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Idea In Brief
Good to great
We have found that good regulators manage risks or harness opportunities in a way that minimises burden, focuses limited resources in a risk-based way, and celebrates innovation. Great regulators, however, promote a lifecycle approach to regulation, premised on strong regulatory culture.
A useful framework
We are pleased to share the Nous Regulatory Culture Framework. Our framework distils elements of regulatory culture and themes these under three recognised principles of good regulator performance: continuous improvement and trust; risk-based and data-driven; and collaboration and engagement.
Next steps
There are often pragmatic opportunities to improve regulatory culture. For more substantial transformations, regulators should plan for the change carefully. As regulators face emerging challenges, getting regulatory culture right will be vital. Regulators need to act now.
Across the world regulators are experiencing a moment in the spotlight. From banking to building standards, many public policy challenges are requiring regulators to take a proactive role in delivering good outcomes for citizens. Meanwhile, the long-standing tensions between community expectations, government funding and the wishes of regulated entities remain as lively as ever.
We have worked with regulators across Australia, the United Kingdom and Canada. These experiences have highlighted that good regulators manage risks or harness opportunities in a way that minimises burden, focuses limited workforce and other resources in a risk-based way, and celebrates innovation. Great regulators, however, promote a lifecycle approach to regulation, premised on strong regulatory culture.
What do we mean by regulatory culture? We define it as the collection of values, expectations and practices that guide and inform how regulatory decisions are made. It is the enabling environment that:
- empowers regulators to focus on specific outcomes rather than just administering regulations for the sake of following the law
- prompts adjustments to regulatory settings to reflect the changing environment
- helps reset some relationships, for example by driving greater collaboration within regulatory agencies, coordination with co-regulators and engagement with regulated entities.
Diagnosing an agency’s regulatory culture can surface strengths and limitations, and enable the agency to develop a pragmatic plan to improve its performance.
In that context, we are pleased to share the Nous Regulatory Culture Framework. Our framework distils elements of regulatory culture and themes these under three recognised principles of good regulator performance: continuous improvement and trust; risk-based and data-driven; and collaboration and engagement.
Regulators need to plan for change carefully
There are often many pragmatic opportunities to improve regulatory culture, by targeting specific elements in the Nous Regulatory Culture Framework.
For more substantial transformations, however, regulators should plan for the change carefully. This includes being very cognisant of what else is happening in the operating environment, the organisation’s change readiness, and the support from staff and leaders.
As regulators face emerging challenges, getting regulatory culture right will be vital. Regulators need to act now to set themselves up for success.
Get in touch to discuss how we can support comprehensive diagnosis of your organisation’s regulatory culture, assemble plans for culture uplift, and walk alongside you to support implementation.
Connect with Lauren Ware Morand on LinkedIn.
Prepared with input from Mark Schultz and Claire Noone.
