What is Policy?

Policy is an authoritative statement that provides direction, guidelines, and limitations intended to influence and determine decisions and actions, to include guidance for the developent of an implementing strategy, in pursuit of a desired end state.

In other words, a principle or rule to guide decisions and acheive rational outcomes.

 A policy is a guide to thinking and action for those responsible for making decisions. On the other hand, a strategy deals with the allocation and deployment of physical and human resources so as to achieve the desired goals in the face of environmental pressures.

A strategy may exist without a policy. Strategy and policy may in some cases be coextensive. A strategy deals primarily with environmental constraints and oppor­tunities whereas a policy is concerned mainly with internal management.

A policy is a contingent decision and it lays down the response to be made whenever the specified contingency arises. But a strategy is designed to deal with situations about which all facts are not known and, therefore, alternatives can not be evaluated in advance.

The implemen­tation of policy can be delegated but the execution of strategy cannot be delegated because it requires a last minute executive-decision.

However, both policy and strategy are designed to achieve organizational objectives. The process of their formulation is similar. In strategic decisions, the identification and analysis of the factors bearing on the problem are more difficult than in case of policy decisions.

Policy formulation generally goes through a series of stages. Very simplistically, these are: agenda setting, recognition of problem, consideration of options, agreement on most suitable option, legislation or introduction of new policy, and implementation.

 

Associated terms/phrases:

Policy window

Policy advocacy

Policy streams

Issue attention cycles

Policy think-tanks

Policy agenda

Policy objectives and priorities

Policy response

Policy analysis

Policy review