What makes a good tool? It must be good at its job. But it must also be efficient or economical.
What makes a good policy? It's about the same as a tool. Policies are a type of tool.
They both allow you to come to a desirable outcome. Well designed tools and policies result in more excellent outcomes in a short amount of time.
Bureaucracies are bodies of people that establish policies, provide tools and set the outcomes that are desired.
Bureaucracies can be self governing. But the need for a social contract is necessary. And a need to have consistent, predictable behavior is also necessary.