SABC FY2011/2012 Quarter 1 Performance Review

SABC FY2011/2012

Quarter 1Performance

Review

SABC Corporate PlanPillar 1: Programming: Quality, Purchasing & Commissioning

Strategic IntentPutting broadcasting and broadcasters back in the forefront of what the organisation is about and editorial integrity back into the platforms and programmes of the SABC in particular News

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Pillar 1: Programming: Quality, Purchasing & Commissioning

Strategic Intent: Putting broadcasting and broadcasters back in the forefront of what the organisation is about and editorial integrity back into the platforms and programmes of the SABC in particular News

Corporate Plan Strategic Objective: Provide content that drives audiences and delivers public value, whilst meeting both the public service mandate and sustainability of the organisation

Key DeliverablesFY 2011-12

Target FY 2011-12

KPI Target Q1 Achieved Reason for Deviation

Sport programming that delivers ROI

Reduce cost of production by 10% across the board on sport production

Operating model & structure designed

Sport Austerity Strategy developed & presented to Board and Group.

NB: 10% target to be achieved only at end fiscal 11/12.

Portfolio Committee on Sport and Recreation Consultation

Achieved.

Achieved.

Achieved.

KPI Target Quarter 1 : Division…

3





Target FY 2011-12 KPI Target Q1 Achieved Reason for Deviation

Sport programming that delivers ROI

Hot talent loss reduction by 10%

Ongoing for the fiscal.

Achieved.


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Reduced impairments

Reduce the number of titles that are impaired by 50%

NB: Target should be measured by value rather than titles.10% reduction

Not achieved:The exercise to identify actual impairments for the period has not been completed.

Verification is a manual process. During a review of the work done, it was found that some titles listed as expired have actually not expired and may still be used. Units were requested to cross-check information supplied The aim is to have this ready by end of September.


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Local commissioned Content cost containment

Average cost per minute per (CPM) genre limited to 2% increase form FY10/11 baseline

Programme Cost Per Minute for quarter reduced by 2%

Partially achievedRFP book with financials submitted to Group for approval.

There were savings achieved on budgets evaluated for the quarter to the tune of 7% of all content incepted through Production management.

Foreign license costs containment

Reduce new deal values by 10% (Measured in US$, excluding SABC3 turnaround strategy procurement)

Programme licence costs for quarter reduced by 10%

Partially achieved The comparative of the value of offers signed compared to the value of offers for the same period in 2010/2011 was not available. This review will be provided in the second quarter report.

Education delivery on radio, television & outreach

Deliver mandate hours in line with license conditions

Deliver quarterly mandate hours

[See next slides KPI ICASA License conditions]


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SABC1 SABC 2 SABC3

FY 10/11 FY 11/12 FY 10/11 FY 11/12 FY 10/11 FY 11/12

News 7h/week 3.5h in prime time 30 minutes packaged as a single programme daily

7h/week 3.5h in prime time 30 minutes packaged as a single programme daily





Achieved Mostly Achieved: 6.58 Hrs Performance Period and 3.33 Hrs in prime time

Mostly Achieved: 7.13 Hrs Performance Period and 3.27 Hrs in prime time

Achieved: 9.26 Hrs Performance Period and 6.57 hrs in prime time

Achieved:9.32Hrs Performance Period and 7Hrs in prime time

Achieved:8.59Hrs Performance Period and 3.35Hrs in prime time

Achieved:7.42Hrs Performance Period and 3.33 Hrs in prime time

Reason for deviation

Soccer World Cup for which exemption was obtained from ICASA

Key Performance IndicatorsICASA Licences Conditions - Television

SABC1 SABC 2 SABC3

FY 10/11 FY 11/12 FY 10/11 FY 11/12 FY 10/11 FY 11/12

Current Affairs

6h/week 2h in prime time






Achieved/Not Achieved

Not achieved: 5.55 Hrs Performance Period and 1.24Hrs in prime time

Achieved: 7.49 Hrs Performance Period and 2Hrs in prime time

Not achieved: 9.36 Hrs Performance Period and 1.43 hours in prime time

Mostly Achieved:11.37Hrs Performance Period and 1.25Hrs in prime time

Achieved: 6.29 Hrs Performance Period and 0.54Hrs in prime time

Mostly Achieved:6.10Hrs Performance Period and 0.57 Hrs in prime time




Informal Knowledge-

Building







Achieved Partly achieved:15.33Hrs Performance Period and 3.04Hrs in prime time

Achieved: 16.1 Hrs Performance Period and 2.55 Hrs in prime time

Mostly achieved: 20.23 Hrs Performance Period and 1.58 in Prime Time


Achieved: Hrs performance Period and 3.17Hrs in prime time






SABC1 SABC 2 SABC3

FY 10/11 FY 11/12 FY 10/11 FY 11/12 FY 10/11 FY 11/12

Documentary







Achieved Not achieved:4.57Hrs Performance Period and 1.57Hrs in prime time


Partially Achieved:4.29 Hrs Performance Period and 2.34Hrs in prime time

Partially Achieved:4.21Hrs Performance Period and 2.09Hrs in prime time

Mostly achieved; 4.53 Hrs Performance Period and 1.49Hrs in prime time

Achieved:9.02 hrs Performance Period and 2.36Hrs in prime time




Drama 24h/week 8h in prime time 4h SA in prime time

24h/week 8h in prime time 4h SA in prime time





Achieved Achieved: 29 Hrs Performance Period and 10.51 Hrs in prime time. 5.46 SA Drama in Prime time

Achieved:33.52Hrs Performance Period and 11.53 Hrs in prime time

Achieved: 31.55Hrs Performance Period and 9.26Hrs in prime time. 7.54SA Drama in Prime time

Achieved:30.40 Hrs Performance Period and 8.45Hrs in prime time

Achieved: 43.03 Hrs Performance Period and 13.25Hrs in prime time. SA Drama 3.47

Mostly Achieved:43.42 Hrs Performance Period and 12.57 Hrs in prime time. SA Drama 3.55 hr in prime time


SABC 3 has limited available stock of these programmes. This performance should improve in the 3rd quarter of the year subject to the approval of the RFP Book.

Key Performance Indicators ICASA Licences Conditions - Television

SABC1 SABC 2 SABC3

FY 10/11 FY 11/12 FY 10/11 FY 11/12 FY 10/11 FY 11/12

Children’s 20h/week 20h/week 15h/week 15h/week 12h/week 12h/week

Achieved Achieved: 20Hrs Performance Period

Not achieved: 17.06Hrs Performance Period

Achieved: 15Hrs Performance Period

Not achieved:14.40 Hrs Performance Period

Achieved: 12.04 Hrs Performance Period

Achieved: 13.21Hrs Performance Period


Coverage of the Municipal elections for which exemption was obtained from ICASA

Coverage of the Municipal elections for which exemption was obtained from ICASA

Education 10h/ week 10h/ week 10h/ week 10h/ week - -

Achieved Achieved: 11.39 Hrs Performance Period

Achieved:13.41Hrs Performance Period

Achieved: 10.3Hrs Performance Period

Achieved: 12.07 Hrs in Performance period



Key Performance Indicators: ICASA Licences Conditions - RadioPeriod 1/4/2011 – 30/06/2011

Hours/min per

week

Ikwekwezi FM

MLFM Thobela FM

Phalaphala FM

Ukhozi FM

Lesedi FM

Umhlobo Wenene

FM

Ligwalagwala FM

Motsweding FM

SA fm RSG Lotus FM XKfm truFM

News daily

60 60 60 60 60 60 60 60 60 60 60 60 30 60

Radio: All Achieved

135 80 208 85 85 85 67 99 109 100 113 78 69 73

Current Affairs daily (M-F)

60 60 60 60 60 60 60 60 60 60 60 60 30 30

Radio All Achieved

133 129 96 97 197 197 170 110 119 326 208 92 108 58

Current Affairs (Sat & Sun)

60 60 60 60 60 60 60 60 60 60 60 60 30 30

Radio: All Achieved

60 60 60 69 68 60 94 60 65 329 62 64 55 37

Hours/min per

week

Ikwekwezi FM

MLFM Thobela FM

Phalaphala FM

Ukhozi FM

Lesedi FM

Umhlobo

Wenene FM

Ligwalagwala FM

Motswedi

ng FM

SA fm RSG Lotus FM XKfm truFM

IKB Weekly Targets

180 180 180 180 180 180 180 180 180 180 180 180 180 60

Radio: Achieved

1727 1337 1750 2463 2790 2783 573 1870 1377 1560 1445 714 1420 1881

Education weekly

300 300 300 300 300 300 300 300 300 240 300 Not in licence

conditions

300 120

Radio: Achieved

348 312 420 385 337 380 363 355 296 325 320 Not in licence

conditions

524 327

Children weekly

60 60 60 60 60 60 60 60 60 60 60 Not in licence

conditions

15 30

Radio: Achieved

80 180 420 148 386 175 347 405 161 60 226 Not in licence

conditions

755 56

Drama weekly

150 150 150 150 150 150 150 150 150 150 150 150 Not in licence

conditions

Not in licence conditions

Radio: Achieved

198 196 160 220 196 181 205 250 162 220 335 202 Not in licence

conditions

Not in licence conditions

Key Performance Indicators: ICASA Licences Conditions - RadioPeriod 1/4/2011 – 30/06/2011

SABC Corporate PlanPillar 2:Platform Management

Strategic IntentPutting broadcasting and broadcasters back in the forefront of what the organisation is about and editorial integrity back into the platforms and programmes of the SABC in particular News

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Pillar 2: Platform Management


Corporate Plan Strategic Objective: Delivery of public service broadcasting that achieves the organisation’s mandate delivery, drives audiences, and creates public value

Key Deliverables FY 2011-12

Target FY 2011-12 KPI Target Q1

Achieved Reason for Deviation

Re-establishment of the market intelligence function to drive business decision making informed by audience requirements

Centralisation of services

Department resourced

Research delivery to meet organisational requests

Operating model & structure designed

Partially achieved This is part of the Turnaround Project. A submission has been made to Group and awaiting presentation to board.

Television Audience delivery, all adults during performance period

60% 60% Not achieved Network 57.5%S1 27.7% against 29% targetS2 18.2% against 19% targetS3 11.6% against 12% target

Turnaround strategy for SABC3 to deliver on audience targets, LSM 7-10

16% 16%LSM 7-10

Not achieved SABC 3 achieved 12.6% against the target set.This is dependent on the RFP book and acquisition of International Programmes.

KPI Quarter 1 Target: Division…

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Target FY 2011-12 KPI Target Q1


All Radio listenership increased to 68% all adults

67% 67% Not achieved. 65.5% Jan - May Diary covers Jan-May11 period. Relevant dairy will only be available in Aug11 that will report for the relevant Quarter

ICASA Mandate delivered for Radio & TV

1. As per ICASA mandate

2. Local Music avg weekly targets:

• PBS 40%

• PCS 25%

• Lotus 22%

1. As per ICASA mandate slide

2. Local Music avg weekly targets:

• PBS 66%

• PCS 25%

• Lotus 22%


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Strategic Intent:• Putting broadcasting and broadcasters back in the forefront of what the organisation is about and editorial integrity back into the platforms and programmes of the SABC in particular News• Building the digital SABC and integrating the digital future into all plans and actions



Target FY 2011-12

KPI Target Q1


Plan of delivery for commercial launch of DTT Platform

Business case signed off and platform ready for launch

Business plan prepared

Not achieved. The full revised plan for Group Executive and Board approval has taken longer to complete than intended because of limited resources (the CTO and resources in Television) to complete. The revised business plan had not been completed at end of quarter. Also, the SABC’s plan has to be linked with the plans from industry and can not be prepared in isolation.

However, the funding plans for the television channels, marketing and the Digital Playout Centre have been prepared for MTEF funding requirements and were presented to DoC on 23 June.

The DoC has pulled together an industry project plan with the launch date set by DoC. The SABC is preparing its technical infrastructure and some services for that date, and in fact is expected to be ready to launch earlier than September 2012.

Will be submitted in quarter 2.

KPI Target Quarter 1: Division…

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Key Deliverables FY 2011-12 Target FY 2011-12 KPI Target Q1 Achieved Reason for Deviation Digital Media established Business unit structure

resourced

Establishment of Digital Media division and implement operating model and structure for the combined division (Digital Media and Technology)

Recruit resources to staff future IT business unit

Digital Media division established in Organisational structure

Not achieved. The Digital Media division has not yet been established.

Not achieved. The IT resources are not all in place.

The proposed operating model and organisation structure for the SABC to be approved in quarter 2.

The job profiling for the resources for the IT business unit is in progress and near completion. Job profiles due to be graded in July .


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Key Deliverables FY 2011-12 Target FY 2011-12 KPI Target Q1 Achieved Reason for Deviation Increased reach of SABC

services through the rollout of low power transmitters

100 low power transmitters operational

40 low power transmitters operational

Partially achieved. However, 37 sites are operational and on air.

An additional 57 sites are currently under construction by Sentech, applications for 10 sites are with ICASA for approval and an additional 23 sites are being planned. Also 2 field trips took place in Q1 to identify new sites.


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Target FY 2011-12

KPI Target Q1 Achieved Reason for Deviation

Digital Playout Centre project implemented

Complete on site build, and the commission and testing

Contracting with Vendor for delivery

Not achieved. Contractual issues between SABC and Siemens being resolved.

Digital Library project implemented

Overall solution design completed and initial implementation under-way



Storage Area Network project implemented

Complete implementation and facility operational



Upgrades to Studios 1 and 2 Implemented

Both studios completed and operational



Newsroom production and computer system implemented

System implemented and operational

Complete solution design Achieved.


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PillayS04

As above tx

SABC Corporate PlanPillar 3:News

Strategic Intent:South African news provider of choice

Building brands that reflect excellence and the South African identity in every way

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Pillar 3: News

Strategic Intent:•South African news provider of choice•Building brands that reflect excellence and the South African identity in every way

Corporate Plan Strategic Objective: Provide distinctive public service broadcasting through compelling nation news that is regionally focused and international news from an African perspective



News programming that delivers audiences and achieves slot targets. Improve audiences from 7% to 10%

Stem further loss of audiences Achieve 7% audiences

Target ongoing for the fiscal

On Track

24 hour news channel launched

Launch the 24 Hour News Service, by April 2011

April 2011

NB: Pending Shareholder approval

Not achieved. Shareholder approval pending

Local Government Elections

Provision of platform for citizens, politicians and parties to relay their campaign messages

Balanced analysis of election issues

Broadcast of IEC results.

Ensure a successful, fair and balanced broadcast coverage with national -reach

• Achieved

• Achieved

• Achieved


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SABC Corporate PlanPillar 4:Governance

Strategic Intent: Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance

Focusing on the performance of the Enterprise at every level and holding individuals accountable for delivery

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Pillar 4: Governance

Strategic Intent: •Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance•Focusing on the performance of the Enterprise at every level and holding individuals accountable for delivery

Corporate Plan Strategic Objective: Review of operational policies and procedures to ensure alignment with new operating model



Headcount reduction to the targeted operating model

15% reduction No Quarter target. Target is Annual

Ongoing Target is annual and will be constantly monitored.

Review and revised editorial policy

Launch updated, relevant Editorial Policy

Phase 2: Complete initial internal consultation

Ongoing


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Corporate Plan Strategic Objective: Ensure operational efficiency so as to drive business performance



Business performance management

Annual performance contracting

Contracts in place Achieved

Quarterly evaluation Evaluation Achieved


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Corporate Plan Strategic Objective: Ensure operational efficiency so as to drive business performance



Individual performance management


Performance contracts for all Executive and Senior Mgt performance contracting

Partly achieved. 95% contracts signed with General Managers down to scale code 130.

The new Performance system will be re-enforced. The old scheme was not working and hence a new scheme was only rolled out from this fiscal

Quarterly evaluation

Evaluation Partly achieved In progress. Quarter ended 30 June 2011. Will re-assess at end of second quarter.

Union performance management


All negotiation agreements signed

Partly achieved. Recognition agreements and collective agreements signed.

Organised Labour must still be engaged on performance management for bargaining unit. Focus was on wage agreement and substantive matters were deferred to August 2011

Quarterly evaluation

Not achieved As above.


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Strategic Intent: •Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance

Corporate Plan Strategic Objective: Embed risk management into the day-to-day activities of the company

Key Deliverables FY 2011-12 Target FY 2011-12 KPI Target Q1 Achieved Reason for Deviation

Application of the organisational Risk management framework

Risk reporting structures

Reduced risk profile of the SABC.

August 2011

Approved strategic risks and mitigations

Reporting to Operational Risk Committee & Group Exco

Achieved

Achieved

KPI Quarter 1: Division…

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Increase controls around fruitless and wasteful expenditure

Review of procurement processes

Review of DAF

Review and refinement of the internal audit

March 2012

March 2012

March 2012

Procurement processes reviewed and finalised with Deloitte

Develop and table for approval a risk based audit plan that is aligned to key strategic goals.

Achieved

Not Achieved

Achieved

Current DAF still in effect. DAF to be reviewed and updated in Phase 4 of the project beginning 1 September


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Embed risk management into the day-to-day activities of the company

Evaluation of the optimal cost of compliance as a percentage of revenue

Reduce cost of compliance by to agreed percentage of revenue

Cost analysis as a percentage of revenue

Performance Management - Reward linked to performance strategy & implementation

Partly achieved.

Partly achieved

Ongoing process that can only be assessed at the end of the year by the implementation of the risk management framework.

New Risk Management Operating Model Developed. Structure and process will enable the new operating model and drive efficiency thereby reducing cost

Evaluation of the optimal cost of governance as a percentage of revenue

Reduce cost of governance to agreed percentage of revenue

Cost analysis as a percentage of revenue

Define Governance structures and develop Combined Assurance Model

Partly achieved

Partly achieved

Ongoing process that can only be finalised once the new organisational and governance structures are approved and enabled and can be compared with relevant benchmarksOngoing process that can only be finalised once the new organisational and governance structures are approved and enabled


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SABC Corporate PlanPillar 5:People

Strategic Intent: Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance

Focusing on the performance of the Enterprise at every level and holding individuals accountable for delivery

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Pillar 5: People

Strategic Intent:•Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance•Focusing on the performance of the Enterprise at every level and holding individuals accountable for delivery

Corporate Plan Strategic Objective: Attraction, retention and development of resources to drive organisational delivery.



Performance Management - Reward linked to performance strategy & implementation

April 2011 – Two year performance contract

Performance mgt strategy developed and rolled out across all levels (April 2011)

Partly achieved. Performance management deployed to management levels. Need to engage organised labour on bargaining unit level employees (planned for this fiscal)

Quarterly organisation wide performance review

Four quarterly reviews for all staff Normally, occurs during July for first quarter ending 30 June

Not achieved. 1st review must still occur for end June 2011

Leadership development programme implemented

Development & implementation Leadership development programme developed

Achieved.

KPI Target Quarter1: Division…

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Pillar 5: People

Strategic Intent:•Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance•Focusing on the performance of the Enterprise at every level and holding individuals accountable for delivery




Organisation design, work study, job profiles and competency profiles

Organogram approved and cascaded.

Job profiles determined by Organisation

Design and graded by remuneration department.

Roles and responsibilities defined.

Competency profiles determined.

Organisational design developed and approved

On Track Structure to be approved by Board in quarter 2 -This is forming part of the Turnaround and is already in process.

Training of staff to ensure business proficiency and effectiveness

Comprehensive training strategy aligned to SABC business operating model and strategic direction

Training strategy developed and implemented

Achieved.

KPI Target Quarter1: Division…

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Pillar 5: People

Strategic Intent:•Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance


Key Deliverables FY 2011-12 Target FY 2011-12

Achieved KPI Target Q1


Leave Policy Sept 2011 Target only for Quarter 2, Sep11

N/A

Acting Policy April 2011 Policy Reviewed Achieved

13th Cheque Policy June 2011 Policy Reviewed Partially Achieved Process on taxation is being developed for payroll purposes. This process has been integrated into the total policy review project, hence will form part of that

Senior Managers Car Scheme

April 2011 Policy Reviewed Achieved

Travel Policy March 2012 Policy Reviewed target only for Quarter 4, Mar12

Achieved early New rate agreed with Union and implemented

Transfer Policy December 2011

Target only for Quarter 3, Dec11

N/A


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Pillar 5: People

Strategic Intent:•Building the digital SABC and integrating the digital future into all plans and actions•Having an operating model that is simple and easily understood, supported by an organisational design that assigns accountability directly to those charged with execution of the Enterprise plans and good governance




Skills audit completed

Confirmed job families

Conduct Audit and report on gaps

Design strategies to close gaps

March 2012 Work in progress Organizational structure and Job profiles as part of structural embedding process

Succession Planning Policy and plan in place and executed

Succession Policy Development Plans

for potential successors

Policy developed and implemented

Not achieved. Policy in draft format and consultation with stakeholders to begin

KPI Target Quarters : Division…

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SABC Corporate PlanPillar 6:Financial Health

Strategic Intent: Building an organisation that is economical, efficient and effective

Building the digital SABC and integrating the digital future into all plans and actions

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Finance YTD Actual

June 2011

R’m

YTD Budget June 2011

R’m

Variance

R’m %

Revenue & Other Income

1 351 1 349 2 0%

Expenses 1 142 1 390 248 18%

Operating Profit / (Loss) before Interest & Tax

209 (40) 249 617%

Net Financing cost

19 26 7 29%

Net Profit / (Loss) 190 (67) 257 385%

Accumulative Surplus/(Loss)

-200

0

200

400

1st Qtr 2nd Qtr 3rd Qtr 4th QtrActual Budget

Pillar 6: Financial Health

Strategic Intent:•Building an organisation that is economical, efficient and effective•Building the digital SABC and integrating the digital future into all plans and actions

Corporate Plan Strategic Objective: Increase revenues by ensuring organisational effectiveness, efficient service delivery and the establishment and development of alternative income streams

Key Deliverables FY 2011-12 Target FY 2011-12 KPI Target Q1 Achieved Reason for Deviation

Total revenue targets met R4.050 billion. R1.351 billion Achieved. R1.349 billion

Manage working capital - Reduce debtors days

Factorising “old” debtors’ book& enhance total collection ofCurrent debtors’ book.

85 days 72 days Debtors’ days calculated using the Average Method. Not clear yet which method used to determine the Government Guarantee target of 65 days. Deloitte assisting in establishing a standard and appropriate method to calculate debtors’ days.

Share of advertising revenue maintained

TV – 54%

Radio – 45%

54%

45%

Not Achieved. 51.5% (Marketing Industry Trust - MIT)

Not Achieved. 40.1% (Marketing Industry Trust - MIT)

SABC3 has not regained audiences in all key target segments.Planned trade workshops on commercial radio stations delayed.


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Key Deliverables FY 2011-12 Target FY 2011-12 KPI Target Q1 Achieved Reason for DeviationTV Licence Cash collection targets met

R1.019 bn Cash to collect - R234m

Not achieved. Cash collection of R221m.

The Division’s underperformance is attributable mainly to debt collection revenue being under target for the past three months. A number of debt collection agencies began redeploying their resources in preparation for the television licence moratorium (scheduled for implementation on 1 July 2011), during which period debt collection would have been stopped.


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Key Deliverables FY 2011-12 Target FY 2011-12 KPI Q1 Targets


Enhance organisational and governmental funding for sport of national interest



Achieved. The saving made on Sport Production for the Q1 was R9,473m which is over 20% saving on budget.

KPI Quarter Targets: Division…

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Target FY 2011-12 KPI Q1 Targets Achieved Reason for Deviation

• Asset management strategy developed and implemented

Create organisational structure for Property and Facilities function and transfer all staff in to that structure (May 2011)Approved property strategy (Jan 2012)

Not Achieved. Deloitte and SABC currently drafting a framework. Pending appointing of a new head of property and facilities. Operating model work now underway however.

KPI Quarter Targets: Division…

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Corporate Plan Strategic Objective: Enhance operational efficiency that drives the performance of the organisation in a digital era; through the development of an optimal operating model, efficient processes, astute intellectual property and supply chain management as well as a robust risk management framework


Target FY 2011-12 KPI Q1 Target Achieved Reason for Deviation

• Supply chain management strategy implemented

• Realise Savings

1. Centralisation of Procurement (June 2011)

2. Improve procurements governance and controls and reduce third party spend

3. Creation of Bid Spec Committees (June 2011)

1. Centralisation of Procurement (June 2011)

2. Within 1 year

3. Creation of Bid Spec Committees (June 2011)

1. Partly Achieved: All requirements from most Business units are now directed to Procurement for sourcing.

2. Achieved: Contracts have been renegotiated and there has been a realisation of savings which can be tracked. Savings Quarter1 R9,415,299.

3. Not achieved

1. Except Content Enterprise and Engineering Division, where it is still being reviewed whether they should be part of Procurement.

2. No deviation

3. The process of revising the Supply Chain Management policy which informs the establishment of Committees is still in progress.

KPI Quarter1 Target: Division…

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SABC Corporate PlanPillar 7:Stakeholder Management

Strategic Intent: Building brands that reflect excellence and South African identity in every way

Building the digital SABC and integrating the digital future into all plans and actions

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Pillar 7: Stakeholder Management


Corporate Plan Strategic Objective: Engagement of stakeholders to enhance business relations thereby creating better environment for execution of business processes

Key Deliverables FY 2011-12 Target FY 2011-12 KPI Q1 Target Achieved Reason for Deviation

Enterprise stakeholder management plan implemented

Strategy developed

Implementation on strategy

Resourcing the structure 50% complete

Strategy developed & approved

Annual Target

Annual Target

Achieved.

Partly achieved.

Not achieved

Target is annual and process and consultation is ongoing

Awaiting approval of the operating model structure

Regional structure revised & implemented

Strategy approved and new reporting lines established

Strategy developed & approved with reporting lines

Achieved.


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Target FY 2011-12

KPI Q1 Target


Brand & Reputation of SABC improved

5 brands win awards in Top 10 brands survey or awards ceremonies

To source budget for a brand reputation study

Not achieved. A Brand reputation study should be commissioned to ascertain the health of the brand amongst various key stakeholder audiences. This would then allow us to benchmark the findings and measure in two year intervals.


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Target FY 2011-12

KPI Q1 Target


Own all the national awards, SAMA, SAFTA, Louries, National Sports, News

Win 60% of categories in all awards

- Partly Achieved:SABC Sponsored events: SAMAs, SA Sports Awards.

News: •SABC News Radio Journalist awarded the CNN Africa Award

Radio: SAFM: •The play “No Place For You” won the award for Best Drama at the MTN Radio Awards.

Radio 2000: •Breakfast show, Super Fantastic breakfast won the 2011 MTN best breakfast show award.

Sport: There were no National awards held in Q1.


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Target FY 2011-12

KPI Q1 Target


Own all the national awards, SAMA, SAFTA, Louries, National Sports, News

Win 60% of categories in all awards

Ongoing for the fiscal

Partly Achieved:

Radio:

5fm: •The SABC Leadership Development Programme at GIBBS – Aisha Mohamed, Top Achiever Award.

•MTN Radio Awards – Best Daytime presenter (DJ Fresh) and Best Night-time presenter (Rob Vember)

•5FM was voted “Coolest radio station” for the sixth year in a row in the Sunday Times’ Generation Next awards 2011.

Tru FM: •Thobeka Buswana, the station manager is the 2011 overall winner of the Eastern Cape Women in ICT.

TV: •The SAMA’s (South African Music Awards) were Broadcast on SABC 1 during May 2011. SAMA’s awards are music awards and SABC cannot own 60%. SABC only broadcasts these events. •SAFTA awards do not occur this quarter.

Loeries:•Dependent on excellence in break through creative work. At this stage we have limited advertising funds and the focus is on driving audience and revenue targets. SABC does act as a sponsorship partner for Loeries


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Target FY 2011-12 KPI Q1 Target Achieved Reason for Deviation

Strategic marketing plan and implementation thereof in all marketing areas :Television Radio News Sport Trade marketing

Recruitment of Marketing Head (June 2011)

Strategy approved (Sep 2011

Implementation

Recruitment of Marketing Head (June 2011)

Achieved.Recruitment of Head of Marketing on a 1 year contract -

•SABC Corporate marketing strategy developed and approved by Exco. •SABC 3 Marketing Strategy approved by Head TV and Channel Head.

•All Radio stations have in place marketing strategies that will be reviewed for alignment in Q2 and Q3•Sport Marketing is awaiting a budget allocation to enable Marketing implementation•Trade Marketing will be the focus for Q2.•News has an approved marketing plan, awaiting budget allocation post Q1 review


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Documents

SABC FY2011/2012 Quarter 1 Performance Review