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Business leaders around the world are struggling to breathe. Executives are treating a Volatile stock market, Extreme fare uncertaintyand a letthaia of other issues that have arisen in recent months.
Constantine Alexandrakis, CEO of Russell Reynolds Associates, has advised corporate boards and delegated directors for decades. He says economic and geopolitical uncertainty are the most important for leaders, according to the firm Latest report On C-site priorities in 2025: “There have been no widespread policy changes in this country like this for a long time,” he says.
Talked to Alexandrakis Fortune About the most feared by the delegated directors right now, as tremorous markets cause leaders to bow in the AI and why the maximum executives make so many trips to Washington.
This interview has been edited and condensed for more clarity.
Fortune: What keeps the DELEGATIONS DEEPS at night?
Constantine Alexandrakis: CEOs are worried. They spend a lot of time in Washington, as you know, to try to present their case. And it’s not just uncertainty. It is actually the uncertainty about uncertainty. CEOs are beginning to see a real impact on their businesses. They begin, in closed doors, to be more open about their concerns about some of the fare policies. There have been no widespread policy changes in this country like this for a long time. (Corporate leaders are) trying to gain an experience of government relations that they do not have.
They are also thinking, if they are doing business in Asia, how do some of the restrictions are going on? There is the realization that the reality is here, which will affect us in different ways and (the CEOs) try to find out how to adjust it.
But there is a vision that maybe this is a time that can jump at the beginning of what we have all been playing, in terms of AI, to find new efficiencies.
How could new efficiencies be found with?
If the income is unpredictable, this means that the finance costs need to be more carefully managed. Are there ways to use artificial intelligence to jump productivity gains that can help at a time of crisis?
There is an emerging consensus that you can obtain, between corporate functions, up to 25 or 30% of productivity gains through the implementation of agents and the benefits that they can generate. In all situations in which the economy is pressured, there is a window of innovation and change that is heated. Just as in the pandemic, where the use of remote work and other communication technologies was increased, delegated directors say: “Is it an opportunity to accelerate the adoption of the IA to help us in the line of expenses?”
We are seeing an era of “CEO as a diplomat?”
Almost all the CEOs I talked about is a trip for (Washington DC), and our Government Relations Search Team is more busy than ever. (Leaders) are also sailing on the other side (political issues) either in Canada or China.
Are government search teams right now?
They are certainly. Someone asked me, “I mean, is it normal? This does not happen after each new president is elected?” He would say, “I mean, to some extent, but it is not noticeable. And this is noticeable. This is notable.”
What makes him a good specialist in government relations and where do you find them?
The high -level things I would say are: people who understand how to reach the right leaders in Washington, how to enter the White House, have relationships with current people with influence on the administration, and can create a strategy on how to connect company problems with the one -day topic and promote the interests of the company in this regard.
What is the challenge for level C talent with what you work right now?
The biggest challenge if you are a superior executive is: is this time of uncertainty where you make a change? Whether you are a CEO in a new company or a senior leader, it is now a bit harder to project where the economy goes, what are the resources that you would have access to a new job, to what extent the investments are slowing down and how long the shocks of the supply chain will last.
(Uncertainty) is hurting people’s desire to be mobile. It is not to stop hiring their tracks, but it is to create more questions when someone is hired for something.
What do the best leaders do right now to navigate at this time of uncertainty?
Generally, these are three things: one is to exhale, which is to focus on executing strategy. Number two is exuding trust (at the same time) humble because of the challenges we have in the environment. The third goes out.
The best leaders during these times become (focused) out and stay close to their customers, go out and spend more time with them than they would. It is intended to counteract the negative impact of being too focused inside at a time when the world changes and you will not want to lose any of your customers’ movements.
Do you think corporate culture will come out of this mainly different period?
I think it is an opportunity for companies to get stronger in their culture, depending on how they navigate for uncertainty together. Companies that are true and non -volatile, and provide a safe refuge for their employees, compared to the uncertainty and volatility they see in the outside world, will be stronger. And their cultures will emerge stronger.
This story originally presented to Fortune.com