Because the post is filled by the nominee of the US president, a new chief often knows little about the organisation and takes time to make a mark. Almost eight months after taking up the role, Paul Wolfowitz has yet to set a course for his presidency and staff disquiet is reaching deafening levels.

The immediate cause of the turmoil at the World Bank is the appointment of an adviser to Mr Wolfowitz with close ties to the Republican party as the new director of the internal watchdog that investigates suspected fraud and staff misconduct. His choice has raised questions about the selection of someone so close to the president and whether this was the best person for such a sensitive post. But the ensuing strife has revealed widespread unhappiness among senior bank staff and executive directors over Mr Wolfowitz's management style and performance.

Following his arrival, Mr Wolfowitz made clear his intention to streamline the bank's management structure. His predecessor had appointed five managing directors, four of whom had already left. There were more than 30 vice-presidents below managing director level, whose ranks he planned to thin out.

The fifth managing director left late last year, as did the highly regarded general counsel. Only now is Mr Wolfowitz close to appointing new managing directors, who are unlikely to be in place until the summer - a year after his arrival. Meanwhile power has gravitated to his immediate circle - mainly Republican stalwarts, prompting agitation among the career staff.

Nor has Mr Wolfowitz set a new intellectual agenda for his presidency. Instead, he has appeared more concerned about being seen to respond to criticisms on Capitol Hill over allegations of corruption - allegations that bank staff often see as witch-hunts against them for the sins of those in the countries where the bank operates.

Mr Wolfowitz can reasonably say that he wanted time to assess priorities for the organisation and that 2005 was a year of heavy commitments, such as the Group of Eight summit at Gleneagles. But as time has passed, authority has drained upwards from those beneath him in the hierarchy to his clique of advisers. Decision-making has slowed - made worse by his tendency to take a long time making up his mind.

When Mr Wolfowitz was appointed, the Financial Times urged him to give the bank greater focus and to overhaul its management. He cannot achieve this in an organisation with 10,000 staff operating in more than 100 countries by relying on a handful of trusted aides from his own country. Unless he moves quickly to appoint a team representative of the shareholders that is credible to the staff, his presidency risks ending in paralysis and disappointment.