review the SABC won more than
  80 Local and International Awards.
• Magic Cellar (animation) 40 different
  international awards
• Different dramas commissioned by the SABC won 14
  different awards.
• SABC Kids News - UNICEF Award
• Entertainment programmes won 7 different awards.

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Awards continued

• Factual - 7 awards.
• Religion - 4 awards (1 international award for
  Issues of Faith).
• Technology won 7 different awards
• SAFTA Awards 28 awards

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Accolades - Radio

• PBS Radio and staff got 38 different awards
  ranging from best economic programming to
  excellence in nation building content
• PCS Radio got 9 awards ranging best African
  content to best DJs / Radio personalities

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CSI initiativesImproving lives of citizens

• Increased investment in CSI
• SABC Foundation established 18 students awarded
  bursaries
• Child Headed Household project Partnership with
  ABSA and others
• Community Builder of the year 12th year of
  partnership
• Mass Choir 19th anniversary
• Airtime value of R 11m for PSAs (Health, Crime,
  HIV/AIDS messages)
• HIV AIDS initiatives on air and awareness
  campaigns (ABMP)

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Outlook

• Funding model and Funding Mix
• 2010 Readiness
• DTT
• Niche channels / Pay TV Strategy
• Public Value and its measurement
• Green Revolution initiatives (unity - growth -
  development)
• Culture
• Social Development
• Empowerment
• Heartlines series - values

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Conclusion

• Our success should no longer be measured solely
  on the
• basis of our financial performance. Important as
  this is as a
• barometer of efficient management, it is our
  delivery
• against the freedoms enshrined in the
  Constitution, the
• requirements of the Broadcasting Charter and our
  delivery
• on our Corporate Goals and strategy that show
  our true
• performance

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THANK YOU
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Presentation by the CFO of the SABC
Robin Nicholson
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Overview

• 2006/7 has been a year of investment for the
  SABC. The focus of this investments has been
  guided by our strategic direction and emphasised
  content, people and technology. This was
  supported by investment in infrastructure and
  support services. This investment theme has
  pervaded every element of the business and has
  seen a significant step up in the levels of
  spend. This is likely to continue in the years to
  come.
• To support the investments we have revised the
  funding model of the SABC and while it remains
  biased to wards the commercial revenue sources
  significant sacrifices in revenue were made in
  the last year including significant schedule
  disruption arising from the revised licence
  conditions.

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Overview continued

• Public funding softened in the year as licence
  income came under pressure from rising costs, the
  exclusion of some windfall gains in the prior
  year and no licence fee increase in the last 4
  years.
• The support form government for the Technology
  renewal programme provided the base for continued
  spend on new technologies including the Digital
  HD OB van and several other digital projects.
  These included several new Radio facility
  upgrades to support enhanced mandate delivery.

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INCOME STATEMENT SABC Ltd
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REVENUE ANALYSIS
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COST ANALYSIS
Consolidated Content (Internal/External)
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Forward looking statements

• The SABC anticipates that it will remain reliant
  on significant revenue generated from internal
  sources for the next few years as the new funding
  models are developed and implemented. This
  despite an increase in competition coming from
  new DTH platforms, DTT multiplexes and other new
  media platforms including cellular and DVBH.
• This environment will also compel the SABC to
  compete more aggressively for talent and rights.
  A more efficient and effective SABC will be
  required to provide the services that we
  anticipate will be provided by the SABC to these
  platforms. Continued investments in production
  and information technologies will facilitate this
  growth but a more concerted focus on
  implementation of strategy will be required. This
  will be facilitated by 2010 but this too will
  require investment.

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Forward looking statements

• The regional services and dedicated News and
  Sports channels will provide significant new
  opportunities for production houses and SABC
  staff in the content and News areas of the
  business as well as in production and
  distribution technology segments of the
  Corporation. This will also require more and
  sustained investment form the SABC.
• While we have established a sound financial
  platform for the SABC the new and even more
  challenging environment will necessitate a
  radical rethink of the business models and
  funding mechanisms of the SABC These models must
  also consider the other competitors in the media
  market in particular new and emerging media
  players.

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THANK YOU