Introduction
description
Transcript of Introduction
121/04/23
Understanding the Problems Applying Soft Systems Methodology
(SSM) for Better Regulation
Ian Mitchell BA BSc FORS Operational Research UnitAnalytical Decision Support
Strategy, Better Regulation and Economics (SABR)
OR54 XVII - September 2012
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Introduction
• This presentation describes the application of Peter Checkland’s SSM to OR support to the Better Regulation Executive in early 2011.
• The benefit was a better understanding of the processes and gaps in the creation of regulation and its place as a policy lever.
• The presentation covers the technical use of SSM, the techniques adopted and how social aspects of the work allowed OR to have an impact.
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U is for UNDERSTAND
• Operational Research Method• University of Buckingham
– 11% of Business Modelling exam
– 7 Stages (iterative) – U-D-F-S-I-V-I
– U- UNDERSTAND
• Describe-Predict-Prescribe
• Soft Systems Methodology (SSM)– A structure to understand a situation
– 1993 work for European Space Agency• Economic benefits from telecommunication satellites• “Soft Systems Methodology in action” Checkland & Scholes 1990 J Wiley
Understand the Problem
Determine the key variables
Formulate the variables
Solve the formula
Interpret the results
Validate the findings
Implement action
THE O.R. METHOD
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U is also for URGENT
• Late on Sunday evening– Sent: 06 February 2011 21:04 Subject: URGENT: BRE options -
mapping the regulatory management system– Andy - I've been given your name by Tera as someone who might be able
to help us in BRE to redesign the framework we have put in place for managing regulation under the Coalition agreement.
– We urgently need to map the system that now exists to understand the potential cause and effects of different parts of the system as it affects different actors (and there are lots....)
• By teatime on Monday– As we agreed I do think some soft systems analysis of where we are,
where we want to get to and how we might do it would be enormously valuable. Any help you think you can offer would be much appreciated.
• Tuesday Dark O’Clock– OR Analyst on way to the options workshop
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Introduction to BRE
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• Better Regulation Executive– How to apply less Resource
• What options are there? • Which is better (or less worse)?
• Soft System Methodology (SSM)– A system transforms inputs into outputs
– Do X by Y in order to achieve Z
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SSM uses terms to prompt a view
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• CATWOE– Customers – Victims or beneficiaries of T
– Actors – Those who would do T
– Transformation – Conversion of inputs to outputs
– Weltanschauung – World view making T meaningful
– Owners – those who could stop T
– Environment – Elements outside system taken as given
• Answers give Root definitions and Rich Pictures
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CATWOE from Tuesday
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Department
Department
Department
Department
Department
Process per flowchart
BRE
Options1.Gatekeeper2.Consultant3.Balanced overall reduction4.Thought Leader5.Transfer Functions
Regulators
Regulation
Transformation
Actors
Customers
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Changing the worldview
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SocietyCitizens
EconomyBusinesses
RegulationDepartment
Department
Department
Department
Department
Process per flowchart
BRE
Options1.Gatekeeper2.Consultant3.Balanced overall reduction4.Thought Leader5.Transfer Functions
Regulators
Process per flowchartProcess per flowchart
Process per flowchart
Regulation
Regulation
Owners
Weltanschauung
Environment
Transformation
Actors
Customers
OIOO
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Next steps
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• Complete the picture and description– “To do X by Y in order to achieve Z”
• Identify Efficacy, Effectiveness and Efficiency– Which option generates greater value in the broader
system?
– What other options are there?
• Means– Discuss views 1:1 per CATWOE (30 minutes)
– Develop Rich Pictures and Root Definitions
– Review these next Thursday
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Outline (as used)• Progress since last week
– Discuss views 1:1 per CATWOE (30 minutes) • 6 so far 2 to go (30 minutes plus...)
– Develop Rich Pictures and Root Definitions– Review these next Thursday - Now
• Use SSM to describe the System “As is”:– CATWOE Pictures and Definition – Overall System – Components – Sub-systems
• Describe how the System is wanted to be– Potential changes already becoming apparent
• Identify what do we have to do to move from where we are to where we want to be
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Society
Economy
Regulation
Departments
EU
Ministers
BRERegulators
Domestic Regulation
Regulation
Regulation
OIOO
EventsEU Transposition Regulation
RPC
Policy Committees
RRC
Optionswhat to do
ExhortFund
Legislate
Interventions other than Regulation
Citizens
Businesses
Civil Society Organisations
Interested Parties
System - As Is
Side effects from interventions
EnforcersLBRO
Global Economy
Systemic Risk Disasters
Ideas:Something should be
done
Cabinet
PressuresPoliticalMediaPublic
Choice
BR Ministers
12Players
BRE policy
BRE RMs
BRUs
A OGD Ministers
Policy officials
RRC
BLCsRPC Members
RPC Secretariat
B
C
Perm Secs
Economists
Legal
Comms
Better Reg Intermediaries OGDs Advisors
Officials
Ministers
Private Offices SpAds
Actors Owners Customers
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Policy Makers
Interest Groups
MinistersIndividuals
ID Problem Consider Options
Minister
Impact Assessment
RPCRRC
Policy Committees
Principles fit for purpose
Impact Analysis is Fit for purpose
BetterImpact
AssessmentConsultation
Clear Government
response
Clearance to draft
Impact Assessment
Primary Legislation HoC – HoL
Clearance for amendments
Final Impact
Assessment
Post Implementation
Review3-5 years on
Statutory Instrument
implemented
Clearance process to
consult
Sun setting7 years Duty to
review
Secondary Legislation
Impact Assessment
Voluntary Compulsion
Alternatives
Motivation to act
Domestic RegulationDomestic Regulation
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CATWOE Elements
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• Customers – Citizens and Businesses• Actors – Central and Local Government, Enforcement
organisations• Transformation – Improvement of Society-Economy• Weltanschauung – Policy can improve Society and Economy• Owners – Ministers• Environment – Machinery of Government, Policy levers,
World Events
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Root Definition
• BRE enables UK Government policy makers and deliverers across Government and Partner Organisations to create and enforce the right stock of the right regulations in order to improve the state of the Society and Economy of Britain.
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Changing the System
• Fri 04/03/2011 11:04- I hope that, in the coming weeks we can start to use Ian's work as a basis for discussion of various aspects of the regulatory system and how it's going to need to change.
• 8 March - Three Boards Workshop– What is good about the System as is?– What is bad about the System as is?– What are your brightest ideas for a better System?– Issues and Solutions
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Society
Economy
Departments
EU
Ministers
BRERegulators
Domestic Regulation
Stock of Regulation
OIOO
EventsEU Transposition Regulation
RPC
Policy Committees
RRC
Optionswhat to do
ExhortFund
Legislate
Interventions other than Regulation
Citizens
Businesses
Civil Society Organisations
Interested Parties
System - As Is FINAL
Side effects from interventions
EnforcersLBRO
Global Economy
Systemic Risk Disasters
Ideas:Something should be
done
Cabinet
PressuresPoliticalMediaPublic
Choice
BR Ministers
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Regulation Framework
Main Gate
Society
Economy
Departments
EU
Ministers
BRE
Regulators
Domestic Regulation
Regulation
Regulation
OIOO
EventsEU Transposition Regulation
RPC
Policy Committees
RRC
Optionswhat to do
ExhortFund
Legislate
Interventions other than Regulation
Citizens
Businesses
Civil Society Organisations
Interested Parties
System - As It could Be
Side effects from interventions
Enforcers
LBRO
Global Economy
Systemic Risk Disasters
Ideas:Something should be
done
Cabinet
PressuresPoliticalMediaPublic
BR Ministers
Initial Gate
Choice
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SSM – Lessons Indicated
• Technical– Insights rather than “Answers”
• For the Analyst –then and later• For Decision Makers
– Develop Common Language• Top level system was accepted• Lower level areas linked to it
– Share Understanding• Social
– Benevolent Patronage enables OR• Interest from DG and senior staff• Close liaison with BRE• Arrival of New Director, Selection and
Restructuring• OR enables change by illumination
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Departments
Lead Department
BRU
Finance
Impact Assessme
nt
Legal
Domestic Regulation
Choice
Policy Team
Economists
BRE
Cabinet Committee
Clearance