SABC Board Four years in Review

2. SABC Board Four years in Review Sonwabo Eddie Funde 6 November 2007

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

4. 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

5. 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

6. 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.

7. 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.

8. 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

9. 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.

10. 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:

11. 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,

12. 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 ones:one 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

13. 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

14. 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.

15. 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

16. 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%

17. Content Goals – Programming (5)Improved Facts and Figures

18. 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

19. 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.

20. 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.

21. People Goal : Improved Figures to ponder

22. 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.

23. 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

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

25. 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

26. Stakeholders Goal:Intervention (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

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

28. 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

29. 6. Governance Goal • Ensure full compliance by the SABC with the Broadcasting Act, the Charter, the Corporation’s 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

30. 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

31. 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

32. Governance Goals:Intervention (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 management’s responsibility in terms of the PFMA, through advise provided during the course of the 4 years

33. 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

34. 7. Performance Monitoring Monitor, evaluate and reward performance in implementing these Corporate Goals and the SABC’s Editorial policies

35. 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

36. 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

37. THANK YOU

38. Presentation by the Group CEO of the SABC Advocate Dali Mpofu

39. 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

40. “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.

41. 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

42. SABC Highlights

43. 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

44. 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

45. 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)

46. Cluster Highlights

47. 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

48. 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

49. 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

50. 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)