What is the relationship between policies and strategic management?
Policy is an overall guide that governs and controls the managerial action. Strategic decisions are the decisions that are concerned with whole environment in which the firm operates the entire resources and the people who form the company and the interface between the two.
Strategies are the means or the plans by whichthese objectives can be achieved, and Policies are usually formed to ensure that the strategy isimplemented effectively and efficiently.
Project management goals focus just on the current product's or program's future success and often have a finite timeline, while strategic management goals involve the entire business striving for future success.
Policy helps align actions and behaviors with strategy. This minimizes zigzag decisions and conflicting practices and establishes consistent patterns of action in terms of how the organization is attempting to make the strategy work.
Policy is the spheres or scope within which decisions are taken by the employees in the organization. Strategy is an action that managers and directors take to achieve one or more of the organizational goals. A policy is a guide to thinking and action for those responsible for making decisions.
A key similarity between strategy and policy is that both are often set at the top-management level of an organization. A management team usually collaborates to set goals and strategy for how to operate the company in a profitable way.
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Comparison Chart.
| Basis for Comparison | Strategy | Policy |
|---|---|---|
| Orientation | Action | Thought and Decision |
| Formulation | Top Level Management and Middle Level Management | Top Level Management |
First you formulate a policy which is the principles or the protocols to guide decisions and next we can make a strategy and finally a detailed plan to achieve the strategy. It is a difficult question, indeed. They are all closely inter-related, and are all products of the process of planning.
A Strategy is a special plan made to achieve a market position and to reach the organizational goals and objectives, but Policy refers to a set of rules made by the organization for rational decision making. Many people have confusion regarding the two terms, but they are not alike.
Corporate strategy identifies the goals of a company and defines ways of achieving those goals. Project management takes one of the goals and manages costs, schedules and resources to give the desired result.
What is the difference between strategic planning and project planning?
Strategic plan vs project plan
A strategic plan is the “how” of your project. This is different from a project plan, which is focused on the execution or the nitty-gritty of “what” needs to be done.
The strategy manager is responsible for aligning projects with the organization's strategic plan. This person acts as a “checks and balances,” confirming that each project has a clear purpose and reason for existing—in other words, that the work is worth the effort.
The policy is a set of common rules and regulations, which forms as a base to take the day to day decisions. The strategy is a plan of action while the policy is a principle of action. Strategies can be modified as per the situation, so they are dynamic in nature. Conversely, Policies are uniform in nature.
A Strategy is a special plan made to achieve a market position and to reach the organizational goals and objectives, but Policy refers to a set of rules made by the organization for rational decision making. Many people have confusion regarding the two terms, but they are not alike.
| Plans | Policies |
|---|---|
| Planning is about making plans on how to achieve the objective | Policy is the guideline to achieve the objective |
| Plan is a course of action intended for future | Policy is a set of rules and regulations |
First you formulate a policy which is the principles or the protocols to guide decisions and next we can make a strategy and finally a detailed plan to achieve the strategy. It is a difficult question, indeed. They are all closely inter-related, and are all products of the process of planning.