The concept of development reminds us of the welfare of human beings and human society. Genuine development takes place when a human society goes through an internally driven process of changing the arrangements in place that shape political, economic and social life. Such a process is complex with social and technological dimensions. Moreover, if left to chance, genuine development might be slow and tentative. The framework entitled Purposeful Human Activity System Methodology (PHASM) is designed to provide a coherent, valid and efficient set of guidelines to facilitate a process of institutional reform. PHASM is based on the idea that any development situation can be considered as a 'human activity system' with the purpose to improve people¿s well-being. By using the PHASM framework, we can support the concerned stakeholders develop a model that represents the system, analyze the elements that make up the system components and the causal links between them, identify and explain the problems, propose and adopt alternative institutional arrangements that will upgrade the system and thus its propensity to generate the development results people aspire to.