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MAORI SUSTAINABLE DEVELOPMENT IN TE PUKU O TE IKA MODULE 2. DEPARTMENT OF ECONOMICS and the SCHOOL OF MAORI AND PACIFIC DEVELOPMENT. OBJECTIVES. Decision making models -group and single Systems thinking Values Frameworks-what’s important to you? Governance in Maori institutions

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    1. MAORI SUSTAINABLE DEVELOPMENT IN TE PUKU O TE IKAMODULE 2 DEPARTMENT OF ECONOMICS and the SCHOOL OF MAORI AND PACIFIC DEVELOPMENT

    2. OBJECTIVES • Decision making models -group and single • Systems thinking • Values Frameworks-what’s important to you? • Governance in Maori institutions • Direction and focus groups

    3. DECISION MAKING MODELS • What is decision making • Styles of Decision making • Different models for different situations • Group and individual decision making • Values in decision making

    4. DECISION MAKING • “Decision-making” is defined as the process in deciding between alternatives in relation to a set criteria for a particular purpose or to solve a problem. Firstly, this requires identifying and structuring values and objective for those issues that matter to the decision maker. This involves separating values into fundamental objectives and means objectives. Then different alternatives or strategies are analysed and measured using attributes against a set of specific criteria, to see whether the alternative is suitable to use or whether trade-offs need to be made between the various required criteria (Olsen, 1997). • Barlow (1999) says there are six steps in decision-making: • Recognising the problem • Establish evaluation criteria • Identify alternative course of action • Evaluate alternatives • Select best alternative • Implement choice

    5. Decision Making Style • The way in which decisions are made is called the decision-making style. Decision making styles can be formal or informal, based on reason or not, or involve groups or just individuals (Clemens, 1996). • Decisions can be subjective or objective based on the credibility logic, which suggest that the highest quality data is ignored due to subjective analysis.

    6. Decision Making Style • Informal decision-making occurs when decisions are based on intuition or a past solution to a similar decision situation. • Formal decisions on the other hand, make elimination of alternatives based on “best choice -worse choice” alternatives, which correlates with the criteria set for making the decision. • Decision analysis, can be used to rank objectives, criteria, attributes or alternatives according to best choice or worst choice by using ordinal or cardinal measures of preference (Clemens, 1996). Decision analysis is can be either multi-objective, multi-criteria, or multi-attribute.

    7. Group decision making • Group decision-making can be formal or non-formal. The way in which decisions are made depends on the group dynamics, motivations of the group, existing knowledge, and the ability to generated ideas to solve problems. • Group decision-making is the type in which various individuals combine together to solve a problem(s) requires the development of ideas for alternatives and criteria. • Before analysing each alternative against a set criteria of wants or needs. • Group decision-making is common in the planning processes.

    8. Characteristics of the decision-making environment (Barlow, 1999)

    9. Different decision making models • A “ model” on the other hand is a representation of what happens in reality (Harper-Collins, 1992). Models can be either deterministic, stochastic or non probabilistic, and based on quantitative or qualitative information (Barlow, 1999). Models can be used to help make clarify decision problems and identify what would be the best course of action under different conditions of certainty, risk and uncertainty. • Deterministic models describe behaviour on the basis of some physical law and are based on quantitative information and all variables are known. • Stochastic (or probabilistic) models are based on quantitative and qualitative information. There all outcomes are known but the chances of happening is probabilistic. The decision-maker makes informed decisions. A time series is a sample outcome from a stochastic process. Non-probabilistic models are used when the uncontrollable variables are unknown and that the information is qualitative. These decisions are made under uncertainty (Barlow, 1999).

    10. SYSTEMS THINKING • Systems thinking is about studying the bases on how systems works. We can model systems based on identifying processes, and influenctial variables and drivers.The modelling of a systems and the associated decision making process is called “systems dynamics”. The process of systems dynamic modelling is presented on the next page. • Collection and types of information requirements needed. • The modeller needs to have a good understanding of different ecological, social and economic systems to construct influence diagrams. • Technical problems associated with models • As with all models, the model is only as good as the information put in it. Models are a representation of what happens in reality and may incorporate inaccurate information. • Socio-economic problems because of the non-linear positive feedback and shear size are simply not amenable to the rigorous mathematics of control. • Advantages and disadvantages of the model • Systems dynamic models help visualise problems holistically • The software available is able to formulate equations and graphs. • Able to incorporate biases and weighting factors • The availability of commercially available software • Ithink, cosmo, cosmic, dynamo, venison, Stella • Learning needs for the modeller or decision maker • To fully gain competence with the use of the programmes available.

    11. Systems Dynamic Modeling

    12. Decision Situation • When decision-makers is faced with making important decisions there are several key issues that the person needs to consider. • Sometimes a sequence of a series of decisions needs to be made. These are calledsequential decisions (Figure 2.1). Decisions that are made now will have an impact on what will happen in the future. Many important decisions have to be made without knowing exactly what will happen in the future or exactly what the ultimate outcome will be from a decision made today (Clemens, 1996). • Many different uncertain events may occur in a decision situation but only some are relevant, and these need to be identified before hand. If the decision situation contains many uncertain events, or some uncertain events are dependant on other uncertain events, and complicates the decision making process.

    13. UNCERTAIN EVENT UNCERTAIN EVENT DECISION DECISION DECISION CONSEQUENCE Decision Situation • Clemens (1996) says that “if there are many uncertain decisions that occur between decisions there may be a natural order to the uncertain events or there may be not”. The time sequence of the decisions is important, along with the information available. Clemens (1996) also say that “uncertain events proceed a dovetail will a sequence of decision. An arrow from a group of uncertain events to a decision indicated that the outcomes of those events are known at the time the decision is made. • “After the last decision has been made and the last uncertain event has been resolves the decision makers fate is finally determined”. This is called consequence or outcome.

    14. UNCERTAINTY CONSEQUENCE INVEST Influence Diagrams • Influence diagrams (Figure 2.2) is mentioned in Clemens (1996) and Coyle (1995) as a way for structuring decisions problems. System dynamic modelling uses influence diagrams to add feed back loops which are more realistic in terms of what happens in reality.

    15. KEY Decision Uncertainty Consequence Decision Trees • Decision trees are mainly used in Multi attribute utility theory, scenario planning, and simulation models to analyse an undertake uncertainty and risk decisions through lotteries (Mollaghasemi and Pet Edwards, 1997). The decision tree graphically portrays the decision problem and the set of alternative solutions or outcome at the end of the branches of the tree along with expected values for that consequence/outcome (shown by the dark blue box). Each branch represents an alternative uncertainty in which represents the probability of the outcome or alternative succeeding where the branches meet are the nodes for uncertain events (light blues circles). While the decision is made at the green box. (Figure 2.3). • Decision trees are useful in the sense that they incorporate uncertainty, but the are restricted in that every consequence is measured in monetary terms, ignoring environmental or social costs. In addition, because of the linearity of the model re occurring variables or feedbacks are difficult to add in. In practicality, they should be used in combination with other decision-making models or tools

    16. Objectives Heirarchies • Analysis of problems with multiple criteria or objectives require stages of identifying objectives arranging their objectives into a hierarchy and then measuring “the performance of available alternatives on each criterion”. • The simplest hierarchy would involve value as an objective with available alternatives branching from this value node. Hierarchies generally involve additional layers of objectives when the number of branches exceeds some acceptable value. Describes possible consequences in order to provide a sound basis for value judgements about the desirability of objective attainment levels. • Individuals need to consider fundamental value function trading-off profit and other consideration. • Alternatives are located on the bottom of the hierarchy, are measured against all objectives and criteria immediately superior if an all objectives immediately superior to them on the hierarchy. If an alternative’s performance on an objective is not measurable then drop objective. Attributes are used to measure the performance of alternatives. There are three types of attributes, natural, co-structured, and proxy (Box 2.1). Value judgements are required for fundamental and means objectives (Olsen, 1997). • Clemens (1996) suggests that objectives hierarchy and decision trees may be combined together in multiples objectives problems to prioritise different alternatives.

    17. MAUTMulti Attribute Utility Theory • The type of problems that need to be solved • Need to know what alternatives are available the expected return and the probability of success. • Collection and types of information requirements needed. • Requires modelling decision, uncertainty/risk, and preferences/outcomes by the decision maker • Technical problems associated with models • Requires linear structuring of problem with decision trees, which can limit uncertainty to economic gains/losses and not environmental or social. • Advantages and disadvantages of the model • Only decision model to incorporate uncertainty into it • Values of weights wk are related to the values of single dimensions utility sjk. Hence the SMARTS program model was developed. This program uses swing weights to change the score of some object of evaluation of some duration. • A later model, SMARTER program model, uses rank order to estimate the set of weights minmax error by identifying the centriod of all possible weights maintaining rank order of objectives importance. It replaces obtaining judgement weights with a calculator, and is base on output of the first step with ordinal approximations (Olsen, 1997). • The availability of commercially available software • First Choice, SMART, SMARTS, and SMARTER • Learning needs for the modeller or decision maker • Requires an understanding of stochastic models, simulations and scenario building.

    18. Objective Alternative 1 Alternative 2 Alternative 3 Attribute 1 Attribute 2 Attribute 3 ANALYTICAL Heirarchy Process • An alternative to the objectives hierarchy shown in Figures 2.4 is Saaty’s objectives hierarchy called the Analytical Hierarchy Process model (Figure 2.5). Which places alternatives on the second level under the objectives and places the attributes at the bottom of the hierarchy (Mollaghasemi and Pet Edwards, 1997).

    19. AHP Summary • The type of problems that need to be solved • Multicriteria and multi attribute preferences, but not estimation of utility • Collection and types of information requirements needed. • Requires a lot of interaction between the analyst and the decision-makers to find the decision-makers preferences. • Technical problems associated with models • Requires a large use of linear programming mathematics. • Advantages and disadvantages of the model • Has problems with rank reversal happening when changing variables in sensitivity analysis • Does not take into account uncertainty. • Requires incremental analysis in the pair wise comparisons to prevent the wrong conclusions being made. • Also because the method uses pair wise comparison, it can only make preferences between 2 alternatives at the same time. • Able to include group decision-making in to the model. • The modeller must formulate the relevant questions relating to pair-wise comparison of preferences to the decision-maker and that the alternatives, criteria, or attributes are compensatory in nature when used in the pair wise comparison interviews. • Very time consuming especially when interaction needs to occur with other people • The availability of commercially available software. • Expert Choice is commercially available for making decision models. Model can be linked to excel and visual basics software. • Learning needs for the modeller or decision maker • AHP is very easy to learn

    20. Geometric Mean Technique-GMT • The type of problems that need to be solved • The GMT method is an extension to the AHP method, and helps correct the problems associated with AHP. The GMT method helps to analyse preference data and to model the information. • Collection and types of information requirements needed. • Requires the use of par wise comparison interviews to gain insight into the preferences of the decision-maker. • Technical problems associated with models • There are no technical problems known as to this date. • Advantages and disadvantages of the model • GMT has the advantage that it prevents rank reversal occurring. • Also is an added cost to the decision making process, but if the decisions being made are quite important then it may be useful to obtain a copy. • The availability of commercially available software • REMBRANDT software is commercially available as an additional program to AHP’s Expert Choice. • Learning needs for the modeller or decision maker • The decision maker would need to have a reasonable understanding of linear programming mathematics to complete this program.

    21. Preference Cones • The type of problems that need to be solved • Preference cones can be used to in ranking alternatives, in port folio management, investment, environmental and social issues. • Collection and types of information requirements needed. • Similar to AHP method the Preference cones method asks decision-makers whether a trade-off is desirable or not. • Technical problems associated with models • A possible concern is that when the decision maker is uncertain about which choice is preferred the impact selecting one of the other alternative can be quite drastic with the cone possible eliminated a number of remaining alternatives based on an uncertain choice. • Because linear programming is associated with decision models that have a known outcome, when a decision is made on an uncertain choice alternative the model could be wrong. • Advantages and disadvantages of the model • The preference cone model has the advantage that it is able to eliminate large amounts of alternatives into a smaller set of alternatives for re selection. • Non-dominated solutions is gauranteed • Assumptions are non restrictive. • The availability of commercially available software • It is unknown from this literature review if there are any commercially available software available for preference cones. But because simple linear programming is used it is likely that Excel and be used to model the preferences using the method. • Learning needs for the modeller or decision maker • Preference Cones method is easy to learn but the interaction of the decision maker to the problems increases with size.

    22. Outranking Methods • The type of problems that need to be solved • Outranking methods are used to reduces the number of alternatives solutions to a smaller number and to rank the subset selected to a small specific set of criteria. • Collection and types of information requirements needed. • Information requires that weightings and values are placed into the model, also information about criteria. • Technical problems associated with models • The model is limited as to the amount of criteria that the alternatives can be ranked with. • If the alternatives require different criteria for ranking each of them with then this will cause error. • Advantages and disadvantages of the model • The models are simplistic in nature and hence tend to be limited in that they do not incorporated a large amount of preferences or criteria. • However the model is simple to use and can be used to form simple matrices and ranks the • The assumptions are non restrictive . • Decision making preferences structure is captured as a partial ordering. • The availability of commercially available software • Several outranking models exist including Electre 1,2,3,4,5, Promethee,1,2, Gaia Output • Learning needs for the modeller or decision maker • The models are quite simple to use and can be learned in a short

    23. Decision making model Type of information required Scoring methods Scores on attributes and objectives MAUF Weights and utility functions and on attributes AHP Pair wise comparisons of attributes and alternatives Electre I, II, III Rating scale for criteria weights and discordance index. Zionst and Wallenius (Preference Cones) Desirability of trade offs Types of Information required for different Decision Making Models

    24. Decision Making Sub Models for Environment, Social, Economics, Culture • Economic Models • Investment Decisions (Capital Budgeting) • Investment decisions (also called capital budgeting) is the allocation and reallocation of capital and resource to projects and products assets and division of an organisations. • Finance Decisions • Financing decisions are concerned deterring the best capital structure for the firm and includes examining various methods by which the firm can raise capital (eg, issuing stock, increasing debt, selling assets or combination). Short and long term decisions must be considered for the working capital. Financial ratios are the most widely used method for determine an organisation strengths and weakness in investment, financing and dividend. Financial ratios can signal strengths and weakness in management, marketing, production, research and development, and computer information. The key ratios are debt to equity, and debt to total asset ratio (David, 1995). • Financial ratios are important in business because they will indicate the level of financial risk involved with an investment. However, not all risk is reported, and companies may have different accounting systems making it difficult to make comparisons. • Dividend Decisions • Dividend decisions are concerned with the earnings paid to stockholders the stability of dividend paid over time and the repurchasing or issuing of stock (David, 1995)

    25. Financial Ratios ___________________________________________________________________ Financial ratios are divided up into six types: • 1.    Industry ratios • 2.   Growth ratios- sales, price-earning ratio, dividend per share, income, earnings per share • 3.    Leverage ratio- debt to total asset, debt to equity, long term debt to equity, Time- interest earned ration • 4.   Activity ratios- inventory turnout, fixed asset turnover, account receivable turnover, average collection • 5.    Profitability ratios- gross profit margin, return on stockholder equity, operation profit margin, net profit margin, return on total assets, earning per share. • 6.     Liquidity ratios- current, and quick __________________________________________________________ • (Source David, 1995) • Rivett (1972) said that “cashflows can be at any one time positive or negative. A positive flow of cash means cash is being returned to us from the investment and a negative flow of cash means that at that moment money is flowing out from us to the investment”. • The number expresses the attractiveness of the flow of cash. There are four such single numbers that are commonly used: • Average rate of returning- estimates the rate at which the investment is yielding money to use in terms of its initial cash input. • Payback period is the time that elapses between making the decision and receiving back the amount of the investment. We may look at the time at which money is returned. • The present worth criterion discounts future returned of cash, it does this by assuming a rate of interest which can be earned by the money which is yielding form an investment once we have got it back (called Present Value). • Present value = PV = ai/(1+r)i • ( Equation 17) • Where ai is the net return in the ith period • r is the rate of interest per period • Internal rate of return- we state what the interest rate r would have to be for the present worth of the future cash flow to be equal to the initial investment, I • I= ai/(1+r)I ( Equation 18 ) • The higher the internal rate of return, which is the root of the equation, the more attractive will be the investment (Rivett, 1972).

    26. Environmental Decision making Models • Environmental Impact Assessments aid decision-making by looking at the impacts of certain developments, projects or policies on the environment. • Environmental Impact Assessment (EIA) can be used in town, environmental, or project planning, but also in selecting the viability of development projects or business investments (for example life cycle assessments). An EIA can be used to identify impacts from various alternative developments of proposals, and look at what can be done to mitigate the impacts of various alternatives. • Overlay maps can be used in respect to spatial analysis through spatial decision support systems (such as Geographic Information Systems) to display information and assist in decision making by helping a decision maker to visually understand the problems that the decision maker is faced with. Overlays are a common tool in planning and for quickly identifying decision problems. • Overlays can be transparencies or computer generated map layers on a geographical information system, and also can be used in forming plans for areas that are to have zones for land use capability, vegetation, population, geology, water resources, and infrastructure. Proposed developments can be analysed to is suitability for the receiving environment if the natural resources have been clearly demarcated. For some decision-makers overlays can be a useful tool to convey information visually. • Associated with and EIA will be a cost-benefit analysis that will convert all the impacts of the project or business into monetary terms. • Ecological population models come in three forms exponential, logistic, and discrete time analogues (Sharov, 1997). Generally a population models uses information from initial population size, birth rate, death rate, longevity, and the percentage of males to females to for a fair understanding about future population sizes and population dynamics. Geographical information systems (GIS) can use statistical data formed from a census to spatially track the dispersal of humans over time and to analyse the position of new customers, markets, and distribution routes (ESRI, 2001). GIS systems also can be used to identify the iwi population/group clusters that may require additional help in certain geographical areas. The United Nations (1996) have developed a computer based information and decision support system called “PopMap” to help governments and non government organisations for planning purposes.

    27. Social Decision Making Models • Social Impact Assessment • Social Impact Assessments are used to determine the impact of a development, project or policy on a group of people. The World Bank and the United Nations use social impact assessments when developments are controversial, significant, or have a huge impact on society. A social impact may analyse information regarding population demographics, relationships, governance, politics, culture, norms, beliefs, values, health, education, history, and customs. Social Impact may cover issues to do with environmental and social justice, social responsibility, resettlement policies, environmental/social refugees, and to look at the intergenerational effects of certain proposals and policies. • Stakeholder Analysis • Freeman (1984) describes stakeholders as “ any group or individual who can affect or is affected by the organizations objectives”. The organization shows notions of “caring” for stakeholders by asking them what they can do to help to keep the organization from harming them, so the organization can keep their contract or proposed invested project (Burton and Dunn, 1996). Stakeholder Analysis essentially identifies they stakeholders (who will affect the organizations objectives) and what they want, For some academics, the stakeholder theory is flawed with differences of power between the dominating party( ie. the government, agency, or government) and the stakeholder ( eg. the people who will be affected by the development). These differences in power is to a point where decision making is biased towards the dominating party, because they construct the rules on how decisions are made and who makes them. The dominating party will decide who will be selected from a range of stakeholders to attend a forum for discussions on the issues. At the forum, communications will be carefully managed to allow more time for the dominating power to use a range of persuasion techniques to influence the stakeholders. • Participatory Planning (see later)

    28. Cultural Decision Making Models • Cultural standards and norms on what is acceptable or unacceptable behavior or conduct. • Prioritization based on values and ethics • Cultural Audits and Accounting • Values Frameworks using objectives hierarchies • Systems Dynamics- interelationships • Contingent Valuation of Culture • The value culture brings in to economy in relation to tourism, product and service knowledge, technology, communication • Value in Social Cohesion and costs in family breakdown.

    29. DIRECTION AND FOCUS GROUPS • Participartory Planning • Participatory planning relates to planning that involves the community in the planning process. Resource management organizations have been using this process to operate because few agencies funded unless they contain substantial components of community involvement in planning, design and implementation. Participatory planning has been used in health, nutrition, poverty and livelihood development programs. Where these participatory initiatives have worked it is because individual communities and groups have shown the benefits of working collaboratively, and developed a collective vision and learning and adapting their management practices together. The process uses the concepts of "learning by doing" or "adaptive management", and have been fairly widely accepted in environmental management situations for nearly 20 years. • Focus groups • Focus groups are a small reference group used to identify view points, potential trends, and gather information for research. • Focus groups are selected based on the population to be studied and according to a scientifically valid selection process. • Stakeholder analysis • Stakeholder analysis was mentioned earlier. The next page will outline how to undertake a stakeholder analysis

    30. Stakeholder Analysis-A type of risk management • Identify and define the characteristics of key stakeholders.; • Draw out the interests of stakeholders in relation to the problems that the project is seeking to address (at the identification stage) or the purpose of the project (once it has started) and determine what motivates them. • Identify conflicts of interests between stakeholders, to help manage such relationships during the course of the project; • Help to identify relations between stakeholders that may enable "coalitions" of project sponsorship, ownership and cooperation; • Assess the capacity of different stakeholders and stakeholder groups to participate; • Help to assess the appropriate type of participation by different stakeholders, at successive stages of the project cycle, e.g. inform, consult, partnership -- all of these have different possible models. Table: Matrix for Stakeholders Analysis

    31. VALUES FRAMEWORKS • Ontology or world view • Identifying values, values in culture • Objectives hierarchy • Objectives, criteria, attributes • Prioritisation • Encroachment of other peoples values

    32. Values in Decision Making • Values and decision constantly go hand in hand. Value judgements influence the outcome of a decision or frame what constitutes desirable or undesirable criteria (for example, a company may value profit and structure all the day-to-day decisions in order to reach a profit. Maori may value cultural identity and make decisions that will enhance cultural identity). Values form ethics or a code of behaviour, which can frame value frameworks (eg. laws, business ethics, bible, CERES-Valdeze Principles etc.).

    33. VALUES FRAMEWORK MAORI SUSTAINABLE DEVLEOPMENT Te Ao Maori=Te Aoturoa=Wairuatanga =Rangitiratanga=Tikanga Maori=Kotahitanga ENVIRONMENTAL STABILITY SOCIAL STABILITY CULTURE ECONOMIC STABILITY Criteria Performance Criteria Performance Criteria Performance Criteria Performance

    34. GOVERNANCE for Sustainable • Identifying types of governance structures • Maori TB, Incorporations, Land based Trusts, Companies • Identifying institutional barriers • Identifying values and direction • Values framework for decision making • Must pan over many governance structures and assist with decision making

    35. GOVERNANCE for Sustainable Development Pan Tribal Economy Upoko Forum Leaders from each institution To consult on issues that need addressing Tribal Economy MTB Company Land based Trust Land based Trust Sustainable Development Company/Trust or Department Action Team-assisting in skills in Sustainable technical knowledge to trusts, MTB, companies, organisations- Can in fact be a department within the Maori Trust Board or Runanga

    36. Typical Structure for a Sustainable Development Company/Trust/Department Sustainable Development Manager Policy and Finance -Treaty Issues -Planning -Policy Analysis -Values integrity -Environmental,Cultural, Social, and Financial Accounting Communications -Environmental + Cultural Education document design -Environmental and Cultural Marketing -Quadruple bottom line Reporting -External relations and Governance Advising -Corporate Social Responsibility People Department -Beneficiary Database, census, and voting -Education and Te Reo Development -Co-operative Education /Apprenticeship/voluntary placements advice -Social Need-housing, health, education, and social services Sustainable Business Development -Environmental and cultural education to businesses and trusts -Social Enterprise -Networking -Co Management, cooperatives, and partnership development Sustainable Consumption -Resource monitoring for iwi -Advice on environmental and cultural procurement -Advice on tribal and environmental marketing

    37. Organisational Learning for Sustainable Development • Make information readily available through email, newsletters, notice boards etc • Encourage staff and beneficiary input on ways to make the Trust Board and iwi more sustainable • Resource monitoring, learning, business development, volunteering etc can be for both young and old. • Reward good ideas and achievement with praise. • Make learning fun for both staff and beneficiaries

    38. HISTORICAL GOVERNANCE IN MAORI INSTITUTIONS • Traditional versus Modern • Legislation history • Capital flows in Maori institutions • Leadership

    39. Legislative History • The Treaty of Waitangi of 1840 • "Her Majesty the Queen of England confirms and guarantees to the Chiefs and Tribes of New Zealand to the respective families and individuals thereof the full exclusive and undisturbed possession of their Lands and Estates Forests Fisheries and other properties which they may collectively or individually possess so long as it is their wish and desire to retain the same in their possession …"

    40. Legislative History • New Zealand Settlement Act • Suppression of Rebellion Act • Native Land Act of 1865 • Maori Social and Economic Advancement Act of 1945 • Maori Trustee Act 1953 • Maori Affairs Act 1953 • Maori Trust Boards Act 1955 • Maori Community Development Act • Runanga a Iwi Act 1990 • Te Ture Whenua Maori Act 1993 • Maori Purposes Bill 1999 • Te Ture Whenua Maori Amendment Bill 1999 • The Companies Act • The Incorporated Societies Act • The Charitable Trusts Act • The Trust Act

    41. Issues surrounding governance in New Zealand

    42. Capital Flows in Maori Institutions • Government legislation has affected the flow of capital (economic, social, environmental, cultural) in Maori Institutions through either one of these process: • Double taxation resulting in loss of economic wealth • Removal of powers affecting the the decision making capacity over resources owned by iwi • Removal of iwi from their land through privatisation, urbanisation, and perpetual leases resulting in a major loss of economic, social, environmental, and cultural capital • Read • Iremonger, C. (2001): Governance and Management of Maori Institutions.

    43. Leadership • Leadership is required for implementing: • Sustainable development policies • Encouraging staff and beneficiaries to partake in their own sustainable development • Knowledge transfer to staff and beneficiaries on particular skills such as: • Census monitoring • Resource inventory monitoring • Business and market monitoring • Sustainable development practice

    44. Iwi Leadership and Decision making • Maori tend to make decisions based on a team or group situations. • Decisions can also be made by kuia and kaumatua head of a whanau group on smaller house keeping issues. • Group decision-making can be influenced by group dynamics, persuassion techniques, and group voting rules. • IVM Model: • On the IVM model decision making can be made democratically and allow for group decision making, or through representatives of the beneficiary (ie Trustees) who are statutory responsible. • This can be done through pairwise questionaires on the criterion questions or the model in order for weightings to be calculated.

    45. What makes a good leader? • Leaders are the charismatic, big-picture visionaries, the ones who change the whole ant farm • Communication is the real work of leadership • Take complete responsibility if something goes wrong. • Leaders are pragmatists who can deal with difficult realities but still have the optimism and courage to act. • Effective leaders help others to understand the necessity of change and to accept a common vision of the desired outcome. • Empowerment is also vital to managing the change process • Leaders design good systems of reporting, hire the right people, and put together the proper multidisciplinary advisory groups. • Hoarding knowledge ultimately erodes your power. • “The people in power are the people who are constantly able to discover new and relevant knowledge, which is really tied to the capacity to learn,” • Importance of creativity in leadership • The ability to recognize and make the most of new opportunities is highly prized • Many people have the potential for leadership, but they haven’t developed it.” • Leaders are people who do the right thing; managers are people who do things right.

    46. Specific characteristics of leadership • VISION - being able to articulate the future in clear simple language: • Next the leader should be able to FOCUS. There are always distractions and personality conflicts but leaders should be able to see beyond them to what it will take to get the job done effectively. • Leaders must be willing to take RISKS and learn from their successes and failures. • You must be TRUSTWORTHY. No-one will follow with enthusiasm a dishonest or unscrupulous leader. Don't play favorites or act hypocritically; your staff will be the first to notice. • You must be able to EMPOWER others with the ability to help themselves. Teach people how to accomplish a task - don't do it for them (even if you can do it faster or better, you don't have the time to do everyone's job). Part of the empowerment process in an organization is to ensure that you listen to everyone's suggestions, incorporate ideas as needed and give credit to those who deserve recognition. Learning to give positive feedback is crucial! • You must learn what MOTIVATES people and then act accordingly. Praise (tell folks they've done a job well - it is hard to overdo this one!), appreciation (a simple "thank you" regularly will earn you respect), recognition (awards, credit on a report, a letter of commendation), or the truth about problems (being clear about consequences) are all motivators. • And finally, but certainly not last - it helps to have a sense of HUMOR. The ability to laugh at oneself is the easiest way to bring others along with you. Humor is a great tension breaker and, while inappropriate if used too often or to belittle someone, humor shows that

    47. Succession Planning of Leaders • Leaders lives are finite • New leaders must be developed to succeed old leaders in various fields of expertise • This is done through succession planning • It is a good idea to train more new leaders than what is required, as some may lose interest, or endure mortality. • The numbers of leaders trained will depend on current leadership life span, the number of births in the last 5 year cohort, plus a mortality rate for those who fall away from training. • Mentoring is a good practice

    48. Socially Responsible Investment .Fiduciary Issues for Maori Trustees • Purpose and objects • Duties of trustees • Duties relating to investment • Features of different types of trusts relevant to investment powers • Cases relevant to SRI investment • Other observations • Practical guidance for trustees

    49. To what extent can trustees take SRI considerations into account? • Purpose and objects of the trust • Trustee duties: • Investment duties: • Preserve capital; • Increase real value of trust fund • Prudent person considerations • Process is critical. • Trustees must: • Comply with their duties • Can only exercise their powers • in accordance with the objects and purposes of the trust.