The Hidden Cost of Leadership Gone Wrong
It usually starts with a knot in the stomach.
A team member hesitates before entering a meeting. Productivity dips. Turnover creeps higher. Innovation disappears. At first, these signs are easy to dismiss. But beneath them lies something more insidious: toxic leadership.
Toxic leaders aren’t always the stereotypical bullies or tyrants. Sometimes, they are high performers cloaked in charm, masters of manipulation, or even beloved visionaries who leave collateral damage in their wake. Their impact? Deep dysfunction, eroded trust, and organisational cultures that struggle to thrive.
In this article, we’ll explore the defining traits of toxic leadership, the subtle ways it shows up, and -most importantly – how leaders can identify and transform these patterns to build psychologically safe, high-performing environments.
What is Toxic Leadership?
Toxic leadership refers to a style that causes harm to individuals and the organisation. While it can manifest in overt behaviours like yelling or micromanagement, it often shows up more covertly – through exclusion, manipulation, lack of empathy, or the subtle abuse of power.
Some common traits of toxic leaders include:
- Disruptive behaviour: Constantly changing direction, undermining others’ work, or stirring up conflict.
- Callousness: Lack of empathy, dismissing concerns, or minimising others’ experiences.
- Manipulation: Gaslighting, favouritism, withholding information, or using praise and criticism to control.
- Self-interest over service: Prioritising personal gain, recognition, or advancement at the expense of the team.
- Blame shifting: Avoiding responsibility and scapegoating others when things go wrong.
These behaviours are often justified under the guise of “high standards” or “strong leadership,” making them difficult to challenge. And yet, the emotional toll is undeniable.
Story: The High-Performer Who Poisoned the Culture
A few years ago, I was called in to work with a department that had lost five key people in under six months. On paper, the leader was a star: sharp, ambitious, driven. He delivered results. But dig deeper, and a different story emerged.
His team described a climate of fear. Staff were praised in private but undermined in public. Mistakes were weaponised. Loyalty was rewarded, dissent punished. Innovation had vanished – no one dared to try anything new.
The executive team knew something was off, but were hesitant to act. “He gets results,” they said. “He’s just intense.”
It took several exit interviews and one courageous whistleblower to force a reckoning.
The lesson? Competence doesn’t cancel out toxicity. And left unaddressed, toxic leadership costs more than any one high-performer can deliver.
The Ripple Effect of Toxic Leadership
Toxic leaders don’t just impact individuals. Their behaviours ripple out to affect:
- Team performance: Fear-based environments kill creativity, collaboration, and initiative.
- Employee wellbeing: Burnout, anxiety, presenteeism, and mental health challenges spike.
- Retention and recruitment: Word gets around. Talented people leave or avoid joining.
- Organisational reputation: Toxic cultures affect customer experience, brand perception, and stakeholder trust.
Worse, toxicity is contagious. Team members may adopt similar behaviours to survive, perpetuating a cycle that erodes the very fabric of culture.
Why Good Leaders Go Toxic (and Don’t See It)
Few leaders set out to become toxic. More often, it’s a slow erosion driven by:
- Stress and pressure: Chronic overload narrows perspective, reduces empathy, and fuels control-based behaviour.
- Poor role models: Leaders often mirror what they’ve seen rewarded in past environments.
- Lack of feedback: Power can insulate leaders from honest feedback, leaving blind spots to fester.
- Unconscious bias and emotional reactivity: Triggers and stress responses can drive poor behaviour without conscious intent.
Spotting the Subtle Signs
Toxic leadership is often most visible through its impact, not its intent. Watch for these early warning signs:
- High turnover or internal transfers
- Low engagement or morale
- Gossip, fear, or siloed communication
- Frequent absenteeism or presenteeism
- Innovation droughts and decision paralysis
Also, notice what isn’t being said. In psychologically unsafe teams, people stay quiet.
From Toxic to Transformational: Leadership Detox Strategies
If you’ve recognised elements of toxic leadership in your organisation – or even in yourself – take heart. Transformation is possible. Here’s how:
- Name It Without Shame
It takes courage to say, “Something isn’t right here.” Use feedback mechanisms, engagement surveys, and anonymous input to create a mirror. Avoid blame – focus on patterns and impact.
- Build Psychological Safety
Create an environment where people can speak up without fear. Encourage feedback, admit mistakes, and model vulnerability. Safety breeds truth.
- Invest in Self-Awareness
Support leaders to explore their patterns, blind spots, and emotional triggers through coaching, 360-degree feedback, or tools like the LSI, MBTI, or the Women’s Leader Archetypes.
- Set Behavioural Standards
Clarify what “great leadership” looks like, not just in outcomes but in behaviours. Make values and expectations visible and measurable.
- Hold Compassionate Accountability
Support development, but don’t shy away from consequences. Letting toxic behaviours slide, especially from top performers, signals that results matter more than people.
- Embed Culture Healing
Recovery takes time. Offer training, rebuild trust, and create space for collective healing. Rituals like team resets, storytelling sessions, or shared commitments can help.
A Personal Reflection Prompt for Leaders
If you’re a leader reading this, pause and ask:
What’s it like to be on the other side of me?
This powerful question, used in coaching, invites deep introspection. Leadership isn’t just about your intent – it’s about your impact.
Final Thoughts: Leading Beyond the Shadows
Toxic leadership isn’t always obvious. It hides behind KPIs, charisma, and busyness. But its cost is steep. And its antidote lies in conscious, courageous, compassionate leadership.
In our work at Shaping Change, we often support organisations in surfacing and shifting the unconscious patterns that shape culture. Whether through leadership development, diagnostic tools, or coaching, we help leaders evolve – because better leadership doesn’t just improve performance. It changes lives.
If this article resonated with you, you’re not alone. You may already be thinking of a leader who needs this message – or wondering what legacy your own leadership is leaving behind.
That’s a conversation worth having.
Curious to explore how your leadership is impacting your culture? Let’s talk. Book a free discovery call here.