We talked to Andreas about the key challenges regulators face today and how the right regulatory instruments can alter business and consumer behavior and create sector innovation and growth.
- In your perspective what are the 3 key challenges regulators face today? “I have conducted a lot of sector analysis on how to improve performance and growth. Widening from books to electricity and from car scrapping to outdoor clothes. Boiled down theses 3 challenges are often – and will continue to be – the cause of problems. First, the market competition doesn’t work. It can be lack of competitive pressure that slows innovation and growth. Or high competitive pressure leading to shortsighted business gains on behalf of negative societal outcomes. Second, the businesses and consumers doesn’t react ‘rationally’ to the incentives and rules deployed by the regulators. Third, new technologies and business models challenge the regulation and incumbents.”
- How can regulators overcome the challenges and create better performing sectors? “It’s my experience that new regulation best rests on clear diagnostics of the market challenges. You need to dissect how the market structure and regulation affects incentives and behavior in the sector. When you know that, choosing the right instruments is easier. My job is often to show the regulators how they can use their instruments in new ways or in the most optimal mix. I also bring Monitor Deloitte’s international experts to the table with new perspectives and ideas that can inspire.”
- What characterize the best solutions? “The best solutions are bold, simple and a product of cooperation. In designing solutions, you must be bold and get inspiration from the newest trends on how to change behavior and newest technological ways of doing it. I call it finding new solutions to old problems. Often most, the best solutions are also the simple ones, and upon finishing a project you sometimes wonder “was that it?”. Finally, the best solutions are designed in an innovative process with the involvement of regulators and other experts.”