CEO confidence has hit a four-year low. According to the Business Roundtable’s latest Economic Outlook Index, executive sentiment is now at its weakest since 2020. With 41% of CEOs planning workforce reductions and many reducing capital investment, we’re entering a phase where cautious decision-making, not bold moves, may dominate the boardroom.

But while defensive moves may protect the balance sheet, there’s one area where pulling back is likely to cost more in the long run: leadership development.

At West Peak, we’re seeing the same patterns emerge that Harvard Business Review and BCG have documented time and again; economic uncertainty exposes leadership gaps. The companies that choose to invest in leadership capability now will be the ones best positioned to accelerate when the cycle turns

In fact, research from BCG shows that companies that continued to invest in leadership, culture, and talent development during the 2008 downturn outperformed peers by more than 10% in shareholder return over the following decade. Why? Because leadership isn’t a ‘nice to have’, it’s a critical level for long-term growth

This is where targeted, well-designed leadership development can drive disproportionate impact. It’s not about one-size-fits-all training. It’s about developing the right capabilities for your business context: leading through ambiguity, building trust during change, and creating clarity when it’s in short supply.

We believe that tough markets reveal great leaders, but you need to invest in them. If your executive team is navigating complexity, uncertainty, or change, this is the moment to invest, not retreat.

So here’s the real question: Do you have the leadership strength for the road ahead?

If you’re unsure, start by asking:

• Do your leaders have the skills to lead through change, not just stability?
• Are your leaders reliant on skills learned in the past, or do they have the skills needed to lead the future?
• Are your best leaders confident there is a place for them in your company, or are they looking elsewhere?

If these questions strike a chord, it may be time to run a leadership audit. At West Peak, we help organizations assess where their leadership strengths lie, where the gaps are, and how to close them so capability grows in step with strategy and sees companies excel in tough markets.

👉 Take the Leadership Capability Scorecard and get a free personalized confidence insight report.