The Importance of Clear Division Between Policy, Commissioning, Strategy, and Operations
In any organization, understanding the division between policy development, strategy setting, commissioning, and the operational implementation of plans is essential. This separation ensures that roles and responsibilities are well-defined and that risks, budgets, resources, and performance metrics are managed appropriately.
While policy makers, strategists, and commissioners focus on the “what” and “why,” operational teams are responsible for the “how” of execution. This clear delineation helps avoid confusion, reduces the potential for micromanagement, and ensures that both parties operate efficiently and effectively within their defined roles.
Responsibilities in Policy and Strategy vs. Operations
1. Policy Makers, Strategists, and Commissioners: These groups are responsible for setting the vision, developing policies, and allocating resources. Their job is to define the objectives, scope, and direction of projects or initiatives, and to ensure that there is a clear understanding of what needs to be achieved.
2. Operational Teams: These teams are tasked with executing the policies and strategies outlined by the commissioners and policy-makers. They are responsible for managing day-to-day operations, implementing plans, and achieving the desired outcomes within the defined parameters.
Implications of Dividing Policy and Strategy from Operations
Risk Management
The division between policy and operational teams is critical in managing risks. Policy and strategy teams define the objectives, scope, and overall direction but should not be involved in the day-to-day management of risks that arise during implementation. These operational risks include the potential for delays, cost overruns, or failure to meet objectives. By assigning these risks to operational teams, organizations can ensure accountability for execution while policy teams focus on maintaining strategic oversight.
It is crucial that risks are clearly identified in the commissioning phase, with specific roles assigned for managing operational and financial risks. Clear definitions of who handles what in terms of risks ensure that the right people are accountable for specific issues.
Budget and Resources
One of the most important aspects of the division between policy and operations is how budgets and resources are allocated. Policy-makers and strategy teams should establish the budget and provide the necessary resources for execution. However, the operational teams are the ones responsible for managing those resources efficiently and delivering results within the allocated budget.
A clear agreement on costs, funding, and payment terms should be established at the outset. This includes outlining what is covered under the project budget, agreeing on timesheets, payment schedules, and any other financial terms. By maintaining this clear structure, organizations can avoid disputes over funding and ensure that resources are used effectively to meet project goals.
Key Performance Indicators (KPIs) and Objectives and Key Results (OKRs)
For successful project execution, both policy-makers and operational teams need a clear framework for measuring performance. This is where Key Performance Indicators (KPIs) and Objectives and Key Results (OKRs) come in.
KPIs: Policy teams should define the broad success metrics of the initiative, such as delivery timelines, cost-effectiveness, and overall performance. These KPIs should focus on outcomes and align with the organization’s strategic goals.
OKRs: Operational teams should define their own OKRs, focusing on specific, actionable results within the scope of their role. This allows them to track progress more precisely and ensure that they are on track to meet the broader KPIs.
The key is that these performance metrics should be agreed upon at the start of the project and regularly monitored throughout the implementation phase, with clear responsibility for tracking performance delegated to the operational team.
The Governance Framework: Ensuring Clear Agreements
Scope, Remit, and Agreement on Deliverables
Having a clear agreement on the scope, remit, and deliverables at the outset is critical. Policy-makers and strategy teams should clearly define the project’s scope and objectives. This includes agreeing on specific deliverables, timelines, and performance targets.
Once the scope and remit are defined, they must be included in the commissioning contract or agreement, such as Service Level Agreements (SLAs), contracts, or Memoranda of Understanding (MOUs). These documents ensure that there is no ambiguity about the expectations for both the policy and operational teams.
Clear Contracts and Legal Agreements
Clear agreements on funding, payments, and timelines should be documented in legally binding contracts. This helps to avoid disputes regarding what was agreed upon and ensures both policy-makers and operational teams understand their obligations.
Contracts should also outline specific milestones for performance and payment, timesheet requirements, and other financial and operational terms that will govern the project. These terms must be understood and agreed upon before any work begins to ensure a smooth relationship between the policy and operational sides of the project.
Top Tips for Effective Management of Policy and Operations
1. Ensure Clear Role Definitions – Distinguish between policy-making, strategy development, and operational execution. Clearly define each group’s responsibilities to prevent overlap and confusion.
2. Set Up Robust Governance Systems – Establish governance frameworks with clear oversight structures. Ensure that regular reviews and audits are in place to track progress without micromanaging.
3. Agree on Budget and Payment Terms – Have clear agreements in place regarding budgets, timesheets, and payment schedules to prevent financial misunderstandings.
4. Define KPIs and OKRs Early – Align the policy team’s broad KPIs with the operational team’s specific OKRs to ensure both are on the same page in terms of objectives and deliverables.
5. Maintain Transparent Communication – Foster an environment where both policy and operational teams communicate openly. Regular reporting helps to identify challenges early and maintain focus on the agreed goals.
6. Respect the Boundaries – Ensure that policy and strategy teams stay focused on setting direction while operational teams manage implementation. Avoid the temptation to micromanage or blur the lines.
Self-Evaluation Checklist
1. Role Clarity: Are roles and responsibilities clearly defined for both policy-makers and operational teams? Is there any overlap in responsibilities that could cause confusion?
2. Risk Management: Have operational and financial risks been clearly assigned to the appropriate parties? Are there systems in place to monitor these risks?
3. Budget Agreement: Have clear agreements been made regarding the budget, payment terms, and timesheet management? Is everyone on the same page regarding resource allocation?
4. Performance Metrics: Have KPIs and OKRs been defined? Are these performance indicators being monitored regularly?
5. Governance Framework: Is there a governance system in place to ensure oversight without micromanagement? Are there checks and balances in place?
6. Scope and Deliverables: Is the scope and remit of the project clearly defined? Are deliverables, timelines, and performance targets agreed upon and understood?
By establishing these clear agreements and frameworks, organizations can effectively manage the separation of policy, strategy, and operations, ensuring that projects are executed efficiently while minimizing risks and maintaining accountability.
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