Workplace Policy

Pure Business Project

Project Overview - Understanding the Issues

3 Method of Delivery - Overall Project

3.1 Approach

The SME "Good Regulation" Project has been divided into three Phases:

Phase One - Understanding Issues (June 2003 to June 2004)
Phase Two - Developing solutions (July 2004 to December 2005)
Phase Three - Implementing solutions (from January 2006).

The project is based on the developmental research methodology of Engestrom and his colleagues at the University of Helsinki (Engestrom et al, 1966). Following Virkkunen, 2003 the approach moves beyond purely empirical and descriptive methods for analysing regulatory behaviour and practice, to an analysis of the inner structures and dynamic relationships that account for the problems associated with Regulation and SMEs.

3.2 Phase One: Understanding Issues (June 2003 - May 2004)

The information from Phase One is expected to provide a clear indication of exactly where regulatory compliance problems lie and to highlight areas where solutions are most needed. It will also uncover good practice in SMEs and government agencies that could be used to overcome those problems.

Through in-depth discussions and consultation with SME representative groups, SME owners and operators and government agencies, the Project will develop a thorough understanding of:

how different regulations affect SMEs
how they are developed and applied
why collectively, regulations often are seen to impact negatively on SMEs.

In June 2004, the Department of Labour (DoL), as initiator of the Project, will launch the Project to the stakeholder groups, present the plans developed for Phase Two, including for future management of the project, and publicise the findings to date. DoL is contractually the current owner of the Project as the funds are allocated to it by MoRST. Geoff Bascand, Andrew Annakin and Bob White (General Managers of Labour Market Policy Group (LMPG), Employment Relations Service (ERS) and the Occupational Safety and Health Service (OSH) respectively) have been sponsors of the Project.

Detail of the content and delivery of Phase One is outlined below in section 4: Project Plan and Delivery Approach for Phase One.

Phase One Objectives:

Establish a network of contacts and support within the regulatory Agencies and SMEs.
Establish a base of tacit information and data (literature and primary data from agencies and SMEs) on the current regulatory environment.
Educate and engage participants about the paradigm shift that is being attempted.
Develop a clear summary of research components for Phase Two of the project.
Launch the project to stakeholders.

Intended outcomes of Phase One:

Commitment to shared generation and development of solutions to regulatory issues.
A broad and multi-layered network of those involved in the project that runs through government and SME representative groups.
Establishment of a shared language and understanding of regulatory terms and issues.
Contextualised understanding about what is currently happening with regulations and SMEs.
Definition of the scope and focus of Phase Two of the project as based upon Phase One outcomes.

3.3 Phase Two: Developing Solutions (June 2004 - June 2005 / December 2005)

Phase Two of the Project will use information from the previous phase to develop specific solutions to improve regulatory development and regulatory compliance requirements for SMEs. For example, solutions might include a single form to collect common regulatory information requirements, as well as processes and tools to help SMEs identify when they may need support to manage risks, so that regulatory compliance procedures are activated in support of businesses rather than at their expense.

This phase will be particularly interested in the development of heuristics; the means to enable SMEs to take the right approaches and have the right orientation, including when it is time to call for help.

The planning and resourcing will be confirmed in a Phase Two management plan at the beginning of this Phase (July-August 2004), once the direction is confirmed by the "Good Regulation" Forum. The owner(s) and sponsor(s) for Phase Two will be decided by the Interim Design Team.

Phase Two Objectives:

Set up research team which will include SMEs, government agencies and researchers.
Set up a management structure for the remainder of the project (including evaluation of lessons learned, and developing ways of documenting changes as they occur).
Design a method for investigation of the areas of research interest.
Develop and trial potential solutions and initiatives for resolving regulatory problems.
Maintain enthusiasm and support for the shift in thinking to regulation as a 'social system' for SMEs.

Intended outcomes of Phase Two:

Incremental understanding of the process of regulation and a sound backing in regulatory Agencies and the SME community.
A number of tested and reliable solutions / tools to regulatory problems that could be disseminated in Phase Three.

All solutions developed during Phase Two will be trialled and refined. This process will require project staff to genuinely engage with SMEs and with regulatory agencies to ensure that potential solutions are robustly tested for their ability to reduce compliance costs and assist businesses to thrive. The process will include a plan to record the understanding gained from Phase Two, and distribute the documentation and information to a wider audience. Regular reporting to the relevant Ministers and funder (MoRST - timeframe to be defined by Interim Design Team) will be implemented to ensure the project stays aligned to strategic goals, and continues to work towards deliverables.

3.4 Phase Three: Implementing Solutions (planned to start January 2006)

The overall goal of Phase Three is to provide practical support for a change in regulatory practice, so that SMEs and Government both benefit from regulatory activities. Phase Three focuses on the broader dissemination of regulatory solutions / tools that were developed in Phase Two.

Phase 3 Objectives:

Achieve a 'paradigm shift' in understanding the role of regulation with SMEs.
Distribute and implement the solutions / tools developed during Phase Two.
Publish and disseminate the understanding gained from the project.

Possible outcomes of Phase Three:

In particular this phase may include:

Establishing interagency networks that support co-ordinated regulatory development (including organisational structures if these are necessary).
A change programme for any regulations found to be inappropriately burdensome.
Development and promotion of commercial tools that assist enterprises in managing risk and regulation.
Shared understanding (between government agencies and SMEs) of good regulatory practices and how to apply and support these to aid Businesses.

3.5 Project Timeline

The overall timeline is set out below:

Phase	Delivery Date
Phase One - Understanding Issues	June 2004
Phase Two - Developing Solutions	June 2005 - December 2005 (12-18 months)
Phase Three - Delivery of Solutions	June 2005 - June 2006.

3.6 Funding

In January 2003, funding from MoRST's CDRP was approved for the SME "Good Regulation" Project developed by LMPG. The funding for the project has been allocated to DoL, who are leading Phase One of the project.

Each Agency will fund its own participation in the project, absorbing costs of staff, travel and other incidentals that would be attributable to the project.

The budget outlined in the Cabinet funding request (see Appendix 2) will fund external costs for the project as outlined below.

Financial year	Project Phase	Funding (GST inclusive)
2003/4	Phase One - Identifying Issues	$127,000
2004/5/6	Phase Two - Developing Solutions	$403,000
2005/6	Phase Three - Implementing Solutions	$120,000
Total		$650,000

Additional funding may be sought from the Government or individual agencies involved in the Project as the Project progresses, and the key requirements for the research are identified and scoped. The CDRP is designed to allow projects to develop; it is an expectation that agencies using that funding will contribute with time and other resources to the funded projects.

3.7 Project Assumptions

The project goals and outcomes depend on a number of key assumptions, as outlined below:

Assumption

Agencies are willing to devote time, funding and resource to the project.
Current regulatory development / regulatory models are generally NOT based on an understanding of regulation as a connected social system.
It is feasible to generate and support the establishment of shared collective responsibility between agencies and SMEs to develop and apply regulatory solutions

3.8 Risks and Limitations

The table below presents possible issues that jeopardise the project's ability to achieve its intended outcomes:

Risk	Consequence	Priority	Treatment Plan
The budget will be insufficient for the work to be undertaken.	The goals of Phase One will not be achieved.	Medium	Identify requirements early and apply for additional funding.
Political risk that key stakeholders will not support the cross Government nature of the project.	The goals of Phase One will not be achieved.	Medium	Project Leader/Initiator to contact individual key stakeholders and seek support.
There is insufficient time to complete all the exploration groups and workshops.	The quality of the output will be poor, and the “Good Regulation” Forum will not succeed.	Medium	Plan carefully to deadlines and add more resource if required.
SMEs may be inadequately represented or not be representatively spread, and may not feel involved in the project.	SMEs will not recognise the output as representative.	High	Cross check SME representation to ensure that it is adequate. Recruit more SMEs in selected areas.
The evolving nature of the research methodology may lead to additional costs if it takes longer than anticipated to achieve a result.	The Budget will be insufficient for each Phase.	High	Ensure processes are focussed on the end goal and assist the research team to stay organised. Ensure best use of resource for each task.
Use of the DWR research methodology will be unsuitable for a project of this size (only proven in organisations to 300 people).	The research will fail to produce any meaningful results.	Medium	Risk assessment of the research methods and input by R&E into the research process. Peer review by the Universities of Helsinki, Hamburg and Wollongong

Contents | << Previous | Next >>

In This Section

Downloads