CEOs are losing confidence in their executive teams. Here’s why.

Since the onset of COVID, many leaders proved their ability to overcome obstacles and confidently steer into the unknown. Yet, as we try to establish a new reality, is this resilience now running out?

Who CEOs surround themselves with has big implications for organizational performance. Clearly, CEOs need confidence that their top team has what it takes to drive the business forward, make smart decisions, and successfully navigate existing and emerging threats.

An examination of data from three reports in 2023 indicates that CEO confidence is down across four key issues - executive capability, leadership behavior, how the executive team tackles critical issues, and next-generation leadership.

Confidence in executive leadership drops from 74.2 to 65.7

The Leadership Confidence Index reported by Russell Reynolds Associates shows that CEOs’ confidence in their executive leadership teams (ELT) continues a downward since early 2021.

In the face of a strained economic context, CEOs are scrutinizing their team.

Does your ELT have the right capability to lead the organization successfully with a strong grasp of business dynamics?

Do they receive input and good advice to support decision making?

Leadership team behaviors and dynamics are a top concern

The way senior executives behave has critical implications for team cohesion and culture as well as their ability to lead the organization and its people. Whether an executive leadership team pulls together or pulls apart determines whether the organization can meet its strategic objectives and deliver stand-out performance.

The strain of leading in a hybrid world, the multi-dimensional nature of goals in an era of stakeholder capitalism, new economic pressures along with redefined employee expectations are testing executives daily. ?

Consequently, it appears that many leadership teams are starting to fray at the edges.

Executives are much less confident than they were 18 months ago in their top leadership’s abilities to model the kind of behaviors and culture they want in the organization.

A particularly interesting observation is that C-suite leaders, the members of the ELT, are increasingly pessimistic about their peers’ behavior.

To succeed, CEOs must effectively shepherd the executive leadership team—and this is both a matter of deploying their individual skillsets and expertise and ensuring they function together as a cohesive unit.

Does your ELT work together effectively as a team; effectively adapt to change; and model the right culture?

How are you creating strategic alignment and cultural cohesion within your leadership team?

Next-generation leaders at risk

Organizations need strong succession pipelines to create collective resilience, agility, and depth of leadership. This is not just about hiring next-generation leaders with future-oriented skills and experience. It is about engaging, retaining, and developing them, too.

However, an alarming discovery is the growing concern among next-generation leaders about ELT behavior and how the ELT is (not) managing critical issues.

This research shows that next-generation leaders, who sit one or two levels below the C-suite and are typically tasked with executing the strategy that comes from the ELT, are growing concerned about how the leaders above them role model behaviors, operate as a team, and manage change.

These (lack of) confidence levels are a red flag for engagement and retention, creating a real risk for C-suite succession planning.

How will you ensure the business strategy is aligned and executed at all levels of the organization?

Leadership development programs are lacking

To compound the issue of succession planning, participants in a follow up survey suggests that 73% of leadership development programs fall short.

CEOs losing confidence in leadership teams survey

How are you working to?engage and develop your next-generation leaders?

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How to regain confidence in your leadership team

With the tumultuous economic and social times that lie ahead (or are already present) for many organizations, it is critical that CEOs think carefully about the capability, behaviors, and culture of their executive team.?

The need to invest in a data driven talent strategy can no longer be ignored. This methodology allows you to move from guesswork to knowing exactly how to bend talent to align with business aspirations – and do it quickly.?

This includes:

• Identifying any emerging gaps in skillsets
• Defining specific leadership behaviors
• Forensically developing succession pipelines
• Ensuring an engaged and productive culture, and
• Keeping a careful watch on how to best ensure your business is able to adapt to new changes and dynamics.

CEOs and HR need assistance with adopting a talent strategy

With so many competing priorities at their feet, it is not surprising that 84% CEOs expressed the need for help from outside consultants in a CEO Benchmarking Report.?

Download the full report here .?

Implementing a talent strategy cannot be plopped in HR’s lap.

Given the dynamics unfolding in the research, it is unacceptable to delegate these efforts to HR. The CEO must be a catalyst for change and be a visible and active participant.

Are you committed to success?

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What to expect from talent optimization

Once a talent strategy is implemented, you get to relish the results.

Talent-optimized companies see higher revenue, less absenteeism, more productivity, and a better company culture. They also see higher rates of innovation, diversity, and retention.

Talent optimization creates a great environment to confidently deliver on business needs whether it is netting millions in savings by reducing turnover, skyrocketing sales, or scaling growth, there are data-driven results to be achieved by optimizing your talent.

What is your future if you don’t adopt a talent strategy?

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#talentoptimization #talentstrategy #employeeretention #employeeexperience #employeeengagement #executiveleadership #leadershipdevelopment #leadership #leadershipeffectiveness

At Retain My Team , our consulting is powered by software to empower your organization to succeed - quickly.

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?To get a deeper, confidential, understanding of the capabilities of your C-Suite and uncover which gaps you need to plug, request a consultation with one of our C-suite success experts.

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About the author

Ronda,?who is in the San Francisco area, provides organizations with software and consulting services to?“fix people problems.” She helps leaders quickly become proficient to hire the right people for the right role, inspire employees to do their best and align the talent strategy with the business strategy to meet or exceed business goals.

Want a shortcut to design high performing teams and reduce turnover? Learn more

You can call Ronda at?303 902 3616?or email her?here . You can also get on her calendar?here .