Abstract
In view of the pervasive impact of government policies on health services organizations worldwide, policy competence is an increasingly important element in the successful strategic management of these organizations. This article discusses a conceptual perspective of policy competence, including three intertwined components of this competence. Firstly, policy competence is built upon understanding the government policies that affect health services organizations, as well as understanding the process by which such policies are made and the forces that can affect the process and its outcomes. Secondly, policy competence helps strategic managers anticipate and lead responses of health services organizations to the opportunities and threats emanating from their policy environments. Finally, policy competence assists strategic managers to participate effectively in shaping the policy environments of health services organizations to the benefit of these organizations.
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