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Detailing policy options

Following the initial identification of policy options and appropriate policy instruments, an iterative process of appraisal and detailing is required to work towards a final policy proposal. As the appraisal criteria are applied to narrow down the range of options under consideration, so the importance and practicality of detailing the remaining options increases. Fully worked-up policy options will address:

What will be Delivered?

The proposed policy and choice of policy instruments defines what will be delivered and the vehicle for delivering it. For example this could be an incentive delivered through the tax system, a cash payment delivered using a loan, or a prohibition delivered through legislation. The new good or service to be delivered should be clearly defined and differentiated from policy programmes or projects already in place.

Who will Deliver it?

Identifying the organisations that will make up the delivery system is a key part of detailing a policy. This will involve identifying:

• the extent to which delivery will require the involvement of government departments and agencies, voluntary sector organisations or private sector players
• the extent to which the policy can be delivered through existing institutions versus the need to create new structures.

Drawing on the organisational analysis, this will begin to highlight the degree of institutional change required by the new policy.

What will the Rules be?

Having established who the players in the delivery system will be, it is necessary to define rules to shape how the system will operate. This will involve articulating the roles and responsibilities of each individual player, as well as the arrangements that will govern their interaction. Specifically, this should cover:

• Accountability - the balance of power and allocation and ownership of ultimate responsibility
• Funding - the mechanisms and formulae by which the policy will be funded
• Success - how players will be held to account for success and how it will be defined and measured
• Incentives - what additional incentives are required to drive outcomes.

As the paper Better Policy Delivery and Design (pdf) discusses, designing a high performing delivery system is a highly complex task.

How much will it Cost?

Finally, alongside an increasingly quantified understanding of the benefits that the new policy will deliver, it will be necessary to detail the capital and operational costs associated with the policy and the expected spending schedule.

Useful links:

> organisational analysis

> institutional change

> Better Policy Delivery and Design (pdf)