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Leaders’ confidence in their executive team falls to a three-year low.Leaders’ confidence in their executive team declined in the last six months from 64.2 to 62.5 points. Despite a slight confidence increase in H2 2023, overall confidence has decreased since H1 2021, falling 5.4 points.
This continuous decline in confidence correlates with our findings in the Global Leadership Monitor, which found that leadership preparedness to face key threats to organizational health—such as economic uncertainty, generative AI, and geopolitics—also continues to fall.
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CEO confidence falls the most among leadersWhile CEO confidence sits notably higher than that of C-suite and next-generation leaders, it has fallen the most in the last six months, down 2.6 points to 66.1. This decline comes after a rebound in H2 2023, and remains notably lower than H1 2021’s high of 73.6.
CEOs need to feel confident that their top team has what it takes to drive the business forward, make smart decisions, and successfully navigate existing and emerging threats. |
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CEOs are particularly concerned about the behavior and culture of their top leadership teams.CEO confidence is down across all three of the constructs we measure—executive capability, executive team behavior, and how the executive team tackles critical issues. Of these constructs, CEOs are least confident in their leadership team’s behavior, dropping 4.4 points to 68.0. Currently, only 67% of CEOs agree that their leadership team role models the right culture and behaviors. And, when considering team effectiveness, only 67% of CEOs feel that their executive team effectively embraces change, and only 69% agree that their executive team works together effectively as a team.
Role modeling the right culture, collaborating across functions, and demonstrating openness to change are essential components of a high-performing leadership team that inspires confidence. CEOs must continue to focus on building a high-performing C-suite and identifying leaders that will help drive forward growth in an increasingly complex business environment.
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The C-suite records a notable drop in issue management.C-suite confidence in their own ability to manage critical issues is down 3.7 points to 55.4, as the proportion of leaders who are confident in their ability to engage with ESG, tech change, and DE&I is declining. And, critically, only 26% of C-suite leaders agree their executive leadership team has a successful strategy for leadership succession at the C-level. Ineffectively engaging and developing next-generation leaders poses a real challenge to the C-suite’s ability to adapt to the challenges and opportunities it faces.
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Leadership confidence decreases in the US and Europe, but remains steady in Asia.The US reported a 2.1-point drop in leadership confidence to 62.9 in the last six months. The decline is particularly pronounced around the issue management sub-index, falling 3.4 points in the last six months to 58.6. In a fast-evolving DE&I and ESG landscape, US leaders are losing confidence in their ability to effectively manage these issues.
In Europe, leadership confidence declined 1.2 points in the last six months to 61.5, with the biggest decreases noted in France and Switzerland. Germany and Spain reported slight increases in leadership confidence at 59.5 and 62.0 points, respectively. In Asia, leadership confidence remained unchanged over the last six months at 62.0, although this is still notably below the levels recorded when we first began tracking leadership confidence in H1 2021.
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Board confidence in their executive team dips slightly, but remains well above other executives.The gap in confidence between executives and board leaders has narrowed slightly, with board confidence in their executive leadership team falling 2 points in the last six months. Board confidence remains 13.8 points higher than next-generation leaders, 13.2 points higher than C-suite leaders, and 6 points higher than CEOs. This disconnect in perception may be attributed to the board’s broader, long-term view, compared with those of C-suite and next-gen leaders, who are more acutely aware of execution challenges that might limit strategic progress. |
We share how leaders’ confidence in their executive team has changed in the last three years.
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Identify the right leaders for your C-suite
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Assess and develop CxOs—and position your C-suite to win
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Equip CxOs to collaborate and perform as a team
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Enable leaders to tap into the power of their culture
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Find and develop the next generation of C-suite leaders
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The Leadership Confidence Index captures the view of CEOs, C-suite leaders, next-generation leaders (those 1-2 levels below the C-suite), and board directors on the effectiveness of the executive leadership team (ELT) at their organization across three constructs:
Does the ELT:
Does the ELT:
Does the ELT:
Responses to these items are combined into an overall Leadership Confidence Index on a 100-point scale, as well as a sub-index on each of the three constructs.
The Leadership Confidence Index is derived from RRA’s Global Leadership Monitor, which is an online survey of executives and non-executives that gathers the perspective of leaders on the impact of external trends on organizational health and their leadership implications (first launched in 2021). Russell Reynolds Associates surveyed its global network of executives using an online/mobile survey from 4 March to April 1 2024. Data from previous Global Leadership Monitor surveys were deployed in February/March 2021, March 2022, October 2022, March 2023, and September/October 2023.
View a breakdown of the survey respondents
Ela Buczynska, Tom Handcock, and Gabrielle Lieberman of RRA’s Center for Leadership Insight conducted the research and authored this report.
The authors wish to thank the 2,700+ leaders from RRA’s global network who completed the 2024 Global Leadership Monitor Spring Pulse. Their responses to the survey have contributed greatly to our understanding of leadership.