Policy analysis is "determining which of various alternative policies will most achieve a given set of goals in light of the relations between the policies and the goals". However, policy analysis can be divided into two major fields. Analysis of policy is analytical and descriptive—i.e., it attempts to explain policies and their development. Analysis for policy is prescriptive—i.e., it is involved with formulating policies and proposals (e.g., to improve social welfare). The area of interest and the purpose of analysis determines what type of analysis is conducted. A combination of policy analysis together with program evaluation would be defined as Policy studies.
Policy Analysis is frequently deployed in the public sector, but is equally applicable to other kinds of organizations. Policy analysis has its roots in systems analysis as instituted by United States Secretary of Defense Robert McNamara during the Vietnam War.
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