Executive Summary
Executive Summary
1. Leaders’ responsibilities have exploded.
93% of respondents said that “non-traditional business issues,” such as employees’ mental health, social and political issues, supply shortages, and war have become a very significant or somewhat significant factor in their decision-making over the past three years.
2. Employees hold the power.
There has been a reversal in leaders’ priorities from three years ago, and it has been dramatic: The single biggest consideration for leaders making a complex decision is now the reaction of employees. This is followed by brand image, consumer reaction, and then shareholders and boards.
3. Leaders face more pressure to speak out.
Leaders are increasingly expected to take a stand on issues from climate change to race to international politics. 95% of our respondents agreed that they have come under more pressure to lead on social and political issues in the past three years, with 100% of CMO respondents and 96% of CEOs agreeing.
4. Leaders are managing more stakeholders.
91% of those surveyed indicated that they are now managing a wider range of stakeholders than before the COVID-19 pandemic. That includes employees, customers, investors, and boards—as well as external influencers.
5. Retention, diversity and inclusion, and sustainability are top of mind.
Where are leaders focusing their attention? At the top of the list, with 92% spending more or significantly more time addressing them, are two topics: employee retention and driving diversity and inclusion initiatives. 91% of respondents reported spending more time driving sustainability.
6. Adaptability and vision are the most important leadership traits.
We asked respondents to rank the leadership traits most important for managing in today’s volatile environment. Adaptability and vision were noted as top priorities, followed by resilience and empathy—ahead of classic skills as stakeholder management and risk assessment.
7. It’s OK to admit vulnerability.
The constant uncertainty of recent years has forced leaders to acknowledge what was once considered taboo: the things they can’t control. In our survey, 62% of respondents said they feel either very vulnerable or vulnerable when making a complex decision relating to a major external crisis, with 64% of CEOs saying the same. Only 5% of respondents said they did not feel at all vulnerable.