Guiding Policy

According to Merriam Webster dictionary a policy is":

"..a definite course or method of action selected from among alternatives and in light of given conditions to guide and determine present and future decisions"

According to Richard Rumelt a Guiding Policy:

"..is an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis. Like the guardrails on a highway, the guiding policy directs and constrains action in certain directions without defining exactly what shall be done"

Examples of Policies:

• Cyber Security Policy - guides the standards of behavior for activities such as document sharing, encryption of email attachments and constraints on the use of social media

• Innovation Policy - guidelines to promote innovation in your organization

• Credit Policy - guidelines to establish credit and payment terms for customers and what course of action should be adopted in case of late payments or defaults

Difference between a policy and a Principle: