Few leadership environments are as uncertain today as health care where the Affordable Care Act (ACA) is bringing countless changes to an industry that is growing rapidly, while also experiencing major cost constraints. Recently, I gave a keynote talk to the Northwest Organization of Nurse Executives on “Leadership Development Under the Affordable Care Act.” Here are three critical success factors I shared that are essential for future nurse leaders – and for you, too, if you’re leading in a fast-changing industry.
Focus on New Leadership Skills Needed
As coaching guru Marshall Goldsmith likes to say, “What got you here won’t get you there.” Nurse executives must continually ask, “Are we identifying and developing the essential leadership capabilities needed under the ACA?”
Ironically, Affordable Care is just one of a series of major changes disrupting health care. Others include the American Recovery and Investment Act (2009), which accelerated the adoption of health information technologies, and the Budget and Control Act (2011), which cut Medicare payments and intensified the focus on cost controls.
Given these changes, if you’re not confused, you’re not paying attention. The danger is that executives will assume their current staff has the leadership skills needed to deliver on ACA objectives. This will cause serious problems in the future, unless you’re considering essential capabilities such as:
- Leading a more diverse workforce
- More systemic/integrative thinking
- Cross functional/team-building orientation
- Strong grasp of technology
Here’s a question to be discussing with your most forward-thinking colleagues: “Given our organization’s strategic direction and the changing health care environment, what leadership skills will become much more critical for us in 3-5 years?” Making these new capabilities explicit is the first step.
Promote S-Squared Thinking
Albert Einstein said, “The problems that exist in the world today cannot be solved by the level of thinking that created them.” Indeed, nurse leaders in the future must think more systemically than in the past, making decisions that reflect an understanding of where their units fit in the continuum of care. At the same time, more effective leaders will also be thinking strategically. That is, not just memorizing a strategy, but rather grasping the strategic “big picture” in terms of:
- Who are the populations or patients we serve?
- Services provided today vs. in the future to implement our strategy?
- Who are essential partners in delivering services?
- How do we measure success today? In the future?
- What relevant institutional history affects our current strategy?
Write your answers to these questions and ask your leadership team to do the same. Use the results as a basis of discussion and to develop a more strategic perspective and alignment among your colleagues. For more ideas on how to clarify the strategic “big picture,” see our recent book “The Executive Guide to High-Impact Talent Management.”
Create an Effective Learning Environment
Like many professions today, nurse leaders have to absorb a fire hose of information that they must master to be effective. The costs of failing to support new nurse leaders suffering through this hazing are enormous. The risks of unwanted turnover and burnout are real, and the pipeline of experienced replacements is dangerously thin.
I interviewed one chief nursing officer in a leading medical center who recognized that part of her role was providing “tea and sympathy,” making her office a safe space for her directors to relax and vent about the frustrations they were experiencing.
Another executive recognized the importance of balancing current operational responsibilities with growth opportunities for his less experienced leaders. In some cases, he found it essential to relieve a young leader of past responsibilities forcing them to take on more challenging tasks without being able to fall back on more comfortable activities.
As a nurse leader in the era of Affordable Care, you must clarify what an ideally effective leadership development environment would look like in your organization. You may never get there, but making progress at least requires a vision of where you want to go.
Leadership in health care has never been more challenging. The ACA and other legislation have created incredible uncertainty. But this actually creates great opportunities for those executives who focus on the things that really matter. Remember, hope is not a method when it comes to leadership development.
To learn how you can develop leaders faster in today’s volatile business environment, contact me by clicking here.