Module I - Development Management.ppt

TRAINORS’ TRAINING FOR ENCASH AGRIBUSINESS IN AGRARIAN REFORM AREAS November 2007

Trigger picture

Half full or half empty?

The “Glass is half-full” lessson: Communities, no matter how poor they are, have a lot of strengths (kalakasan). They need to discover what these are, and build on these

strengths.

What is Development? 

Development is not measured by external, outward changes or progress alone. Industrialization and modernization only manifest part of the genuine development that we want to achieve.



Development projects are not ends in themselves, they are only means by which people’s skills in identifying their own problems and planning and working out solutions are continuously enhanced.

What is Development?

A process by which the members of society increase their capacities to mobilize and manage resources to produce sustainable and justly distributed improvements in their quality of life consistent with their own aspirations.

What is Development?

Having

Development Management Perspective 

The field of development management is infinitely more complex than straightforward business management



Development management deals with diverse concerns: a. area, agency and industry management b. art and science of people management

c. resource mobilization and multiplication of these resources

Development Management Perspective 

The objective of development management is to propel balanced growth by maximizing development wheels: a. environmental – management of geographic area, industry and sector b. socio-political - human infrastructure and institution building c. economic

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conversion of resources into investment, investment into goods and services into income and income back into resources or distributed to intended beneficiaries

SOCIO-POLITICAL OR PEOPLE DEVELOPMENT

Values

Ideology

Integrated

Maturity & Unity

Strategy

Development

Organization

Framework

INTEGRATED STRATEGY DEVELOPMENT

Resources

Investment

Prosperity & Equity Markets

ECONOMIC DEVELOPMENT

Area

Industry

Productivity & Quality Agency

ENVIRONMENTAL DEVELOPMENT

Morato Model

Development Management Perspective 

Development management requires a wholistic approach that would bring the three development wheels in an integrated intervention strategy



Development management utilizes strategic management as a tool

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Development management promotes good governance (participation, transparency, accountability, rule of law, sustainability)

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The development managers serve many and oftentimes conflicting objectives which cannot be easily resolved by simplifying development equations

Principles of Development Management 

Environmental productivity must be accompanied by an improvement in the quality of that environment. Environment must not depleted for the sake of productivity

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Economic prosperity must not sacrifice social and economic equity

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Socio-political maturity must be achieved without breaking down society into fragmented units

Environmental Development Process Industry/Sector

Area • Land • People/Labor • Natural Resources • Infrastructure • Savings

Enterprise/ Institutional Management

Productivity and Area Management

Quality

• Capital • Machinery & Equipment • Technology • Imported Materials • Factory Buildings • Stocks of goods and materials

Industrial/ Sectoral Management

•Agency Resources • Agency Managers/Workers • Agency Investments

Agency

Environmental Development Process 

Objective – to synchronize the management of geographic area, industries and sectors in the area and development agencies intervening to promote growth, productivity and quality of life in the area



The Development Manager determines where the three environmental forces of development interface and how to intervene at the interface point a. area and agency interface- effective management of area resources by the agency for harnessing, utilizing and controlling the resources

Environmental Development Process b. agency and industry/sector interface – for the mobilization or building up of industrial/sectoral capabilities and the promulgation of industrial/ sectoral incentives and regulation through local administrative mechanism c. area and industry/sector interface- tapping of area resources, translating the resources to industry investment and creation of backward (supply) and forward (market) linkages through enterprises and institutions

Environmental Development Process 

Outcomes a. Productivity – generation of greater amount of goods and services by and for the people through efficient means b. Better state and quality of being – maturity of the industry, area and agency raised through attainment of economic, social and political standards

Economic Development Process Resources (Area, Industry and Agency) • Land/Natural • People/Labor Management and Labor • Capital/Savings • Stocks • Technology • Physical Infrastructures • Existing gov’t & industry investment +

Investments

X Resource Multipliers

New or expanded production units for delivery of goods and services

Prosperity & Equity (division of Marketing benefits) Channels Value added (Income ÷ or profits subtraction generated conduits) Local and Export

Markets

Economic Development Process 

Conversion of resources into investments, investments into goods and services, goods and services into income and income back into resources or benefits distributed to intended beneficiaries a. multiplication process – conversion of resources into investments with high multiplicative potentials through i) harnessing untapped resource; ii) leveraging scarce resources; iii) focusing on critical inputs of production, marketing and finance b. subtraction process - deduction in potential income through payment of commission to brokers and middlemen, profit margin foregone to viajeros who collect good ex-farm

Economic Development Process c.

Addition process – as productions are sold, revenues are generated for plowing back of extra profits to resource base of production and distribution to beneficiaries

d. Division process - the distribution of benefits is through the sharing of the profits or value added. 

Outcome – Prosperity and equity

Socio-Political Development Process Ideology Vision Ideas Theories Doctrines Beliefs Reflection: Internalize, Convert to Ideals Maturity and Unity Attitudes Norms Customs and mores Motivations Commitments

Values

Abstraction: Educate Build Capabilities

Action: Identification, Increase Willingness, Reinforce

Structures Processes Controls

Organization

Socio-Political Development Process 

Objective - Human infrastructure and institution building to increase consciousness and capability of organization to stand alone



A social process concerned with interaction of individuals within the organization and groups

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A political process involving influencing, governing and empowering people.

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The process encompass the totality of human being, his mind, body and spirit

Socio-Political Development Process a.

Ideology – set of ideas, theories, doctrines and belief formulated to attain a vision of individuals and society

b. Organization - the aggrupation of individuals for specific purpose, structures, processes and control for goal attainment c.

Values – deep-seated convictions about how they and other people should behave

Socio-Political Development Process 

Ideology and organization interface - through education and training to build capabilities

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Organization and values interfaceidentification with certain value system reinforces achievement of desired results

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Values and ideology interface- marriage of mind and spirit

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Outcome – maturity and unity

Approaches in Development Management 

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Rational or Analytical Approach – logical using the “science of correct reasoning” which stresses that induction or deduction must emanate from sequential and linear thought process. Focuses on charting trends, recognition of patterns and mapping out of possible scenarios with the hope of forecasting the outcomes as events unfold Adaptive Approach – not a formal procedure, does not decipher trends and scan the environment, does not sift the strengths and weaknesses and does not use sophisticated tools of analysis. Agency adapts to the dynamism of the situation at hand

Approaches in Development Management 

Ideological Approach – agency exist because of theories, missions, doctrines and beliefs that they espouse. The strategies are aimed at “spreading the good news”. The how’s of attaining the state of life are prescribed in non-equivocal rules and dogmas.

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Creative Approach – seeks for better ways of doing things since it is never contended with the status quo. Has entrepreneurial spirit to venture into the unknown, takes a less traveled route, not necessarily the riskier but definitely the most unfamiliar terrain.