Corporate Leadership Moves in the Right Direction, Sets All-Time High in Q1 2011 Korn/Ferry Confidence in Leadership Index

By Kornferry International, PRNE
Sunday, June 5, 2011

LOS ANGELES, June 6, 2011 -

The Korn/Ferry Institute's Confidence in Leadership Index reveals
significant momentum in the direction of corporate leadership globally in Q1
2011, reaching an all-time high since the survey was first conducted in 2009.
Led by a large gain in Europe, executives in all but one region responded
that corporate leadership was not only headed in the right direction, but
trending more favorably now than any time since the survey's inception.

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The Korn/Ferry Institute Confidence in Leadership Index, now in its third
year, measures four key factors of leadership:

    - Credibility of Leadership
    - Trust in Leadership
    - Direction of Leadership
    - Characteristics of Leadership

The data was collected by Korn/Ferry during Q1 2011 via an online
survey of more than 500 global executives.

The relationship between leadership confidence and economic measures
continues to hold in North America. North American exchanges ticked upward in
the quarter and North America gained ground in all Index measures.

Europe and Central/South American results were not as correlated with
economic data. Europe's Confidence Index results were mixed, however
Direction of Leadership shot upwards, following improvement in most European
markets. Central and South American markets were down a small percentage,
though Direction of Leadership continued to climb and lead the global study.

Results from Asia Pacific were much more volatile than financial markets.
The study was conducted prior to the Japanese earthquake and tsunami, but
re-fielded following the March 11 disaster to determine its impact on
confidence in leadership. The comparative data revealed virtually no change
in pre- and post-disaster attitudes. The Asia results reported in this study
show all-time lows in Credibility, Trust, and Direction of leadership though
regional financial markets were either flat or up slightly.

"We continue to track confidence in leadership against economic factors,
but this wave of data suggests other environmental influences may override
the impact of economic data," said Ana Dutra, CEO, Korn/Ferry Leadership and
Talent Consulting. "The results from Asia Pacific clearly warrant further
study. With many different types of economies, the most important question is
how and why factors such as financial, geo-political, and ethical volatility
are destabilizing confidence in corporate leadership with varying intensity
in different parts of the world."

Confidence in Leadership Major Findings

    - Globally, Credibility of Leadership declined one point, tallying 75 on
      a 100-point scale.
      - Credibility of Leadership data from Asia Pacific shows declining
        sentiment towards leadership at all levels. Overall Credibility of
        Leadership sunk from 76 in 2010, to 71 in Q1 2011. All major
        categories follow a similar trend in Asia Pacific. For example,
        credibility of CEOs fell from 77 to 72 and credibility of Boards of
        Directors fell from 73 to 66.
      - Central/South America also showed weakness in Credibility of
        Leadership, declining in categories such as CEO Leadership and
        Company Management Leadership by five points each.
      - North America gained ground in most categories; notably CEO
        Leadership climbed three points to 77.
      - Credibility of Leadership fell by one point overall in Europe; the
        largest mover in the study was a three-point dip in CEO credibility.

    - Trust in Leadership fell a point from 78 to 77 on the 100-point scale
      - Asia Pacific's Trust in Leadership score fell five points to an
        all-time low of 74.
      - Europe's Trust score similarly fell four points to an all-time low of
      - Central/South America also lost four points, falling from 83 to 79.
      - North America countered the trend, increasing by two points from 79
        to 81.

    - Direction of Leadership gained momentum in the first quarter of 2011
      after relatively little movement from 2009 to 2010, gaining seven
      points from +20 to +27 on a scale ranging from -100 (getting worse) to
      +100 (getting better).
      - North America, traditionally the least optimistic about direction of
        leadership, tallied a nine-point gain from +9 to +18, though it still
        trails all over geographies.
      - Europe shot up a surprising 13 points from 2010 from +16 to +29.
      - Central/South America, historically the most positive about
        direction of leadership, remained the most optimistic and gained even
        more ground moving from +50 to +57.
      - Only Asia Pacific slipped in the Direction of Leadership category,
        falling from +34 in 2010 to +24 in Q1 2011, a 10-point decline.

    - The ranking of Leadership Characteristics remained unchanged
      year over year
      - Strategic Skill still ranks atop a list of seven critical
      - Personal and Interpersonal Skill continue to gain ground, increasing
        by one point annually to solidify the number two position in the

Snapshot of Confidence in Leadership Survey Results

Credibility of Leadership Scores:

    - Overall credibility of leadership globally is down one point from 2010.

    Category                        Q1 2011   2010   Change
    Own Leadership Ability               87     88       -1
    Direct Reports' Leadership
     Ability                             74     75       -1
    Boss' Leadership Ability             71     73       -2
    Company Management's
     Leadership Ability                  71     73       -2
    CEO's Leadership Ability             76     76        0
    ------------------------            ---    ---      ---
    Board of Director's Leadership
     Ability                             71     71        0
    ------------------------------      ---    ---      ---
    Global Average for Credibility
     of Leadership                       75     76       -1
    ------------------------------      ---    ---      ---

    Region                          Q1 2011   2010   Change
    North America                        76     77       +1
    Asia Pacific                         76     71       -5
    Central/South America                80     77       -3
    ---------------------               ---    ---      ---
    Europe                               73     72       -1
    ------                              ---    ---      ---

Trust in Leadership Scores:

    - Trust in Leadership fell two points to 78 on the index, with every
      single category losing ground. Only North America saw improvement
      in the Trust in Leadership score, increasing by two points.

    Category                         Q1 2011   2010   Change
    Our business consistently
     adheres to the highest
     standards of business conduct        82     81       -1
    The company operates with the
     highest set of ethical
     standards                            82     81       -1
    All employees understand and
     follow our code of conduct           79     78       -1
    Our leaders are models of
     ethical business conduct             80     78       -2
    -------------------------            ---    ---      ---
    Leaders are quick to admit
     mistakes and accept
     responsibility                       69     67       -2
    --------------------------           ---    ---      ---

    Category                         Q1 2011   2010   Change
    --------                         -------   ----   ------
    North America                         81     79       +2
    Asia Pacific                          74     79       -5
    Central/South America                 79     83       -4
    Europe                                70     74       -4
    ------                               ---    ---      ---
    Global Average for Trust in
     Leadership                           78     80       -2
    ---------------------------          ---    ---      ---

Direction of Leadership Scores:

    - The direction of leadership - measured on a -100 (getting worse) to
      +100 (getting better) scale - gained seven points (from 20 to 27), an
      all-time high. Only Asia Pacific lost ground in the Direction of
      Leadership score, dropping 10 points from 34 to 24.

    Region                              Q1 2011    2010     Change
    North America                            18       9         +9
    Asia Pacific                             24      34        -10
    Central/South America                    57      50         +7
    ---------------------                   ---     ---        ---
    Europe                                   29      16        +13
    ------                                  ---     ---        ---
    Global Average for Direction of
     Leadership                              27      20         +7
    -------------------------------         ---     ---        ---

Characteristics of Leadership Scores:

    - Strategic skills are the most important leadership factor according
      to global executives, followed by Personal and Interpersonal Skills.
      The seven factors in the ranking are based on Korn/Ferry's proprietary
      leadership assessment tools.
    - Following are the most significant leadership factors ranked by
      global executives by allocating 100 points across all factors:

    Global     Skill         Global    Europe     North     Central/  Asia
     Rank                     Index     Index    America     South   Pacific
                              Score     Score               America
       1    Strategic Skills   18         19        18        18       17
       2    Personal and
             Skills            17         17        17        18       15
       3    Energy and Drive   14         14        13        14       15
       4    Managing
             Performance       14         14        14        15       15
       5    Courage            13         12        13        12       13
       6    Operating Skills   13         13        14        12       14
      ---  ----------------   ---        ---       ---       ---      ---
       7    Organizational
             Skills            12         12        12        12       11
      ---  ---------------    ---        ---       ---       ---      ---

The margin of error within each wave is +/- 4.4%. For complete survey
results, please visit

About The Korn/Ferry Institute

The Korn/Ferry Institute was founded to serve as a premier global voice
on a range of talent management and leadership issues. The Institute
commissions, originates and publishes groundbreaking research utilizing
Korn/Ferry's unparalleled expertise in executive recruitment and talent
development combined with its preeminent behavioral research library. The
Institute is dedicated to improving the state of global human capital for
businesses of all sizes around the world.

About Korn/Ferry International

Korn/Ferry International, with a presence throughout the Americas, Asia
, Europe, the Middle East and Africa, is a premier global provider of
talent management solutions. Based in Los Angeles, the firm delivers an array
of solutions that help clients to attract, deploy, develop and reward their
talent. Visit for more information on the Korn/Ferry
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Mary Beth Barron, +1-312-526-0582, +1-312-543-0150 (cell), marybeth.barron at, or Kevin Oates, +1-310-295-3320, +1-310-869-7519 (cell), kevin.oates at

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