Wednesday, July 27, 2022

The Importance of A Strategic Nexus

As with so many things these days, it all started with an e-mail .... “Our company has grown rapidly in the last five years, and we now provide services in 20 different geographical areas. Each demographic location has an Area President and the corporate office has several people who make up the Resource and Quality Improvement teams for the company. 

  

We are in the midst of developing a new Leadership Team, made up of both components plus our CEO, and 2 VPs. Currently, we seem to be having difficulty with defining leadership, and creating a safe and trusting environment in which to share our ideas.

  

I have suggested an outside facilitator and you were the first to come to come to mind.”


I had not heard from this person in over ten years so I called him up on the phone, listened to his concerns, and asked for a packet of core material, namely copies of their mission, vision and core values statements, a current organizational chart, and their most recent strategic plan. Given the parameters of this situation, I also requested a two hour meeting with just the CEO and the two Vice Presidents.


During the first onsite meeting, I listened to the CEO and the two VPs talk about the leadership team and their problems. Over the course of an hour and half, I asked the following four questions, the ones I always ask when helping organizations plan for change: 


- Who will lead?


- Where is the vision and who has it? 


- At what pace do you want to go?


- What should not be lost during the journey?


As we completed the fourth question, the CEO said “Enough with the chit chat and the questions. What is your diagnosis, Geery?”


I replied, “You have an S.D.D.”


He blanched at first because he thought I had said S.T.D. Once he had recovered, he asked “What is an S.D.D.?”


“It is a Strategic Deficit Disorder,” I responded. “The first problem is with your strategy. You have grown so fast that the top three people around this table are not in agreement or in alignment with the strategic direction or intent, and with the pace of change. 


Second, the organizational chart is a mess given each VP uses a different version, and each version has key people reporting to different people.

Third, there is no clear strategic nexus which everyone in the organization can utilize during the times when you are in the trough of chaos.”


There was a long pause in the room and both VP’s turned and looked at the CEO. He sat still for a moment, and then said “OK.... thank-you.  Now, how do we go about changing this situation for the better?”


And then the real journey of change began.


First, I explained the role of a strategic nexus. The word “nexus” comes from the Latin word nectere which means to bind. A nexus is the connection or key linkage that holds things and people together as they move through challenges. It not only holds them together but, when built right, can also become a source of focus and clarity.


A successful strategic nexus consists of two parts. The first is a core ideology made up of a well written vision, mission, and core values. The second is a well designed strategic plan with clear strategy, goals and metrics. When both pieces are integrated, the vision drives the strategy and the mission defines the focus of the strategy. When there also is a clear connection with the organization’s core values, the strategic nexus can generate some things that are very important when moving through the trough of chaos, namely strategic perspective, flexibility, and focus along with strategic responsibility and  accountability. 


I pointed out to the top three people that part of improving the current situation is to create an effective strategic nexus. This is not a paper exercise where people come together in a series of endless meetings, word smithing every letter and syllable to death. Instead, the creation of an effective strategic nexus begins when we realize that we are trying to create a strategic mindset through out the company where the nexus is not only understood but utilized. Ownership and understanding are mission critical, because once the two parts of the nexus are in place, then collaboration and commitment will expand.


Geery Howe, M.A. Consultant, Executive Coach, Trainer in Leadership, Strategic Planning and Organizational Change Morning Star Associates 319 - 643 - 2257

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