Difference between Policy and Strategy

Difference between Policy and Strategy

7 mins read1.2K Views Comment
Chanchal Aggarwal
Senior Executive Content
Updated on Feb 9, 2024 17:00 IST

The policy is the playbook that defines rules and guidelines for consistent behaviour, ensuring compliance and alignment. On the other hand, strategy is the game plan that charts the course towards specific goals, considering the ever-changing playing field. Policy tells you how to play the game, while strategy determines how to win it. Together, they provide the winning formula for organizational success.


In the dynamic business world, policy and strategy serve as two essential tools that shape the direction and operations of your organization. But what sets them apart? Understanding policy and strategy differences is crucial for effective planning and implementation. 

Whether you’re a budding entrepreneur or an aspiring leader, grasping the disparity between policy and strategy will equip you with a valuable perspective in navigating the intricacies of decision-making. So, let’s understand!

Explore Business Strategy Courses

Table of Content

Comparative Table: Policy vs Strategy

Aspects Policy Strategy
Definition Set of guidelines or principles Plan of action
Focus Decision-making within organization Achieving specific objectives
Scope Multiple operational areas Specific goals or initiatives
Timeframe Longer-term, stable Dynamic, responsive to change
Level of Detail Detailed guidelines and procedures High-level roadmap
Purpose Ensure consistency and compliance Achieve competitive advantage
Implementation Provides framework for decision-making Guides resource allocation and planning
Examples Employee conduct policy Marketing strategy
Decision-making Governs decision-making processes Guides decision-making towards goals

Strategic Management: Definition, Importance and Objectives
Strategic Management: Definition, Importance and Objectives
Strategic management is the process of formulating and implementing strategies to achieve the goals and objectives of an organization. Strategic management is important in charting the future course of an...read more

What are the 3 Types of Strategy?
What are the 3 Types of Strategy?
Business involves 3 main strategies Corporate, Business and Functional. Corporate strategy is the overall plan that guides other two strategies. Business strategy is related to the particular market, product or...read more

What is Policy?

Policy refers to rules, principles, or guidelines established by an organization or governing body to provide direction and shape decision-making processes. It serves as a framework for consistent and informed actions, ensuring that individuals within the organization follow a unified approach and work towards common goals.

Policies can cover a wide range of areas, such as governance, operations, employee conduct, financial management, and more, depending on the context and purpose of the organization.

And no matter which organisation you get a job in, try upgrading your skills early with government job oriented courses after 10th. Likewise, you may find some better opportunities at low cost or even free with government online courses.


Policy formulation in an organization involves the process of developing and establishing new policies or revising existing ones. Here’s an example to illustrate the process:

Scenario: ABC Corporation, a software development company, is experiencing increasing cybersecurity threats. Recognizing the need to enhance their security measures, the organization decides to formulate a new cybersecurity policy.

Identifying the Need: The company’s management team and IT professionals identify the rising cybersecurity threats as a significant concern that needs to be addressed through a comprehensive policy.

Gathering Information: The team conducts research, gathers data, and analyzes industry best practices, legal requirements, and technological advancements related to cybersecurity. They also consider the organization’s unique requirements, such as the type of data they handle and the potential impact of a security breach.

Drafting the Policy: The team begins drafting the cybersecurity policy based on the information gathered. They outline objectives, establish guidelines for data protection, define roles and responsibilities, and incorporate measures such as regular system updates, employee training, and incident response protocols.

Stakeholder Engagement: The draft policy is shared with relevant organisational stakeholders, including department heads, IT personnel, legal advisors, and human resources. Their input and feedback are considered to ensure the policy aligns with the organization’s overall goals and addresses concerns from different perspectives.

Review and Revision: The policy undergoes a review process to identify gaps, inconsistencies, or potential conflicts with existing policies. Amendments are made to enhance clarity, feasibility, and effectiveness.

Approval and Implementation: The finalized policy is presented to the organisation’s executive leadership or designated approval authority. Once approved, it is communicated to all employees through training sessions, company-wide announcements, and accessible policy documentation.

Monitoring and Evaluation: The organization establishes a mechanism to monitor compliance with the policy and evaluates its effectiveness periodically. Any necessary updates or modifications are made to keep the policy-relevant and aligned with changing cybersecurity landscape and organizational needs.

Corporate Strategy: Meaning, Types, and Examples
Corporate Strategy: Meaning, Types, and Examples
Corporate strategy outlines how a company intends to achieve its goals and objectives, considering market dynamics, resource allocation, and competitive advantage. It’s a roadmap for decision-making to ensure long-term success...read more

Business Strategy: Meaning, Types, and Importance
Business Strategy: Meaning, Types, and Importance
Business strategy involves a set of planned actions and decisions that guide a company towards its goals. It encompasses competitive positioning, resource allocation, and a long-term vision to achieve success...read more

What is Strategy?

Strategy is an organisation’s well-defined plan or approach to achieve specific goals or objectives. It involves making decisions and taking actions that align resources, capabilities, and activities to maximise the chances of success and competitive advantage.

A strategy provides a roadmap for the organization, outlining the direction it intends to take and the methods it will employ to reach its desired outcomes. It involves analyzing the internal and external factors that impact the organization, identifying opportunities and challenges, and devising a plan of action to capitalize on strengths and mitigate weaknesses.


Strategy formulation in response to the cybersecurity threats faced by ABC Corporation would involve developing a comprehensive plan to address the issue. Here’s how the strategy formulation process would unfold:

Analyzing the Current Situation: The organization assesses the current state of cybersecurity within the company. This includes evaluating existing security measures, identifying vulnerabilities, and understanding the potential impact of cyber threats on the organization’s operations and reputation.

Defining Strategic Objectives: ABC Corporation sets clear and measurable strategic objectives related to cybersecurity. These objectives could include reducing the number of successful cyber attacks, enhancing data protection, ensuring compliance with relevant regulations, and improving incident response capabilities.

Identifying Strategic Initiatives: The organization identifies and prioritizes strategic initiatives to achieve cybersecurity objectives. This may involve implementing multi-factor authentication, strengthening network infrastructure, conducting regular vulnerability assessments, enhancing employee awareness and training, and establishing incident response protocols.

Resource Allocation: ABC Corporation determines the necessary resources, both financial and human, required to implement the strategic initiatives. This includes allocating budgets for cybersecurity technologies, hiring or training skilled cybersecurity professionals, and investing in ongoing monitoring and threat intelligence systems.

Implementation Plan: The organization develops a detailed plan that outlines the timelines, responsibilities, and dependencies for executing the strategic initiatives. The plan ensures coordinated and efficient implementation of cybersecurity measures, minimizing disruptions to daily operations.

Communication and Training: ABC Corporation communicates the cybersecurity strategy and initiatives to all employees, emphasizing their roles and responsibilities in maintaining a secure environment. Training programs and awareness campaigns are conducted to educate employees about cybersecurity best practices and potential risks.

Monitoring and Evaluation: The organization establishes a monitoring system to track strategic initiatives’ progress and evaluate their effectiveness. Key performance indicators (KPIs) are defined to measure the impact of the cybersecurity measures, and regular assessments are conducted to identify areas for improvement and adaptation.

Strategy Implementation: Meaning and Process
Strategy Implementation: Meaning and Process
Strategy implementation is the critical process of turning a well-crafted business plan into actionable steps. It involves assigning responsibilities, allocating resources, and fostering clear communication to ensure that everyone understands...read more

Strategic Brand Management: Meaning and Importance
Strategic Brand Management: Meaning and Importance
Imagine a company launching a new line of sneakers. They craft a unique brand identity through strategic brand management, positioning themselves as the epitome of style and performance. Their targeted...read more

Key Differences Between Policy and Strategy


A policy is a set of guidelines or principles dictating an organisation’s decision-making. It outlines the overall approach to be taken on specific issues. Strategy refers to a plan of action to achieve specific objectives or goals. It involves analyzing the current situation, setting goals, and determining the best course of action to reach those goals.


Policies focus on establishing rules, protocols, and guidelines to ensure consistency, fairness, and compliance within the organization. They provide a framework for decision-making and address specific operational areas. Strategies focus on achieving desired outcomes and competitive advantages. They involve making decisions regarding resource allocation, market positioning, innovation, and long-term planning.


Policies are broad and encompass various areas of an organization’s operations. They guide decision-making across multiple functions and departments. Strategies are more specific and targeted. They are developed for particular goals or initiatives and may be focused on specific departments or business units.


Policies tend to be more stable and have a longer timeframe. They provide consistent guidelines and are not expected to change frequently. Strategies are dynamic and responsive to changing circumstances. They may be adjusted or revised based on internal or external factors to ensure alignment with organizational goals.

Level of Detail

Policies are often more detailed, providing specific guidelines and procedures to be followed in various situations. Strategies are broader and provide a high-level roadmap for achieving goals. They may not delve into specific implementation details.


The policy establishes guidelines and rules for consistent organisational behaviour and decision-making, ensuring compliance and alignment with objectives. On the other hand, the strategy involves developing a plan to achieve specific goals by considering internal and external factors. While policy focuses on implementation, the strategy focuses on the direction. Both are crucial for organizational success, with policy providing a framework and strategy guiding decision-making and adaptation.

Recommended Articles:

Leadership vs Management: The Grand Old Debate
Leadership vs Management: The Grand Old Debate
There has always been a debate on whether leadership and management are the same thing or not; and if they are different, then why? This article will try to differentiate...read more

Difference between Entrepreneur and Entrepreneurship
Difference between Entrepreneur and Entrepreneurship
An entrepreneur is an individual who starts and operates a business venture. In contrast, entrepreneurship encompasses the broader concept, mindset, and process of creating and managing businesses. Uncover the diverse...read more

Difference Between Authority and Responsibility
Difference Between Authority and Responsibility
Authority is the power to give orders and make decisions, while responsibility is the obligation to perform tasks and fulfill roles. It’s the balance between empowerment and accountability that drives...read more


What is the difference between policy and strategy?

Policy refers to guidelines and rules that govern behavior and decision-making, while strategy is a plan of action to achieve goals and objectives.

What does a policy do?

A policy provides a framework for consistent behavior and decision-making, ensuring compliance and alignment with objectives.

Who is responsible for policy and strategy formulation?

Policy formulation often involves management, legal advisors, and relevant stakeholders, while strategy formulation typically involves top-level executives and strategic planning teams.

Can policy and strategy change over time?

Yes, both policy and strategy can change over time to adapt to new challenges, opportunities, and evolving organizational needs.

About the Author
Chanchal Aggarwal
Senior Executive Content

Chanchal is a creative and enthusiastic content creator who enjoys writing research-driven, audience-specific and engaging content. Her curiosity for learning and exploring makes her a suitable writer for a variety ... Read Full Bio