M2: Learner Manual

2. What is Policy?

The Australian Indigenous Governance Institute (AIGI) provides the following definition of policy: 

Definition: Policies are the big-picture guidelines that set out, in clear language, what an organisation wants to achieve (such as its long-term vision and goals) and the performance standards and outcomes expected. 

They provide the overarching framework under which procedures are then designed to get those big-picture things done. 

In any organisation, some policies specifically focus on governance; others address operational, administrative and HR matters. 

Whatever the type, in all cases, the final policies must be formally approved by the governing body. 

Only decisions made by the governing body as a whole are binding. 

Put simply, the governing body develops policy and management implements it.