A Dual Approach to Addressing High-Performing Toxic Employees – Coaching & Strategic Analysis

When dealing with a high-performing toxic employee, there is no one-size-fits-all solution. The situation requires a thorough, multifaceted approach that considers both behavioral improvement and strategic financial planning. Our process is designed to explore all available options, ensuring that the best possible outcome is achieved for the company.

We take a dual-path approach, running two parallel tracks to expedite the resolution process:

Road 1: Coaching – Addressing the Core Issue

1. Stakeholder Interviews
The first step in our process is to conduct interviews with key stakeholders within the company. Stakeholders are anyone who directly interacts with or is affected by the employee in question—this could include direct reports, senior leadership, HR, and other relevant team members. The goal of these interviews is to gather comprehensive background information, which helps us better understand the extent of the toxic behavior and its impact on the organization. This information serves as the foundation for the subsequent coaching sessions.

2. Understanding the Employee
High-performing toxic employees are often highly intelligent and excel in their roles, making them difficult to manage using traditional coaching methods. These individuals tend to have complex personalities and motivations, which require a more tailored approach. We do not follow a one-size-fits-all formula—instead, we adopt a dynamic coaching process that evolves with the situation.

At this stage, our goal is to understand whether the toxic behavior is a symptom of deeper issues such as organizational dysfunction, personal stress, or burnout. We also assess whether the employee is open to change and if their behavior can be corrected over time. This phase will help determine if coaching can resolve the issue, or if termination becomes the necessary next step.

3. Coaching Sessions
The primary goal of the coaching sessions is twofold:

  • Diagnosing the Issue: We aim to determine whether the toxic behavior stems from deeper, underlying challenges—whether personal, organizational, or both.

  • Assessing Willingness to Change: We evaluate whether the employee is open to engaging in the process of change and if their toxic behaviors can be corrected over time. If the behavior is deemed fixable, we develop a detailed coaching plan that will continue over several months. If the employee is not receptive to change or the behavior proves unmanageable, termination will be considered.

Road 2: Analysis & Strategy – Preparing for Every Scenario

1. Analysis Phase
While coaching works on the behavior, we also need to assess the financial and operational impact of retaining versus terminating the toxic high performer. This includes several critical components:

  • Contract Review: We review the employee’s contract, as well as any customer or vendor contracts that may be affected by their potential departure. This helps identify enforceability, legal risks, and any potential exit terms.

  • Financial Impact Analysis: We analyze the employee’s direct financial impact on the company, including their revenue generation, cost structure, and any dependencies. We create different financial models to explore best-case, worst-case, and most likely scenarios if the employee stays or leaves.

  • Intangible Impact Assessment: Beyond financial metrics, we consider the employee’s industry knowledge, business relationships, and other intangible assets that could be crucial to the company's operations if they were to leave. This step helps quantify non-obvious impacts that could influence the final decision.

2. Strategy Development
Once the analysis phase is complete, we develop a strategy designed to ensure the company’s financial stability, no matter the outcome. This strategy focuses on:

  • Risk Mitigation: Minimizing any financial or operational risks that could arise if the employee leaves, especially regarding key business relationships and revenue generation.

  • Operational Adjustments: Exploring alternative strategies—such as creative marketing campaigns, cost-cutting measures, or efficiency improvements—to offset the potential negative impacts of losing the employee.

  • Financial Safeguarding: Ensuring that the company’s financial position is secured through backup plans, such as reallocating resources or finding alternative revenue streams.

The Merge: Execution – Determining the Best Outcome

1. For Employees Who Stay
If the employee remains with the company after successful coaching, our support continues to ensure long-term success:

  • Continued Coaching: We provide ongoing check-ins to monitor the employee’s progress and prevent any relapse into toxic behavior. Regular feedback helps the employee maintain the improvements they’ve made.

  • Stakeholder Support: We stay available for additional coaching or support for the stakeholders involved in the process, ensuring continued alignment and resolution.

2. For Employees Who Are Terminated
If termination is the final decision, we continue to assist the company in executing the post-termination strategy:

  • Monitoring Strategy Impact: We conduct weekly check-ins to monitor the recovery strategy and ensure that the company is moving forward with the least amount of disruption.

  • Strategy Adjustments: As market conditions or business needs evolve, we adjust the recovery strategy to ensure that the company remains on track and continues to thrive post-departure.

Additional Considerations:

Clear Communication with Stakeholders: Throughout the process, clear and transparent communication is key. We ensure that a structured communication plan is in place to keep all stakeholders aligned and informed about progress.

  • Early Intervention & Red Flags: We implement tools and systems that help managers and key stakeholders identify early warning signs of toxic behavior, allowing for intervention before the situation escalates.

  • Cost of Inaction: A comprehensive financial analysis not only considers the costs of termination but also the potential costs of inaction—such as lower morale, increased turnover, and long-term damage to the company’s reputation.

  • Employee Support During Transition: Whether the employee stays or leaves, we ensure there’s a support plan in place for them. This could include career coaching or assistance in finding new opportunities if termination is the outcome, preserving the company’s reputation and facilitating a smoother transition.

Conclusion:

Our approach to resolving issues with toxic high-performing employees is built on a foundation of careful analysis and thoughtful intervention. By pursuing both coaching and strategic planning in parallel, we ensure the company’s long-term stability while giving the employee an opportunity to improve. If coaching isn’t sufficient, we’re ready with a well-designed plan for a smooth and productive transition, with ongoing support at every stage.