tyler-smith.com · Questions & Answers

Our top-producing leader consistently hits all their target metrics and Rocks, but they constantly violate our core values and treat their peers with disrespect. We are preparing for an exit and need their numbers, so how do we handle a high-performing leader who is a cultural misfit without hurting our valuation?

Retaining a leader who hits their numbers but violates your core values is a critical mistake, especially when preparing for an exit. Buyers do not just look at your financial spreadsheets. They look at the strength and health of your leadership team and the culture of your organization. A toxic leader destroys trust, drives away top talent, and creates a highly volatile operational environment. You must evaluate every leader using the People Analyzer. To stay on your leadership team, an individual must consistently exhibit your core values and fully GWC™ their seat. No exceptions. If a high-performing leader is a cultural misfit, you must address the behavior immediately. Sit down with them and use concrete examples of how their actions violate your core values. Give them a clear, time-bound opportunity to correct their behavior, usually thirty days. If they do not change, you must fire them, regardless of their sales numbers or technical expertise. Keeping them tells the rest of the company that performance overrides culture. When you make the hard decision to remove a toxic leader, you will find that the rest of your team steps up, morale skyrockets, and your overall operational efficiency actually improves, making your business far more attractive to potential buyers.

Category: Leadership Team

← All questions