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Difference Between Strategy and Policy

1. Strategy refers to an overall plan or approach to achieve long-term goals, while policy outlines specific guidelines for routine organizational activities and decision-making. 2. Strategy formulation involves assessing opportunities and constraints in the external environment, while policy deals more with internal management and guidelines. 3. A strategy may exist without a specific policy, but policy provides direction for implementing strategies and making decisions aligned with overall objectives.

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Omer Javed
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3K views1 page

Difference Between Strategy and Policy

1. Strategy refers to an overall plan or approach to achieve long-term goals, while policy outlines specific guidelines for routine organizational activities and decision-making. 2. Strategy formulation involves assessing opportunities and constraints in the external environment, while policy deals more with internal management and guidelines. 3. A strategy may exist without a specific policy, but policy provides direction for implementing strategies and making decisions aligned with overall objectives.

Uploaded by

Omer Javed
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Difference between Strategy and Policy

Strategy is a plan, or method of approach developed by an individual, group, or organization, in an effort to successfully achieve an overall goal or objective. Strategy is an organizations overall plan of development, describing the effective use of resources in support of the organization in its future activities. It involves setting objectives and proposing initiatives for action. The draft Glossary for strategy adds that strategy is the choice of objectives for the organization as a whole. It defines what must be achieved in the future. A strategy can be for the outcome of the organization as a whole - corporate strategy - or for the outcome of the use of a particular resource, such as IT strategy or Human Resource strategy. Ideally, all strategic planning should be carried out at once, as a whole. That is, there should not be a IT strategy separate from the corporate strategy. Both should be prepared by the same people, using the same process, and reported in the same document. The focus of a strategy is support for the business through its future Processes. Each of these processes requires Resources so they can be carried out. The design of the systems for providing these Resources is part of the strategy. Policy refers to a definite course of action adopted by an individual, group, or organization in an effort to promote the best practice particular to desired results. Policy is clear and measurable statements of preferred direction and behaviour to condition the decisions made within an organization. It describes efficient and acceptable behaviour that assists in maintaining objectives. It defines how action should be taken; whereas strategy defines what action should be taken. A Policy is a description of how people should use resources efficiently or acceptably, whilst maintaining the Strategy. It can be for the operation of the organization as a whole corporate values - or for the use of a particular resource, such as technical IT standards or personnel policy.

Difference between Policy and Strategy


The term policy should not be considered as synonymous to the term strategy. The difference between policy and strategy can be summarized as follows1. 2. 3. 4. 5. Policy is a blueprint of the organizational activities which are repetitive/routine in nature. While strategy is concerned with those organizational decisions which have not been dealt/faced before in same form. Policy formulation is responsibility of top level management. While strategy formulation is basically done by middle level management. Policy deals with routine/daily activities essential for effective and efficient running of an organization. While strategy deals with strategic decisions. Policy is concerned with both thought and actions. While strategy is concerned mostly with action. A policy is what is, or what is not done. While a strategy is the methodology used to achieve a target as prescribed by a policy.

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 cannot 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.

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