Executives are losing confidence in their corporate leaders, according to a recent study from the Korn/Ferry Institute.
The firm’s Confidence in Leadership Index looked at perceptions over the last five quarters, and reveals a sharp decline in the trust and confidence executives have for corporate heads, and their leadership direction.
The index measures four key factors of leadership: characteristics of leadership, credibility of leadership, trust in leadership, and direction of leadership.
According to the Korn/Ferry Institute, the index can also be an effective economic indicator, as the Dow Jones Industrial Average, Shanghai Stock Exchange, NIKKEI, Sao Paulo Stock Exchange, and the Global Dow all fell anywhere from 10% to 23% in Q2, the same time that confidence was waning (after achieving all-time highs in Q1).
The most significant decline in Q2 was with corporate boards, which lost six points in the credibility of leadership score, while CEOs fell by five points.
“From the C-suite to the Board, the top of the house is typically the first to be credited with success in economic upswings, and scrutinized during fragile environments,” says Ana Dutra, CEO, Korn/Ferry Leadership and Talent Consulting.
“During times of economic instability, top leadership must take even more proactive steps to ensure stakeholders have confidence in their capabilities as leaders. Do they have the rights skills, credentials, integrity, and ability to drive the organization through the periods of volatility?”
European and North American leadership data revealed downward trends across the board in confidence and trust, while the Asia-Pacific was the only region to display a positive trajectory.
