29/07/2017
1
Understanding the Problems
Applying Soft Systems Methodology
(SSM) for Better Regulation
Ian Mitchell BA BSc FORS
Operational Research Unit
Analytical Decision Support
Strategy, Better Regulation and Economics (SABR)
OR54 XVII - September 2012
2
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.
3
U is for UNDERSTAND
THE O.R. METHOD
Understand the Problem
• 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
Determine the key
variables
Formulate the variables
Solve the formula
Interpret the results
Validate the findings
Implement action
• Economic benefits from telecommunication satellites
• “Soft Systems Methodology in action” Checkland & Scholes 1990 J Wiley
4
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
• 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
• 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
Transformation
Department
Customers
Department
Department
Department
Process per flowchart
Department
Actors
BRE
Regulators
Options
1. Gatekeeper
2. Consultant
3. Balanced overall reduction
4. Thought Leader
5. Transfer Functions
Regulation
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Changing the worldview
Transformation
Weltanschauung
Customers
Society
Citizens
Department
Department
Process per flowchart
Process per flowchart
Department
Process per flowchart
Department
Regulation
Regulation
Regulation
Process per flowchart
Department
BRE
Actors
Regulators
Options
1.
Gatekeeper
2.
Consultant
3.
Balanced overall reduction
4.
Thought Leader
5.
Transfer Functions
Owners
Economy
OIOO Businesses
Environment
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Next steps
• 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
System - As Is
Global
Economy
Systemic
Risk
Disasters
Pressures
Political
Media
Public
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Side effects from interventions
Society
Interventions other than Regulation
Regulation
Ideas:
Something
should be
done
Options
what to do
Exhort
Fund
Legislate
Choice
EU Transposition Regulation
Regulation
Events
Regulation
Domestic Regulation
Citizens
EU
Interested
Parties
RPC
Cabinet
Ministers
BR Ministers
BRE
RRC
Policy
Committees
LBRO
OIOO
Regulators
Enforcers
Businesses
Civil Society
Organisations
Departments
Economy
Players
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Actors
Officials
Owners
Customers
Better Reg
Intermediaries
OGDs
Advisors
BRE RMs
RPC Secretariat
Perm Secs
Comms
BRE policy
RPC Members
BLCs
Legal
BRUs
Economists
Policy officials
Private Offices
A
Ministers
OGD Ministers
B
RRC
C
SpAds
Domestic Regulation
Domestic Regulation
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RPC
Interest
Groups
Ministers
Individuals
ID
Problem
Consider
Options
Policy
Makers
Impact
Assessment
Minister
RRC
Impact Analysis is
Fit for purpose
Clearance
process to
consult
Alternatives
Policy
Committees
Principles fit for purpose
Motivation to act
Voluntary
Compulsion
Consultation
Statutory
Instrument
implemented
Secondary
Legislation
Final
Impact
Assessment
Impact
Assessment
Clearance for
amendments
Impact
Assessment
Sun setting
7 years
Primary
Legislation
HoC – HoL
Post
Implementation
Review
3-5 years on
Duty to
review
Better
Impact
Assessment
Clear
Government
response
Clearance to
draft
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CATWOE Elements
• 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
System - As Is
Global
Economy
Systemic
Risk
Disasters
Ideas:
Something
should be
done
FINAL
Pressures
Political
Media
Public
17
Side effects from interventions
Society
Interventions other than Regulation
Options
what to do
Exhort
Fund
Legislate
Choice
EU Transposition Regulation
Stock of
Regulation
Events
Domestic Regulation
Citizens
EU
Interested
Parties
RPC
Cabinet
Ministers
BR Ministers
BRE
RRC
Policy
Committees
LBRO
OIOO
Regulators
Enforcers
Businesses
Civil Society
Organisations
Departments
Economy
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System - As It could Be
Global
Economy
Systemic
Risk
Disasters
Ideas:
Something
should be
done
Pressures
Political
Media
Public
Society
Interventions other than Regulation
Options
Initial
Gate
what to do
Exhort
Fund
Legislate
Interested
Parties
EU
Side effects from interventions
EU Transposition Regulation
Choice
Regulation
Events
Regulation
Domestic Regulation
Main
Gate
OIOO
Regulation Framework
Cabinet
Ministers
Citizens
Policy
Committees
Businesses
RRC
BR Ministers
Regulators
RPC
Enforcers
LBRO
Departments
BRE
Civil Society
Organisations
Economy
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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
Clearance
Choice
Domestic Regulation
Lead
Department
Cabinet Committee
Policy Team
Legal
BRU
Finance
Impact
Assessme
nt
Economists
BRE