Defining policy: practical categories for the public sector

There are essentially four types of policy in the public sector, differentiated by their function, authority and modality:

1. Foundational Policy—the legal policy environment, including legislation, regulation and the constitution.
2. Political Policy—the stated agenda of the elected Government
3. Operational Policy—the internal, delegated and other public sector rules for how departments operate
4. International Policy—the external rules and/or obligations that the jurisdiction is subject to. The table below outlines the difference in function, authority/ownership and their different modalities for change.

FUNCTION AUTHORITY AND OWNERSHIP MODALITY FOR CHANGE Foundational Policy The legal, constitutional, legislative and regulatory framework, which provides context, framing, obligations, structure, accountabilities and delegated authorities of the system of government, including portfolio legislation for departments. The Parliament has authority to make new legislation and regulation, and the Judiciary has ultimate authority for interpreting and ensuring Foundational Policies are lawful and within the Constitutional authority of the Parliament. Constitutional amendments have special rules. In Australia this requires a referendum, making Constitutional change rare. New legislation or regulation can be proposed by any member of Parliament but a majority vote is required, so Foundational Policies tend to be driven by the Government of the day. Political Policy Often referred to as “Big P Policy”, Political Policy refers to the directions and intention of the Government of the day, via respective Ministers (or political appointees). All Political Policy is (or should be) subject to and constrained by the authorities, limitations and mandates defined in Foundational Policy and law. The Government of the day (or otherwise authoritative entity that controls government) has authority on Political Policy. Political Policy is developed, directed and/ or overseen by Ministers or representatives of political leadership. Departments often provide advice in this process. Political Policies might be written, spoken or announced in speeches. They can direct program efforts, authorised decision making, investments, and can include legislative ambitions. Once legislation or regulation is passed by the Parliament, these particular Political Policies move into Foundational Policy. Operational Policy Operational Policy covers all the operational rules, strategies, procedures and authorities delegated to the public sector, both at a whole of government level (e.g. cloud, HR, etc) and departmental (e.g. delegated rules), and are also subject to Foundational Policies. Central agency heads have authority for whole of government Operational Policies, and department heads have authority for departmental Operational Policies, including procedures not defined at a whole of government level and matters delegated in legislation. Departments and central agencies design operational policies within their delegated authorities, with department/agency heads or delegated senior executives developing, directing and/or overseeing Operational Policy design and implementation. International Policy International Policy refers to international agreements, rules or frameworks that the government has agreed to or are obliged to abide by. Examples include trade, security, sanctions, anti- money laundering etc. Be aware of international policies, including which ones are binding (or not) to inform your policy work and journey. International Policies have many owners, but their authority is shaped by the Government of the day, generally upheld by subsequent Governments. Some are upheld by international entities (e.g. International Criminal Court). In Australia, International Policies are found in the Australian Treaties Database. International Policy is often developed collaboratively through international bodies and/or partners, but sometimes can be unilaterally established. The Department of Foreign Affairs (or equivalent) has domestic responsibility for managing and engaging in International Policy initiatives, so engage with them as required.

These policy categories also differ in the hierarchy of authority. Different jurisdictions have different legal constructs and differing levels of authority delegations, so rather than generalising (and running the risk of policy ambiguity), we have used Australia in our example below to show how the different categories can intersect, and to demonstrate a real world hierarchy of policy authority and accountability. Whatever form of policy you are working on or responsible for you should take the time to understand where in the hierarchy the policy sits, what other policies it is superior or inferior to (in authority), and who has accountability for decision making, so you can confidently operate and innovate within your delegations. It is also important to engage the correct change mechanism and decision maker, and to not push upwards what is within your departmental policy authorities. It is useful to be aware of any relevant international policies, so you don’t accidentally create a conflict between domestic and foreign policy settings, such as can be found in procurement policies or trade. There can be a tendency to assume that no policy can be developed without input from, and approval by, a minister’s Office. What this table demonstrates is that while this is true for some forms of policy, it is not true for all. There are entire categories of policy which sit firmly within the agency of the parliament or the departments themselves—this is both a responsibility and a privilege to be confidently exercised.