1. A system for policy-based service management, comprising: a rules definition interface module configured to receive a plurality of rule definitions, wherein a rule definition includes a variable; and a policy management interface module configured to allow a user to define a rule instance from a rule definition defined via the rule definition interface and to define a policy instance based on the defined rule instance, wherein the rule instance includes one or more conditions containing selected members of a value set associated with the rule definition variable, wherein the value set is predefined by a user.