The last few years have been challenging for business leaders. They have had to navigate numerous complex issues, from pandemic-induced operational changes to rapidly rising costs due to inflation.
Leaders are feeling immense pressure to increase productivity and efficiency through AI solutions while simultaneously dealing with the human resource, security, and cultural challenges that the technology brings.
On top of all that, societal expectations have been evolving. Diversity, Equity, and Inclusion (DE&I) initiatives offer enormous opportunities for companies to build more inclusive cultures, but if these programs are not implemented thoughtfully, they can backfire. To further complicate matters, employees’ expectations have shifted.
While many companies are eager to return to pre-pandemic norms by bringing employees back into the office, they face resistance from staff who argue that they are more productive working remotely.
These challenges, many of which are unprecedented, have left leaders grappling with uncertainty and, for many, a crisis of confidence.
The situation is not unique to today’s leaders. Research from DDI’s Global Leadership Forecast reveals that half of CEOs consider developing the next generation of leaders a top priority. However, only 12% of companies feel confident in their leadership pipeline, underscoring a widespread lack of readiness. Existing leaders are exhausted, and the next generation is disengaged, creating a precarious leadership void.
The Two Factors Fuelling the Confidence Crisis in Leadership
So, why are today’s leaders struggling with confidence? Two main factors are driving this issue.
First, many leaders and their employees are suffering from a lack of purpose. Potential leaders feel disengaged and disconnected from the work they do, which diminishes their ambition and their willingness to step into leadership roles. For businesses that rely on high-potential employees to fill future leadership positions, this is a grave concern. Without a sense of purpose, employees are less motivated to take on greater responsibility, leading to stagnation in the leadership pipeline.
The second factor is a widespread lack of trust between leaders and their teams. DDI’s report highlights that less than half (46%) of leaders trust their direct managers to do the right thing, and only 32% trust senior leaders within their organisation. This erosion of trust weakens team dynamics and reduces overall engagement, making it more difficult to foster the kind of collaborative environment needed for success.
To overcome these challenges, organisations must focus on creating environments where future leaders feel valued, find meaning in their work, and build trust within their teams.
The Confidence Lessons Leaders Can Learn from Elite Athletes
One approach to help leaders regain confidence is to draw inspiration from elite athletes. Just like business leaders, athletes experience dips in confidence when things do not go as planned or when they feel underprepared. However, they rely on teamwork, communication, and a shared sense of purpose to overcome these challenges and achieve success.
I explored this analogy by speaking with coaches from British Rowing, wondering if there were parallels between rowing teams and leadership teams in business. What could rowing coaches teach business leaders about unlocking their teams’ potential and achieving extraordinary results?
The first lesson is the importance of regaining purpose. In rowing, a coach’s ability to unite the team around a shared goal is critical to success. When athletes understand the purpose behind their work, they are more likely to push themselves during training and synchronise effectively with their teammates during races. Similarly, business leaders must clearly define their organisation’s purpose and communicate it regularly. This purpose should be a unifying force that drives the team forward, even when faced with daunting challenges.
Leaders need to ensure that communicating this sense of purpose becomes a habitual practice. This could mean setting aside regular time for teams or the entire company to come together, aligning personal ambitions with team objectives. This fosters a sense of camaraderie and mutual accountability, helping to build a cohesive and motivated workforce.
Enhancing Team Dynamics
Alongside a sense of purpose, cohesive teamwork is essential for any organisation’s success. When team members have a clear understanding of their roles, it reduces confusion and minimises potential conflicts. This clarity allows individuals to focus on their responsibilities, leading to increased productivity. With everyone aligned on their roles and the company’s purpose, team members can see how their work contributes to the overall success of the organisation.
Building a psychologically safe environment is another crucial component of effective leadership. Emotional intelligence sets great leaders apart from average ones. Passion and entrepreneurial spirit are valuable traits, but leaders also need the ability to understand, manage, and respond to emotions—both their own and those of their teams. The long-term success of an organisation depends on whether its leaders can foster meaningful interactions and create a culture of trust and open communication.
Leaders must focus on building strong, trusting relationships within their teams. Checking in with team members regularly, sharing personal stories, and ensuring that everyone’s voice is heard are simple yet powerful ways to strengthen team dynamics. By fostering an environment where individuals feel safe to share ideas and even failures, leaders can encourage innovation and creativity. In fact, DDI’s research found that leaders who trust their senior leaders are three times more likely to develop novel ideas than those in low-trust organisations.
Building Resilience
Confidence is a trait that can take years to develop but can be lost quickly after a setback or failure. Building resilience is key to maintaining confidence. Leaders need to recognise that things will not always go as planned. When mistakes happen, the most effective leaders focus on what comes next, rather than dwelling on past failures. This “what next” attitude allows them to remain solution-focused and resilient in the face of challenges.
By cultivating psychological safety, emotional intelligence, and a clear sense of purpose, leaders can rebuild their confidence and guide their teams through turbulent times. Just as elite athletes do, business leaders must equip themselves with the tools necessary to stay resilient and confident in their abilities, even in the face of uncertainty. This approach will not only help them overcome present challenges but will set them on a path toward long-term success.
Matt is the lead author of Leaders Ready Now: Accelerating Growth in a Faster World (2016) and co-author of its award-winning predecessor, Grow Your Own Leaders (2002), both of which have influenced leaders at all levels for more than two decades.
He has advised thousands of CEOs, senior teams, boards, and executives across more than 20 countries. As a researcher, product designer, and practitioner, he provides practical clarity on the science and practices that have the greatest impact on leadership effectiveness.
He currently serves as Senior Vice President of Leadership Insights for DDI. His work with leaders around the world has focused on cultivating self-insight and accelerating the development of leadership skills. The lessons from these collaborations have led him to become an author, keynote speaker, and a humble contributor to many of today’s most effective approaches to leadership development.