Policy Analysis and Its Five Principal Steps
For large companies, regardless of their size, trade turnover, and financial benchmarks, it is fair to note that there is a need to choose the best organizational solutions that promote economic and political development. The effectiveness of the policy analysis used in management practices directly depends on the enterprise’s productivity within the set time frame. It should be noted that the implementation of the analysis is carried out in a different number of steps, although it covers all stages from the identification of the problem to the qualitative assessment of the solution undertaken. Thus, there are the five most important steps of this procedure:
- problem identification;
- options or alternatives;
- and evaluation of the selected option.
The first step is to study the company’s environment and analyze its strengths and weaknesses; management experts approve the current problem, expressed as a single question sentence. By stating this, it is essential to discuss why the problem is important and necessary to solve now. Herein, it is necessary to collect as much relevant professional data as possible, which fully reflects the problem. The third step is to identify the problem’s landscape, which is to determine the range of stakeholders, their participation and responsibilities, relevance, and urgency of the issue.
Having collected a sufficient amount of background information and analyzed it, specialists start looking for options that can be applied in a complex organization. Finally, the fifth step is to seek to assess the adopted option’s commercial effectiveness by answering pressing questions about timeliness, appropriateness, cost, benefits, feasibility, and legitimacy. When weaknesses are found, it is expected that adjustments will be made to the decision that significantly alters the effect of the action for the better.