Strategic planning and prioritisation. John Fingleton, Office of Fair Trading 22 nd January 2009
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1 Strategic planning and prioritisation John Fingleton, Office of Fair Trading 22 nd January 2009
2 Structure Introduction to the session OFT s experience, John Fingleton Conseil de la Concurrence s experience, Bruno Lasserre Key questions
3 Introduction to the session Strategic planning and prioritisation - Key questions How do agencies choose what to do? How do agencies prioritise and plan their work? Purpose of discussion Information exchange Identify relevant best practices Understand convergence and informed divergence
4 OFT s Experience
5 Broad overview of UK Framework OFT has both competition and consumer responsibilities Significant provisions Competition Act 1998 Chapter I & Chapter II which import Art 81 and 82 into UK law White Paper and Enterprise Act 2002 Consumer and Credit legislation Merger control, market studies, criminalisation of cartels e.g: Consumer Protection Regulations, legislation such as UTCCRs, Distance Selling Regulations, Estate Agents Act, Consumer Credit Act 2006
6 competition & consumer 23% Work of the OFT Split based on staff costs OFT Competition activity Mergers - e.g Lloyds HBOS Competition Act Chapter I and Chapter II e.g. Cartels Marine Hoses Market studies - e.g. UK airports, Personal Current Accounts Competition policy e.g. Advocacy Work which must be done i.e. Mergers Discretionary work i.e Market studies
7 Strategic planning and prioritisation Overall strategy Annual Plan (external) OFT Mission Vision / CSR07 Objectives Fixed in 09/10 What we do High Level Commitments Board input informs priorities Business Planning (internal) Key Deliverables and Resources Group Objectives How we do it Work streams Individual Objectives
8 Prioritisation ExCo / Board Formal Decision Markets Leadership Team Intelligence Sharing, via: Project Ideas Group Intelligence Briefings Information & Advisory Centre Informal Decision Informal filter Cartels 2 Chinese Wall Information Sources Leniency Mergers Complaints ECA 1 Notices Complaints Market Monitoring Advisory, Policy, International External Relations Stakeholder Issues Media Issues Policy Issues Complaints Consumer Direct Consumer Direct Trading Standards Credit Other Partners Consumer Protection Group Consumer Complaints Competition Complaints Enquiries & Reporting Centre Project Ideas Preliminary Investigations Market Groupings R&D Teams Horizon Scanning Targeted Stakeholders Internal Ideas Emerging Trends Market Research Direct Complaints 1 European Competition Authorities exchange of information 2 Decisions to use formal powers are in cartel investigations must be approved by the Chairman, CEO, or Executive Director of Markets and Projects
9 Example Project Pipeline Key: CA98 Ch1 CA98 Ch2 Market study Consumer Legislation Early stage research * Indicates more detail overleaf CPG Cartels Indicative location of project in office Goods Services Infrastructure Leads & Themes Active Research Project outline Project proposal Initial early stage research not yet sure of potential interventions Research has suggested that there is a potential intervention
10 Prioritisation Why do we need to prioritise and choose carefully what we do? - We want to be a high-impact organisation - Our resources are finite - Each piece of work has to contribute to realising our strategic aims
11 Prioritisation principles Impact Significance Risk Resources Balance of four factors: Impact: Direct and indirect impact on consumer welfare and the economy Significance: Strategic impact, innovation, precedent setting, capacity building, whether OFT best placed to act Risk: Expected risk at outset of project. Risk if we do not act Resources: People and monetary resources needed The Principles are a tool for understanding and explaining what factors we take into account they do not make decisions for us.
12 Breakout discussion Overcoming constraints Objectives and priorities Embedding priorities Work portfolio
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