PEEDMO Midyear Report (January-June 2013)

GRACIELA E. MANTE OIC-PEEDMO Provincial Economic Enterprise Development and Management Office

PEEDMO Midyear Report

Contents
Midyear Accomplishments ................................ 3 Issues and Concerns ......................................... 14 Recommendations and Future Direction ..... 16

PEEDMO Midyear Report

MIDYEAR ACCOMPLISHMENTS
The Provincial Economic Enterprise Development and Management Office is pleased to present to you the accomplishments of our department for the first half of 2013.

Revenue Generation
PEEDMO has consistently generated a substantial increase in our income for the past three years. From an income of P 4.7M in July 2010, we have raised it to P 7.5M as of June 2013 garnering an increase of 60.69%.

Due to rigorous efforts in encouraging health and wellness to our customers, we were able to boost the proceeds from our sports activities by 49.23% in 2012.

PEEDMO Midyear Report

The intensified collection of parking fees in the Sports Complex has also shown a remarkable increase from year 1 to year 3. From only P 630.00 collection in Year 1(July 2010-June 2011), it soared to P3,680.00 in Year 2(July 2011-June 2012) and increased further by 388.86% in Year 3(July 2012-June 20,2013). Though the amount is small, it is still worth noting that from year 1 up to year 3, a massive increase of 2,755.56% in parking fee earnings has been obtained. This is due to the new policies implemented starting in the second half of 2011.

Since May 2012, we already remitted P 23,313.00 as proceeds from the sales of our agricultural products.

PEEDMO Midyear Report

Enterprise Development
SURIGAOS BEST We have enhanced the services and the look of Surigaos Best as the provinces Local Products Display Center and Tourism Information Center. We already started in the implementation of more efficient system to better serve our suppliers and customers.

Together with Mrs. Karissa Fetalvero Paronia, Surigao del Nortes AECID Coordinator, we sent product samples to Gifts and Graces Fair Trade Foundation in Manila last month and was able to obtain their interest in including some of our local products to their gallery. Gifts and Graces Fair Trade Foundation, an accredited organization by the World Fair Trade Organization (WFTO) Philippines is committed to support communities by pursuing entrepreneurship as a means to overcome marginalization. G&G works in the areas of product development, market access, technical support on enterprise management, and advocacy of fair trade practices. Currently, PEEDMO is working with the Provincial Agriculture Office in completing the required profile for the selected products of G&G. Hopefully, we could build a partnership with the said

PEEDMO Midyear Report

organization which will enable us to extend the market base of Surigaos Best products and introduce the goods of the province to other parts of the country and abroad. Our local suppliers will also greatly benefit from this promising project. PROVINCIAL INVESTMENT PROMOTION CENTER Inaugurated last March 19, 2013 by Senator Paolo Benigno Bam Aquino IV and Senator Franklin Drilon, the newly established Provincial Investment Promotion Center is still in its infancy stage and is set to carry out the following functions when it is fully operational: Provide Investment services such as assistance in: identifying business partners, business sites, raw materials suppliers, etc. sourcing manpower requirements facilitating resolution of issues and concerns facilitating business visits Investment and Trade Promotion and Generation Trade and Investment Missions Investment briefings/orientations Promo collateral preparation and dissemination Information Management and Development Review existing incentives and prepare recommendations and/or policy papers for improvement Prepare project profiles, pre-investment studies,feasibility, industry profiles and situationers Conduct regular review on the local Investments Priority Areas Recommend to the Board any amendments to existing legislation or procedures on local investments for its appropriate action Do networking with relevant organizations

PEEDMO Midyear Report

SEMINARS CONDUCTED FOR INVESTMENT PROMOTION & ENTERPRISE DEVELOPMENT Seminar-Workshop on Investment Promotion and Investment Code Review On March 6, 2013, PEEDMO conducted a Seminar-Workshop on Investment Promotion and Investment Code Review with municipal mayors , Municipal Planning and Development Coordinators(MPDCs) and designated investment promotion officers. The event was facilitated by Mrs. Alice Eusena the economic consultant of the province and was graced by the following competent speakers with their respective topics: Ms. Lourdes Ellen Kionisala(OIC of the Board of Investments Cagayan de Oro Extension Office) - Functions and Operational Mechanisms of the Provincial Investment Promotions Center, Investment Incentives Formulation and Provincial Investment Code Review Engr. Leonel Santos(President of the Surigao Economic Development Foundation, Inc.)- SDN Economic Development Framework Mr. Celestino Negapatan(DTI Provincial Director)- Status of Investments in Surigao del Norte Mr. Domingo Bulabog(DILG Provincial Director) - Role of Local Economic and Investment Promotion Officers (LEIPOs) in Economic Development

As output of the seminar-workshop, participants were asked to list down what they still need to know about Investment Code formulation and what needs to be done in their respective municipalities. They were required to make action plans for the formulation of their own Local Investments and Incentives Code (LIIC).

PEEDMO Midyear Report

As the late DILG Secretary Robredo advocated, the LIIC is a guidepost for the LGUs to create competitive communities that are able to leverage private sector creativity, enterprise growth, job creation and investment, and decent work towards a better quality of life. The LIIC is also believed to address the disturbing trend of growing dependency of LGUs on their Internal Revenue Allotment(IRA) thus making them more creative in sourcing out local resources to revitalize local economies, Robredo added. Convergence of Agencies and Entrepreneurship in Surigao del Norte Organizations Promoting

On March 8, 2013, PEEDMO in coordination with the Surigao Chamber of Commerce and Industry(SCCI) initiated the Convergence of Agencies and Organizations Promoting Entrepreneurship in Surigao del Norte which was aimed to consolidate and harmonize the plans, projects and programs of agencies and organizations providing entrepreneurial services and interventions in the province. It was a highly participated event attended by representatives from different line agencies, NGOs, and organizations such as DTI, BFAD, BFAR, DOST, DOLE, Surigao Marine Traders Association among others. Two models for micro, small and medium enterprises (MSMEs) development were presented to guide the agencies in grouping themselves according to the kind of services they offer. The MSME German Model has the following components : A. B. C. D. Enabling Environment; Business Development Service Provider; Financial services; and, Demand driven Trainings

while the DTI Model has the following sections:

PEEDMO Midyear Report

A. B. C. D.

Business and Investment Enabling Environment; Access to Finance; Access to Market ; Productivity and Efficiency

With the groupings done, it would be easier to establish linkages for entrepreneurs who are seeking for particular business development services. Aside from clustering the agencies according to the services they provide, the activity also adopted the SME Stars Framework which categorizes the different stages of development of entrepreneurs.

The framework also identifies the types of services belonging to a certain stage as expanded below: A. Startup & SME Capability Building Stage Seminars/Trainings on Business Opportunity Consultancy Market Awareness Start-up Biz Seminar Design & Market Trends Financing Awareness B. Expanded/Sustained Domestic Market Presence and/or Exports Entry Preparedness Expand Domestic Market Base Export Clinics Market Facilitation Seminar Export Mentoring Export Opportunities Online Marketing Product Development Clinics Market Referrals

PEEDMO Midyear Report

10

C. Market Penetrated and Sustained Presence Domestic Supply Base Subcontracting Productivity Enhancement Trade Missions International Trade Shows Border Issues Resolutions Regulatory Reforms In order to monitor the development of entrepreneurs, they start from stage A and acquire the necessary services and trainings in order to proceed to stages B and C. When implemented, this would be a great tool in preventing stagnation of the business status of local suppliers. The transition of entrepreneurs to stage C would also signify a more progressive economic environment for the province. The Convergence of Agencies for Entrepreneurship was a great start in creating a progressive path towards the economic development of Surigao del Norte. With services properly identified and stages strategically set, there would be a more guided and coordinated route to all Surigaonon entrepreneurs in the achievement of our economic goals.

Capacity Building for PEEDMO Employees

Recognizing the need to develop the human capital of PEEDMO, we were able to conduct two seminars during the first half of 2013. Customer Service Training Seminar-Workshop Being in the frontline service, we conducted a Seminar-Workshop on Customer Service to be able to acquire the right attitude and professionalism in providing excellent services to our clients. The seminar instilled new learning experiences to the participants with the insightful

PEEDMO Midyear Report

11

discussions on proper customer service skills. In addition, actual demonstration on phone courtesy and role-playing in handling customer complaints were also done by the employees. The seminar was aimed not only to increase customer satisfaction but to also boost the morale of the employees and add value to the organization in general.

Workplace Safety Seminar Workplace safety is a major concern in PEEDMO as it manages an area of 36,233 square meters composed of sports and cultural facilities frequented by the public. The seminar conducted on May 25 provided the employees with basic knowledge and skills in disaster prevention and preparedness and on how to handle workplace risks.

PEEDMO Midyear Report

12

Health and Wellness Promotion

Compared to the past years, there has been a remarkable increase in the number of people visiting the Sports Complex. With the brand, Exercise is more fun at the Provincial Sports Complex, we have promoted health and wellness awareness to our patrons and we continually strive to provide them with a wide range of sports activities to get involved in. At present, the Sports Complex has become not only a popular venue for jogging, running and ball sports but also an area for playing Frisbee and practicing flair bartending.

To encourage health and wellness for Surigaonons and at the same time attract more paying customers, we established the following fitness programs that are now regularly conducted in the Provincial Sports Complex:

PEEDMO Midyear Report

13

In cooperation with the Provincial Health Office, we were able to place a weighing scale inside the Sports Complex that helps motivate our customers to achieve their desired weight targets.

Strategic Partnerships
As the government counterpart in the business community, we have partnered with Surigao Chamber of Commerce and Industry in hosting the 18th Caraga Business Conference last June 13-14, 2013 at Hotel Tavern, Surigao City. Hon. Sol F. Matugas also sponsored the very joyous Fellowship Night on the evening of June 13 with the Pista sa Nayon theme. PEEDMO also represents the province in the SMED Council.

Social Media Marketing

Part of its innovative approach in marketing and promotion, PEEDMO created the Facebook fan pages of Surigaos Best and the Provincial Sports Complex which caters to a growing number of supporters in the Philippines and around the globe.

www.facebook.com/SurigaoGrandstand

www.facebook.com/surigaobest

PEEDMO Midyear Report

14

ISSUES AND CONCERNS

Despite the constantly improving performance of PEEDMO for the past years, we are still confronted with the following challenges: Financial Sustainability. Even with the consistent increase in the generated income of PEEDMO, it could not still establish itself as a sustainable enterprise due to the amount of expenditures in its operations. Furthermore, the accommodation of discounts and free use of the facilities contribute to this challenge. Personnel Problems. There is a mismatch in the knowledge, age, salary, skills and attitude requirements of the job to the current profiles of the regular employees. Underutilization of some facilities. We still need to make the Provincial Swimming Pool and the Provincial Cultural Center for Children income-generating. Provincial Investment Promotion Center still to be fully operationalized. The organizational structure, office equipment, investment promotion materials and training of staff among others are still to be addressed. Surigaos Best still to be enhanced. The local products display center and tourism information center still needs a transformation in its services and product offerings. A competent staff with the appropriate business background is still needed to focus on the Center especially on its marketing and promotion mechanisms. The presence of a tourism information officer is also needed to accommodate guests and visitors and provide answers to tourism queries which the PEEDMO personnel could not impart due to lack of training. Lack of means of mobilization. Due to the isolated location of the Provincial Sports Complex and the nature of the operations of PEEDMO, we find transporting chairs, sound system and musical instruments to and fro the Provincial Capitol a challenge. We are always depending on the availability of the E-trike especially in the purchase of fuel for generator among other similarly important errands.

PEEDMO Midyear Report

15

Lack of expertise in handling the repair and maintenance of the Provincial Sports Complex. No training from the previous contractor of the complex on the proper handling of the facilities was handed down to the personnel of PEEDMO. There are specific areas where technical expertise is needed and applying untested measures could prove risky to both personnel and properties. Lack of new technology/systems in providing more comfortable and efficient ways to serve customers. There is still a need to acquire computerized systems in the operations of the business enterprises of PEEDMO. Lack of promotional materials available to the public. Due to lack of personnel who will handle the design and content of promotional materials, we are at the moment not able to provide flyers, leaflets, brochures, etc to customers.

PEEDMO Midyear Report

16

RECOMMENDATIONS AND FUTURE DIRECTIONS

To be in sync with the enhanced HEALS Plus development agenda of the province, PEEDMO needs to be fully empowered to make it perform better and to maximize its potential to be one of the driving economic forces of the province.

On increasing revenue generation

Venturing out on other business opportunities that could generate bigger income for the province should be focused on, which include the following initial list: Sand and Gravel Operations Hollow-block Making Water Station Generator Rental Feasibility studies should also be done regularly to identify possible income-generating programs. Analysis on the expenditure pattern of the offices in the province should also be considered to discover the areas we spend the most and convert it into a business opportunity.

On human capital development

As Andrew Carnegie points out, "The only irreplaceable capital an organization possesses is the knowledge and ability of its people." Indeed, having the right people for the job is very important to ensure success in every undertaking. PEEDMO therefore needs a thorough evaluation of its organizational structure and a properly reviewed human resource plan be placed. The hiring of individuals with significant technical expertise should be considered to speed up the formulation of plans and projects of the department. PEEDMO needs people with the right knowledge, skills and attitude in their respective jobs. They must also be dynamic, young, enthusiastic, creative, and responsible to make the operations of the department flourish more. Having a continuing commitment to excellence is also preferred. With this, the organizational development review of PEEDMO is highly recommended to be prioritized.

PEEDMO Midyear Report

17

On the Improvement of Surigaos Best

We recommend the launching of Project SHEEN (SERVICES TO HELP EMERGING AND EXISTING ENTREPRENEURS) conceptualized by Mrs. Alice Eusena which focuses on various activities that will be made available to local suppliers. This would be in convergence with other agencies supporting entrepreneurship in the province. Some of the programs include Business Skills Development, Product Development, E-library and Reference Services and enhancement of the existing center through visual merchandising improvement, etc. Proper staffing of the center is also recommended. We will encourage all the municipalities of the province to showcase their products at Surigaos Best through the OTOP(One-Town One-Product) scheme. Partnerships with other relevant agencies will also be strengthened.

On Making the Provincial Investment Promotion Center(PIPC) Fully Operational

The following Operational Mechanisms of PIPC is recommended to be followed based on the Board of Investments: Workforce Aside from the PIPC head, at least two (2) regular technical staff is needed for o Investor Servicing o Database establishment/updating and networking with LGUs in the province Must be models in effective frontline servicing (knowledge, skills and attitude) Office and Equipment Office must o be easily accessible to businessmen o never be empty o clean and comfortable Minimum equipment o a working phone and fax o Conference table o computer with dependable internet connection o TV and projector for presentations

PEEDMO Midyear Report

18

The PIPC will also be responsible for the monitoring of the formulation of the Local Investments and Incentives Code of the municipalities of the province. It will also serve as the Public-Private-Partnership Center of the province and the channel of the Regional Competitiveness Council PIPCs proposed activities for 2013 include the following: Continuation of the review of the Investment Code of the Province Series of meetings for the convergence of agencies supporting entrepreneurship in the province Institutionalizing the designation of LEIPOs in the municipalities Video showing for livelihood and investment opportunities Creation of promotional materials Creation of an AVP presentation featuring the Investment Priority Areas of the province Municipal Investments Profiling

On the Full Utilization of the Provincial Swimming Pool and Provincial Cultural Center for Children
Intensified marketing and promotion campaigns should be done to attract more customers for the mentioned facilities. Accredited lifeguards and maintenance personnel should also be assigned at the swimming pool at the required shifts. A memorandum of agreement should also be made between schools and universities regarding the paid use of the mini-theater for their cultural and musical events.

On providing a wider range of sports and entertainment services in the Provincial Sports Complex
In addition to the current services offered in the sports complex, the following programs are to watch out for: Boxing Fitness Program Aerobics and Bellydancing Friday Entertainment Night (live band, local delicacies, etc.) Monthly Swimming, Running, Basketball and Volleyball competitions Sports Clinics