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We Empower People to Soar

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We Empower People to Soar WE EMPOWER PEOPLE TO SOAR INTEGRATED REPORT | 2018 Over the past two years, we have adopted a new strategy and organisational structure. These changes have made us a stronger, more united university, committed to superior academic excellence and social justice. Now that our strategy and organisational structure have been finalised, we use these as a foundation to create value by empowering people to soar – to go higher and further in pursuit of their goals. How do we do it? We share our knowledge and hone people’s skills, thereby creating the energy for momentum and the ability to soar into the unexplored; to see what has never been seen, and to create the future. We empower people to soar. We create value for ourselves and our We know stakeholders. our risks and use our We have the opportunities. strategy and the organisational structure. CONTENTS 02About this report 22Our vice-chancellor’s review 33Material risks and opportunities impacting value 05Overview of the NWU 27How we engage with 41Our strategy to create value our stakeholders 10Our business model 31Our transformation journey 46Our performance against our and value chain strategy: creating value through our capitals 84Governance: supporting This is a more concise version of the NWU’s integrated and preserving value annual report which the NWU Council approved at their meeting of 20 June 2019 and was submitted to the Department of Higher Education and Training (DHET) at the end of June. The full report is available on the NWU website at 103Incentivising for achievement http://www.nwu.ac.za/content/nwu-annual-reports. We welcome feedback on our reporting approach – you are welcome to send your comments or suggestions to our registrar, Prof Marlene Verhoef, at [email protected] Throughout this concise version of the report, you will find 106Annexures quick response (QR) codes that you can scan, either by using your smart phone's built-in QR code scanner, or a downloaded scanning app. The QR code will take you to the relevant information in the full integrated report. 02 | INTEGRATED REPORT 2018 ABOUT THIS REPORT Our story Navigating our story These are the facts and figures that make up our value We use different icons to show the connectivity between creation story. Through this integrated report we tell you, the various sections in our integrated report. our stakeholders, how we are implementing our strategy to create value for ourselves and our stakeholders over the Our capitals short, medium and long term. Intellectual Throughout our story, you will see how we use and affect Including processes, procedures, policies, our resources and relationships, known as our “capitals”, strategies and knowledge-based intangibles to create value. There are six capitals: intellectual, human, emanating from our teaching and learning social and relationship, manufactured, natural and finan- and our research and innovation activities. cial. (You can read more about our capitals on page 46.) Human Our staff and students To you, our audience (internal stakeholders) Our value creation story is all about you, our stakeholders. We see our stakeholders as those groups or individuals Social and relationship whom we affect through our activities and services, and Our relationships with our whose actions can also affect our ability to successfully external stakeholders implement our strategy and achieve our goals. Our value creation story mainly addresses our primary stakeholders. They are our students, alumni, Council, Manufactured/manufacturing staff, the Department of Higher Education and Training, Our tangible infrastructure and assets our peers, our collaboration partners and our business communi ties (as future employers of our students). However, we believe that the other stakeholders we engage with at the NWU (as seen on page 27) will Natural also find the information in this report valuable. Our environmental/natural resources How our story unfolds Financial Our value creation story starts with an overview of the Funds that we obtain and spend NWU (page 5) and of how our external environment according to a budget influences our ability to create value (page 7). Then we tell you how our business model works, referring to our input, Our strategic goals activities, output and outcomes, which are all part of our value chain (page 14). We also explain how our stakeholders’ expectations and Promote excellent learning concerns (page 27), and the risks and opportunities we and teaching face (page 33), impact our value creation process. The guiding stars throughout our journey are our strategy and goals. On page 41 you will see what our strategy is all Intensify research and innovation about and how we put it into practice, using and impacting our six capitals (page 46). Finally, we tell you how our governance practices support Integrate and align community and protect the whole value creation process (page 84). engagement with core activities BACKGROUND BUSINESS MODEL VC REPORT STAKEHOLDERS TRANSFORMATION RISKS STRATEGY PERFORMANCE FINANCES GOVERNANCE INCENTIVISING ANNEXURES INTEGRATED REPORT 2018 | 03 X The IIRC’s Integrated Reporting Framework; and Develop a clearly differentiated X The DHET’s reporting requirements. student value proposition Materiality was also informed by the issues our stakehold- ers raise, as described in the section on how we engage Develop and retain excellent staff with our stakeholders on page 27 (in the table under the and create an equitable staff and subheading: Issues raised). student profile Our enablers Govern, lead and manage in a “No material matters have been sustainable and transformed way with an effective operating model. omitted from the report due to confidentiality, legal or information Develop best-in-class information and communications technology to support reliability constraints.” the core business. Communicate, engage and develop core business capabilities to increase brand equity, leadership efficacy and community solidarity. Reporting boundary and scope, period and suite of reports Ensure the financial sustainability of the NWU. Reporting boundary Our integrated report reflects the performance of the NWU as it operated across its three campuses for the period 1 January to 31 December 2018. Although the financial Materiality of the report content information (page 69) serves as a point of reference for the We based our decisions on what information to include in other information in this report, the report extends beyond this report on the concept of “materiality”. financial reporting. We agree with the definition of materiality as set out in It also includes non-financial performance, risks and the International Integrated Reporting Council’s (IIRC) opportunities and the internal and external factors that Integrated Reporting Framework. Consequently, we substantially influence our business. Where material, we describe material matters as: discuss the real and potential impact of these matters on X issues that substantively affect the university’s ability to our ability to create value. create value over the short, medium and long term; and X issues that are important to any stakeholder who would Reporting cycle wish to make an informed assessment of the NWU’s Annually in December ability to generate value. In determining which matters are material, the integrated Contact point for questions reporting task team, led by the NWU’s registrar and [email protected] including the deputy vice-chancellor for planning and the chief strategy officer in the office of the vice-chancellor, Suite of reports took the following into account: Our reporting suite further includes: X The strategy of the NWU and the goals and enablers X Annual financial statements for the year ending set out in the NWU’s Annual Performance Plan (APP), 31 December 2018, which can be found on the which puts the strategic plan into action; NWU website at: http://www.nwu.ac.za/content/ X The common strategic assumptions that underpin nwu-annual-reports the strategy; X Our website containing documents for various stake- X The risk register, which documents critical risks that we holders, which can be accessed at http://www.nwu. have identified; ac.za/content/nwu-our-publications 04 | INTEGRATED REPORT 2018 Our reporting framework This integrated report has been prepared in accor- June 2014 and incorporating principles from the King III dance with the IIRC’s International Integrated Reporting Report). Our financial reporting boundary is determined Framework and the DHET’s Regulations for Annual in accordance with the International Financial Reporting Reporting by Higher Education Institutions (published in Standards (IFRS). Assurance We obtain assurance about the effectiveness of our internal The summarised, audited consolidated financial state- controls from internal and external assurance providers. ments contained in this report were extracted from the Their input has been incorporated into this report. audited consolidated financial statements, prepared in accordance with the IFRS, and independently audited by We also follow specific procedures to ensure the accuracy our external auditors, PricewaterhouseCoopers. of our reporting. After compiling the integrated report, we submitted it to the University Management Committee. The The annual financial statements, including the auditors’ committee looked at the completeness and accuracy of the report, can be obtained from the NWU website at: content and provided feedback where necessary, which http://www.nwu.ac.za/content/nwu-annual-reports.
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