Brutal Truths About Toxic Leadership & 6 Ways to Fix It

Our son's class holiday party is tomorrow, and one of the many items on my long end-of-year to-do list was to provide a festive sweet treat. After researching for about an hour, I landed on Walmart as the best option. They could fill an order of two dozen Grinch-themed cupcakes, and I could easily place the order in their app, then swing by and pick it up and go.

Short on time; it sounded like the perfect solution! The online order went smoothly, but the pickup process was less than ideal.

As I stood at the bakery pickup sign for quite some time with an antsy, tired 4-year-old in tow, the employee behind the counter glanced over a few times but kept typing on her phone. There was no acknowledgement until my son started to get noisy. Then, I was met with a bad attitude, which left a bad taste in my mouth.

I ended up (finally) getting the cupcakes when an employee from another department stepped in to help, and they were adorable. But I likely won't order from that store again.

The worst part? This employee with a bad attitude wore a tag and said, "Team leader."

Shocking? Maybe at first, but let's be honest. We've all been part of cultures where leaders misbehave. And what is the impact on the team, culture, and business? Well, we all know that answer too.

The Cost of Rewarding Bad Behavior

Why should you care about stopping toxic leadership? Consider these sats:

• At the end of 2023, an astounding 82% of workers said they were actively seeking new employment due to bad managers and poor leadership.

• Each poor leader costs an organization an average of $126,000 each year. Think about how many poor leaders you encountered in your career, and then do the math. 

• Poor leadership costs American companies $630 billion annually in turnover, productivity loss, and hiring expenses, according to Gallup.

Ironically, not even an hour before my bakery pickup snafu, my friend Nate Brown tagged me in a LinkedIn thread on this very topic.

And then there was this comment from Neal Dlin that prompted Nate to clue me in on the conversation.

How to Prevent Toxic Leadership from Derailing Your Team

So, what’s the solution? How can we stop toxic leadership from ruining the employee and customer experience? There’s no quick fix, but here are six actionable tips.

#1: Define Your Culture

Over ten years ago at ICMI Contact Center Expo, I learned a lesson from Jeff Toister that stuck with me. You can’t improve what you don’t define. So, before any of the following tips will work, you have to align on what your culture is (and isn’t) and make sure every single member of your team understands. 

#2: Hire and Promote for Culture Fit, Not Just Results

When evaluating candidates for leadership roles, prioritize alignment with your organization's core values. Promoting high performers may seem like a no-brainer, but if their behavior conflicts with company ethics, the long-term consequences can outweigh the short-term gains. Implement behavioral interview questions that assess how candidates lead under pressure and resolve conflicts.

#3: Train Leaders to Be Culture Champions

Leadership isn't just about meeting metrics; it's about modeling the behaviors you want your team to emulate. Provide training that emphasizes empathy, communication, and accountability. Equip leaders with tools to give constructive feedback, resolve disputes, and inspire their teams.

#4: Encourage Real-Time Feedback

Create a safe environment where employees can voice concerns about leadership behavior without fear of retribution. Use tools like anonymous surveys, regular one-on-ones,skip-level meetings, or feedback platforms to ensure you're getting an accurate pulse on team dynamics.

#5: Recognize and Reward the Right Behaviors

Be intentional about what you celebrate. Publicly recognize leaders who demonstrate ethical decision-making, teamwork, and commitment to your organizational values. This reinforces the idea that how results are achieved matters as much as the results themselves.

#6: Act Swiftly on Misalignment

When a leader's behavior is inconsistent with your values, address it immediately. Waiting sends the message that results excuse poor behavior. Provide coaching if you believe the leader can improve, but don't hesitate to take decisive action if the issues persist.

The Ripple Effect of Values-Driven Leadership

Moments like my cupcake pickup experience are powerful reminders of what's at stake when leadership falters. For every visible instance of poor leadership, there are likely dozens of quieter, internalized ones—employees disengaging, customers opting for competitors, and teams losing trust.

Strong, values-driven leadership isn't just "nice to have "—it's the cornerstone of sustainable success. By fostering a culture where values and ethics drive results, you can ensure your team thrives, and your customers keep coming back for more.

So, what steps will you take to ensure your leaders—at every level—are setting the right example?