SZW Balance Model Ben van den Brande Ministry of Social Affairs and Employment (SZW) EUPAN Helsinki, 11 april 2008

Content Introduction Historical context How does the model work? Questions

Administrative Burdens Reduction in the Netherlands Political issue since late nineties Official program since 2003 Businesses (2003) and citizens (2004) Target: 25% reduction in 2007 Baseline 2002 Standard Cost Model (SCM)

Standard Cost Models Standard Cost Model Businesses Administrative burdens: costs (euro) Baseline 2002 SZW: 2,5 billion euro Standard Cost Model Citizens AB: time (hours) & out-of-pockets costs (euro) Baseline 2002 SZW: 13,5 million (hours) and 6,3 million (euro)

Results : dissolvement of the Cabinet End-date program: February 2007 Businesses: 20% (SZW: 26%) Citizens: ? (SZW > 25%)

Program New Cabinet since March 2007 New 25% target businesses Continuation 25% target citizens Broadening of the scope From administrative burdens to ‘reduction of regulatory pressure’ = ‘reduction of bureaucracy / better regulation’

New elements Compliance costs Quality of public services Attention for perceptions Stress on noticeable and visible results Citizens and entrepreneurs central Quantitative AND qualitative approach

Why a Balance Model? Feedback from citizens on the SZW-program 1.Total burdens Not only AB but also compliance burdens 2. Relation between burdens and benefits Performance and quality of public services 3. Perceptions do matter Need for a qualitative approach

Balance Model I en II Spring 2007: Balance Model I Prototype not empirically tested Spring 2008: Balance Model II Stable model Successfully applied to the Unemployment Insurance Act Adoption in addition to the SCM?

Balance Model : definition The Balance Model measures in certain areas of public service delivery the (un)balance between the expectations of the citizen on the one hand and the factual situation on the other hand. Possible solutions to restore situations of unbalance as formulated by the target group themselves, constitute potential input for the policy process.

Four dimensions The expected and factual situation are measured by four dimensions: 1.Administrative burdens (information obligations) 2.Compliance burdens (compliance obligations 3.Quality of service 4.Public performance

Balansmodel II Balans? Information obligations Compliance obligations Quality of Service Performance indicators Information obligations Compliance obligations Quality of Service Performance indicators Factual situation Expected situation Balance ?

Five stages 1. Measuring the factual situation 2. Selection of facets (key-aspects) 3. Measuring the expected situation 4. Visualising the (un)balance 5. Assessing solutions and priorities

1. Measuring the factual situation Measuring: 1. Administrative burdens 2. Compliance burdens 3. Quality of services 4. Performance of public services SCM Panels (target group!) Using existing data and standards

2. Selection of key-aspects Step 1 :abundance of information Selection of key-aspects for step 3 By separate panels (others than step 1) Formulation of questions for each key- aspect (limited amount) Formulation adjusted to the target group

3. Measuring the expected situation Panels (others than step 1 and 2) Answering of the questions Maximum questions: 10 Maximum participants: 15 Minimal number of panels: 5

4. Visualising the balance Answers processed by the computer Average results for each question (key- aspect) Results step 4 compared with results of step 1 (expected versus factual) Situations of unbalance are assessed

5. Assessing solutions and priorities Causes of unbalance assessed Possible solutions assessed Solutions are ranked in order of urgency All by the members of the panel (target group)!

Input for the policy process Solutions are potential input for the policy process Two types of policy solutions: 1.Improving performance (reduction of AB etc.) 2.Improving management of expectations

The Balance Model in use Model is successful applied to the Unemployment Insurance Law Results 1.Problems related to the quality of public service most important 2.Problems related to (administrative) burdens least important 3.New identified problems and solutions

The Balance Model is: Dynamic Flexible Modulair Additional to the SCM Applicable to businesses as well

The Balance Model QUESTIONS?