Why Leadership Is Failing And How To Fix It
Today, leadership is navigating an increasingly complex and unpredictable environment. A recent study from Russell Reynolds Associates highlights a sobering reality: leadership confidence has dropped to its lowest point in three years. The ability of executive teams to manage today’s challenges—economic uncertainty, technological shifts, geopolitical tensions, and evolving stakeholder expectations—is under immense strain. And the cracks are showing.
Over the past three years, the Leadership Confidence Index has steadily declined, which measures leaders’ faith in their executive teams across capability, behavior, and issue management. This is more than just a number. It reflects a growing concern that many leadership teams lack the tools, cohesion, and resilience to guide their organizations through today’s challenges effectively. Alarmingly, confidence in executive team behavior—their ability to model the right culture, collaborate effectively, and embrace change—has seen the steepest drop.
What does this mean for organizations? Simply put, many executive teams are falling behind. They struggle to keep pace with external complexities and contend with internal misalignment, unclear priorities, and skill gaps. The challenges leaders face are no longer siloed; they’re interconnected, requiring collaboration across functions like never before.
The Root Causes of Declining Leadership Confidence
The decline in confidence is particularly stark in two areas: executive behavior and issue management. Confidence in leadership behavior has dropped by 6.5 points, as leaders fail to model the right culture, work effectively as teams, and embrace change. This is alarming because organizations look to their leaders in moments of disruption to set the tone, align priorities, and build trust.
Compounding these struggles is the cognitive and emotional burden that leaders bear. Today’s leaders are expected to be strategists, technologists, and change-makers—all while managing expectations from an increasingly diverse group of stakeholders. The result? Burnout, misalignment, and a loss of trust within teams.
But here’s the good news: this doesn’t have to be the new normal. The study reveals a clear path forward—investing in leadership development and fostering trust within leadership teams. High-performing organizations are eight times more likely to have leaders who demonstrate trust and collaboration across their teams. This isn’t just a feel-good metric; it’s a critical factor in navigating complexity and driving success.
What Sets High-Performing Leaders Apart?
Organizations that excel in today’s environment do so because of one fundamental principle: strong leadership starts with strong teams. Three critical factors characterize high-performing leadership teams:
Trust: Leaders who trust one another and foster open dialogue create the foundation for collaboration and adaptability. According to the study, high-performing organizations are eight times more likely to have leadership teams with visible trust.
Collaboration Across Functions: Complex challenges like AI implementation don’t reside in one department. Successful teams break down silos and work seamlessly across functions to address these challenges holistically.
Commitment to Development: Leaders in top-performing organizations aren’t left to sink or swim. They receive ongoing development, including coaching, training, and exposure to diverse challenges that build their skills and resilience.
The Case for Leadership Development
Now, more than ever, organizations must view leadership development as a strategic imperative. Here’s what that should look like:
Building Future-Ready Teams: Leaders must be equipped to address emerging challenges like generative AI, geopolitical uncertainty, and workforce transformation. This requires not just technical knowledge but strategic foresight and adaptability.
Aligning Leadership Culture: Leadership teams must intentionally model the values they want to see in their organizations—transparency, collaboration, and engagement. Without this alignment, it’s impossible to inspire trust and confidence.
Investing in Coaching and Skill Building: Leadership isn’t static. Regular coaching and training ensure leaders stay ahead of the curve, continually refining their skills to meet new demands.
The Bottom Line
Leadership confidence is a critical measure of organizational health and resilience. When confidence drops, so does performance. The organizations that will thrive are those that invest in leadership development—not as a one-time initiative but as a continuous journey. If we don’t invest in our leaders now, we risk falling behind—not just as organizations but as entire industries.
At Evolve HR Solutions, we believe leadership development is the cornerstone of success. Let’s work together to strengthen your leadership capability and position your organization for the future. Because strong leaders build strong organizations—and strong organizations change the world.
ABOUT THE AUTHOR
Jeff Lupinacci spent the last 25 years at some of the world's best-known companies, such as Intel Corporation and Kimberly-Clark. His career spans key executive roles such as Chief Learning Officer, Chief Talent Officer, and Chief Integration Officer. After a successful corporate career, Jeff turned his focus to his true passion—serving the overworked and under-resourced HR profession.
Beyond his corporate success, Jeff is a sought-after speaker and thought leader, with his insights featured in leading publications such as CFO Europe, Nikkei Business Magazine, and Baylor Business Review. In addition to his business leadership, Jeff is an adjunct professor at Baylor University, where he teaches Human Capital Management for the Executive MBA program and leads the HR Strategy and Analytics capstone for undergraduates.
Jeff is the best-selling author of The Talent Advantage: A CEO’s Journey to Discover the Value of Talent. He lives in Dallas, Texas, with his wife and two doodles.