Develop and Implement Strategic Plans

INTRODUCTION

The ABC is required by Part IVA of the Australian Broadcasting Corporation Act 1983 (ABC Act) to prepare a corporate plan which provides information about the ABC’s objectives, performance targets, and forecasts of revenue and expenditure.

The ABC Strategic Plan 2013-16 is prepared in accordance with Part IVA of the ABC Act, and is a corporate plan for the purposes of that Act. It commenced on 1 July 2013 and will end on 30 June 2016.

The ABC’s strategic priorities for the next three years are outlined in this plan.

Like other media organizations around the globe, the ABC is being transformed by digital technology.  The ABC’s role in the digital era was affirmed by Parliament’s 2013 vote in favor of a Charter change that acknowledges our responsibility to provide digital media services. The reach, impact and personalization of online and mobile services have deepened the ABC’s connections with Australians everywhere and of all ages.

Millions of Australians every week are taking advantage of services unimaginable even a few years ago. We are delivering vastly more to audiences in many different ways. We are seeing dramatic increases in media consumption on smart phones and tablets. Every day, more Australians are coming to the ABC through search engines and social media referrals. This transformation will continue apace over the life of this plan as technology continues to shift power and the tools of creativity to audiences over producers.

Audiences are making individual decisions on what they want to consume, when and on what devices. We are not just distributing content that the ABC has made, developed in partnerships or purchased. This era is seeing a proliferation of content created by members of our audience and reaching vast numbers through its availability on ABC programs and websites.

While the ABC is taking advantage of this new technology to meet audience needs in different ways, many ABC services remain familiar. We still deliver traditional, linear television and radio networks, with scheduled programming that inform, educate and entertain.

We are delivering on our Charter obligations. Our programming contains content of wide appeal and specialist interest. Our news and current affairs team provides high quality coverage of local, national and international issues. We have a commitment to telling Australian stories, promoting the arts and providing a forum for intelligent debate and discussion.

Independent research consistently affirms that Australians overwhelmingly feel that the ABC provides a valuable service. The breadth and quality of ABC programming and its relevance to the lives of Australians makes the ABC one of Australia’s most respected and trusted institutions. It is truly a national broadcaster for all of us.  Never in its proud 80 year history has the ABC been restricted to filling gaps left by other media organizations.

The values that underpin the ABC’s operations remain the same.  We show respect, integrity and collegiality in our dealings with each other and the wider community; and we seek to innovate in our programming and services. The key goals of the organization also remain constant.  In fulfilling our functions under the ABC Act, we strive to be values-based and innovative, efficient and responsible, with an adherence to high-quality and audience-focused content.

As has been the case for more than 80 years, a defining characteristic of the ABC will be to treat its audiences as citizens, not consumers.  We look to be a trusted place in an era of information plenty: delivering programming of quality and distinctiveness, that promotes understanding and insight and that provides a forum for debate and engagement for Australians everywhere.  Furthermore, with secure government funding, the ABC will provide continuity of high quality programming for all Australians, at a time when other media organizations are finding it difficult to cope with the digital era.

The first stated duty of the ABC Board, under the ABC Act, is to ensure the functions of the Corporation are performed efficiently and with maximum benefit to the Australian people. The ABC Board will review the implementation of this Strategic Plan over the next three years. The Corporation will report on progress through its Annual Report, on the corporate website and to the Parliament through forums including Senate Estimates hearings.

The next three years will see the ABC continue its transformational journey as a public broadcaster of the digital era. The Corporation will look to invest the funding provided by the Australian people efficiently and wisely, ensuring a return that is relevant,  engaging, innovative, creative, distinctive and of high quality. For Australians everywhere, we grasp the opportunities of the new whilst holding fast to the great traditions and values of public broadcasting.

Our Purpose and Visions

The ABC’s purpose is to fulfil the functions set out in the ABC Act, particularly the ABC Charter

The ABC’s vision is to provide high quality content and services that will ensure the ABC is valued by the community as Australia’s most trusted and creative media organization.

Our Values

The ABC is a truly independent media organization for all Australians. Our values are the foundation of our work.

Integritywe act with trustworthiness, honesty and fairness. We deliver on our commitments and are accountable.

Respect   We treat our audiences and each other with consideration and dignity. We embrace diversity.

Collegiality    We work together willingly. We cooperate and share in the ABC’s challenges and successes.

Innovation      We foster creativity and distinctiveness. We encourage new thinking and strive to achieve quality in all that we do.

Our Goals

The ABC has six goals which support its purpose:

Audience Focused High Quality Innovative Values based Responsible Efficient

Strategies for achieving our goals

The ABC has identified the key strategies which will drive the achievement of its goals:

Audience Focused

Provide relevant content for all Australians that enrich their lives as citizens. Build audience engagement with ABC content across platforms, devices and formats. Develop and implement a content strategy which maintains weekly audience reach across platforms of at

least 70% of the Australian population. Implement a content strategy focused on growing international audiences in target markets.

High quality

Apply high standards to all activities. Deliver distinctive content which is independent, balanced and trustworthy. Regularly review and assess standards and performance, including identifying appropriate benchmarks. Provide appropriate training to meet business needs and build capabilities.

Innovative

Foster a culture within the ABC of experimentation and creativity. Explore the potential of emerging platforms and devices to offer new and relevant content and services to

audiences. Build a flexible and agile business capability to anticipate and respond to changes in audience behavior

and the media environment. Collaborate with relevant industry and community partners. Extend the ABC’s reputation as an innovation leader in the Australian media.

Values based

Emphasize the importance of how results are achieved, not just the results themselves. Embrace and promote diversity in recruitment and content strategies. Adopt and implement the ABC Reconciliation Action Plan. Encourage and recognize ideas and behaviors that embody ABC Values of integrity, respect, collegiality

and innovation, both within the ABC and in our relationships with audiences.

Responsible

Focus on achieving the highest standards of workplace health and safety. Provide responsible and responsive emergency broadcasting services. Pursue environmentally and socially responsible business practices. Apply best practice standards of financial and corporate governance. Support the democratic process by providing programs and services which enable citizens to engage in

informed discussion.

Efficient

Continuously evaluate activities in order to implement best practice processes and to pursue new efficiencies.

Ensure the ABC’s capabilities across all platforms are aligned with audience strategies. Manage and allocate resources efficiently in a way which contributes to long term sustainability.

Performance Measures

The ABC will monitor performance using a range of measures.  Progress against this plan will be assessed and reported using the following ten areas of performance:

1. Reach of ABC services across all platforms.2. Levels of audience engagement with ABC services.3. Assessment of content quality.4. Community perceptions and industry recognition of ABC activities.5. Assessment of creativity and innovation.6. Compliance with appropriate and recognized standards.7. Availability and effectiveness of training and development activities.8. Health and safety performance.9. Performance against targets set in the ABC Reconciliation Action Plan and the ABC Equity and Diversity

Plan.10. Levels of revenue from non-appropriation sources

Fulfilling the boards duties

The ABC Board is committed to fulfilling its duties as set out in s8 of the ABC Act. It does so through well-established corporate governance processes.

The ABC Board holds regular meetings throughout the year, providing the Board with an opportunity to obtain detailed information about management and operational issues, and to make key decisions regarding the Corporation. The Board receives a comprehensive suite of reports, and members of the ABC Executive attend Board meetings as required to answer questions and provide insight into activities and management decision making.

The Finance Committee meets several times each year, and provides an opportunity for the Board to scrutinize the financial performance of the Corporation, including financial policy and procedures, financial planning, budgets and Treasury activities as well as major business investment decisions. Through the activities of the Finance Committee, the Board is able to ensure the financial performance and efficiency of the ABC.

The Audit and Risk Committee provides independent assistance to the ABC Board on the Corporation’s risk, control and compliance framework, and its external accountability responsibilities. Through the Audit and Risk Committee, the Board is able to monitor the Corporation to ensure that it does not contravene or fail to comply with applicable legislative obligations.

The ABC Editorial Policies are approved by the Board. The ABC Editorial Policies set out the ABC’s approach to a range of important editorial issues. A set of standards apply to each statement of principle, and are enforceable under internal management processes including through the ABC Complaints Handling Procedures.  Rigorous application of the ABC Editorial Policies by the Corporation enables the Board to ensure that the gathering and presentation of new and information by the ABC is accurate and impartial in accordance with s8 (1) (c) of the ABC Act.

The ABC Code of Practice has been developed by the Corporation and approved by the Board. The Code of Practice establishes the Principles and Standards which the ABC applies to radio and television programs broadcast by the ABC on its free-to-air television or radio broadcasting services. Compliance with the Code of Practice is monitored by the Board at its regular meetings. The Code of Practice is notified to the Australian Communications and Media Authority in accordance with s8 (1) (e) of the ABC Act.

A Board Protocol which establishes the rights, responsibilities and expectations of the Board has been agreed and adopted by the ABC Board. The Protocol recognizes the duties that are owed to the Corporation by Board, and sets out the ways in which Board members will conduct themselves in order to fulfil those duties.

ABC Services

Radio

Four national radio networks, comprising ABC RN, ABC Classic FM, triple j and ABC News Radio (on the Parliamentary and News Network)

ABC Local Radio, comprising nine metropolitan radio stations, in capital cities and Newcastle, New South Wales, and 51 regional radio stations throughout Australia

11 digital radio channels in each mainland capital city, including simulcasts of the four national networks and metropolitan Local Radio services, as well as digital-only services ABC Dig Music, ABC Jazz, ABC Country, ABC Grandstand, triple j Unearthed and ABC Extra, a special events channel

All digital radio services are streamed online. ABC Dig Music and ABC Jazz are also available on free-to-air digital and subscription television services. The four national networks and some Local Radio services are available via digital satellite subscription services

Television

ABC1, the ABC’s primary television channel ABC2, content for a younger adult demographic between 7pm and 2am running on the ABC’s second

free-to-air television channel ABC4Kids, content for preschoolers between 6am and 7pm running on the ABC’s second free-to-air

television channel ABC3, a dedicated children’s channel ABC News 24 iView, an internet-only catch-up television service Local television in each State and Territory

Digital and Mobile

abc.net.au, providing content available via streaming, podcasting, podcasting, video-on-demand and content uniquely designed for broadband delivery

ABC services are also available via SMS, 3G and other wireless devices including a range of smartphones and tablets

ABC Commercial

ABC Retail, owning and managing 53ABC Shops and licensing 102 ABC Centers throughout Australia. It provides a Customer Delivery Service that processes orders via phone, fax, mail and online through ABC Shop Online (www.abcshop.com.au)

ABC Publishing, managing magazines and books. It manages a stable of lifestyle and children’s magazines as well as a list of adults’ and children’s books

ABC Sales and Distribution, responsible for DVD, Content Sales (including international and digital sales), Licensing, Events, Library and Non-Theatrics Sales

ABC Music and Music Publishing, releasing children’s, country, classical and contemporary music from Australian artists including recordings by the Australian symphony orchestras. The group also represents a number of Australian composers and promotes Australian music compositions and performances

ABC Digital, developing online and mobile applications

International

Radio Australia, an international radio and online service broadcasting in eight languages by shortwave, satellite and terrestrial rebroadcast arrangements to Asia and the Pacific

Australia Network, an international television and online service, broadcasting via satellite and rebroadcast arrangements to 46 nations in Asia and the Pacific

ABC International Projects, assisting media organizations internationally with strategic advice, training, mentoring and technical support

ABC Subsidiaries

Under the ABC Act the Corporation is required to provide Corporate Plans for its subsidiaries.

As at 1 July 2013, the following are wholly owned subsidiaries:

1. Music Choice Australia Pty Limited2. The News Channel Pty Limited

Both subsidiaries are held as shelf companies and are not trading. Corporate Plans have not been prepared for these two subsidiaries.

Forecast Revenue and expenditure

Australian Broadcasting Corporation Estimate

2013-14

$’000

Estimate

2014-15

$’000

Estimate

2015-16

$’000

RevenueRevenue ABC Government Appropriations

Operational Appropriations 1,053,853 1,071,049 1,093,906Equity Injections 3,300Loans from Government 20,000 50,000 20,000Total Appropriations 1,077,153 1,121,049 1,113,906Other Revenue 175,484 174,937 174,706Total Revenue 1,252,637 1,295,986 1,288,612Operational Expenditure 1,215,717 1,234,054 1,262,929Capital Expenditure 90,117 153,581 144,890Borrowings 20,000 70,000 90,000