Leadership Index Shows Declining Confidence in Leaders

September 9, 2010 – The Korn/Ferry Institute’s Confidence in Leadership Index reveals a significant decline in the trust and confidence executives have for corporate leadership, as well as their leadership direction. Gauging perceptions of global leaders over the last five quarters, the survey shows that the recovery of confidence stalled during Q2, from a surge to all-time highs in Q1. In some cases, confidence in leaders reversed course as numbers dipped to 2009 levels mirroring several global economic indicators. The relationship between leadership confidence and economic measures is substantiated by leading indicators such as the Dow Jones Industrial Average, Shanghai Stock Exchange, NIKKEI, Sao Paulo Stock Exchange, and the Global Dow all falling by from 10-23 percent in Q2. Furthermore, the Confidence in Leadership Index uncovered that the most significant decline in credibility was at the very top of the house. Corporate boards lost six points in the credibility of leadership score, and CEOs declined by five points during Q2. “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,” said Ana Dutra, CEO, Korn/Ferry Leadership and Talent Consulting. “Our Index findings seem to indicate that confidence in leadership closely follows economic upward and downward trajectories. This suggests that, during times of economic instability, top leadership must take even more proactive steps to ensure stakeholders have confidence in their capabilities as leaders.” The Korn/Ferry Institute was founded to serve as a global voice on a range of talent management and leadership issues.

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