SLIDE 1 Regulatory Excellence:
A Framework for Quality Improvement
Cary Coglianese
Edward B. Shils Professor of Law Director, Penn Program on Regulation
Australian National University Regulatory Institutions Network August 25, 2016
SLIDE 2 We See Signs of Regulatory Failure
Photo source: US Coast Guard
Explosion of Deepwater Horizon, April 2010
SLIDE 3
But What Does Regulatory Success Look Like?
SLIDE 4 Best-in-Class Regulator Initiative: Outputs
Sponsored by the Alberta Energy Regulator
SLIDE 5
- 1. Attributes of Regulatory Excellence
- 2. Becoming (or Remaining) an
Excellent Regulator
- 3. Measuring for Regulatory Excellence
Three Key Issues
SLIDE 6
What Makes for an Excellent Cellist?
SLIDE 7 What Makes for an Excellent Regulator?
Photo sources: U.S. Nuclear Regulatory Commission
SLIDE 8 Strategic Plans Study
- Conducted by Adam Finkel, Daniel Walters,
& Angus Corbett
- Backward induction
- 20 strategic plans
- Regulators from 9 different countries
- Australia
- Canada
- Ireland
- Japan
- Mexico
- Identified 25 attributes across 7 categories
- Norway
- South Africa
- United Kingdom
- United States (state & federal)
SLIDE 9 Strategic Plans Study
Category % Plans Efficient 90% Synergistic* 85% Effective** 80% Proportional 75% Educative 60% Just 55% Honest 40%
Source: Finkel, Walters & Corbett (2015)
* Their label is “multiplicative” ** Their label is “vital”
SLIDE 10 Selected List of Attributes of Regulatory Excellence
Source: Appendix B to Cary Coglianese, Listening and Learning: Toward a Framework of Regulatory Leadership (2015)
SLIDE 11 Source: Coglianese & Scheffler (2016)
SLIDE 12
RegX: Atoms of Excellence
SLIDE 13
Nine Tenets of Regulatory Excellence
SLIDE 14
- Traits (as organization)
- Actions
- Outcomes
(Or the TAO of Regulatory Excellence….)
Regulatory excellence applies to a regulator’s ….
SLIDE 15
Becoming an Excellent Regulator: A Model of Regulatory Performance
SLIDE 16 Becoming an Excellent Regulator: A Model of Regulatory Performance
Key Ways to Become Excellent
SLIDE 17 What are the Key Ways to Become an Excellent Regulator?
People (Internal Management)
Mission
Resources
Human capital
Priority-setting
E.g., risk-informed
Problem-solving
- Rule-making
- Rule-application (enforce-
ment, licensing)
Public (External Engagement)
Autonomy
Culture
SLIDE 18 Achieving Regulatory Excellence Will Mean Making Choices
- How to define your regulatory mission?
- How to allocate resources?
- How to design rules?
- How to respond to rule violations?
- How to engage with the public?
SLIDE 19
Example: What Does “Risk-Based” Mean?
Target biggest hazard? Target biggest risk? Avoid excessive costs? Avoid unacceptable risk? Hippocratic principle? Maximize net benefits? A C C or D B, C, or D C or D D
SLIDE 20
Infuse Regulatory Excellence Throughout Your Performance Model
SLIDE 21
Excellence Infusion
SLIDE 22 Measurement and Excellence
- Measurement serves many purposes.
The most important is to learn.
Measurement for regulatory excellence versus Measurement of regulatory excellence
SLIDE 23
Make Measurement Strategic
SLIDE 24 Choose metrics that are …
- Relevant
- Related
- Tight
- Reliable
- Accurate
- Resistant
- Realistic
- Available
- Intelligible
Measure with excellence too: integrity, competence, engagement….
SLIDE 25 Methods of Measurement
- 1. Actions (bean-counting)
- 2. Outcomes (stock-taking)
- 3. Action Outcomes (causation)
Note: Avoid linking measurement to organizational
- incentives. Remember, the most important reason for
measurement is to learn!
SLIDE 26
Align strategic priorities around RegX Align organizational culture around RegX Build human capital around RegX Involve public in pursuit of RegX Use strategic measurement for RegX
Excellence in Everything!
SLIDE 27
1. Self-awareness: build out the model 2. Scoping: assess current alignment with RegX 3. Select strategic priorities: identify key areas to improve 4. Assessment and continuous improvement: measure and move forward!
Next Steps Toward Regulatory Excellence
SLIDE 28
