Understanding the differences between policies and strategy is crucial for effective organizational management and decision-making. While closely related, these concepts play distinctly different roles in the framework of an organization, guiding its operations and shaping its future direction.

What are Policies?

Policies are guidelines or rules that dictate how routine decisions should be made within an organization. They establish standard procedures and formalize decision-making, ensuring consistency and efficiency across all levels. Policies are often developed to comply with external regulations or to enhance internal systems.

Examples of Policies:

1. A company's HR policy that outlines procedures for recruitment, onboarding, and termination.
2. A school's policy regarding student conduct, attendance, and dress code.
3. An IT policy that specifies the use of company equipment and software security protocols.

What is a Strategy?

A strategy is a comprehensive plan formulated by an organization to achieve specific long-term objectives. It is more dynamic than policy and focuses on competitive positioning and adapting to external business environments. Strategy is about choosing what not to do as much as it is about choosing what to do.

Examples of Strategies:

1. A technology company's strategy to gain market share by focusing on innovation and customer service.
2. A retail chain's strategy to expand into new geographic markets over the next five years.
3. A non-profit's strategy to increase awareness and fundraising through social media campaigns.

Differences Between Policies and Strategy: 

Basis	Policies	Strategy
Definition	Guidelines or rules designed to set standards and influence decisions within an organization.	A high-level plan aimed at achieving core goals and competitive advantage.
Purpose	To ensure consistency and compliance in daily operations.	To guide long-term decision-making and organizational direction.
Focus	Internal operations and implementation.	External market position and overall organizational growth.
Flexibility	Generally rigid and are infrequently changed.	Highly flexible, allowing adjustments as per market conditions and business needs.
Time Frame	Operates on an ongoing basis and does not usually have a set time frame.	Usually has a specific long-term focus, aiming for future positioning.
Development	Developed by middle management or specialized departments (e.g., HR, Compliance).	Typically formulated by top management with input from various stakeholders.
Examples	Workplace safety protocols, privacy policies, reimbursement policies.	Strategic plans for entering new markets, product development strategies, mergers and acquisitions strategies.