1. SOUTH AFRICAN BROADCASTING CORPORATION PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON COMMUNICATIONS 16 MARCH 2007

2. CONTENTS Introduction Legislative framework Corporate Goals Corporate Strategy Vision Mission Values Key Performance Areas & Indicators

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. V I S I O N BROADCASTING FOR TOTAL CITIZEN EMPOWERMENT

10. 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

11. Legislative Frame work PLATFORMS & CONTENT CONSTITUTION TOTAL CITIZEN EMPOWERMENT Corporate Goals PeopleFundingTechnology Regulatory Frame work OperationsGovernance

12. 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

13. 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

14. PERFORMANCE THUS FAR IN RESPECT OF KPIs KPAKPOPERFORMANCE 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

15. PERFORMANCE THUS FAR IN RESPECT OF KPIs KPAKPOPERFORMANCE PEOPLEInformation 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

16. PERFORMANCE THUS FAR IN RESPECT OF KPIs KPAKPOPERFORMANCE 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

17. PERFORMANCE THUS FAR IN RESPECT OF KPIs KPAKPOPERFORMANCE OPERATIONS 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

18. PERFORMANCE THUS FAR IN RESPECT OF KPIs KPAKPOPERFORMANCE TECHNOLOGY 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

19. PERFORMANCE THUS FAR IN RESPECT OF KPIs KPAKPOPERFORMANCE FUNDING Achieve Revenue Growth; Maintain expense growth; Secure Government financial support Growth achieved; Expense growth maintained; Government support continuing;

20. PERFORMANCE THUS FAR IN RESPECT OF KPIs KPAKPOPERFORMANCE GOVERNANCE Ensure adherence to legislative framework; Monitor compliance to policy procedures; Information sharing with DoC, ICASA and provincial governments General achievement all round

21. 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

22. ORGANISATIONAL CLUSTERS CLUSTERCONSTITUENT PARTSPURPOSE 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

23. ORGANISATIONAL CLUSTERS CLUSTERCONSTITUENT PARTSPURPOSE 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

24. ORGANISATIONAL CLUSTERS CLUSTERCONSTITUENT 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

25. ORGANISATIONAL CLUSTERS CLUSTERCONSTITUENT PARTSPURPOSE NEWS AND CURRENT AFFAIRS Radio News Television News SABC Africa News Provide content and produce all news and current affairs programmes OPERATIONSPBS PCS Content Enterprises Market Intelligence Creation, procurement, distribution and delivery of quality content

26. 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

27. 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

28. 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

29. 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