Cultural problems can start anywhere. They can begin on the front line, with employees in the field. They can show up in middle management. Or they can emerge at the very top.

But here’s the key: wherever the problem starts, if it persists, it’s because leadership allows it. If top management ignores, tolerates, or even models bad behavior, it spreads. That’s why culture issues ultimately come back to leadership.

In my work with companies, I see two recurring patterns:

1. Leaders are unaware they’re the problem.

2. Leaders are aware of the problem, but afraid to lose top performers—the toxic ones.

That’s the danger zone. If leadership doesn’t see or doesn’t react, cultural problems become systemic.

Why does this problem matter for new managers and their teams?

Because culture is a multiplier. Good culture amplifies performance. Bad culture corrodes it.

• If leaders say one thing but do another, people see it. Trust dies.

• If toxic high performers are tolerated, the wrong standard is set. People start to believe that how you achieve results doesn’t matter—only the numbers do.

But let’s face the fact: respect without results is meaningless. Results matter. Always. The point is that results and respect are not separate categories—they’re part of the same performance equation.

Results are made of two elements: the hard numbers and the way those numbers are achieved. Good results cannot come at the expense of bad relationships, disrespect, or toxic behavior. When they do, the cost eventually outweighs the gain.

For new managers, this is especially dangerous. You’re shaping your reputation. If you ignore culture, you’ll spend your energy putting out fires later—and by then, you’ll have lost credibility.

🔍 Studies show how damaging tolerating toxicity can be:

• Harvard Business School found that one toxic employee can drag down team performance by up to 40% (Housman & Minor, 2015).

• Harvard Business Review warned leaders to “stop rewarding toxic rock stars” because the long-term cultural and financial damage outweighs any short-term results (Purushothaman & Stromberg, 2022).

• SHRM reported in 2024 that toxic employees reduce productivity, increase turnover, and poison collaboration across departments (SHRM, 2024).

What does this look like in practice?

My biggest mistake

I once ignored the bad behavior of a top performer. Why? Fear. Fear of losing the person who “checked all the boxes.” Fear of how tough it would be to replace them.

But everyone else saw it. People from other departments came to my office to warn me about this person’s behavior. And when it reaches that stage—it’s already too late.

At first, when I raised the issue with the management board, they dismissed it. In hindsight, I understood why: they were modeling the same behaviors themselves. I found myself stuck. I wanted certain standards, but the very top didn’t see the problem the way I saw it. And here’s the hard truth: without top management’s backing, you can only go so far.

Eventually, when the full extent of this person’s behavior came to light, I finally got support and let this person go.

The new manager dilemma

This creates another dilemma for new managers: if you want to instill values and standards, but your team sees that top management doesn’t care, you’re in trouble. Not just because you’re trying from the bottom up, but also because you’re new. Culture is “there,” it’s sticky, and if senior leaders are fine with the status quo, you won’t push through after a few weeks or months. The resistance will crush your effort.

The culture garden problem

I’ve also seen this play out another way. A company brought in a new manager at first-line level. The team embraced them, followed their vision, and started living the new culture. Inside their team, it worked.

But whenever they had to interact with other departments, the reality hit: the wider culture hadn’t changed. Their team felt like a small garden inside a desert. Motivated internally, but drained every time they stepped outside.

Without alignment across the company, even the best pockets of culture feel like swimming upstream.

The temporary dip

That experience taught me this: as a new manager, you can set clear standards in your own team. You can make an example. But a full cultural turnaround from the bottom up? I haven’t seen it succeed.

For change to last, the environment has to allow it. If senior leaders are the wall you keep hitting, your willpower will eventually run out.

And there’s another important lesson: every significant change creates a temporary dip. At first, some people embrace the change, some adapt reluctantly, and others resist outright. The climate feels shaken. Results may dip because a few people disengage, leave, or start underperforming in protest.

But if you stay the course, the payoff is worth it. Over time, you attract people who are not just skilled but also a cultural fit. Then results, trust, and relationships grow almost exponentially.

How can new managers solve this challenge?

Start at the top. Leadership doesn’t cause every cultural problem, but leadership is always responsible for fixing them. If senior leaders tolerate or model poor behavior, cultural change won’t stick.

Here are four practical steps:

1. Audit the culture at the top

• Look at what leaders do, not what they say.

• Ask: what behaviors are rewarded, what’s ignored, what’s punished?

• If a toxic star is constantly rewarded while respectful team players are overlooked, that’s your red flag (SHRM, 2024).

2. Apply my HOUSE™ model

Like a house, culture needs a solid foundation of clarity, walls built from focused action and communication, and a roof that represents results. If the foundation is cracked, no amount of “team building” will hold.

Even if you’re a new manager, you can’t shy away from this. Be proactive. If you notice toxic behavior or something that doesn’t align with the company’s values, don’t just hope it will fix itself.

First, address it in your own team. If that doesn’t work, raise it with your superiors. A new manager who communicates observations early shows courage and builds credibility.

3. Care & Dare conversations

This is a very powerful way to communicate and lead. Care means showing genuine respect and valuing the person. Dare means being willing to challenge and confront toxic behavior directly.

Why is this important? Because if you only care, you avoid conflict and let problems grow. If you only dare, you risk coming across as harsh or unfair. Balance is key: people must feel respected while also being held accountable (Batchelor & Whelpley, 2023).

4. Redefine “top performance”

Top performance isn’t just about numbers. It’s numbers plus behavior. A so-called high performer who hits targets but destroys trust is not truly high performing. Redefine performance in your team to include both results and cultural impact: How do they achieve their results, and what effect do they have on others? This shift sends a clear signal about what the company values (HBR, 2022).

And remember—very few top performers stay on top forever. Everyone faces performance issues sooner or later. If that person is toxic, when their numbers drop, you’re left with an average performer who has already damaged the culture.

Should new managers address culture even if they’re not “at the top”?

Yes. You can’t fix the whole company alone, but you can set clear standards in your team.

How do I know if someone is a toxic high performer?

Look beyond results. If they undermine trust, collaboration, or respect, they’re toxic (SHRM, 2024).

Isn’t removing toxic top performers risky?

Short-term, yes. Long-term, you win. A healthy culture will attract and grow sustainable high performance (HBR, 2022).

What if senior leadership ignores culture?

That’s a red flag. You can protect your team, but consider if this is the right environment for your growth (Tandfonline, 2024).

Final thoughts

Culture problems can start anywhere. But if they persist, it’s because leadership allows them to. That’s why leadership is always ultimately responsible.

If you want lasting change, audit leadership behavior first. Be brutally honest. Then apply clarity, the HOUSE^TM model, and Care & Dare conversations.

And when the change feels shaky—remember the temporary dip. Push through it, because the long-term payoff is worth it.

👉 Want to learn more about my HOUSE™ model to help you with the culture in your team? Join my free workshop (click the link below)

References

• Housman, M., & Minor, D. (2015). Toxic workers (Harvard Business School Working Paper No. 16-057). Harvard Business School. https://www.hbs.edu/ris/Publication%20Files/16-057_d45c0b4f-fa19-49de-8f1b-4b12fe054fea.pdf

• Purushothaman, D., & Stromberg, M. (2022). Leaders, Stop Rewarding Toxic Rock Stars. Harvard Business Review. https://hbr.org/2022/04/leaders-stop-rewarding-toxic-rock-stars

• Society for Human Resource Management (SHRM). (2024). Managing Toxic Employees. SHRM. https://www.shrm.org/topics-tools/news/hr-magazine/managing-toxic-employees

• Batchelor, J., & Whelpley, C. (2023). Toxic Leadership, Destructive Leadership, and Identity Leadership. Business Ethics and Leadership, 7(2), 137–147. https://armgpublishing.com/wp-content/uploads/2023/07/BEL_2_2023_12.pdf

• Tandfonline (2024). Dark clouds of leadership: causes and consequences. The International Journal of Organizational Analysis. https://www.tandfonline.com/doi/full/10.1080/00208825.2024.2442185