Disclosed herein are systems, methods, and computer-readable storage media for automatically generating a dialog manager for use in a spoken dialog system. A system practicing the method receives a set of user interactions having features, identifies an initial policy, evaluates all of the features in a linear evaluation step of the algorithm to identify a set of most important features, performs a cubic policy improvement step on the identified set of most important features, repeats the previous two steps one or more times, and generates a dialog manager for use in a spoken dialog system based on the resulting policy and/or set of most important features. Evaluating all of the features can include estimating a weight for each feature which indicates how much each feature contributes to at least one of the identified policies. The system can ignore features not in the set of most important features.