There are a number of tools that governments can use to implement public policy. Examples include legislation, agreements, policies, taxes, performance-based incentives, etc. Choosing the appropriate tool means selecting that which best achieves the desired outcome in a way that is both sustainable and cost-efficient. Policy professionals and decision-makers should also consider using a combination of policy tools. Treasury Board of Canada Secretariat notes that combining policy tools can stimulate innovative solutions for government action. For example:

• Supplementing conventional regulatory approaches;
• Addressing problematic activity quickly;
• Avoiding/overcoming federal-provincial jurisdictional issues;
• Addressing ever-changing technologies or issues;
• Addressing issues outside of government’s legislative scope;
• Allowing governments to encourage best practices they wish to promote, but not require; and,
• Providing citizens with mediation methods other than going to court.

When determining which policy tool (or mix of tools) will be the most effective, officials should:

• Analyze the policy problem and its alternatives;
• Engage with those who are affected by or have a vested interest in the problem;
• Assess potential tools, paying careful consideration to:
  • Effectiveness,
  • Legality,
  • Compliance, and
  • Economic Implications;
• Analyze the impact of the proposed solution; and,
• Analyze the resources needed for the proposed solution, including any resources required to implement and enforce the solution.

It is recommended that legislation be chosen only when it is the most effective way to achieve the desired policy outcome, after all other tools have been considered and exhausted.

Once the policy tool (or mix of tools) has been selected, it is important to monitor and evaluate implementation to ensure that the selection is achieving and maintaining its intended outcome.

Examples of Policy Tools:

• Policies
• Agreement/contracts
• Legislation and regulations
• Collaborations/partnerships/networks
• Self-regulation
• Performance-based incentives
• Voluntary programs
• Taxation
• Information/education
• Doing nothing/maintaining status quo/not intervening

If you’ve chosen a policy tool and are ready to start the drafting process, check out our Tips for Good Policy Writing.