The Standard Cost Model (SCM) – A national approach

Businesses and citizens spend time and money annually in order to comply with (information) obligations laid down in laws and regulations. Sira Consulting can provide you with the tools and/or the capacity needed to measure these regulatory burdens on a national level and to identify reduction measures. By implementing these reduction measures it is possible to achieve more effective and efficient regulation, and create space for innovation, economic growth and active public participation. In addition, reducing regulatory burdens also cuts the costs required for public administration, increases transparency and reduces corruption.

An evidence-based, systematic approach

The SCM is an evidence-based, systematic approach to quantify and reduce the regulatory burdens imposed by national legislation. The SCM methodology was developed by Sira Consulting in close collaboration with the Dutch Ministry of Economic Affairs.

We have improved the SCM methodology over the years. We now use an integrated approach to measure, analyse, explain and reduce unnecessary regulatory burdens. This gives insights into

  • The administrative burdens imposed on businesses and citizens.
  • The compliance costs imposed on businesses and citizens.
  • The costs incurred by public administrations.
  • The obstacles legislation introduces to competition, innovation and growth.

The SCM methodology is used to measure regulatory burdens for existing regulations (ex-post) and for proposed legislation (ex-ante). All measurements are accompanied by a thorough analysis and concrete suggestion on how to reduce or prevent regulatory burden. The SCM methodology is also used to design better regulation and to decide what policy tools are most effective and efficient. A key component is the active engagement of all relevant public authorities and stakeholders.

Tangible results

Our SCM projects have enabled us to contribute greatly to the reduction of unnecessary regulatory burdens and the improvement of processes and compliance. Whenever and wherever we applied the SCM methodology, it has resulted in a tangible burden reduction for businesses, citizens and public administrations.

An alternative approach

The SCM methodology is focused on the national impact of laws and regulations. We recently incorporated the benefits of this approach into the Cost driven Approach to reduce Regulatory burden (CAR). The CAR methodology is focused on the impact of laws and regulations on a specific business sector. We developed the CAR methodology together with the Dutch government.

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