September 17, 2026
September 17, 2026
Photo by Štefan Štefančík on Unsplash
I've had to make the same difficult call twice in my career, years apart and at two very different companies. In both cases, the leader was considered a high performer. The numbers were there. The targets were met. Senior executives saw someone who got things done.
But when I assessed what was happening inside their teams, I found a different story. People were exhausted, disengaged and looking for a way out. Trust had eroded. Emerging leaders stopped taking initiative. Employees were doing what was necessary to avoid becoming the next target.
These leaders delivered results, but they left dead bodies in their wake. The way they achieved those results was destroying value that the results could never fully replace.
Most leadership teams don't see that distinction until the damage becomes impossible to ignore.
Organizations tend to measure what is easiest to see: revenue generated, projects completed, units shipped and quarterly targets achieved.
How a leader produces those outcomes is harder to quantify, so it is often treated as secondary or ignored until it becomes a crisis. But the cost is real, and it simply doesn't appear as a line item on the P&L.
It shows up as regrettable attrition when high-potential employees leave without saying exactly why. It appears in ideas that never surface because people have learned that challenging the leader is unsafe. It appears in weak succession pipelines, burned-out teams and decisions that bottleneck around one person.
Recent Gallup research makes the hidden cost more visible. Employees who had firsthand knowledge of unethical behavior in their organization were 2.7 times as likely to be actively disengaged, 2.3 times as likely to experience burnout and 70% less likely to feel connected to the company's culture. Leadership behavior is not a soft consideration. It is a business performance variable.
Teams working for toxic high performers don't take ownership because ownership has become personally risky. They execute what they are told, minimize their exposure and wait.
You cannot reverse that dynamic with a culture initiative or refreshed values. You have to address the leader who has made self-protection the most rational behavior on the team.
At Amazon, I worked with a site leader who was hitting his numbers. His vice president saw a strong performer. The feedback from the team was something else: eroded trust, declining morale and a leadership style built on control rather than empowerment.
Read the full article here.