Trust in the management team (seventy percent) and the ability to retain them and/or attract new board members (57 percent) also rose to the highest level in three years. 'It seems that organizations around the world have now learned how to better cope with disruption,' says Imke Lampe, Managing Partner of Heidrick & Struggles Netherlands. 'The world around us is still just as volatile, if not more volatile than a few years ago, but investments in governance, better internal communication, and strategic planning enhance the ability of management teams to navigate their organization through the short term. You can also see this reflected in their response to the unrest in the Middle East.'
Challenges
Just like last year, the majority of the surveyed supervisory board members and CEOs cite economic instability as the most urgent challenge for their organization (57 percent). Geopolitical tensions are also frequently mentioned (36 percent), although less often than a year ago (44 percent). Notably, there is a strong increase in artificial intelligence: from 26 percent to 44 percent. Only six percent of all respondents cite climate change as the most pressing issue for the coming year. Another notable point is that the ability of organizations to respond to the most urgent challenges has significantly increased. A remarkable 42 percent of all respondents now trust that their organization can successfully cope with the consequences of economic instability in the coming year (2025: 35 percent). Confidence also rose significantly in the areas of AI (up six percent) and geopolitical tensions (up ten percent). Lampe: 'Compared to previous years, an increasing portion of management teams feels that they can successfully manage the challenges ahead of them. We must not underestimate the role of AI, both as a threat and an opportunity.'
Leadership Pipeline
Despite the significant increase in short-term confidence, a considerable portion of respondents remains cautious when it comes to continuity and long-term success. Only 41 percent of them are positive about the CEO succession strategy within their organization. The ownership situation is crucial, as the research shows. Respondents from smaller organizations owned by private equity are much more pessimistic about this than their counterparts in organizations with other ownership structures. Lampe: 'Although many organizations currently feel they are being well led, there is significantly less confidence in the succession strategy during longer periods of uncertainty. This is particularly true for companies with smaller management teams, longer investment periods, and uncertainty surrounding a potential sale.'
About Heidrick & Struggles
Heidrick & Struggles (Nasdaq: HSII) is the world's leading advisor in executive leadership. As a trusted advisor, the organization works closely with clients to further strengthen their leadership teams and performance. For more than 70 years, we have been helping organizations find and develop strong leaders and teams, with years of experience and expertise. For more information, see www.heidrick.com.
