Leaders Not Prepared For Major Challenges

Coming off the back of a challenging labour market, 72 per cent of business leaders say the availability of key talent/skills is one of the top pressing threats to organizational health over the next 12 to 18 months (up 13 percentage points since 2021), says Russell Reynolds Associates in its second annual ‘Global Leadership Monitor.’ Uncertain economic growth and geopolitical instability were the next two most frequently cited threats, the latter rising seven places in ranking compared to last year. In addition, these three top threats all place among the issues that leaders say their organizations are least prepared to face. Half of leaders say their leadership teams are unprepared to face economic uncertainty. However, leadership teams that are well prepared are differentiated by their approach to digital and sustainability, says the report. Consumers/customers remain the top stakeholder group over the next five years, but employees have climbed in importance. Ranked second, ahead of investors, the gap between employees and consumers as key stakeholders has narrowed by 18 percentage points. While the ‘great resignation’ has abated somewhat, 56 per cent of next generation leaders say they are still willing to make a move to another employer for the right opportunity. Importantly, more than two-thirds are not confident in the leadership succession plans at their organization.