Policy analysis is a real-world decision-making tool. Its literature is published most frequently in the fields of public administration, political science, organizational psychology, economics, and business administration. A review of this literature gives insight into its nature and practice. (MSE)

Policy analysis is a two-stage process of (1) diagnosing the problem and (2) unraveling the parts in it played by the policy issue, environment, factors affecting implementation, and proposed alternatives. In higher education, this requires a thorough understanding of the unique higher education environment. (MSE)

Policy analysis in higher education is distinct from but is informed by and can contribute to both institutional research and institutional planning. Policy analysis extends beyond data analysis, using many qualitative research methods and a degree of intuition, and focuses on specific issues, not systems as does planning. (MSE)