Allowing a high-performing but toxic employee to thrive sends a clear message: results matter more than people. A leader's true impact and the company's real culture are defined not by stated principles, but by the worst behavior they are willing to accept.

Related Insights

Dysfunctional leadership creates a self-sustaining cycle where employees vying for promotion mimic the toxic behaviors of their boss. They do this to endear themselves to the decision-maker, believing that demonstrating a better leadership style would disqualify them from the role.

A core value, such as a need for trust, can be a leader's greatest strength or weakness. Without self-awareness, it drives toxic behaviors like micromanaging. With self-awareness, that same value becomes a tool for explicitly setting expectations and building a strong team culture.

When a leader models extreme behavior, like working immediately after surgery, it sends an implicit message to the team: 'Your personal crises don't matter; the mission is everything.' This can inadvertently create a culture where employees feel they can't take time for personal emergencies.

A leader focused solely on personal wins creates a toxic environment that ultimately leads to their own apathy and burnout. They become disconnected from the very machine they built, creating a job they personally loathe despite their apparent success.

Effective leadership prioritizes people development ('who you impact') over task completion ('what you do'). This philosophy frames a leader's primary role as a mentor and coach who empowers their team to grow. This focus on human impact is more fulfilling and ultimately drives superior business outcomes through a confident, motivated team.

Stated values are meaningless without enforcement. True operational standards are set by the lowest level of performance a leader is willing to accept. If you tolerate messy common areas or late reports, that becomes the actual standard, regardless of the rules.

People surrounding a so-called genius, like Picasso's friends or employees at cult-like startups, often tolerate terrible behavior. They rationalize the unpleasantness by telling themselves they are part of an extraordinary, history-making experience, which creates a toxic enabling environment.

A senior hire was instrumental in getting Snowflake's CRO promoted. Eighteen months later, that same person was found to be 'cancerous to the organization.' The CRO had to fire them and go on an 'apology tour,' a painful but necessary act of leadership to protect the company culture.

A company’s true values aren't in its mission statement, but in its operational systems. Good intentions are meaningless without supporting structures. What an organization truly values is revealed by its compensation systems, promotion decisions, and which behaviors are publicly celebrated and honored.

A manager's highest duty is to an employee's fulfillment, not just their performance. When a top performer is not personally aligned with their role, a leader should actively help them find a better fit—even if it means using their own social capital to place them at another organization.