Strategy Survival Guide

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Strategy Survival Guide Version 2.1
Prime Minister’s Strategy Unit
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Strategy Development > Policy & Delivery Design > Tasks
Appraising policy options
The policy development process should be under-pinned by a progressively more formalised appraisal of
alternative options according to a constant set of criteria. From the initial sense-check following the
brainstorm to the final cost-benefit analysis or regulatory impact assessment, the same set of criteria
should inform and frame the development and appraisal of policy options. These include:
Suitability – Will the option address the key issues and will it be able to deliver desired outcomes?
• Rationale – is there a clear case for government action?
• Proportionality – is the (cost of the) policy option proportionate to the (cost of the) problem?
• Effectiveness – how well will the option address the issue or problem?
• Impact – are there any unintended consequences? Are costs and benefits equitably distributed?
Feasibility – Is the option a realistic and practical possibility?
• Capability – will it be possible to implement and manage the option?
• Accountability – can clear accountabilities be established and aligned with incentives?
• Affordability – is there the money, and is it value for money against alternatives?
• Risk – can risks be identified and either mitigated or allocated and managed?
• Control – are there clear success measures and mechanisms for prompt feedback and learning?
Acceptability – Is the option supported by those with the authority and influence to legitimise action?
• Participation – has there been sufficient public participation and consultation in policy design?
• Buy-in – is there sufficient support from both internal and external stakeholders?
Accompanying the increasingly more formal application of these criteria should be a corresponding increase
in the burden of proof required. An initial intuitive application of the criteria should be progressively replaced
by an evidence-based approach such that the final appraisal of options, (using techniques such as costbenefit
and cost-effectiveness analysis or multi-criteria analysis), is fully grounded in a comprehensive
body of evidence drawing on the full range of data types available.
In addition, and to help appraise each of the options against the above criteria, it can be helpful to:
• use scenarios to assess the robustness of the proposed policies against different possible futures
• use sensitivity analysis to explore the risks and uncertainties surrounding each policy option
• imagine the future created by each option and analyse for the unexpected or unacceptable
• seek the reaction of the expert advisory group or focus groups of practitioners or clients
• use counterfactual analysis to compare the potential impact and costs of each option against the
likely impact and costs of doing nothing.
Useful links:
> cost-benefit and cost-effectiveness analysis
> multi-criteria analysis
> Regulatory Impact Assessment
> Code of Practice on Consultation
> data types
> scenario development
> focus groups
> counterfactual analysis
Strategy Survival Guide – Strategy Development
Page 39