Reducing red tape 
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Last updated: 1 March 2007
Reducing red tape in the APS
Chapter 3. Design and analysis
| STAGE 1: Design and analysis |
| Stakeholder consultation |
| Independent advice |
| Decision-making |
This chapter will help agencies to define an issue of concern, assess the options for addressing it and identify the preferred option. The approach recommended here can be used both for design and for review of requirements. It is a transparent process for assessing alternatives against the three underlying principles discussed in Chapter 2. This ‘option analysis’ is used to substantiate the preferred option.
The aim of design and analysis is to validate the appropriateness of requirements and, in doing so, to reduce red tape. The approach helps to identify a preferred option by considering its costs and benefits. It also allows the information to be documented and presented in a way that is useful to the independent adviser and the decision maker.
Key elements are:
- define the issue of concern (the matter giving rise to the perceived need for action)
- identify viable options for achieving the desired objective
- assess the impact (costs and benefits) of the preferred option
- develop a strategy to implement and review the preferred option
- draw a conclusion.
| What is the issue to be addressed? | The core issue of concern should be defined from the outset and should be distinguished from the symptoms of the problem. |
| Why does the issue exist? | Describe the circumstances, failures or behaviours that have resulted in the issue at hand. This may include identifying those parties, inside or outside the agency, whose actions gave rise to the issue. |
| What is the objective? | Identify the objective. Clearly state the outcome that is to be achieved. (‘What will success look like?’) |
| What are the alternative approaches to dealing with the issue? | Look beyond ‘traditional’ options. For example, do changes in the environment, technology and other factors offer possible alternative approaches? Options may include using an existing process, or simply taking no action. Alternatives such as the use of incentives or training to promote behavioural change, or surveys or consultative mechanisms as assurance processes may be appropriate. Describe each option, including how it will achieve the objective. |
| Are all options viable? | Viability is a measure of how well each option will achieve the objective. Options should be practical and proportionate to the issue under consideration. Risks associated with viable options should be acceptable or manageable. Identifying a measure of effectiveness as a benchmark for option selection may assist in testing viability. |
| What is the preferred option? | Consider ranking viable options on the basis of a preliminary assessment of likely benefits and costs. Based on the outcomes of this analysis, identify the better option. |
| What are the benefits of the preferred option? | Identify and, where possible, quantify the benefits of the preferred option. How effectively will the option achieve the outcome? Will it give rise to any other benefits? Where possible, examine and describe unquantifiable benefits. |
| What are the costs of the preferred option? | Assess and describe both quantifiable and unquantifiable costs. Non-financial costs should also be assessed, including compliance costs and, where relevant, the associated risk. |
| How are the costs of the preferred option quantified? | The Business Cost Calculator 8 tool has been developed to aid the standardised measurement and analysis of the costs of different options. It provides a means of systematically quantifying the costs of the preferred option. |
| How efficient is the preferred option in addressing the issue? | Efficient requirements are those that:
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| Does the preferred option demonstrate benefits that substantially outweigh its costs? | Only an option that demonstrates benefits substantially greater than costs should be considered further. If the preferred option does not meet this criterion, reconsider other options previously identified as viable. |
| What is an appropriate implementation strategy? | Effective implementation and communication (including effective guidance) is required to successfully address the issue of concern. Good rollout and implementation are more likely if there is a structured approach to planning. A ‘dry-run’ with a select group of stakeholders may promote successful rollout and implementation. The nature and scale of strategies and plans should be in proportion to the scale of the proposed requirement. |
| What is an appropriate review strategy? | A fundamental principle of this framework is that all requirements should be periodically reviewed once in place (see Chapter 7). The aim is to update or remove them, as appropriate, where they have become redundant or ineffective, or otherwise do not meet the principles. Therefore, a strategy for future review at appropriate intervals should be built in at the development stage. |
| Should a sunset provision be included? | Sunset provisions may be useful in managing requirements that are intended to have short-term application. |
| What is the conclusion? | On the basis of the analysis, determine whether the preferred option meets the principles and should therefore be pursued. |
8 Developed by the Department of Industry, Tourism and Resources and available from the Office of Best Practice Regulation at: <http://www.obpr.gov.au>
