FIFA World Cup - Germany 2006

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APPROACH Purpose and Goals • To provide an uninterrupted high quality coverage of the 2006 FIFA World Cup. Manage all risks via a planned approach through an initial Bid Phase then to a more detailed Operational Phase. Enhance SBS’ reputation as a public SBS broadcaster and contribute to the achievement of its Multicultural Charter. • • Risk Management in SBS • Established as an integral part of corporate management. Overall risk management framework; supplemented by individual project risk assessments. Risk assessments prepared for all major projects - expected by Board/Audit & Finance Committee. • • Decision to Bid/Proceed • Risks assessed - specialist expertise sought where required; eg. Marketing, Legal, Accounting, Commercial Affairs. Opportunities for SBS weighed up against potential adverse risks. ‘Wild Card’ element - whether Socceroos could qualify (plan flexible to cover both possibilities). Executive Management ownership of process. • • • IMPLEMENTATION Incremental Risk Management • Bid phase - need to know basis (Board, Executive, Sport Management, Legal, Financial experts). Once bid accepted, detailed Project Management phase - widening of staff involved and canvassing of potential risks and identification of the risk mitigation strategies. Appointment of Project Director and establishment of Steering Committee and several Sub-Committees. • • IMPLEMENTATION • Every aspect of this project involved a consideration and management of risk, from the smallest detail to the major strategies employed. With this in mind, a Steering Committee was created in mid 2004 which met on a regular basis, first quarterly, then monthly, fortnightly and finally weekly until the event commenced in June 2006. June During the event daily de-briefs were held and any issues identified were resolved. • • IMPLEMENTATION • As the event drew closer the size of the committee increased, and several sub committees were also created, including Commercial Affairs, Marketing and Broadcast Operations. All meetings were minuted and these identified agreed strategies and action items to be addressed. • Management of Risks • Higher level risks managed via normal SBS Risk assessment process (in accordance with AS/NZS Standard) with consequence/likelihood defined and controls/action items documented. Myriad of other risks managed via identification process and solution determined by Steering Committee/Broadcast Operations SubCommittee. • Management of Risks • External stakeholders involvement in process. Experience from previous coverage of major events. • IDENTIFICATION OF RISKS SBS’ Risk Assessment focussed on the key areas of risk to SBS’ broadcast of the 2006 FIFA World Cup, including: 1. 2. 3. 4. 5. 6. 7. 8. Transmission Continuity Studio Facilities and Redundancy (Sydney and Berlin) Continuity of Talent Rights Payments Revenue (Advertising/Sponsorship) Project Management and Administration Purchasing Budget Management and Control Assisting SBS Management in Decision-Making • Focus on results - key performance measures; eg. transmission continuity, ratings, revenue and contractual obligations. To achieve these KPI’s the risks had to be addressed/managed - eg. the crucial nature of broadcast continuity to the achievement of the Performance Measures required a high level of ‘redundancy’ had to be built into the design of the engineering solution. • Risk Management Process Assisting SBS Management in Decision-Making • Communications strategy - production and distribution of ‘2006 FIFA world Cup Production Bible’ and ‘Technical Operations Manual’. Independent external review of risk management of project. • SHORT TERM BENEFITS Main performance measures for this project: • • • • Broadcast Continuity Audience figures Audience reaction Financial control (revenue & expenditure) All of these performance measures were met or exceeded. SHORT TERM BENEFITS • On at least three occasions, the Berlin studio signal was interrupted and the procedures put in place allowed us to cross to another Presenter in Sydney almost immediately. The program broadcast continued to follow the Berlin rundown, broadcasting all scripts and segments as if originally intended. • Case Studies „ Number of examples of how the controls worked Ratings Overview • SBS broke late night viewing records and the Australian matches delivered the 2nd, 3rd, 4th & 6th highest average audiences on SBS. • The World Cup delivered a 28% increase in our primetime share performance despite most coverage falling outside of primetime (compared to previous 8 weeks). Ratings Overview „ The 2006 FIFA World Cup Germany was a major success in terms of ratings for SBS: • 8.8 million people (63% of the population) tuned into the coverage in the 5 capital cities*. This is a 47% increase on 1998 when the World Cup was last in a similar time zone. • 3.6 million people (57% of the population) tuned into the coverage in regional markets. Reach Growth 2006 v 1998 „ The 2006 FIFA World Cup reached 47% more people than 1998 (after accounting for population increase). Even excluding Australian matches an impressive 30% growth was achieved. 80% 70% 60% Reach % 50% 40% 30% 20% 10% 0% 1998 2006 43% 63% 8.8 million 5.3 million *Reach based on 5 minute consecutive viewing, all World Cup coverage including highlights and repeats Australian Matches „ The Australian matches all delivered outstanding results, providing some of the top rating programs on SBS. Australia v Italy broke late night viewing records and became the second most watched program on SBS, behind the World Cup Qualifier in 2005 which ran in primetime. „ Australian Matches Roy Morgan surveys which include out of home viewing estimated the total number of People 14+ watching the Australian matches nationally: „ „ „ „ Australia Australia Australia Australia v v v v Japan Brazil Croatia Italy 7.1 4.6 6.5 6.7 million million million million Source: Roy Morgan National Telephone Surveys, June 14- 15, June 19-20, June 23-24, June 27-28 LONG TERM BENEFITS • Unprecedented audience interest and support. Quality of SBS Sport coverage of major events. ‘Flow on’ effect in bringing other programs to notice of viewers attracted to World Cup coverage. • • LONG TERM BENEFITS • Excellence in ‘public broadcasting’ and in achieving SBS’ Multicultural Charter. Success in attaining rights to 2010 and 2014 World Cups. Post-implementation review process to ensure next World Cup is even more successful. • • LONG TERM BENEFITS • The Steering Committee reconvened post event to undertake a full event de-brief. The detailed minutes of this meeting included all the positive and negative experiences of each department and a document has been prepared for distribution to be used as a road map for the production process for future major event broadcasts. The document will provide a valuable risk management tool to the organisation. • • Late News „ At the recent Australian Sports Awards (February 2007) our coverage of the World Cup won Best Media Coverage of a Sporting Event in 2006

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