A policy is a deliberate system of guidelines that guides decisions and achieves rational outcomes. It is a statement of intent and is implemented as a procedure or protocol. Policies can be adopted by a governance body within an organization, such as a law, regulation, procedure, administrative action, incentive, or voluntary practice of governments and other institutions. Policies can also be a set of general guidelines that outline an organizations plan for tackling certain issues. They can include a definite course or method of action selected from among alternatives and in light of given conditions to guide and determine present and future decisions. Policies can be operational in nature and can be objectively tested, such as password policy.

Policies can be executed within a sector, such as the health sector, to influence health care delivery, or in other sectors such as education, agriculture, or employment, among others, to achieve public health goals. Policies can be political, managerial, financial, and administrative mechanisms arranged to reach explicit goals.

Policies are different from rules or laws, as the law can compel or prohibit behaviors, while policy merely guides actions toward those that are most likely to achieve the desired outcome. Policies can be a blueprint of the organizational activities which are repetitive/routine in nature.

In summary, a policy is a set of guidelines or a plan of action that is agreed upon by a group of people, a business organization, a government, or a political party to guide decisions and achieve rational outcomes.