In this paper, we report on how teachers in Higher Education enact policy. Outcome-based education (OBE) serves as an example of a governmental educational policy introduced with the European Bologna reform. With a hermeneutic approach, we have studied how 14 teachers interpreted this policy and re-designed their courses. The findings show teachers' enactment of policy framed as different approaches to OBE:" container,""technocratic," "pragmatic" or "ideological." The approaches range from being (1) highly regulated to being autonomous; and (2) from having a teacher-centred orientation to having a student-centred orientation to teaching-learning. Teachers who reinterpreted the policy to fit their learning-centred orientation used it to facilitate a joint development process together with colleagues. Thus, policy may stimulate development of teaching-learning.