In 1961, two men, Burns and Stalker, wrote “The Management of Innovation”. This book suggested that organisation design should depend on the turbulence of their market. In highly turbulent markets, organisations with a fluid design succeed. In highly stable markets, organisations with a structured design succeed. The suggestion has been proven by subsequent studies.
It is often said that less regulation permits business to grow and more increases burden. However uncertainty over obligations is also a burden, both for regulator and regulated.
Taking these two ideas, organisations should have the benefit of certainty and clear obligations in stable times and outcomes-focused regulation in turbulent times. This policy re-think of the way we regulate would support businesses to achieve their goals, while ensuring the economic or social outcomes of regulation are achieved.