CAR METHODOLOGY MANUAL - Netherlands · the Royal Association MKB Nederland, the Dutch Association...

CAR METHODOLOGY MANUAL

A METHOD FOR IDENTIFYING

REGULATORY BURDEN WITHIN A SECTOR

2425.1018 KAR methodiek handboek_ENG_WT.indd 1 15-04-15 16:04

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Patrick van der Poll

Peter Bex

Joland van der Heijden

Frans van Eck

ISBN/EAN: 978-90-815210-0-0

The CAR methodology is a co-production of the Ministry of Economic Affairs and SIRA Consulting. It was developed in close consultation with the Confederation of Netherlands Industry and Employers (VNO-NCW), the Royal Association MKB Nederland, the Dutch Association of the Paint and Printing Ink Industry (VVVF), the municipalities of The Hague and Rotterdam, the Dutch Advisory Board on Regulatory Burden (Actal), the Ministry of Security and Justice, the Ministry of Health, Welfare and Sport and the Ministry of Social Affairs and Employment.

If you have any questions about the CAR methodology, please contact the Ministry of Economic Affairs via: [email protected] or SIRA Consulting via: [email protected].


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CONTENTS

Foreword 7

CAR thesaurus 9

Summary 11

Part I. Explanation 13

Part II. Procedure 29

Part III. Method sand techniques 53


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FOREWORD

The CAR methodology (Cost driven Approach to Regulatory burdens) is a new tool for identifying unnecessary burden caused by legislation and regulations. It has been developed with a view to increasing business profitability by eliminating problematic regulatory burdens. This CAR Methodology Manual was commissioned by the Dutch Ministry of Economic Affairs.

The Manual consists of three parts:

• Part I: ExplanationInformation on the background, added value and principles of the methodology. This part of the Manual is of particular interest to those becoming acquainted for the first time with the CAR methodology and its potential applications.

• Part II: ProcedureDescription of the main points of the application procedure, with special attention for the phased approach and the project organisation. This section is for you if you are involved in a CAR study but are not carrying it out yourself.

• Part III: Methods and techniquesDetailed description of the methods and techniques used. This section is intended for research bureaus that are using the CAR methodology, and especially for those researchers who are actually applying it.

We worked on the development of the CAR methodology and wrote this Manual between June and November 2014. We were assisted by a supervisory committee in which the following bodies were represented:

• The Dutch Ministries of Economic Affairs, Social Affairs & Employment, Security & Justice and Health, Welfare & Sport;

• The municipalities of The Hague and Rotterdam;• Actal, the Dutch Advisory Board on Regulatory Burden;• The Confederation of Netherlands Industry and Employers (VNO-NCW) and

the Royal Association MKB Nederland ;• The Dutch Association of the Paint and Printing Ink Industry (VVVF).

We would like to thank the members of the supervisory committee for the stimulating cooperation. The meetings were interactive work sessions which produced inspired discussion of the key aspects of the methodology and the content of the Manual. The constructive and positive critical attitude of the committee members made an important contribution to the quality of the CAR methodology.

We would also like to thank our client for the excellent cooperation and sharing of expert knowledge throughout all phases of the project.

On behalf of the colleagues at SIRA Consulting,

Peter Bex, Director


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CAR THESAURUS

Definitions

It is important for every methodology that the concepts used are uniformly defined. This CAR thesaurus explains the key concepts used in the CAR methodology. The definitions are aligned with the Measuring Regulatory Burden (Meting Regeldruk) manual produced by the Dutch Ministry of Economic Affairs.

Administrative burden The costs of complying with information requirements stemming from government legislation and regulations. It involves the collection, processing, registration, storage and making available of information.

Business operations The way in which a company is run or managed. The term ‘management’ can sometimes also be used.

Impediment An aspect of regulatory burden that, while it does not cost money directly, does mean that a business is constrained in its entrepreneurial activities. Eliminating impediments, as well as reducing the perceived regulatory burden, leads to increased turnover and thus to better operating results.

EBITEarnings Before Interest and Tax: the operating income of a business before deduction of interest and tax.

Government Regulations are established by different strands and levels of government. Depending on the context, the CAR methodology uses the term ‘government’ to refer to:

• EU institutions;• Dutch government departments;• executive organisations;• regulators;• provincial authorities;• local authorities;• water boards;• independent governing bodies (ZBO).

The CAR methodology was developed in order to identify the unnecessary regulatory burden stemming from government legislation and regulations.


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Traceable financial problem areas The unnecessary burden – expressed as costs – faced by a business in complying with obligations stemming from two sources: government legislation and regulations and rules imposed by other organisations carrying out tasks on the grounds of legislation and regulations. Traceable financial problem areas are reflected in a company’s financial administration.

Tangible problem areas Problems which businesses experience in their contacts with the government but which are not financially traceable in their financial administration. They include things such as impediments encountered by a business in performing or expanding its activities (opportunity costs), but also the way in which the government approaches businesses (irritations about attitude and behaviour).

Compliance costs Compliance costs stem from obligations enshrined in legislation and regulations, for example when purchasing physical resource such as fire protection equipment (fire alarm, extinguishers, emergency lighting, etc.) or attaining a required qualification.

Pseudo-legislation A container term for policy rules and other non-statutory rules. Policy rules are rules set by a competent independent governing body which stipulate how a specific internal competence is used. Other non-statutory rules also relate to the exercise of authority, but are not focused on an internal competence (e.g. circulars and implementation guidelines).

SectorA sector comprises all professional participants in the economic process within a given category of services and/or products. Statistics Netherlands (CBS) is the body in the Netherlands that is responsible for the codification of sectors based on the Standard Industrial Classifications, or (SBI, Standaard Bedrijfsinde¬ling 2008). Examples include the hospitality industry, the hairdressing sector, the chemical sector, etc.

Standard Cost Model The CAR methodology uses a calculation model that is based on the Standard Cost Model (SCM). This model quantifies the administrative burden and compliance costs of new or amended regulations. The Dutch Ministry of Economic Affairs describes the SCM in the ‘Measuring Regulatory Burden (Meting Regeldruk) manual.

Regulatory burden Businesses have to comply with the law. Regulatory burden encompasses all the investments and efforts they have to make in order to do this, as well as the constraints this imposes on their freedom. The CAR methodology also regards obligations ensuing from pseudo-legislation as regulatory burden.

N.B. Obligations ensuing from covenants are not classed as regulatory burden, because these are voluntary arrangements between parties that are laid down in an agreement. As soon as these obligations from covenants are adopted in regulations, however, they are included.


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Legislation and regulations These are generally binding rules: laws, Acts in Council and ministerial regulations. They may be based on decisions by EU bodies. They may also be incorporated in municipal or provincial rules, for example.

Legal/statutory obligation This obligation stems from legislation and regulations and requires businesses to perform certain tasks or take certain measures. A legal obligation can be traced directly to one or more sections of legislation and regulations. The way in which a business ultimately complies with the obligation can vary due to the way in which the competent authority implements the legislation and regulations.


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Regulatory burden impacts on business profitability

SUMMARY

Making unnecessary burden visible Businesses incur costs in complying with obligations stemming from legislation and regulations, for example by investing time and money in financial accountability and keeping books. But maintaining a salary and absenteeism administrations also costs a lot of money. In addition, specific rules apply in many sectors, depending on the goods or services supplied by companies within that sector.

To determine the extent to which these regulatory costs impact on company profits, the Ministry of Economic Affairs developed the CAR methodology. This methodology produces a clear picture of the impact of regulatory burden on business profitability. This enables businesses to bring specific regulatory pressures to the attention of government authorities.

The CAR inventory focuses on unnecessary regulatory burden, the removal of which, can make a demonstrable contribution to economic growth and employment – often not just for the sector in question, but for other sectors too.

The added value of the CAR methodology The CAR methodology provides a very complete picture of the unnecessary burden experienced by businesses in a given sector. On the one hand there are traceable financial problem areas. These impact directly on business costs and are shown as cost centres in the accounts. In addition, the CAR methodology identifies unnecessary burden that is not directly quantifiable, such as impediments encountered by businesses wishing to expand, innovate or develop their business.

The CAR inventory starts from the actual situation ‘on the ground’. Unnecessary burden is traced back to the legislation and regulations from which the obligations ensue. The result is a complete overview of the unnecessary burden and its impact. This overview also indicates precisely which regulation is causing that burden .

The CAR methodology in practice The CAR methodology has been used successfully at both national and international level in:

• the chemical sector (designated as a Top Sector);• the hairdressing sector;• mental health care;• an international comparison of bakeries.

The results provide businesses with specific tools to engage in dialogue with government. The CAR methodology therefore keys indirectly into the Top Sector and Sectoral approach of the Ministry of Economic Affairs. The experiences gained in these projects have been incorporated into this Manual.

The CAR methodology gives businesses an insight into the unnecessary burden caused by legislation and regulations

The CAR methodology has been applied successfully in four sectors


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Part I

Explanation

CAR methodologyA method for identifying regulatory burden within a sector


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PART I: CONTENTS

1. Introduction 17 A complete picture of unnecessary burden within a sector

2. Contours 19 Purpose of the CAR methodology

21 Added value of the CAR methodology

3. Principles 23 Features of the CAR methodology

GuideIn this first part of the Manual you can read about the background, purpose, added value and general principles of the CAR methodology. This part is of interest for readers making a first acquaintance with the CAR methodology and its potential applications. It is of particular importance if you are involved in a CAR study, but are not performing it yourself – for example if you have commissioned a CAR study or are a member of the supervisory committee.


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Firms face both general and sector-specific issues

Regulatory burden consists of more than just financially traceable expenses and costs

Bottom-up. The CAR methodology identifies the regulatory burden where it is felt – in the business.

1. INTRODUCTION

A complete overview of unnecessary burden within a sector

Commercial companies and institutions incur costs for complying correctly with all obligations arising from legislation regulations and following mandatory instructions. All firms are subject to general obligations, such as financial reporting requirements, keeping proper accounting records and maintaining a salary and absenteeism administration. In addition, specific rules apply in many sectors for the supply of goods and services. For example, businesses in the hairdressing sector spend a good deal of their budget on mandatory ergonomic materials such as scissors, work clothing and hydraulic chairs. By contrast, organisations in the mental health care sector invest a great deal of time and money in complying with rules set by health insurers. As mental health is a sector involving extensive use of public money, these organisations must meet strict financial accountability standards in relation to the care provided.

Regulatory burden: necessity or pointless red tape?Businesses see some of these costs as necessary investments, but experience others as unnecessarily burdensome. Hairdressers, for example, consider ergonomic materials to be necessary for running their business properly. But they also believe that the costs of providing an in-house emergency and first aid service are out of proportion to the low risks in hairdressing salons. Similarly, mental health institutions accept that reporting is a necessary part of providing good care, but feel it goes too far to make it mandatory for care providers to keep a minute by minute record of what care has been provided in what way.

In addition, businesses see regulatory burden as more than just administrative red tape and compliance costs. As well as direct costs, they also experience irritations in their contacts with the authorities and lost income due to slow and lengthy procedures.

A better overview using CAR methodology The CAR methodology was developed in order to provide a better overview of the total impact of the regulatory burden at individual company level, but above all to identify opportunities to reduce that impact significantly. The methodology approaches the issue of regulatory burden from the perspective of the company (bottom-up).

By making use of the principles of the Standard Cost Model (SCM) it is always possible to identify which regulations or procedures cause the regulatory burden or irritations. The CAR methodology thus offers a systematic means of identifying unnecessary burden and opportunities for improvement.

1 The CAR methodology is suitable for identifying and describing the issues caused by the regulatory burden in all kinds of organisations, including commercial companies but also semi-government institutions and non-commercial organisations. The terminology used in this Manual is based on the application of the methodology to organisations (businesses) operating in a commercial sector.


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Also in this section This section of the Manual is made up of three chapters. Following this introduction, you will read more about the contours, the purpose and the added value of the CAR methodology. Chapter 3 describes the most important general principles of the methodology.


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The CAR methodology brings to light traceable financial and tangible problem areas

Inventory of specific issues in day-to-day business operations

2. CONTOURS

The purpose of the CAR methodology

The CAR methodology is an inventory tool designed to make regulatory burdens and specific issues visible from the perspective of a company. These burdens stem directly from the day-to-day operational activities of companies or institutions.

Besides identifying the regulatory pressure points experienced by businesses, the CAR methodology also illustrates the way in which regulatory burden impacts on:

1. business profitability;2. the scope for innovation;3. economic growth and employment in a sector.

StructureThe purpose of the CAR methodology is to provide companies with a practical toolkit to enable them to bring specific regulatory pressures to the attention of the public authorities. The methodology makes clear what impact legislation and regulations have on day-to-day operations and on long-term developments. Since all this can be traced back to specific rules and procedures, the business community can engage in direct dialogue with government, creating the opportunity for government and business to remove burdens and obstacles on the basis of observed facts.

The CAR methodology distinguishes between:• Traceable financial problem areas: demonstrable costs incurred as a result of legislation

and regulations, which can be reduced through more efficient and effective implementation. The impact of these costs is reflected in the financial administration.

• Tangible problem areas: issues which mean that certain business investments, developments or innovations do not take place or take place later than desired as a result of government regulations or their implementation. These issues may entail loss of income, and their commercial impact cannot be quantified in a straightforward way from the accounting records.

The CAR methodology creates a complete picture of the traceable financial and tangible problem areas caused by regulatory burden within a company. It provides an inventory of specific issues in day-to-day business operations. These issues have a direct impact on profitability, entrepreneurship, employment and the scope for growth and innovation within companies.

Ultimately, the CAR methodology is an instrument which provides leads for a dialogue between the business sector and government. The aim is to resolve issues and thereby increase the economic strength of business.


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CREATING ECONOMIC GROWTHAND INCREASE EMPLOYMENT

2.2 CONDUCTING IN-DEPTH INTERVIEWS WITH THE EXECUTIVE AND MANAGEMENT

3.1 DETERMINING THE FINANCIALTRACEABLE AND TANGIBLE REGULATORY BURDEN

3.2 COMPARABLE COMPANIES ASSESS THE RESULTS OF THE BUSINESS ANALYSIS. ARE THE RESULTS RECOGNISABLE?

4.2 STAKEHOLDER ANALYSIS 4.1 TRACING BACK THE RELEVANTLEGISLATION AND PROCEDURESCAUSING THE UNNECESSARY BURDEN

DETAILED DESCRIPTION OF THE MAIN PROBLEM AREAS

IMPACT OF REGULATORY BURDEN

2.1 MAKING AN ANALYSIS OF THE FINANCIAL ADMINISTRATION AND BUSINESS OPERATIONS

FINAL REPORT

1.1 MAKING A DESCRIPTION OF THE SECTOR

1.2 MAKING A SELECTION OF THE REPRESENTATIVE COMPANIES

SECTOR ANALYSIS

BUSINESS ANALYSIS

CAR-METHODOLOGIE

IS FURTHER DETAILING NEEDED?

Figure 1: CAR methodology: schematic view


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The CAR-methodology provides an insight into the impact of regulatory burden on business profitability

The CAR methodology aims to improve the striking power of business

The added value of the CAR methodology

The CAR methodology is a unique tool which provides a comprehensive overview of the quantitative and qualitative impact of legislation and regulations at the level of individual companies. The CAR methodology:

• Quantifies the regulatory burden by analysing the financial administration of the business and bringing to light the actual costs of regulation and statutory procedures.

• Shows the commercial impact of regulations, among other things by relating them to the profitability of a business.

• Makes visible the obstacles that stand in the way of businesses in their further development, innovation and/or growth. Which regulations cause this impact? Which practical options are available for reducing the regulatory burden?

• Provides an insight into the perception of businesses regarding government implementation of legislation and regulations.

• Demonstrate whether government measures aimed at reducing the regulatory burden have the desired effect in practice.

• Has added value at company level. What costs does the regulatory burden create? Can the business streamline its compliance? Which regulatory obstacles need to be removed for this to happen?

• Makes regulatory burden reduction more visible by engaging businesses in identifying regulatory pressure and seeking solutions. The advantage of this is that the business gains a greater insight into the government approach to reducing the regulatory burden with a view to increasing the economic strength of businesses.

Regulatory burden in the context of the CAR methodology The primary aim of the CAR methodology is to compile an inventory of unnecessary burden within a sector and to identify, formulate and discover the origin of regulatory burden within companies. This means that the methodology complements existing instruments aimed at mapping out the regulatory burden in a top-down way, from the perspective of the regulator.

The added value of the CAR methodology is clear:

• It provides a broader picture than other methods of the unnecessary burden experienced by businesses. It does not look only at burden caused by the plethora of obligations, but also explicitly focuses on unnecessary burden caused by the implementation of regulations by government and the quality of service delivery in this regard.

• It places the emphasis on improving the economic striking power of businesses. The inventory forms the basis for initiating a dialogue between the business sector and governmental organisations in order to resolve the issues and thus increase the profitability of businesses.


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Broad picture of regulatory pressures

Figure 2 illustrates the role of the CAR methodology in calculating the total regulatory burden of businesses and identifying the unnecessary burden.

The CAR methodology analyses and visualises the entire area where businesses experience regulatory burden. It creates an insight into both the quantitative aspects of the regulatory burden (administrative burden, compliance costs) and the qualitative aspects (perceived regulatory burden). The method identifies the ‘sites’ where the regulatory burden is greatest, i.e. the traceable financial and tangible problem areas. These are portrayed as coin stacks and negative emoticons.

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Figure 2. CAR methodology: schematic view


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Regulatory burden is used to identify unnecessary burden

Day-to-day business operations are the starting point

3. PRINCIPLES

The CAR methodology uses the regulatory burden as a starting point for identifying unnecessary burden The CAR methodology identifies both the financially traceable costs and the perceived regulatory burden. The company’s accounting records are examined in order to provide a clear picture of the impact of these costs. A dialogue is initiated with company management and staff in order to identify the perception of regulatory burdens and obstacles. The inventory reveals the regulatory pressures within the sector and pinpoints the issues. The experiences of businesses form an explicit part of this exercise.

N.B. Regulatory burdens are quantified purely in order to identify issues and their impact. A CAR inventory involves a business analysis in only a limited number of cases. Together with the working sessions, this provides a good picture of the issues in the sector, but this is not enough to enable the results to be extrapolated and the regulatory burdens for an entire sector to be quantified.

The CAR methodology starts from the actual compliance experience of businesses It is well known that not all businesses comply with all regulations fully and strictly all the time. Defective compliance is sometimes deliberate, but often accidental. It can happen if a company is not (fully) aware of the prevailing legislation and regulations, or if there is a lack of clarity regarding the required level of compliance.

This can be due to the large number of regulations, the speed with which regulations change and/or the scope for interpretation of regulations. Discussions about obligations can also lead to deliberate non-compliance with obligations. In this sense, non-compliance can also be a sign of a problem in the prevailing regulatory frameworks.

Companies also sometimes – deliberately or otherwise – do more than is required by law. This ‘overcompliance’ is outside the scope of the costs of regulatory burdens, but can also be a useful signal of problems with (communication about) prevailing legislation and regulations. These signals are therefore included when investigating tangible problem areas, so that the sector gains an insight into its own scope for limiting costs. The primary aim of the CAR methodology is after all to optimise the implementation of legislation and regulations in order to increase the economic strength of organisations within a sector.


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Over-compliance does not count when calculating the

regulatory burden

Regulatory burden may need to be approached in different ways in different

subsectors

Example: Overcompliance by hairdressers The CAR study carried out in the hairdressing sector shows that a large part of the regulatory burden for this sector stems from obligations in relation to the financial administration, for example the time and effort needed to compile annual accounts and to pay tax.

Hairdressers are not always aware of the obligations they have to meet. This is partly because rules are spread across different pieces of legislation, and partly because those rules change regularly. To be certain that they are complying with the minimum applicable obligations, hairdressers sometimes have their accounts audited. This involves high costs. These hairdressers are not aware that an audit is not obligatory.

Overcompliance in this case consists of unnecessary costs incurred for a non-obligatory audit. These costs fall outside the scope of the financially traceable regulatory burden, but do provide an important signal of the need to improve the communication on the rules for this group. In such cases, the CAR methodology also looks at the scope for the sector itself to make cost savings.

The CAR methodology does not distinguish between external and internal costsThe distinction between internal and external costs is not relevant in the CAR methodology. After all, the aim is to improve the economic strength of organisations, and it makes no difference whether the costs are specific to the company or external.

Occupational safety regulations mean that some companies have to purchase personal protection equipment (external costs). But even without this obligation they would purchase this equipment in order to protect their staff (internal costs). This obligation is not experienced by companies as a problem and therefore does not appear on the inventory.

The CAR methodology reveals differences between but also within sectors The number of laws and rules encountered by a company depends partly on the sector in which it operates. Different rules apply for the retail sector, for example, than for sectors which are funded largely from the public purse, such as the care sector.

Within each sector, the unique characteristics of each business mean that the regulatory burden differs from one company to another. In the selection of Model Companies, therefore, the CAR methodology makes allowance for these differences and where necessary distinguishes between subsectors.

To make differences within a sector visible, the CAR approach begins with a sector analysis. Specific business activities bring specific obligations, leading to variation in the regulatory burden for different types of business. If different companies within a sector perform different activities, and are therefore subject to different obligations, we call this a subsector. In that case, several Model Companies from different subsectors are analysed in order to obtain a representative picture of the impact of the regulatory burden within the sector as a whole.


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Companies also experience regulatory burden from sector agreements

Regulatory burden has a direct influence on companies’ profits and scope for innovation

The CAR methodology creates transparency regarding the self-imposed obligations of companies and sectors Companies can also experience regulatory burden due to obligations imposed by the sector itself. Those obligations thus do not stem from legislation and regulations, but for example from protocols and guidelines designed by a sector organisation in order to assure quality within the sector. Instruments such as these are sometimes prerequisites for membership. Although these arrangements are not legally binding, businesses often regard them as obligations.

The CAR methodology identifies the individual problems that can stem from these self-imposed obligations made by the sector itself. Where possible, the costs are also quantified.

The CAR methodology makes unnecessary burden transparent and traceable to the legislation and regulations that causes it It is important to have a very clear picture of which regulatory burden is caused by which regulations and statutory procedures. All the calculations needed to determine precisely what constitutes the regulatory burden must be completely transparent. To achieve this, the CAR methodology uses the SCM as a basis for quantifying the burden.

The CAR methodology provides an insight into the economic strength of companies The CAR methodology calculates what percentage of its total costs a company spends on compliance. This is the financial impact of the regulatory burden on the company’s economic strength. The transparency provided by the SCM makes the potential cost reductions visible.

In commercial sectors, this calculation is based on the relationship between costs and EBIT (Earnings Before Interest and Tax). The inventory highlights the issues that have a negative impact on the profitability of companies within the sector.


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Figure 3 illustrates the relationship between business operating costs, production costs and EBIT, and shows that an increase in regulatory burden impacts on a company’s EBIT.

Figure 3. Schematic representation of the role of regulatory burden in the costs of

commercial companies

In non-profit sectors, there is by definition no profit motive. Yet here, too, increasing an organisation’s economic strength is very important. That strength gives non-profit organisations the opportunity to invest and innovate further in order to achieve their (non-commercial) objectives.

Omzet Bedrijfs- kosten

EBIT

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Part II

Procedure



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PART II: CONTENTS

1. Introduction 33 How the methodology is applied

2. Procedure 35 Phased approach

3. Step-by-step plan 37 Step 1 – Sector analysis

39 Step 2 – Business analysis

41 Step 3 – Impact of regulatory burden

43 Step 4 – Description of problem areas

4. Reporting 45 The business analysis and the final report

5. Organisation 47 Planning

48 Organisation

Guide This second section of the Manual describes the procedure for carrying out a study using the CAR methodology. It is intended to provide a clear picture of the activities and results of such a study. It is therefore intended primarily for people who are involved in a CAR study but who are not carrying it out themselves, for example people who commission or supervise a CAR study.


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A CAR study is carried out in four phases

1. INTRODUCTION

How the methodology is applied

This part of the Manual is of interest to you if your organisation will be using the CAR methodology or if you are supervising a CAR study. In this section you will read all about the phased approach of the CAR methodology. Tips are given for each phase. You will also find an overall outline of the throughput time and planning of a CAR study.

Analyses based on established methods The CAR methodology provides an insight into the impact of regulatory burden on business profitability. The researchers compile an inventory of the regulatory burden, both quantitatively – the traceable financial problem areas – and qualitatively: the perceived, constraining regulatory burden. The result of a CAR study is a complete overview of the unnecessary burden experienced by an organisation and its impact. The overview also indicates precisely which regulations cause this.

This inventory of problem areas forms the input for measuring the impact of the regulatory burden. This begins with a sector analysis and a business analysis. In the ensuing chapters you will read how the different methodologies are used in the phased approach of the CAR methodology.

Part III ‘Methods and techniques’ contains detailed information on the step-by-step approach of the analyses.


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The step-by-step plan provides for a manageable study

2. PROCEDURE

Phased approach

As stated, the CAR methodology uses a phased approach. This phasing ensures that the study remains clear and manageable in terms of content, process and planning. Figure 4 illustrates the four phases.

Figure 4. Phased approach of the CAR methodology

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DETAILED DESCRIPTION OF THE MAIN PROBLEM AREAS

IMPACT OF REGULATORY BURDEN

SECTOR ANALYSIS

BUSINESS ANALYSIS

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Making a description of the sector

Making a selection of the representative companies

Conducting in-depth interviews with the executive and management

Determining the �nancialtraceable and tangible regulatory burden

Comparable companies assess the results of the business analysis. Are the results recognisable?

Tracing back the relevantlegislation and procedurescausing the unnecessary burden

Stakeholder analysis

Making an analysis of the �nancial administration and business operations

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Good preparation is needed to ensure selection of the right model companies and identification of the relevant regulation

Coordination with a feedback group is necessary to ensure broad support

3. STEP-BY-STEP PLAN

Step 1 – Sector analysis

PurposeTo prepare substantively for of the study and define its scope

Activities 1. The researchers first investigate which stakeholders play a role in the sector. They are

interested in representatives of the business community, such as sector organisations, and representatives of government, including regulators, ministries and executive organisations.

2. The researchers compile an inventory of the regulations encountered by businesses in the sector. These include not just sector-specific regulations, but all relevant regulations.

3. They then examine the structure of the sector. They describe the different activities carried out within the sector and the different types of businesses active in it. If certain companies carry out non-standard activities and therefore have different administrative obligations, they are classed as belonging to a subsector. The researchers then collect facts and figures for each subsector which give a picture of the structure and profile of that subsector. Examples include the number of companies in the sector and its subsectors, the turnover and profitability of the sector and how many people are employed in it.

4. The researchers select companies for the study. It is important to choose representative businesses from the different subsectors. To ensure the reliability of the results, a business analysis needs to be carried out at two or three companies in each subsector.

5. The researchers draw up an action plan. They agree this plan with the various stakeholders involved in the project.

A detailed description of the activities involved in the sector analysis can be found in chapter 3 of Part III of this Manual.


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ResultsAt the end of Step 1 there is an action plan containing:• A summary of the approach, principles and planning of the project.• The procedure and approach of the study and the way in which the relevant

stakeholders will remain engaged with the study.• An overview of the relevant legislation and regulations for the types of business

for which the researchers will perform a business analysis (including known problem areas).

• A substantiation of the identified sectors and subsectors and the selection of representative businesses (the Model Companies); these businesses will be studied anonymously and thus described in general terms.

Tip!When selecting Model Companies, pay close attention to their complexity in recent years. For example, if they have been involved in mergers or major reorganisations, this makes the analysis of their accounting records unnecessarily complex.


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Business analysis: an overview of the financially traceable and perceived regulatory burden in a sector or subsector

Step 2 – Business analysis

PurposeTo obtain an inventory of the traceable financial and tangible problem areas in the ModelCompanies.

Activities 1. Analysis of the Model Companies. The researchers first look at the structure of the

business: who performs which activities and which regulations do they encounter? This determines which employees can best be targeted for interviews.

2. Inventory of the traceable financial problem areas by analysing the financial administration and business operations. The researchers go through the entire accounting records with the company or with the accounts staff. They make an assessment for each cost centre to determine whether it is caused by legislation and regulations.

3. In-depth interviews with the company board and management. The researchers discuss with managers of all relevant departments which regulations apply (or applied) for their department and which costs ensue from this. They also discuss any specific points that emerged from the financial analysis with the interviewees.

4. Business analysis report. The researchers discuss a draft version of this report with the stakeholders involved in the study. The business analysis provides the substantiation for the final report.

A detailed description of the activities performed for the business analysis can be found in chapter 4 of Part III of this Manual.


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The business analysis provides the substantiation for the final report

ResultsAt the end of Step 2 there is a business analysis for each subsector, containing as a minimum:

• A description of the procedure and principles.• An anonymised description of the Model Companies studied. Anonymisation is

important to guarantee the confidentiality of the data processed. It enables businesses to participate in the study in an open and honest way and to speak freely and without impediment on tangible problem areas. For each Model Company, the report looks at topics such as turnover, net profit, profit, market share, number of employees, main activities, number of establishments, area of operation, etc. As a further guarantee of anonymity, the researchers work with bandwidths.

• The regulatory burden as a percentage of operating costs over a period of five years. The report distinguishes between non-recurring and structural regulatory burden and describes the sources of the regulatory burden.

• The commercial impact of regulatory burden, expressed as a percentage of turnover and profitability.

• A description of the perceived regulatory burden that has come to light at the Model Companies. Where applicable, the report explains in more detail the relationship between the perceived regulatory burden and the traceable financial problem areas.

A more detailed description of the structure of this report can be found in Annex 1 of Part III of this Manual.

Tips!• In the interviews, use the overview of relevant regulations that was drawn up in the

sector analysis. This avoids things being forgotten, both when going through the financial administration and during the interviews.

• During the data collection, distinguish between the structural, annually recurring regulatory burden and the non-recurring regulatory burden. For the structural regulatory burden, choose a fixed reference year, in consultation with the Model Company, which is representative for that company. For the non-recurring regulatory burden, look at the investments that have had to be made and at other related events during the last five years.


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Comparable companies assess the results of the business analysis. Are the results recognisable? Is further detailing needed?

Step 3 – Impact of regulatory burden

Purpose To verify and supplement the results of the business analysis based on experiences of comparable businesses.

Activities 1. The researchers organise work sessions with businesses from the sector being studied:

at least one work session per subsector. The participating businesses are comparable in terms of organisational structure and business activities with the Model Companies for which a business analysis has been carried out. If the subsector is large, complex or diverse, it is useful to organise two or three work sessions for that subsector.

Prior to the work session, the participants receive information about the study and the purpose of the work session. They also receive an insight into the results of the business analysis for their subsector.

2. During the work sessions the researchers test the recognisability of the business analysis. Do the participating companies recognise the extent and origin of the regulatory burdens found? Do they experience a comparable (commercial) impact from them? The participants are employed in companies that are comparable with the Model Companies, and in principle face the same legal obligations. The testing during the work sessions guarantees that the identified burdens are broadly recognised within the sector.

3. During the work sessions, the researchers collaborate and expand on the unnecessary burden for the subsector studied. The work sessions are interactive; participants are challenged to contribute ideas and to discuss financially traceable and tangible problem areas.

4. Together with the stakeholders concerned, the researchers draw up a provisional ranking of problem areas.


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ResultsAt the end of Step 3, there is a summary for each work session containing:

• An overview of the business analysis, with necessary detailing and elaboration.• A list of the problem areas identified; the document makes explicit how these

problem areas: - Constrain the individual company within the sector. - Constrain the entrepreneurial climate within the sector.

• An initial ranking based on the detailing of the problem areas.

Tip!Ensure that participants take part in the work sessions with a clean slate and on the basis of their own experiences. Ask participants to draw up a list in advance of three specific problem areas faced by their (sub)sector. This generates solid input and avoids participants simply repeating each other.


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Detailed description of the main problem areas

Step 4 – Description of problem areas

Purpose To describe and detail the financially traceable and tangible problem areas.

Activities1. The researchers analyse the results of the work sessions and clarify the financially

traceable and tangible problem areas. At the start of the project it is not yet clear how many issues will come to light. And not all issues found have the same impact on businesses in the sector. The researchers provide a detailed description of the most important and most noticeable problem areas. The less important problem areas are placed in an annex to the report. The researchers do not apply any further prioritisation in these categories, because that is the subject of the public-private dialogue that is initiated.

2. The researchers describe the problem areas in more detail and provide an insight into their commercial impact: how does this unnecessary burden affect the business results and/or does it constrain the scope of the business to grow or innovate?

The legal basis of the unnecessary burden is given a prominent place in the description. This means that the problem areas can be traced back to the legislation and regulations that cause them. The researchers also perform a stakeholder analysis to determine which parties are affected by this burden.

3. Where necessary, the research bureau discusses the problem areas with policy officials or legal officers from the ministries concerned. This is done primarily to test the tangible problem areas against the legal basis and (legal) considerations underlying them.

4. The researchers draw up the final report and liaise on it with the stakeholders involved in the study.


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The final report is the starting point for further discussion aimed at reducing the regulatory burden in the sector

ResultsAt the end of Step 4 there is a final report containing:• A description of the methods used and principles applied.• A description of the sector in the Netherlands.• A summary of the business analysis, with a description of the commercial impact

of both financially traceable and tangible problem areas.• An overview of the financially traceable and tangible problem areas, with an insight

into the regulations causing them.• The main conclusions and recommendations of the study.

A detailed description of the structure of this report may be found in Annex 2 to Part III of this Manual.

Tips!• Ensure that the problem ares that cause the unnecessary burden remain recognisable

when drafting the final report. It takes a lot of time to describe problem areas properly and in a detailed way. It is therefore important to liaise with the stakeholders involved in the study on the identified problem areas. This liaison is necessary to obtain a clear description of the problem areas and to determine which should be tackled first. This keeps the performance of the study manageable.

• It is not clear in advance how many financially traceable and tangible problem areas will come to light. It is therefore advisable to limit the detailed description to the eight (up to a maximum of 15) most recognisable problem areas. The remaining problem areas can be included in a separate appendix.


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The business analysis describes the unnecessary burden experienced by businesses within the sector

What is the impact of each problem? Which regulations cause this?

4. REPORTS

The business analysis and the final report

The research bureau records the results of the CAR study in two separate reports.

The Business Analysis This report sets out the findings from Step 2 of the study. The business analysis discusses the outcomes of the financial analysis of the Model Companies, the quantified regulatory burden, the perceived regulatory burden, the regulations responsible for that burden and the impact of the regulatory burden on the economic strength of the Model Companies.

Annex 1 contains an annotated table of contents for the business analysis. The results of all CAR projects are presented in this format, making them uniform and therefore comparable.

The final Report This report is the culmination of Step 4, the final step in the project. The final report discusses the unnecessary burden within the sector. It presents a clear description of the impact of each problem area, and of the legislation and regulations on which it is based.

At the same time as the reports, the research bureau also presents the model used in calculating the regulatory burden. This model can also be used to make a quantitative assessment of the impact of future developments within the sector.

An annotated table of contents for the final report may be found in Annex 2.


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The planning timeline provides for a total throughput time of four months

5. ORGANISATION

Planning

Figure 5 presents one possible planning timeline for a CAR study. The timeline provides for an average throughput time of four months.

Figure 5. Timeline of a CAR study

Kopie van UVP KAR v0.1 Offerte planning

Project planning Month 1 Month 2 Month 3 Month 4

Step 1: Preparation and sector analysis

Step 2: Business analysis

Step 3: Impact of regulatory burden

Step 4: Description of problem areas

Duration of the project (weeks) 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 15

Project resultsAction plan

Business analysis

Summary of work sessions

Final report

Liaison with feedback group

Work sessions

23-1-2015 Pagina 1 van 1


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The CAR methodology requires an experienced research team with broad expertise

The time investment for Model Companies must be kept as short as possible

Organisation

The importance of a multidisciplinary team To ensure the quality of the CAR study, a multidisciplinary team is essential. Such a team looks at the Model Companies through a variety of lenses – not just the lens of an accountant or business economist, but also the lens of the legal expert or entrepreneur.

The researchers must have in-depth knowledge of the legal obligations that apply for the Model Companies. They must be able to investigate which legislation and regulations apply and to what extent the obligations apply to the businesses in their study. The research team’s tasks include carefully reviewing, assessing and analysing the accounting records and business operations at the level of individual cost centres. If necessary, they must also assess invoices and other source documents.

It is also important that the research team has sufficient legal knowledge and expertise to trace the identified burden back to the legislation and regulations that causes it.

Core competences and qualities As a minimum, the research team must possess the following qualities

• Knowledge of business processes;• Business expertise;• Legal knowledge of the relevant regulations;• Strong analytical skills and substantive drive;• Knowledge and experience of research methods and analyses;• Ability to work on a project basis;• Excellent written and spoken skills in the Dutch language;• Communication skills and flair in giving presentations;• Wide experience in the use of Excel, Word and PowerPoint (or comparable programs).

These core competences and qualities need not of course all be concentrated in a single researcher. The important thing is that the research team contains sufficient breadth of knowledge and expertise to carry out a project using the CAR methodology at a sufficiently high level of quality.


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Process support by feedback group creates support among stakeholders

Regular consultation guarantees the quality of the study

What is the burden for the Model Company?The CAR methodology ensures that the study takes as little time as possible for the Model Companies. The time needed depends greatly on the company’s structure and internal organisation. Each department faces specific obligations, so it is necessary to speak to a representative of each department. In a group structure, the research team can plan an interview with each of the individual group companies in order to obtain a complete picture of the burden. In practice, these activities are spread among several people. The procedure is as follows:

1. Initial contact. The research bureau contacts the managing director of the company by telephone. The managing director receives information on the project and its purpose. At the same time, they make an appointment for a first meeting. By way of preparation, the research bureau sends out explanatory notes by email.

2. Initial interview. The researcher starts by introducing the project and the discussion. The first part of the discussion focuses on the Model Company and its business costs. The second part focuses on identifying the regulatory costs, based on an overview. The two sides go through the overview and provide additional information where possible. They compile an inventory of information that is missing and still needs to be provided.

3. Information-gathering. The researchers look up the identified cost components in the accounting records. They do this on the basis of the agreements made, and often in consultation with the managing director and/or the person responsible for the administration. The researchers also hold interviews to identify the tangible problem areas.

4. Discussion of the results and conclusion. The research team discusses the specific cost calculation and the relationship with the key figures with the relevant employees of the Model Company. During the discussion, it is often necessary to adjust some of the figures.


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Liaison with stakeholders To increase the support for the project results, the research team will discuss them with the stakeholders, for example by creating a feedback group. This feedback group systematically supervises the study and assesses the results. In phase 1 of the project, the research team discusses the planning timeline and procedure with the feedback group. The (draft) results are discussed in later phases.

Possible members of the feedback group include the following:

• Responsible ministries;• Regulators and other executive organisations;• Employers’ organisations;• Employees’ organisations;• Sector organisations.

Project coordination and consultation To ensure good implementation of the project, there should be regular consultation with the different stakeholders. The consultation moments are set out in the model project planning schedule (figure 5). The main consultation moments are set out in more detail in the following table.


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Table 1. Contact and consultation moments

Week Type of contact Topics

1 Initial discussion with the client • Discussion of the principles, procedure and timeline for the project.

• Discussion of the draft action plan so that it can be sent to the supervisory committee.

3 First meeting of feedback group • Coordination of the project approach based on the draft action plan.

• Selection of the Model Companies for the business analysis.

5-6 First interviews with management of the Model Company

• Review of the financial administration and accounting records.• Inventory of financially traceable regulatory burden.• Inventory of perceived regulatory burden.• Discussion of missing information.

7-8 Second interviews with the management of the Model Company

• Coordination of results from the financial analyses.• Coordination of the most recent missing information.

8 Progress meeting with the client

• Discussion of the draft business analysis report.

9 Second meeting of feedback group

• Discussion and adoption of the business analysis report.

10 + 12 Work session with comparable companies

• Verification of results of the business analysis.• Supplementing identified problem areas.

12 Third meeting of feedback group

• Discussion of the results of the work sessions

14 Progress meeting with the client

• Discussion of the draft final report.

15 Fourth meeting of feedback group

• Presentation of the results from the final report.• Discussion and adoption of the final report.


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Part III

Methods and Techniques



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PART III: CONTENTS

1. Introduction 57 Explanation of key components of CAR methodology

2. CAR measurement model 59 Building the CAR measurement model

3. Sector analysis 61 Structure of the sector

4. Business analysis 67 The traceable financial problem areas

75 The tangible problem areas

Guide In this third part of the Manual you will find a detailed description of the main components of the CAR methodology. Which components make up the sector and business analysis? How can you apply them? This section is of particular interest to those applying the CAR methodology in practice, for example independent research bureaus. And of course, for you as an individual researcher.


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Part III of the Manual gives a detailed description of the steps involved in the CAR methodology

1. INTRODUCTION

Explanation of key components of CAR methodology

This part of the CAR Methodology Manual describes the various methods and techniques used in order to gather, process and analyse data. It deals specifically with the following components:

• The measurement model In this section you can read which measurement model is suitable for identifying the regulatory burden.

• The sector analysis The sector analysis enables you to map out the structure of the sector, which specific regulations apply for companies within it and how the sector can be subdivided into different subsectors.

• The business analysis: traceable financial problem areas Here you compile an inventory of the problem areas that emerge from the financial administration of the Model Companies and how great the regulatory burden is.

• The business analysis: tangible problem areas Here you identify which other unnecessary burden professionals within the sector experience as a result of legislation and regulations. Although this regulatory burden cannot be identified in the financial administration, it does pose an obstacle to professionals in their day-to-day business practice.

If you are looking for more general information on the working methods, organisation and planning, read Part II, Procedure.

In the following chapters you will find a detailed description of the steps taken by your research team order to bring a project based on the CAR methodology to a successful conclusion. Chapter 2 describes a measurement model, with instructions for research bureaus on how to populate it. The illustrations give an impression of a measurement model that researchers can use to identify the regulatory burden.


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2. MEASUREMENT MODEL

Structure of CAR measurement model

To gauge the impact of regulatory burden on business costs, you need a measurement model that is able to process all research results from each phase of the study. The measurement model must be able to perform calculations automatically and must be able to translate the research results into clear report figures. This guarantees a uniform method of data recording and calculation of the results, so that measurements from different studies can be compared with each other. The screenshots in this chapter give an impression of a well-structured measurement model.

The tab sheetsThe measurement model comprises six tab sheets: one explanatory sheet and five worksheets:

• Explanatory sheet This tab sheet explains the structure and operation of the measurement model.

• I. Sector analysis This tab sheet deals with the structure of the sector. The researcher enters data on subsectors, number of companies per sector/subsector, average turnover, total turnover and number of persons employed.

• II. Identification of relevant regulations On this tab sheet the researcher enters information on the general regulations that apply to the sector, and the sector-specific obligations.

• III. General business information Here the researcher enters company-specific information: cost centre categories, applicable hourly rates and financial data drawn from the accounting records.

• IV. Quantification of regulatory burden Here the researcher enters company-specific information to calculate the financially traceable regulatory burden.

• V. Reporting Here the researcher can generate figures and tables based on the data entered. These can be used for presenting the research results in the reports (Business Analysis and Final Report).


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3. SECTOR ANALYSIS

The sector analysis actually consists of two parts. In the first part you examine how the sector is structured, and in the second part you identify which regulations apply to the sector.

Structure of the sector

The CAR study should provide as broad a picture as possible of the different cost structures and the legislation and regulations that apply in the sector concerned. It is quite possible that the sector contains different types of businesses, which because of their specific products or services encounter different specific legislation and regulations. This can lead to a varied regulatory burden within the sector, as regards both the financially traceable and tangible problem areas. In such a case, the sector is divided into subsectors.

It is essential for the quality of the study that you identify clearly how the sector is structured. Key points are the classification and size of subsectors, the average business size and the average turnover per business. For the classification of the sector you should adhere as closely as possible to the Standard Industrial Classifications (SBI) as produced by Statistics Netherlands (CBS). Once you have analysed the structure of the sector, you can determine which companies are representative for the sector. Finally, you select representative organisations that are suitable for analysis using the CAR methodology.

To determine whether the sector contains subsectors, you identify the composition of the sector using a sector scan:

Step 1. Collecting relevant information There are several public sources that you can consult for relevant data, such as the Statline digital database containing statistical information from CBS, and the website Ondernemersplein.nl . The Chamber of Commerce posts information on this website about the number of establishments, the number of new businesses and the number of bankruptcies in a range of sectors.

If possible you should supplement this information with data that you obtain from the sector. Sector organisations regularly commission studies to obtain specific sector information. These studies cover commercial aspects but also aspects relating to labour, staffing, etc. The outcomes of such studies can sometimes be found on the websites of the sector organisations. Otherwise, you can obtain sector-specific information via your contacts with the stakeholders.

2 Ondernemersplein is an initiative by the Chamber of Commerce, Answers for Business, Netherlands Enterprise Agency, the Dutch Tax Administration, RDW and CBS.


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Step 2. Processing the data collected The information collected to is used identify how the sector is structured. Important elements here are:• the different business types;• the number of companies of each type;• the average turnover per business type;• the total turnover per business type;• the number of employees per business type.

How to enter the data Enter the information on tab sheet I of the measurement model, ‘Sector analysis’. Figure 6 shows a screenshot of a completed tab sheet. The data entered are fictitious.

Figure 6. Tab sheet I: Sector analysis

In the business analysis you provide a written explanation of the data from the table. You give a brief description of the main business activities for each business type, together with any other factors that distinguish the different types of business from each other. If necessary, you can also add information on key commercial or political developments.

I. Sector analysis

A. Opbouw van de sector bepalen

Deelsector Afkorting Omschrijving of opmerkingen

A Ambulante ZZP'er Amb ZZP

B ZZP'er met een bedrijfspand ZZP bedr

C Bedrijf met personeel Regulier

D Ketenbedrijf Keten

B. Samenstelling en economisch belang

Deelsector Aantal bedrijven Gemiddelde omzet in 2013

Totale netto-omzet (x 1.000)

Aantal medewerkers

A Ambulante ZZP'er 5.100 18.300 93.300 5.525B ZZP'er met een bedrijfspand 5.000 11.700 58.500 5.000C Bedrijf met personeel 2.900 42.600 123.500 2.550D Ketenbedrijf 6.000 436.000 1.132.000 32.900Totaal 19.000 508.600 1.407.300 45.975

Binnen sectoren kunnen vaak deelsectoren worden onderscheiden. Geef in de onderstaande tabel aan in welke deelsectoren deze sector uiteen valt. Geef bij elke deelsector een korte omschrijving van het betreffende segment. U dient tenminste één deelsector aan te maken.

Het gaat hier om een eenmanszaak zonder vaste standplaats/bedrijfslocatie.Het gaat hier om een eenmanszaak opererend vanuit een vaste bedrijfslocatie.Het gaat hier om een bedrijf waar personeel in dienst is, werkend vanuit een vaste bedrijfslocatie.Het gaat hier om een bedrijf met meerdere vestigingen en met personeel in dienst.


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The result of this sector scan forms part of the Business Analysis report. See Annex I, Annotated table of contents of Business Analysis report.

Step 3. Selecting the Model Companies Based on the outcomes of the sector scan, you select the Model Companies you wish to approach to take part in the study. The ultimate selection criteria differ from one CAR project to another. You compile these criteria together with the client and possibly the members of the supervisory committee. It is important that, as a minimum, you identify all the problem areas within the sector. You should therefore selected at least one Model Company per sector.

Do not choose companies that have just completed a merger or major reorganisation. This is particularly important with a view to keeping the throughput time of the study within bounds.

A Model Company must as a minimum meet the following criteria:

1. The company is representative It must be a company that complies with the regulations and makes best effort to do

so. The company must be able to serve as a representative example for the other companies in terms of its activities and structure.

2. The company is comparable The companies in the study can be compared with each other in terms of business and

business operations. Within reason, the methodology can cope with differences in size, because the regulatory burden is expressed as a percentage of the business costs.

3. The business operations of the company are clear For larger companies this means that it must be clear at the level of the parent

company how the costs of the operating companies are made up, so that you can study them in a targeted way.


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Overview of relevant regulations

Here you compile a list of the relevant regulations. This gives you an insight into the direct and indirect obligations faced by companies within the sector. Direct obligations are obligations imposed directly on companies by government legislation and regulations. Indirect obligations are imposed by private organisations that carry out government tasks, for example a private company which provides waste processing services. For professionals, it makes no difference in practice who imposes the obligations: they experience all obligations as regulatory burden.

The regulatory burden can differ between subsectors because specific business activities involve specific obligations. You should therefore indicate in the list the subsectors to which each obligation applies.

You enter the data on tab sheet II of the measurement model, ‘Identifying relevant regulations’ (see figure 7). Go through the following steps for this:

Step 1. Legal basis of general obligations Here you indicate which general obligations apply to the different subsectors. In principle, general obligations apply for all companies, regardless of their products or services. The example in figure 7 contains a short list of general obligations. This list is not exhaustive. It is of course also possible that an obligation does not apply to a particular subsector. For example, the obligations on the grounds of the Working Conditions Act do not apply to self-employed persons.

Figure 7. Tab sheet 2, Identifying relevant regulations

II. Identifying relevant legislation and regulation

A. Algemene verplichtingen Verplichtingen Wettelijke oorsprong Van toepassing op…Onderwerp Verplichting Omschrijving Nationale regelgeving Artikel EU-grondslag EU-classificatie Amb ZZP ZZP bedr Regulier KetenAlgemeen Inschrijving bij de

Kamer van KoophandelOpname bij Kamer van Koophandel geeft kosten. Handelsregisterwet 4 x x x x x

Algemeen Kennisname van regelgeving

Op de hoogte blijven van ontwikkelingen in wet- en regelgeving. Kosten die hierbij meespelen zijn bijeenkomsten voor medewerkers, tijd die wordt besteed aan het bijhouden en doornemen van wijzigingen in regelgeving en kosten voor lidmaatschappen van branche/sectororganisaties.

n.v.t. x x x x x

Arbeidsveiligheid Beschikbaar stellen van een bedrijfsarts

De inhuur van externen, zoals de bedrijfsarts en het Periodiek Arbeidsgezondheidskundig Onderzoek (PAGO) of Periodiek Medisch Onderzoek (PMO).

Arbeidsomstandighedenwet (Arbowet), cao

8 lid c x x

Inspectie door de iSZW Inspecties van iSZW (voormalige Arbeidsinspectie).

Arbeidsomstandighedenwet 4 x x

Keuren persoonlijke beschermingsmiddelen

Meelopen met keuringen van arbeidsmiddelen en persoonlijke beschermingsmiddelen (schoenen, brillen, jassen).

4 x x

Opstellen van de RI&E Opstellen en bijhouden van de Risico-inventarisatie en -evaluatie (RI&E)

5 x x

Voertuigen APK-keuring van voertuigen

Voertuigen dienen periodiek te worden gekeurd (APK) en er dienen opcenten aan de provincie te worden betaald. Voor deze laatste wordt zowel de te betalen bedragen als de bijbehorende handelingen meegenomen.

Wegenverkeerswet, Reglement verkeersregels en verkeerstekens 1990, Provinciewet (art. 222)

8 x x x x x

B. Sectorspecifieke verplichtingen

PM. Verplichtingen die voor alle bedrijven van toepassing zijn. Vooringevuld, alleen aangeven op welke deelsectoren van toepassing.

Verplichtingen Wettelijke oorsprong Van toepassing op…Onderwerp Verplichting Omschrijving Nationale regelgeving Artikel EU-grondslag EU-classificatie Amb ZZP ZZP bedr Regulier Keten

(Arbowet)


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How to enter the data Place an x in the relevant box to indicate which obligations apply for the subsectors listed.

Step 2. Sector-specific obligations On this tab sheet you also indicate which obligations apply specifically to the sector being studied. In the sector analysis you already identified which business activities are performed in the sector, possibly broken down into subsectors. Companies carry out these activities within the applicable legal frameworks. On this tab sheet you indicate which regulations are responsible for the regulatory burden you are studying.

It is important that you describe all possible obligations carefully and accurately. This avoids the risk that you will forget to ask about certain aspects of regulatory burden in the next phase of the study, during the business analysis, or that you fail to spot some aspects of regulatory burden.

How to enter the data1. Enter the data on the sector-specific obligations. Do this in the same way as for the

general obligations. Briefly indicate the subject of the obligations you wish to list by giving a short description (no more than a few words) of the activity affected by the obligations.

2. Indicate which specific obligations are involved. Once again, do this in the same way as for the general obligations.

3. Describe the obligations in clear, easily understood language.

4. State the legal basis for the obligations. Give the relevant section of the national and/or European regulation.

5. Use the pulldown menu to state which obligations apply to which subsectors

II. Identifying relevant legislation and regulation

A. Algemene verplichtingen Verplichtingen Wettelijke oorsprong Van toepassing op…Onderwerp Verplichting Omschrijving Nationale regelgeving Artikel EU-grondslag EU-classificatie Amb ZZP ZZP bedr Regulier KetenAlgemeen Inschrijving bij de

Kamer van KoophandelOpname bij Kamer van Koophandel geeft kosten. Handelsregisterwet 4 x x x x x

Algemeen Kennisname van regelgeving

Op de hoogte blijven van ontwikkelingen in wet- en regelgeving. Kosten die hierbij meespelen zijn bijeenkomsten voor medewerkers, tijd die wordt besteed aan het bijhouden en doornemen van wijzigingen in regelgeving en kosten voor lidmaatschappen van branche/sectororganisaties.

n.v.t. x x x x x

Arbeidsveiligheid Beschikbaar stellen van een bedrijfsarts

De inhuur van externen, zoals de bedrijfsarts en het Periodiek Arbeidsgezondheidskundig Onderzoek (PAGO) of Periodiek Medisch Onderzoek (PMO).

Arbeidsomstandighedenwet (Arbowet), cao

8 lid c x x

Inspectie door de iSZW Inspecties van iSZW (voormalige Arbeidsinspectie).

Arbeidsomstandighedenwet 4 x x

Keuren persoonlijke beschermingsmiddelen

Meelopen met keuringen van arbeidsmiddelen en persoonlijke beschermingsmiddelen (schoenen, brillen, jassen).

4 x x

Opstellen van de RI&E Opstellen en bijhouden van de Risico-inventarisatie en -evaluatie (RI&E)

5 x x

Voertuigen APK-keuring van voertuigen

Voertuigen dienen periodiek te worden gekeurd (APK) en er dienen opcenten aan de provincie te worden betaald. Voor deze laatste wordt zowel de te betalen bedragen als de bijbehorende handelingen meegenomen.

Wegenverkeerswet, Reglement verkeersregels en verkeerstekens 1990, Provinciewet (art. 222)

8 x x x x x

B. Sectorspecifieke verplichtingen

PM. Verplichtingen die voor alle bedrijven van toepassing zijn. Vooringevuld, alleen aangeven op welke deelsectoren van toepassing.

Verplichtingen Wettelijke oorsprong Van toepassing op…Onderwerp Verplichting Omschrijving Nationale regelgeving Artikel EU-grondslag EU-classificatie Amb ZZP ZZP bedr Regulier Keten

(Arbowet)


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4. BUSINESS ANALYSIS

Traceable financial problem areas

The CAR methodology for quantifying regulatory burden consists of a number of steps. Central elements in this procedure are:

• The analysis of business costs;• The analysis of individual cost centres in the financial administration of the

Model Companies.

You enter the data collected in the measurement model. You will find step-by-step instructions on how to do this below. The business data in the examples are fictitious.

General business information On tab sheet III, General business information, you enter the general information on the Model Companies (see figure 8). The information is divided into three main categories: recording the measurement year, allocation of cost centres, and the ledger.

Figure 8. Tab sheet ‘General business information

III. General company informationA Vaststellen meetjaar

Meetjaar 2013

B Het bedrijf indelen in kostenplaatsen

Naam afdeling of kostenplaats Afkorting

A Pers.B Huis.C OverigD

C Grootboek Grootboek 2013

A Resultaat Netto omzet 147.759Kostprijs van de omzet 17.848Bruto omzet 147.759

PersoneelHuisvestingOverig


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A . Establishing the measurement year Businesses may incur non-recurring investment costs. This may be because of the introduction of new rules or changes to existing rules, or following inspections that have been carried out. To make clear the impact of these costs on the regulatory burden, the CAR methodology distinguishes between regular and non-recurring regulatory burden:

• Regular regulatory burden comprises the total costs incurred in meeting annually recurring legal obligations. This regulatory burden is identified using the financial data from the most recent completed financial year.

• Non-recurring regulatory burden is the total of non-recurring costs incurred in connection with the implementation of new regulations. This regulatory burden is identified using financial data covering a period of several financial years. It is usual to take a period of (no more than) five years for this.

B. Allocation of cost centres A cost centre is a defined unit within a business to which costs and performance can be allocated. The CAR methodology makes clear at individual cost centre level which costs are caused by legislation and regulations. The methodology thus identifies the actual financially traceable regulatory burden of businesses.

Figure 9. Cost centres

How to enter the data 1. Enter the various cost centres here. You can classify the cost centres on the basis of the

financial administration of the Model Companies. Generally, you can use the terminology that is used in the profit and loss accounts of the Model Companies. If you are studying several Model Companies, you may find that each uses different terminology to describe the cost centres. In that case, choose uniform terms for the cost centres that cover all cost items for all Model Companies.

B Het bedrijf indelen in kostenplaatsen Naam afdeling of kostenplaats Afkorting

A Pers.B Huis.C OverigD

PersoneelHuisvestingOverig


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2. State which abbreviations you are using to indicate the different cost centres. These abbreviations will ultimately appear in the figures expressing the research results.

3. Indicate with an ‘x’ which cost centres apply to which Model Companies. It is quite possible that the cost centres do not apply to all Model Companies. For example, a self-employed person who works at different locations will have no staff costs and no accommodation costs. In this case, all his costs fall within the cost centre ‘Other’.

4. You can add any explanatory notes needed in the Comments field.

C. LedgerHere you enter the financial data for the year or years in question for each model company. You do this using the profit and loss account of the model company. Figure 10 shows the fictitious data for a business that employs staff.

Figure 10. Ledger

N.B.: The classification used in the measurement model is based on the functional model of a profit and loss account. In this model, the profit or loss is calculated by deducting the costs from the income to produce a gross margin. However, some businesses draw up a profit and loss account using a categorical model, in which the profit or loss is calculated by deducting the income from the costs. Using this model means that profit and loss items are recognised differently. Bear this in mind when entering data.

III. General company informationC Grootboek

Grootboek 2013

A Resultaat Netto omzet 147.759

Bruto omzet 147.759B Bedrijfskosten Personeelskosten 67.771

17.536

Afschrijvingen materiële 2.499

Kantoorkosten 0

Auto- en transportkosten 1.053

Overige kosten 15.240

Totale kosten 107.201

C Bedrijfsresultaat (A-B) Earnings Before Interest and Taks (EBIT) 40.558

D Financiële baten en lasten Opbrengsten van banktegoeden 0

Saldo financiële baten en lasten -3.787

Saldo buitengewone baten en lasten 224

F Fiscaal resultaat (C + D - E) 36.547


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How to enter the data A. Result1. You first enter the net turnover of the model company. The net turnover is the income

from the supply of goods and/or services within the relevant reporting period after deduction of VAT (the VAT is for the tax authority, not for the business, and does not appear in the profit and loss account).

2. You then copy the cost of sales figure from the profit and loss account and enter it in the measurement model. The cost of sales comprises costs that are directly attributable to the supply of a product or service. Examples include the costs attributable to the goods that are sold in order to generate the turnover.

3. The measurement model uses the data you have entered to calculate the gross turnover. This is the result that remains from the turnover after deduction of the direct costs.

B. Operating costs 1. In this section you copy the operating costs from the profit and loss account.

Examples of these costs include:• staff costs;• rental/lease costs;• operational costs;• interest charges.

In the above example, the company employs staff. You can see the cost centres ‘Staff costs”, ‘Accommodation’ and ‘Other costs’. For a self-employed person working at various locations, all costs for this cost centre would be placed under ‘Other costs’.

2. The measurement model now calculates the operating costs.

C. Operating result The measurement model automatically calculates the operating result.

D. Financial benefits 1. Enter the information relating to the income from bank balances.2. Enter the sum of all costs associated with repaying debts, interest charges and

similar items.3. The measurement model now calculates the net financial income and charges.

E. Extraordinary expenditure 1. Enter the information relating to benefits from extraordinary expenditure.2. Enter the sum of all costs that are not directly related to the regular business

operations.3. The measurement model now calculates the net extraordinary expenditure.

F. Taxable profit The measurement model calculates the taxable profit of the model company.


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Quantification of regulatory burden On tab sheet IV, Quantification of regulatory burden, you calculate the regulatory burden. The measurement model used in this Manual is based on the Standard Cost Model (SCM) and is aligned with national and international guidelines on calculating regulatory burden. The model produces a clear and transparent calculation of aspects of regulatory burden such as administrative costs, compliance costs and supervisory costs.

The measurement model calculates the regulatory burden by multiplying the costs of performing an action once (P) by the number of actions (Q). Figure 11 shows the working of the model schematically.

Figure 11. How does the model work?


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Figure 12 shows an example from Sheet IV.

Figure 12. Quantification of the regulatory burden

How to enter the dataYou enter the data at cost centre level. You have already filled in the cost centres on tab sheet II. The same cost centres appear here automatically.

Data input is divided into two parts: part A, compiling a list of general obligations, and part B, entering the company-specific information.

A Compiling a list of general obligations 1. Select the specific topic to which the obligation relates. You can choose the topic from

a pulldown menu that is automatically populated with data you entered on tab sheet I, Sector analysis.

2. State the relevant general obligation. Here again, you can use a pulldown menu 3. State the specific form of regulatory burden. You can choose from administrative costs,

supervisory costs and compliance costs.4. State in a pulldown menu whether these are regular or non-recurring costs. Regular costs

ensue from actions that the business performs on a structural basis. Non-recurring costs are the costs of one-off actions stemming from the introduction of new rules or amendment of existing rules.

5. State the year in which the costs were incurred. N.B.: this applies only for non-recurring costs! If you indicated in the previous step that these are regular costs, the model automatically assigns the measurement year (in the example, 2013).

IV. Quanti�cation of the regulatory burdenControle

Functieniveau Uurtarief Kosten€ u mm € €

30€ A Personeel 46.319€ 30€

A.01 Voertuigen APK-keuring van voertuigen AL Eenmalig

2013 Admin. Medewerker 30€ 1u 00m 44€ 1 74€ OK 30€

A.02 AL Regulier Admin. Medewerker 30€ 1u 00m 45€ 1 75€ OK A.03 Lokale regelgeving Afvalheffing FK regulier Preventiemederwerker 30€ 3u 00m 10.000€ 1 10.090€ OK

A.04 Algemeen Inschrijving bij de Kamer AL Eenmalig 2012 Personeel 30€ 100u 00m 12 36.000€ OK

A.05 Arbeidsveiligheid Opstellen van de RI&E AL Eenmalig 2012 Bedrijfsleider 30€ 1u 00m 1 30€ OK

A.06 Precario FK 30€ 50€ 1 50€ OK A.07 A.08 A.09 A.10

B Huisvesting 3.923€ B.01 Voertuigen APK-keuring van voertuigen AL Eenmali

g2013 Admin. Medewerker 30€ 1u 00m 44€ 52 3.848€ OK

B.02 AL Regulier Admin. Medewerker 30€ 1u 00m 45€ 1 75€ OK B.03

B.05 B.06 B.07 B.08 B.09 B.10

C Overig -€ 2 fout in blok CC.01 Voertuigen APK-keuring van voertuigen AL Eenmali

g2013 Admin. Medewerker Error 1u 00m 44€ 52 Kies geldig

functieniveau C.02 Arbeidsveiligheid Opstellen van de RI&E AL Regulier Admin. Medewerker Error 1u 00m 45€ 1 Kies geldig

functieniveau C.03 C.04 C.05 C.06 C.07 C.08 C.09 C.10

D Geen kostenplaats opgegeven in tab III -€ 2 fout in blok DD.01 Voertuigen APK-keuring van voertuigen AL Eenmali

g2013 Admin. Medewerker Error 1u 00m 44€ 52 Kies geldig

functieniveau D.02 Arbeidsveiligheid Opstellen van de RI&E AL Regulier Admin. Medewerker Error 1u 00m 45€ 356 Kies geldig

functieniveau D.03 D.04 D.05 D.06 D.07 D.08 D.09 D.10

E #N/B 15.000€ E.01 Algemeen Inschrijving bij de Kamer

van KoophandelAL Eenmali

g2009 1.000€ 1 1.000€ OK

E.02 Algemeen Inschrijving bij de Kamer van Koophandel

AL Eenmalig

2010 2.000€ 1 2.000€ OK


AL Eenmalig

2011 3.000€ 1 3.000€ OK


AL Eenmalig

2012 4.000€ 1 4.000€ OK


AL Eenmalig

2013 5.000€ 1 5.000€ OK

E.06 E.07 E.08 E.09 E.10

Algemene verplichtingVerplichtingen per kostenplaatsGroep Onderwerp

Typering kostenLabel Type Jaar Tijdsbesteding

Berekening van de totale kosten per verplichtingFrequentie# per jaar

Kosten per verplichting

Arbeidsveiligheid Opstellen van de RI&E

van Koophandel

RegulierLokale regelgeving

Arbeidsveiligheid Opstellen van de RI&E

B.04


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B. Entering company-specific information 1. State whether the obligation applies to the specific Model Company. It may be that

you have included several Model Companies in the study and that the application applies for some but not others.

2. State briefly and clearly in what specific way the Model Company complies with the obligation.

3. State which functional level (job grade) performs the actions needed to comply with the obligation. If several job grades are involved, use several lines in the measurement model so that you are able to distribute the time investment among the different job grades involved. If several employees at the same job grade are involved, you can add up the time investment and enter it on one line in the model.

4. The measurement model calculates the hourly rate for each job grade you have selected. It does this using data such as staff costs and FTE numbers.

5. State how much time employees devoted to the obligation.6. State which external costs complying with the obligation entails.7. The model uses the data entered to calculate:

• the costs per obligation;• the total costs within the cost centre.

8. You can see in the check field whether all information has been entered correctly and completely.


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ReportingThe measurement model generates report figures and tables on tab sheet V. You can use these in compiling your reports. The figures and tables (see figure 13) are based on the data you entered on the earlier sheets.

Figure 13. Reporting figures

V. Report

A Verzamelen van kosten per kostenplaatsKostenplaats Reguliere kosten Eenmalige kosten

2013 2013 2012 2011 2010 2009A Personeel 10.215€ 74€ 36.030€ -€ -€ -€ B Huisvesting 75€ 3.848€ -€ -€ -€ -€ C Overig -€ -€ -€ -€ -€ -€

Totaal 10.290€ 3.922€ 36.030€ -€ -€ -€ Als percentage van de productiekosten 10% 4% 34% 0% 0% 0%

B Raming totale kosten per jaarKostenplaats Totale kosten van regeldruk als % van de productiekosten

2013 2012 2011 2010 2009Reguliere kosten 10% 10% 10% 10% 10%Eenmalige kosten 4% 34% 0% 0% 0%Totale regeldruk 13% 43% 10% 10% 10%


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Discuss the tangible problem areas in detail in order to arrive at a proper substantiation

Tangible problem areas

The CAR methodology also provides an impression of unnecessary burden experienced by businesses which are not directly reflected in the financial administration. This includes:• Impediments in business processes, investments, developments and innovations.• Problems relating to the emotional perceptions of businesses – in other words,

irritation. For example, what do entrepreneurs think of the customer-centric and entrepreneur-centric attitude of the government?

You ask about the tangible problem areas during the in-depth interviews with relevant employees of the Model Companies. To gain a clear picture of the tangible problem areas, apply the following principles:

• Adapt the number of respondents to the specific company situation To obtain a complete picture of the tangible problem areas you will need to speak to

more employees in the case of large companies than at small companies. In a one-man business or a company with only a few employees, one respondent will usually be sufficient, namely the owner/entrepreneur themselves. In the case of a Model Company in a group structure, by contrast, it is advisable to speak to representatives of each individual group company.

It can sometimes be necessary to conduct interviews outside the Model Company as well, for example where some of the business operations are outsourced. Think of an accountant who is hired in, for example. Interviewing these parties can incur costs for the Model Company, so you should first agree them with the company.

• Select a respondent from each department In companies with several departments, you should make allowance for the unique

obligations applying for each individual department. For example, the HR department will generally face obligations in relation to labour laws and rules in relation to safety and health (occupational health and safety regulations). By contrast, the Finance & Controlled department, for example, will have to comply with rules ensuing from the Netherlands Civil Code, in which standards are set for the compilation of the financial statements. It is therefore important that you speak to a representative from each part of the company which has to comply with obligations.


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• Select respondents who have a broad view of the obligations It is important to speak to respondents who have a view of all obligations that apply for

the company or individual department. This is because you need a complete picture of the tangible problem areas. An employee from the workfloor has a less complete view of the obligations being met by his colleague than the manager who is in charge of both employees. For a complete picture, you should therefore select respondents at management or similar level.

• Take the size and complexity of the obligations into account in your interview method You can use several methods to elicit the desired information. You can put end your

questions by email, by telephone or in a direct, face-to-face interview with the respondent. Which method is the most suitable depends on a number of factors, such as the number and complexity of the obligations.

If you wish to examine relatively few and/or simple obligations, a telephone interview will often suffice. For specific, simple questions you can even resort to email. However, for a larger number of obligations or where the obligations are more difficult to define, a personal interview on site is the best choice. You can go into the topic in more depth in a face-to-face meeting, and it is also easier to request or inspect background information.

• Use the interviews to verify the traceable financial problem areas During the interviews you can also verify and where necessary supplement the

traceable financial problem areas. You can ask further questions in the interview about the background to the identified cost centres. You can also check how much time employees actually spend on meeting obligations. The financial administration gives you an insight into the staff costs, but you need the interviews to determine what proportion of the salary costs is accounted for by the regulatory burden.

• Ensure that the interviews are structured and meet a set standard Structure helps you to be complete in putting your questions. It also helps the conversation

go smoothly and engenders support on the part of your discussion partner. Because you are examining new obligations in every interview, it is not possible to use a fixed questionnaire. However, you can ensure that the organisation of the interviews is carried out in a standardised way.


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Four steps are set out below that you can follow in order to conduct the interviews in an effective and structured way.

Step 1. Introduction and preparation Once you have selected a Model Company, you need to persuade it to take part in the study. The first contact is very important here. Ensure that you speak to the most senior person (managing director) of the company immediately on the first introduction. This person will recognise the importance of the study and also has the means and the position to inform the rest of the company. You will moreover need permission to gain access to relevant commercially sensitive information.

Step 2. List of relevant employees Once the company has agreed to cooperate in the study, it is important to designate a contact within the company to help you approach your selected employees and to elicit relevant information. Together with this contact, you draw up a list of relevant employees you wish to approach for the interviews, based on the company’s organisation chart.

Step 3. Conducting the interviews In preparation for an interview, you send the respondent(s) explanatory information on the background to the study, the interview topics and a clear, specific questionnaire. This gives your interviewee the opportunity to prepare thoroughly.

During the interviews, you first discuss the information that you have collected from the financial administration. You investigate whether the respondent actually regards the identified regulatory burden as regulatory burden and therefore as a problem. You also compile an inventory during the interviews of additional burdens which the business encounters in day-to-day practice.

The questionnaire ensures that all topics are raised which are necessary to verify the identified regulatory burden. The list also serves as a guideline for the interviews. But in order to identify the tangible problem areas, you will need to ask further questions if anything is unclear. Allow yourself to deviate from the questionnaire if necessary. This can generate relevant insights into the tangible problem areas, but also into the traceable financial problem areas.


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Step 4. Processing the interviews Summarise the results of the interview in a concise but complete report. Distinguish between the traceable financial problem areas and the tangible problem areas that you discussed with the respondent. Then give the respondent an opportunity to make any comments.

When you have gone through all the steps of the sector analysis and business analysis for each Model Company, you have your input for compiling the report. Use the table of contents from Annex I as a guideline here.


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80


ANNEXES

Annex I 83 Annotated table of contents for Business Analysis report

Annex II 87 Annotated table of contents for Final Report

Annex III 91 Annotated table of contents for Executive Summary


82


83

ANNEX 1

Annotated table of contents for Business Analysis report

1 IntroductionThis section introduces the report. It discusses the background and objective(s) of the study. It also contains a brief guide to the structure of the report.

2 Study principles This section describes the various principles applied in the CAR methodology.

2.1 Definition of regulatory burden This section discusses the way in which regulatory burden is defined within the CAR methodology. Topics covered include administrative costs, compliance costs and supervisory costs.

2.2 Background to the methodology This section gives an insight into the background of the CAR methodology and the relationship between the different research methods used (sector analysis, business analysis: traceable financial problem areas; business analysis: tangible problem areas).

2.3 Cost structure – the position of the regulatory burden This section of the report uses graphs and charts to give an impression of the position occupied by regulatory burden in relation to commercial aspects such as turnover, operating costs and EBIT.

3 The sector This section describes the outcomes of the sector analysis carried out in the first phase of the study.


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3.1 Description of the sectorThis section provides information about the main facts and figures for the sector in question. It describes the following aspects:• The history of the sector;• The main products and/or services supplied;• An overview of the different business types;• The number of companies in each business type and as a total;• The number of employees in each business type and as a total;• The average turnover per business type;• The total turnover per business type and as a total.

The information is set out in a table with explanatory notes.

3.2 The Model Companies This section provides a brief explanation of the different Model Companies included in the study. It is an anonymised profile which contains information on the following aspects for each Model Company:• The organisational structure;• The most important products and/or services supplied by the company;• Specific characteristics that may help determine regulatory burden (e.g. data on

accommodation, configuration of administrative processes, etc.).

4 Regulatory burden at the Model Companies This section presents the results of the business analysis. It covers the following topics for each type of Model Company.

4.1 Regulatory burden as a percentage of production costs This section gives an impression of the share taken by the regulatory burden in the production costs of the Model Company over the last five (completed) financial years. A distinction is drawn between regular and non-recurring regulatory burden. The results are presented in the form of a graph with explanatory notes.

4.2 Regular regulatory burden Here, the reader gains an impression of the distribution of regular regulatory burden across the different cost centres (e.g. accommodation, staff, other). The results are presented in the form of a graph with explanatory notes


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4.3 Non-recurring regulatory burden This section gives an insight into the main investments underlying the non-recurring regulatory burden identified at the Model Company. The results are presented in the form of a graph with explanatory notes.

4.4 Distribution of the regulatory burden Here, the reader gains an insight into the distribution of the regular regulatory burden across the different types of regulatory burden (administrative costs, compliance costs, supervisory costs). The results are presented in the form of a graph with explanatory notes.

5 Future developments in regulatory burden This chapter explores developments that could influence the regulatory burden in the (near) future. This includes changes to legislation and regulations that could impact on businesses, forcing them to make investments and/or adapt internal hostesses. If possible, a quantitative estimate is made of the impact on the regulatory burden.

6 ConclusionsThis chapter presents the main conclusions based on the results of the business analysis.


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Annexes to Business Analysis report

Annex I The CAR methodology This annex provides a detailed description of the CAR methodology, including the background, objectives and procedures.

Annex II Relationship between regulatory burden and operating results This annex gives a detailed description of the relationship between regulatory burden and operating results. The brief description of the position occupied by regulatory burden in relation to commercial concepts such as turnover, operating costs and EBIT (section 2.3 of the main report) is expanded here. Fictional data are also used to describe how a reduction in regulatory burden leads to an increase in profitability for businesses within the sector.

Annex III Overview of regulations in the sectorThis annex gives an overview of the regulations applying for the sector. A distinction is made between general regulations (e.g. concerning staff obligations, administration, accommodation, etc.) and obligations that apply specifically for businesses operating in the sector.

Annex IV Abbreviations and definitions This annex contains an overview of all abbreviations and concepts used in the report.

Annex V Project supervision and implementation This annex states which organisations and individuals were involved in carrying out the project. It presents an overview of information on the party which commissioned the study, the research bureau which carried it out and the members of the feedback group.


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ANNEX 2

Annotated table of contents for Final Report

1 Introduction This section introduces the report. It discusses the background and objective(s) of the study. It also contains a brief guide to the structure of the report.

2 Research procedure This chapter briefly describes the procedure applied in the project. It gives a short description of the various steps followed.

2.1 The sector analysis This section looks at how the sector analysis was performed and what results it produced. This gives an insight into the actual structure of the sector.

2.2 The business analysis This section gives a concise explanation of how the business analysis was performed and what results this produced for the various subsectors. The results are presented in the form of a graph with explanatory notes.

2.3 The work sessions This section gives a brief description of the procedure and results of the work sessions conducted in order to verify and where possible supplement the results of the business analysis.

2.4 The final report This section gives a concise description of the procedure used in compiling the final report.


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3 Financially traceable and tangible problem areas This chapter discusses the main factors that cause regulatory burden for businesses in the sector concerned.

3.1 Inventory of regulatory burdens This section describes in detail the main problem areas in relation to the regulatory burden. A description is given of the content of each problem area, the types of business in the sector or subsectors to which it relates and the way in which the regulatory burden impacts on the business costs or business perceptions.

3.2 Scope of the regulatory burdens This section briefly summarises the information from section 3.1 in tabular form. An indication is given of the model company/subsector to which each problem relates.

4 Conclusions This chapter sets out the main conclusions


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Annexes to Final Report

Annex I Summary of business analysis of Model Companies This annex summarises the results of the business analysis carried out at the Model Companies. The following elements (excluding the introduction) are included for each type of Model Company.

Introduction This provides a brief introduction to the purpose, background and procedure of the business analysis.

Regulatory burden as a percentage of production costs This section presents the conclusions regarding the share taken by the regulatory burden in the production costs of the Model Company over the last five (completed) financial years. A distinction is drawn between regular and non-recurring regulatory burden. The results are presented in the form of a graph with explanatory notes.

Regular regulatory burden This section presents the conclusions in relation to the distribution of regular regulatory burden over the various cost centres (such as accommodation, staff, other). The results are presented in the form of a graph with explanatory notes.

Non-recurring regulatory burden This section presents the conclusions in relation to the main investments associated with the non-recurring regulatory burden identified at the ModelCompany. The results are presented in the form of a graph with explanatory notes.

Distribution of regulatory burden This section presents the conclusions in relation to the distribution of the regular regulatory burden over the different types of regulatory burden (administrative costs, compliance costs, supervisory costs). The results are presented in the form of a graph with explanatory notes.

Annex II The CAR methodologyThis annex provides a detailed description of the CAR methodology, including the background, objectives and procedures.


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Annex III Detailing of regulatory burdens This annex summarises the regulatory burdens in the form of fact sheets. A fact sheet is prepared for each problem containing information on:• The problem;• Related legislation and regulations;• The potential impact on business costs and/or perceptions.

Annex IV Additional problem areas This annex provides an overview of additional problem areas that emerged during the interviews and/or work sessions. Since these are problem areas that were put forward by one or a small number of individuals, they are included in an annex to the Final Report.

Annex V Overview of regulations in the sector This annex gives an overview of the regulations applying for the sector. A distinction is made between general regulations (e.g. concerning staff obligations, administration, accommodation, etc.) and obligations that apply specifically for businesses operating in the sector.

Annex VI Abbreviations and definitionsThis annex contains an overview of all abbreviations and concepts used in the report.

Annex VII Project supervision and implementation This annex states which organisations and individuals were involved in carrying out the project. It presents an overview of information on the party which commissioned the study, the research bureau which carried it out and the members of the feedback group.

The Executive Summary is intended to inform the reader in brief of the main results of the study. The Executive Summary should be no longer than one A4 page. The emphasis is on the results of the study: the identified burden and the main conclusions.


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ANNEX 3

Annotated table of contents for Executive Summary

1 Introduction The introductory paragraph contains a concise introduction to the background and objective(s) of the study.

2 Study procedure This paragraph covers the procedure used in the study and the principles applied. It provides information on:• The different phases of the project; • The different research techniques used (sector analysis, business analysis); • The reports produced (Business Analysis and Final Report).

3 Summary of sector analysisThis paragraph presents a brief impression of the structure of the sector and the Model Companies used in the study as representatives of the subsectors. Present or future developments may be discussed.

4 Financially traceable and tangible problem areas This paragraph summarises the main unnecessary burden and impediments identified and describes the scope for reducing these to an acceptable level for businesses.

5 Conclusions and follow-up The final paragraph discusses the main conclusions of the study and the follow-up project that is needed to ensure that the identified burden and impediments are actually reduced.


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Businesses incur high costs in complying with obligations imposed by government legislation and regulations. The CAR methodology makes these costs transparent. It takes the business operations as its starting point, identifying the various operating costs and providing an insight into the impact of legislation and regulations on these costs and on profitability.

As well as making clear the costs, the CAR methodology generates proposals for reducing those costs and thereby increasing profitability and promoting the growth of businesses. SIRA Consulting’s CAR methodology links directly to the Ministry of Economic Affairs’ Top Sector and Sectoral approach.

Ministry of Economic Affairs SIRA ConsultingBezuidenhoutseweg 73 Edisonbaan 14 G-12594 AC ’s-Gravenhage 3439 MN Nieuwegein T: +31 (0)30 602 49 00Correspondence [email protected] 20401 www.siraconsultng.nl2500 EK ’s-Gravenhage T: +31 (0)70 379 8911

ISBN 978-90-815210-0-0


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