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Performance Measurement, Regulation and UK Productivity

A Multidisciplinary Overview of

Unintended and Indirect Effects

Ideas factory Presentation, 29 September 2005

Joseph Antony, Gerben Bakker, Kim Tan, Kathryn Walsh and Alan Williams

Leeds-Essex-Nottingham-Loughborough-Exeter

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The Puzzle:

British productivity is lagging

Many attempts to improve it, without a winning result

Could regulation hold the key to the problem?

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Objectives:

1. Multidisciplinary literature overview

1. Seminal cases

2. Comparison of methods

3. Scales of observation

2. Detailed analysis of small number of cases

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Objectives:

3. Develop framework for larger proposal

4. Effect on long-run UK productivity vis-à-vis US and Europe• Implications for managers and policy makers

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Some issues:

• Multidisciplinary overview literature• Cost-benefit analysis• Optimal precision administrative rules• Measuring regulation across countries• Connection performance measurement within firm with

regulation

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Some issues (continued):

• The policy landscape• The politics of regulatory change

• Not getting a slice of the larger pie• Sowing the seeds of one’s own destruction

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Potential case studies:

• Airline deregulation• End-of-life legislation• Other cases

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Investigators and roles:

• S. Joseph Anthony• Gerben Bakker• Kim Tan• Kathryn Walsh• Alan Williams

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Outputs:

• Framework for follow-up large-scale project• Pilot/feasibility study for potential case studies• Essay-style review of the literature

– Multidisciplinary– Seminal cases– Identificayion of gaps

• Article in academic journal based on review

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Impact:

• Academics• Policy makers• Firms• Investors• Emergence interdisciplinary knowledge network• Follow-up large-scale project

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End-of-life legislations: the indirect consequences

Dr. Joseph Antony

Dr. Anjula Gurtoo

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Focus

• How legislations impact productivity– Focus: End of life legislations

• Direct consequences: recycling, waste management, costs, technology – new technologies and tech. efficiency

• Indirect consequences • Unforeseen consequences• Unintended consequences

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Some significant issues

• Seen to significantly impacts producers in electronic and electrical, automotive/transport and producers heavily using plastics and metals. These are typically large size UK companies.

• Calls for a different framework of consumption – away from the current paradigm of ‘individualism’ and ‘ownership’. Evolution of shared/community consumption structures? How much are we willing to give in?

• Study of Risk: to the government; industry; at the level of producer, lender and industrial user/buyer.

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Research plan

• Nature of end-of-life legislations: its various forms• Identification of focus areas/fields • Identification of industry specific and focus specific journals and

authors• Data collection• A tentative outline of analysis

– Possible indirect consequence – which industries gets impacted – the significant issues – key effects and findings - author(s) who has studied the effect

• The emerging framework of legislation and UK productivity

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Time lines

• Sept to November 2005 – identification of issues and data collection• December 2005 – review meeting• Jan to March 2006 – data collection and analysis

• April 2006 – presentation of analysis

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Performance Measurement, Regulation and UK Productivity

Feedback

Joseph Antony, Gerben Bakker, Kim Tan, Kathryn Walsh and Alan Williams

Leeds-Essex-Nottingham-Loughborough-Exeter

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Productivity & Regulation

• Internal/external perspectives– Small-scale pilot study of c. one year

• Integration/coordination– Several meetings planned– Multidisciplinarity is project’s strength

• Balance

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Productivity & Regulation

• Ambitious blue skies research• Front-loaded with exploratory work• In the spirit of the Ideas Factory

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Productivity & Regulation

• Focus on regulation• Common framework

– Institutional economics approach (North)– Multilevel governance

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Productivity & Regulation

• Exploration and clarification of terms and concepts– Intended/unintended– Foreseen/unforeseen– Direct/indirect

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Productivity & Regulation

• Positive effect of regulation– E.g. Porter + Vanderlinde JEP 1997

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Planning

• Start first October

• End: January 2007

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Planning:

Phases:

1. Exploration

2. Integration, common framework

3. Future outlook/proposal