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Boxing South Africa (BSA) Turn around strategy. Review of the Portfolio Committee 27 October 2010. background. Context. This presentation is a brief summary to the high level actions taken to revitalise Boxing South Africa (“BSA”) since August 2010.
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Boxing South Africa (BSA)Turn around strategy Review of the Portfolio Committee 27 October 2010
Context • This presentation is a brief summary to the high level actions taken to revitalise Boxing South Africa (“BSA”) since August 2010. • The content should not be considered exhaustive. • The current focus is a quick “turn around” of the remaining problems areas of BSA to – • ensure that the foundations are reset and BSA operates off a platform of solvency, best practice corporate governance, and efficiency; • Provide BSA with a solid framework from which to deliver its mandate, based on transparency, certainty and predictability; • Deal with the major obstacles currently affecting the development of the sport.
Strategic planning • In August 2010, the Minister of Sport and Recreation (“the Minister”) appointed three new members of the Board of BSA. • In September 2010 the new constituted board held a strategic planning session to review the current state of affairs, determine the way forward and to assign roles and responsibilities to the various board members. • In conjunction a detailed internal review has been underway to understand the current state of affairs. • A board meeting was held on 19 October 2010 to ratify the outcomes of the strategic planning session and to approve various outputs. • This process led to a comprehensive review of the remaining issues and problems in BSA that needed to be resolved, the development of a strategy to resolve these and the beginning of the implementation of that strategy.
Approach • The newly constituted Board has taken a view that its needs to adopt a unified forward looking approach to identifying the shortcomings in the organisation. • These shortcomings were identified without passing judgment as to how they arose and all board members committed to work as a team to resolve them.
Financial Status • Although the financial position of BSA improved over the previous eighteen months, BSA remains in an insolvent position (assets exceeded liabilities). This position has been in place for some time. • BSA operated on a surplus for the annual period to April 2010. This was mainly a result of significant cost cutting, which inevitably reduced the capacity of the organisation to deliver its mandate. • The grant from SRSA for the annual period to April 2011 had not been released primarily due to the non-compliance with the reporting requirements of SRSA and National Treasury. • Systems and procedures on financial management and reporting were lacking, and BSA did not have a coherent operating budget in place. • The audit committee was in place but was not functioning adequately. • The ongoing review and analysis of the financial position by the board was not adequate. • No sponsorships are in place and there are no prospects or initiatives underway to secure sponsorships.
Corporate Governance • The BSA board was functioning in an ad hoc and informal manner. • The procedure and process for Board meetings was inadequate. • Board oversight over decision making was limited and no formal approvals or sign off mechanisms to limit the powers of management. • Minutes of meetings were not of an acceptable standard. • Committees had no clear terms of reference and were not functioning properly.
Operational issues • An acting CEO has been in place for over 18 months and the process underway to appoint a permanent CEO needed to be reconsidered and reinitiated. • Capacity in the organisation to deliver on the mandate was limited. In particular, there is a lack of business acumen and financial capacity. • There is limited formal communication with stakeholders.
Boxing matters • There was no clear code of conduct in place. • There was no formal and functioning disciplinary committee in place. • There was no formal dispute resolution procedures, process and forums in place to deal with disputes between licensees. • Limitedmajor initiatives are underway to develop the sport at both amateur and professional level. This is primarily a result of the lack of resources in the organisation. • There are no sponsorships and no prospects of any sponsorships. • The lack of broadcasting of fights is a major problem.
Actions taken to date – financial matters • Detailed review of financial position • Completion of detailed operational budget (approved by Board) • Oversight procedures for all spend (approved by Board) • Establishment of finance committee by Board • Return to solvency (payment or write off of expenses) • Secure revenue (and ensure revenue visibility) • Secure new sponsorships • Implement best practice systems and procedures • Deal with all matters of emphasis raised in the AGs report
Actions taken to date – corporate governance • Ensure proper and correct functioning of the Board • Policy and procedure for Board process (approved by Board) • Re-establish management committee and terms of reference (“TOR”) • Establish finance / audit committee and TOR • Establish proper reporting methodology • Adopt detailed approvals framework • Seamless working relationship between Board, Committees • and management • Implement best practice systems and procedures
Actions taken to date – operating matters • Re-initiate process for CEO position • Develop and implement systems for reporting • and office management • Detailed review of ability to perform and deliver the mandate, • including task and workflow analysis • Detailed review of organisational structure and capacity • Restructure, as required
Actions taken to date – boxing matters • New code of conduct (approved by Board) • Establish disciplinary committee • Establish proper dispute resolution forum • Re-establish sanctioning and ratings committee • Develop a business plan for a significant development project • Develop a solid offering for sponsors and secure sponsorship • Attain a firm commitment from broadcasters • Improve communication with all stakeholders
Review of legislation • The board has also set up an ad hoc committee to review the current legislation (in terms of its appropriateness and having regard to global best practice). • The board anticipates reporting back to SRSA in this regard by January 2010.
conclusion • This is the beginning of a journey. • The current emphasis is about resetting the foundations of BSA to put BSA in a stronger position than ever before. • In this light, our goals are as follows – • Short term (February 2011) – a solvent BSA with best practice corporate governance and transparent reporting; • Medium term (April 2011) – an efficient and effective regulator of the sport that provides clarity and certainty to all its stakeholders; • Medium term (June 2011) – various new initiatives to develop the sport and various new sponsors; • Long term (April 2012) – a self sustaining BSA with no requirement to rely on government funding and operating in accordance with global best practice.