British business leaders are ill-equipped to tackle the economic downturn, as they lack experience of similar occurrences, research from a business school has shown.
The research, undertaken by Pentacle, The Virtual Business School, found 64% business people believed the UK economy has been booming for so long that many senior bosses have little or no experiences of how to deal with a downturn.
Among c-level executives the outlook is even more grim: only one in ten senior managers held equivalent positions at the time of the last UK recession in 1992. According to Pentacle’s research, 62% believe business leaders lack experience of being more tactical and exercising caution in a difficult economic climate.
Pessimism about the health of the British economy is rife: almost 70% of executives believe the UK is now heading into a recession or serious downturn. A meagre 3% now believe an economic recession is unlikely.
Professor Obeng, director of Pentacle said business leaders were likely to lack the necessary tools to deal with the difficult economic climate. “After a long economic cycle with nearly 15 years of growth, most of those at the top of business today are used to vigorous expansion, ambitious projects and taking major risks, all with unwavering confidence. A strong economy has often protected them from the impact of bad decisions.”
“The question is whether these same bold leaders have the expertise to adapt to much more challenging conditions,” he commented.
© Crimson Business Ltd. 2008
